(Mark One) | ||
o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
Or | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, | ||
Or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to | ||
Or | ||
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
REED ELSEVIER PLC | ||
(Exact name of Registrant as specified in its charter) | ||
England | ||
(Jurisdiction of incorporation or organisation) | ||
1-3 Strand, London, WC2N 5JR, England | ||
(Address of principal executive offices) | ||
Stephen Cowden Company Secretary Reed Elsevier PLC 1-3 Strand, London, WC2N 5JR, England 011 44 20 7166 5681 steve.cowden@reedelsevier.com (Name, telephone, e-mail and/or facsimile number and address of Company Contact Person) | (Exact name of Registrant as specified in its charter) The Netherlands (Jurisdiction of incorporation or organisation) Radarweg 29, 1043 NX, Amsterdam, The Netherlands (Address of principal executive offices) Jans van der Woude Company Secretary Reed Elsevier NV Radarweg 29, 1043 NX, Amsterdam, The Netherlands 011 31 20 485 (Name, telephone, e-mail and/or facsimile number and address of Company Contact Person) |
Name of exchange on which | ||
Title of each class | registered | |
Reed Elsevier PLC: | ||
American Depositary Shares (each representing four Reed Elsevier PLC ordinary shares) | New York Stock Exchange | |
Ordinary shares of (the “Reed Elsevier PLC ordinary shares”) | New York Stock Exchange* | |
Reed Elsevier NV: | ||
American Depositary Shares (each representing two Reed Elsevier NV ordinary shares) | New York Stock Exchange | |
Ordinary shares of (the “Reed Elsevier NV ordinary shares”) | New York Stock Exchange* |
* | Listed, not for trading, but only in connection with the listing of the applicable Registrant’s American Depositary Shares issued in respect thereof. |
Reed Elsevier PLC: | Number of outstanding shares |
Ordinary shares of | ||
Reed Elsevier NV: | ||
Ordinary shares of | ||
R-shares of |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o |
Page | ||||||||
ITEM 13: | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES | N/A | ||||||
ITEM 14: | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | N/A | ||||||
CONTROLS AND PROCEDURES | ||||||||
AUDIT COMMITTEE FINANCIAL EXPERT | ||||||||
CODES OF ETHICS | ||||||||
PRINCIPAL ACCOUNTANT FEES AND SERVICES | ||||||||
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES | ||||||||
PURCHASES OF EQUITY SECURITIES BY THE ISSUERS AND AFFILIATED PURCHASERS | ||||||||
FINANCIAL STATEMENTS* | ||||||||
FINANCIAL STATEMENTS | F-1 | |||||||
EXHIBITS | ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
1
• | financial condition; | |
• | results of operations; | |
• | competitive positions; | |
• | the features and functions of and markets for the products and services we offer; and | |
• | our business plans and strategies. |
• | ||
• | competitive factors in the industries in which we operate; | |
• | demand for our products and services; | |
• | ||
• | legislative, fiscal and | |
• | changes in | |
• | breaches of our data security systems or other unauthorised access to our databases; | |
• | our ability to maintain high quality management; | |
• | ||
• | ||
• | ||
• | failure of third parties to whom we have outsourced business activities; | |
• | changes in the seasonal and cyclical nature of the markets for our products and services; | |
• | ||
• | ||
• | downgrades to the credit ratings of our long term debt; | |
• | disruption to our business or markets arising from natural disasters, international security or public health concerns and acts of terrorism or war; | |
• | other risks referenced from time to time in the filings of Reed Elsevier PLC and Reed Elsevier NV with the Securities and Exchange Commission (the “SEC”). |
2
As at December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||
2007(2) | 2007 | 2006 | 2005 | 2004 | 2008(2) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||||||||
Amounts in accordance with IFRS: | ||||||||||||||||||||||||||||||||||||||||||||
Revenue from continuing operations | $ | 9,168 | £4,584 | £4,509 | £4,265 | £3,944 | $ | 7,734 | £5,334 | £4,584 | £4,509 | £4,265 | £3,944 | |||||||||||||||||||||||||||||||
Operating profit from continuing operations(3) | 1,776 | 888 | 837 | 752 | 699 | 1,306 | 901 | 888 | 837 | 752 | 699 | |||||||||||||||||||||||||||||||||
Net finance costs | (278 | ) | (139 | ) | (158 | ) | (140 | ) | (132 | ) | (278 | ) | (192 | ) | (139 | ) | (158 | ) | (140 | ) | (132 | ) | ||||||||||||||||||||||
Disposals and other non operating items(4) | 126 | 63 | (1 | ) | 2 | (3 | ) | (133 | ) | (92 | ) | 63 | (1 | ) | 2 | (3 | ) | |||||||||||||||||||||||||||
Profit before tax from continuing operations | 1,624 | 812 | 678 | 614 | 564 | 895 | 617 | 812 | 678 | 614 | 564 | |||||||||||||||||||||||||||||||||
Taxation in continuing operations(5) | 164 | 82 | (86 | ) | (219 | ) | (156 | ) | (225 | ) | (155 | ) | 82 | (86 | ) | (219 | ) | (156 | ) | |||||||||||||||||||||||||
Profit from discontinued operations(6) | 618 | 309 | 33 | 69 | 53 | 26 | 18 | 309 | 33 | 69 | 53 | |||||||||||||||||||||||||||||||||
Minority interests | (6 | ) | (3 | ) | (2 | ) | (2 | ) | (2 | ) | (6 | ) | (4 | ) | (3 | ) | (2 | ) | (2 | ) | (2 | ) | ||||||||||||||||||||||
Profit attributable to parent companies’ shareholders | 2,400 | 1,200 | 623 | 462 | 459 | 690 | 476 | 1,200 | 623 | 462 | 459 | |||||||||||||||||||||||||||||||||
As at December 31, | As at December 31, | |||||||||||||||||||||||||||||||||||||||||||
2007(2) | 2007 | 2006 | 2005 | 2004 | 2008(2) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||||||||
Amounts in accordance with IFRS: | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 19,556 | £9,778 | £8,532 | £9,127 | £7,952 | $ | 18,656 | £12,866 | £9,778 | £8,532 | £9,127 | £7,952 | |||||||||||||||||||||||||||||||
Long term obligations less current portion | (4,004 | ) | (2,002 | ) | (2,085 | ) | (2,264 | ) | (1,706 | ) | (8,256 | ) | (5,694 | ) | (2,002 | ) | (2,085 | ) | (2,264 | ) | (1,706 | ) | ||||||||||||||||||||||
Minority interests | (22 | ) | (11 | ) | (13 | ) | (15 | ) | (13 | ) | (41 | ) | (28 | ) | (11 | ) | (13 | ) | (15 | ) | (13 | ) | ||||||||||||||||||||||
Combined shareholders’ equity | 5,930 | 2,965 | 1,966 | 1,970 | 1,664 | 1,382 | 953 | 2,965 | 1,966 | 1,970 | 1,664 |
(1) | The combined financial statements are prepared in accordance with accounting policies that are in conformity with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”) and IFRS as issued by the International Accounting Standards Board (“IASB”). | |
(2) | Noon buying rates as at December 31, | |
(3) | Operating profit from continuing operations is stated after charging |
3
(4) | Disposals and other non operating items comprise a |
3
(5) | Taxation in continuing operations in 2007 includes credits of £223 million in respect of previously unrecognised deferred tax assets and capital losses that have been realised as a result of the disposal of discontinued operations. Taxation in continuing operations in 2006 includes credits of £65 million in respect of prior period disposals. | |
(6) |
As at December 31, | As at December 31, | |||||||||||||||||||||||||||||||||||||||||||
2007(3) | 2007 | 2006 | 2005 | 2004 | 2008(3) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | (in millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||
Amounts in accordance with IFRS:(1) | ||||||||||||||||||||||||||||||||||||||||||||
Profit before tax(2) | $1,286 | £643 | £328 | £242 | £240 | $358 | £247 | £643 | £328 | £242 | £240 | |||||||||||||||||||||||||||||||||
Taxation | (38 | ) | (19 | ) | (8 | ) | (7 | ) | (5 | ) | (9 | ) | (6 | ) | (19 | ) | (8 | ) | (7 | ) | (5 | ) | ||||||||||||||||||||||
Profit attributable to ordinary shareholders | 1,248 | 624 | 320 | 235 | 235 | 349 | 241 | 624 | 320 | 235 | 235 | |||||||||||||||||||||||||||||||||
Earnings per Reed Elsevier PLC ordinary share from total operations of the combined businesses | 99.4 | ¢ | 49.7 | p | 25.6 | p | 18.6 | p | 18.6 | p | 32.0 | ¢ | 22.1 | p | 49.7 | p | 25.6 | p | 18.6 | p | 18.6 | p | ||||||||||||||||||||||
Earnings per Reed Elsevier PLC ordinary share from continuing operations of the combined businesses | 73.2 | ¢ | 36.6 | p | 24.1 | p | 15.7 | p | 16.4 | p | 30.7 | ¢ | 21.2 | p | 36.6 | p | 24.1 | p | 15.7 | p | 16.4 | p | ||||||||||||||||||||||
Dividends per Reed Elsevier PLC ordinary share | 32.6 | ¢ | 16.3 | p | 14.8 | p | 13.3 | p | 12.1 | p | $1.46 | 100.9 | p | 16.3 | p | 14.8 | p | 13.3 | p | 12.1 | p | |||||||||||||||||||||||
Total assets | $3,168 | £1,584 | £1,090 | £1,090 | £929 | $747 | £515 | £1,584 | £1,090 | £1,090 | £929 | |||||||||||||||||||||||||||||||||
Long term obligations | — | — | — | (36 | ) | (36 | ) | — | — | — | — | (36 | ) | (36 | ) | |||||||||||||||||||||||||||||
Total equity/Net assets | 3,136 | 1,568 | 1,040 | 1,042 | 880 | 731 | 504 | 1,568 | 1,040 | 1,042 | 880 | |||||||||||||||||||||||||||||||||
Weighted average number of shares | 1,256.5 | 1,256.5 | 1,251.9 | 1,266.2 | 1,264.6 | 1,089.5 | 1,089.5 | 1,256.5 | 1,251.9 | 1,266.2 | 1,264.6 |
(1) | The consolidated financial statements of Reed Elsevier PLC are prepared in accordance with accounting policies that are in conformity with IFRS as adopted by the EU and IFRS as issued by the IASB. | |
(2) | Profit before tax includes Reed Elsevier PLC’s share of the post-tax earnings of joint ventures, being both the continuing and discontinued operations of the Reed Elsevier combined businesses. Profit before tax includes Reed Elsevier PLC’s £10 million share of joint ventures’ post-tax gain on disposal of Harcourt Assessment (2007: £122 million post-tax net gain on disposal of the Harcourt Education US K-12 Schools and International businesses). | |
(3) | Noon buying rates as at December 31, | |
(4) | ||
The amount of dividends per Reed Elsevier PLC ordinary share shown excludes the UK tax credit available to certain Reed Elsevier PLC shareholders, including beneficial owners of Reed Elsevier PLC ADSs who are residents of the United States for the purposes of the UK Tax Treaty, and do not include any deduction on account of UK withholding taxes, currently at the rate of 15% of the sum of the dividend and the related tax credit in most cases; see “Item 10: Additional Information — Taxation”. | ||
Dividends declared in the year, in amounts per ordinary share, comprise a | ||
Dividends per Reed Elsevier PLC ordinary share for the year ended December 31, |
4
Weighted average number of shares excludes shares held in treasury and shares held by the Reed Elsevier Group plc Employee Benefit Trust. On January 7, 2008 the existing ordinary shares were consolidated into new ordinary shares on the basis of 58 new ordinary shares for every 67 existing ordinary shares. For the purposes of calculating earnings per share, the effective date of the share consolidation is deemed to be January 18, 2008, being the date on which the accompanying special distribution was paid. |
4
As at December 31, | As at December 31, | |||||||||||||||||||||||||||||||||||||||||
2007(3) | 2007 | 2006 | 2005 | 2004 | 2008(3) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | (in millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||
Amounts in accordance with IFRS:(1) | ||||||||||||||||||||||||||||||||||||||||||
Profit before tax(2) | $1,283 | €873 | €459 | €338 | €338 | $441 | €313 | €873 | €459 | €338 | €338 | |||||||||||||||||||||||||||||||
Taxation | (26 | ) | (18 | ) | (1 | ) | — | — | (27 | ) | (19 | ) | (18 | ) | (1 | ) | — | — | ||||||||||||||||||||||||
Profit attributable to ordinary shareholders | 1,257 | 855 | 458 | 338 | 338 | 414 | 294 | 855 | 458 | 338 | 338 | |||||||||||||||||||||||||||||||
Earnings per Reed Elsevier NV ordinary share from total operations of the combined businesses | $1.62 | €1.10 | €0.59 | €0.43 | €0.43 | $0.62 | €0.44 | €1.10 | €0.59 | €0.43 | €0.43 | |||||||||||||||||||||||||||||||
Earnings per Reed Elsevier NV ordinary share from continuing operations of the combined businesses | $1.23 | €0.84 | €0.56 | €0.37 | €0.38 | $0.61 | €0.43 | €0.84 | €0.56 | €0.37 | €0.38 | |||||||||||||||||||||||||||||||
Dividends per Reed Elsevier NV ordinary share | 61.4 | ¢ | €0.418 | €0.369 | €0.332 | €0.310 | $3.09 | €2.192 | €0.418 | €0.369 | €0.332 | €0.310 | ||||||||||||||||||||||||||||||
Total assets | $3,071 | €2,089 | €1,537 | €1,510 | €1,245 | $799 | €567 | €2,089 | €1,537 | €1,510 | €1,245 | |||||||||||||||||||||||||||||||
Total equity/Net assets | 2,964 | 2,016 | 1,465 | 1,438 | 1,173 | 692 | 491 | 2,016 | 1,465 | 1,438 | 1,173 | |||||||||||||||||||||||||||||||
Weighted average number of shares | 774.9 | 774.9 | 772.1 | 783.1 | 783.3 | 669.0 | 669.0 | 774.9 | 772.1 | 783.1 | 783.3 |
(1) | The consolidated financial statements of Reed Elsevier NV are prepared in accordance with accounting policies that are in conformity with IFRS as adopted by the EU and IFRS as issued by the IASB. | |
(2) | Profit before tax includes Reed Elsevier NV’s share of post-tax earnings of joint ventures, being both the continuing and discontinued operations of the Reed Elsevier combined businesses. Profit before tax includes Reed Elsevier NV’s €5 million share of joint ventures’ post-tax gain on disposal of Harcourt Assessment (2007: €147 million post-tax gains on disposal of the Harcourt Education US K-12 Schools and International businesses). | |
(3) | Noon buying rates as at December 31, | |
(4) | ||
Dividends declared in the year, |
Dividends per Reed Elsevier NV ordinary share for the year ended December 31, 2007 translated into cents at the noon buying rate on December 31, 2007 were 61.4 cents. See “— Exchange Rates” on page 6. | ||
(5) | Weighted average number of shares excludes shares held in treasury and shares held by the Reed Elsevier Group plc Employee Benefit Trust. On January 7, 2008 the existing ordinary shares were consolidated into new ordinary shares on the basis of 58 new ordinary shares for every 67 existing ordinary shares. For the purposes of calculating earnings per share, the effective date of the share consolidation is deemed to be January 18, 2008, being the date on which the accompanying special distribution was paid. |
5
Period | Period | |||||||||||||||||||||||||||
Year ended December 31, | End | Average(1) | High | Low | End | Average(1) | High | Low | ||||||||||||||||||||
2008 | 1.45 | 1.85 | 2.03 | 1.44 | ||||||||||||||||||||||||
2007 | 2.00 | 2.00 | 2.11 | 1.92 | 2.00 | 2.00 | 2.11 | 1.92 | ||||||||||||||||||||
2006 | 1.96 | 1.85 | 1.98 | 1.73 | 1.96 | 1.85 | 1.98 | 1.73 | ||||||||||||||||||||
2005 | 1.73 | 1.82 | 1.93 | 1.71 | 1.73 | 1.82 | 1.93 | 1.71 | ||||||||||||||||||||
2004 | 1.93 | 1.83 | 1.95 | 1.75 | 1.93 | 1.83 | 1.95 | 1.75 | ||||||||||||||||||||
2003 | 1.78 | 1.64 | 1.78 | 1.55 |
Month | High | Low | ||||
February 2008 (through February 20, 2008) | 1.98 | 1.94 | ||||
January 2008 | 1.99 | 1.95 | ||||
December 2007 | 2.07 | 1.97 | ||||
November 2007 | 2.11 | 2.05 | ||||
October 2007 | 2.08 | 2.03 | ||||
September 2007 | 2.04 | 1.99 | ||||
August 2007 | 2.04 | 1.98 |
Month | High | Low | ||||||
February 2009 (through February 18, 2009) | 1.49 | 1.42 | ||||||
January 2009 | 1.53 | 1.37 | ||||||
December 2008 | 1.55 | 1.44 | ||||||
November 2008 | 1.62 | 1.48 | ||||||
October 2008 | 1.78 | 1.55 | ||||||
September 2008 | 1.86 | 1.75 | ||||||
August 2008 | 1.97 | 1.82 |
Period | Period | |||||||||||||||||||||||||||
Year ended December 31, | End | Average(1) | High | Low | End | Average(1) | High | Low | ||||||||||||||||||||
2008 | 1.41 | 1.47 | 1.60 | 1.24 | ||||||||||||||||||||||||
2007 | 1.47 | 1.37 | 1.49 | 1.29 | 1.47 | 1.37 | 1.49 | 1.29 | ||||||||||||||||||||
2006 | 1.32 | 1.26 | 1.33 | 1.18 | 1.32 | 1.26 | 1.33 | 1.18 | ||||||||||||||||||||
2005 | 1.18 | 1.24 | 1.37 | 1.17 | 1.18 | 1.24 | 1.37 | 1.17 | ||||||||||||||||||||
2004 | 1.37 | 1.24 | 1.36 | 1.18 | 1.37 | 1.24 | 1.36 | 1.18 | ||||||||||||||||||||
2003 | 1.26 | 1.13 | 1.26 | 1.04 |
Month | High | Low | ||||
February 2008 (through February 20, 2008) | 1.49 | 1.45 | ||||
January 2008 | 1.49 | 1.46 | ||||
December 2007 | 1.48 | 1.43 | ||||
November 2007 | 1.49 | 1.44 | ||||
October 2007 | 1.45 | 1.41 | ||||
September 2007 | 1.42 | 1.36 | ||||
August 2007 | 1.38 | 1.34 |
Month | High | Low | ||||||
February 2009 (through February 18, 2009) | 1.31 | 1.25 | ||||||
January 2009 | 1.39 | 1.28 | ||||||
December 2008 | 1.44 | 1.26 | ||||||
November 2008 | 1.30 | 1.25 | ||||||
October 2008 | 1.41 | 1.24 | ||||||
September 2008 | 1.47 | 1.39 | ||||||
August 2008 | 1.56 | 1.47 |
(1) | The average of the Noon Buying Rates on the last day of each month during the relevant period. |
6
7
7
8
89
910
1011
1112
Revenue from continuing operations(1) | Revenue from continuing operations(1) | ||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||
Elsevier | £ | 1,507 | 33 | % | £ | 1,521 | 34 | % | £ | 1,436 | 34 | % | £ | 1,700 | 32 | % | £ | 1,507 | 33 | % | £ | 1,521 | 34 | % | |||||||||||||||||||||
LexisNexis | 1,594 | 35 | 1,570 | 35 | 1,466 | 34 | 1,940 | 36 | 1,594 | 35 | 1,570 | 35 | |||||||||||||||||||||||||||||||||
Reed Business | 1,483 | 32 | 1,418 | 31 | 1,363 | 32 | |||||||||||||||||||||||||||||||||||||||
Reed Exhibitions | 707 | 13 | 577 | 12 | 522 | 11 | |||||||||||||||||||||||||||||||||||||||
Reed Business Information | 987 | 19 | 906 | 20 | 896 | 20 | |||||||||||||||||||||||||||||||||||||||
Total | £ | 4,584 | 100 | % | £ | 4,509 | 100 | % | £ | 4,265 | 100 | % | £ | 5,334 | 100 | % | £ | 4,584 | 100 | % | £ | 4,509 | 100 | % | |||||||||||||||||||||
(1) | Following announcement in February 2007 of the planned sale of Harcourt Education, the division is presented in the financial statements as a discontinued operation and is excluded from the above analysis. On December 10, 2008 Reed Elsevier announced the termination of discussions to sell Reed Business Information (RBI) as it was judged not possible to structure a transaction on acceptable terms at that time. RBI has therefore been presented as a continuing operation of the combined businesses in the current and prior periods. RBI and Reed Exhibitions, previously presented together as the Reed Business segment, are now managed as separate divisions and are presented as separate business segments. |
1213
Year ended December 31, | Year ended December 31, | |||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||
(in millions) | (in millions) | |||||||||||
Revenue | ||||||||||||
Elsevier | ||||||||||||
Science & Technology | £774 | £792 | £785 | £848 | £774 | £792 | ||||||
Health Sciences | 733 | 729 | 651 | £852 | 733 | 729 | ||||||
£1,507 | £1,521 | £1,436 | £1,700 | £1,507 | £1,521 | |||||||
1314
1415
Year ended December 31, | Year ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Revenue | |||||||||||||||||||||
LexisNexis | |||||||||||||||||||||
United States | £ | 1,113 | £ | 1,129 | £ | 1,061 | £ | 1,395 | £ | 1,113 | £ | 1,129 | |||||||||
International | 481 | 441 | 405 | 545 | 481 | 441 | |||||||||||||||
£ | 1,594 | £ | 1,570 | £ | 1,466 | £ | 1,940 | £ | 1,594 | £ | 1,570 | ||||||||||
1516
Year ended December 31, | ||||||
2007 | 2006 | 2005 | ||||
(in millions) | ||||||
Revenue | ||||||
Reed Business Information | £906 | £896 | £892 | |||
Reed Exhibitions | 577 | 522 | 471 | |||
£1,483 | £1,418 | £1,363 | ||||
Year ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(in millions) | ||||||||||||
Revenue | £ | 707 | £ | 577 | £ | 522 | ||||||
16
17
17
Year ended December 31, | ||||||
2008 | 2007 | 2006 | ||||
(in millions) | ||||||
Revenue | ||||||
RBI UK | £306 | £294 | £281 | |||
RBI US | 288 | 278 | 299 | |||
RBI NL | 202 | 181 | 178 | |||
RBI International | 191 | 153 | 138 | |||
£987 | £906 | £896 | ||||
18
19
Year ended December 31, | Year ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Revenue | |||||||||||||||||||||
Harcourt Education | |||||||||||||||||||||
US Schools and Testing | £ | 708 | £ | 776 | £ | 785 | £ | 12 | £ | 708 | £ | 776 | |||||||||
International | 44 | 113 | 116 | — | 44 | 113 | |||||||||||||||
£ | 752 | £ | 889 | £ | 901 | £ | 12 | £ | 752 | £ | 889 | ||||||||||
1820
Floor space | ||||||
Location | Business segment(s) | Principal use(s) | (square feet) | |||
Owned properties | ||||||
Alpharetta, Georgia | LexisNexis | Office and data centre | 406,000 | |||
Miamisburg, Ohio | LexisNexis | Office | 403,638 | |||
Linn, Missouri | Elsevier | Warehouse | 236,105 | |||
Albany, New York | LexisNexis | Office | 194,780 | |||
Oak Brook, Illinois | Reed Business Information and LexisNexis | Office | 181,659 | |||
Colorado Springs, Colorado | LexisNexis | Office | 181,197 | |||
Binghamton, New York | LexisNexis | Office and warehouse | 162,000 | |||
Leased properties | ||||||
New York, New York | Reed Business Information and Elsevier | Office | 451,800 | |||
Amsterdam, Netherlands | Reed Business Information and Elsevier | Office | 429,308 | |||
Miamisburg, Ohio | LexisNexis and Elsevier | Office and data centre | 213,802 | |||
Sutton, England | Reed Business Information | Office | 191,960 | |||
1921
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||
Subscriptions | £ | 2,079 | 46 | % | £ | 2,083 | 46 | % | £ | 1,926 | 45 | % | £ | 2,381 | 45 | % | £ | 2,079 | 46 | % | £ | 2,083 | 46 | % | |||||||||||||||||||||
Circulation | 916 | 20 | 894 | 20 | 876 | 20 | 1,142 | 21 | 916 | 20 | 894 | 20 | |||||||||||||||||||||||||||||||||
Advertising | 699 | 15 | 697 | 16 | 668 | 16 | 737 | 14 | 699 | 15 | 697 | 16 | |||||||||||||||||||||||||||||||||
Exhibition fees | 569 | 12 | 516 | 11 | 479 | 11 | 702 | 13 | 569 | 12 | 516 | 11 | |||||||||||||||||||||||||||||||||
Other | 321 | 7 | 319 | 7 | 316 | 8 | 372 | 7 | 321 | 7 | 319 | 7 | |||||||||||||||||||||||||||||||||
Total | £ | 4,584 | 100 | % | £ | 4,509 | 100 | % | £ | 4,265 | 100 | % | £ | 5,334 | 100 | % | £ | 4,584 | 100 | % | £ | 4,509 | 100 | % | |||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||
North America | £ | 2,233 | 49 | % | £ | 2,322 | 52 | % | £ | 2,212 | 52 | % | £ | 2,624 | 49 | % | £ | 2,233 | 49 | % | £ | 2,322 | 52 | % | |||||||||||||||||||||
United Kingdom | 603 | 13 | 531 | 12 | 503 | 12 | 580 | 11 | 603 | 13 | 531 | 12 | |||||||||||||||||||||||||||||||||
The Netherlands | 206 | 4 | 196 | 4 | 195 | 4 | 234 | 4 | 206 | 4 | 196 | 4 | |||||||||||||||||||||||||||||||||
Rest of Europe | 897 | 20 | 866 | 19 | 790 | 19 | 1,136 | 22 | 897 | 20 | 866 | 19 | |||||||||||||||||||||||||||||||||
Rest of world | 645 | 14 | 594 | 13 | 565 | 13 | 760 | 14 | 645 | 14 | 594 | 13 | |||||||||||||||||||||||||||||||||
Total | £ | 4,584 | 100 | % | £ | 4,509 | 100 | % | £ | 4,265 | 100 | % | £ | 5,334 | 100 | % | £ | 4,584 | 100 | % | £ | 4,509 | 100 | % | |||||||||||||||||||||
(1) | Following announcement in February 2007 of the planned sale of Harcourt Education, the division is presented as a discontinued operation and is excluded from the above analysis. On December 10, 2008 Reed Elsevier announced the termination of discussions to sell Reed Business Information (RBI) as it was judged not possible to structure a transaction on acceptable terms at that time. RBI has therefore been presented as a continuing operation of the combined businesses in the current and prior periods. |
2022
Revenue from continuing operations(5) | Revenue from continuing operations(5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | % change | 2005 | % change | 2008 | 2007 | % change | 2006 | % change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
actual | constant | actual | constant | actual | constant | actual | constant | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
rates | rates(1) | rates | rates(2) | rates | rates(1) | rates | rates(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Elsevier | £ | 1,507 | 33 | % | £ | 1,521 | 34 | % | -1 | % | +4 | % | £ | 1,436 | 34 | % | +6 | % | +8 | % | £ | 1,700 | 32 | % | £ | 1,507 | 33 | % | +13 | % | +4 | % | £ | 1,521 | 34 | % | −1 | % | +4 | % | |||||||||||||||||||||||||||||||||||||
LexisNexis | 1,594 | 35 | 1,570 | 35 | +2 | +8 | 1,466 | 34 | +7 | +8 | 1,940 | 36 | 1,594 | 35 | +22 | +13 | 1,570 | 35 | +2 | +8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reed Business | 1,483 | 32 | 1,418 | 31 | +5 | +7 | 1,363 | 32 | +4 | +5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reed Exhibitions | 707 | 13 | 577 | 12 | +23 | +9 | 522 | 11 | +11 | +13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reed Business Information | 987 | 19 | 906 | 20 | +9 | +1 | 896 | 20 | +1 | +4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | £ | 4,584 | 100 | % | £ | 4,509 | 100 | % | +2 | % | +6 | % | £ | 4,265 | 100 | % | +6 | % | +7 | % | £ | 5,334 | 100 | % | £ | 4,584 | 100 | % | +16 | % | +7 | % | £ | 4,509 | 100 | % | +2 | % | +6 | % | |||||||||||||||||||||||||||||||||||||
Operating Profit from continuing operations(5) | Operating Profit from continuing operations(5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | % change | 2005 | % change | 2008 | 2007 | % change | 2006 | % change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
actual | constant | actual | constant | actual | constant | actual | constant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
rates | rates(1) | rates | rates(2) | rates | rates(1) | rates | rates(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Elsevier | £ | 410 | 46 | % | £ | 395 | 47 | % | +4 | % | +10 | % | £ | 396 | 51 | % | 0 | % | +7 | % | £ | 443 | 49 | % | £ | 410 | 46 | % | +8 | % | +2 | % | £ | 395 | 47 | % | +4 | % | +10 | % | ||||||||||||||||||||||||||||||||||||||||
LexisNexis | 287 | 32 | 264 | 31 | +9 | +15 | 218 | 28 | +21 | +23 | 291 | 32 | 287 | 32 | +1 | −5 | 264 | 31 | +9 | +15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reed Business | 197 | 22 | 183 | 22 | +8 | +10 | 158 | 21 | +16 | +18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reed Exhibitions | 123 | 13 | 106 | 12 | +16 | −1 | 98 | 12 | +8 | +12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reed Business Information | 55 | 6 | 91 | 10 | −40 | −45 | 85 | 10 | +7 | +8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | £ | 894 | 100 | % | £ | 842 | 100 | % | £ | 772 | 100 | % | £ | 912 | 100 | % | £ | 894 | 100 | % | £ | 842 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate costs | (45 | ) | (39 | ) | (32 | ) | (50 | ) | (45 | ) | (39 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated net pension credit(4) | 39 | 34 | 12 | 39 | 39 | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | £ | 888 | £ | 837 | +6 | % | +12 | % | £ | 752 | +11 | % | +16 | % | £ | 901 | £ | 888 | +2 | % | −6 | % | £ | 837 | +6 | % | +12 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Profit from continuing operations(3)(5) | Adjusted Operating Profit from continuing operations(3)(5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | % change | 2005 | % change | 2008 | 2007 | % change | 2006 | % change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
actual | constant | actual | constant | actual | constant | actual | constant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
rates | rates(1) | rates | rates(2) | rates | rates(1) | rates | rates(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Elsevier | £477 | 42 | % | £465 | 43 | % | +3 | % | +9 | % | £449 | 45 | % | +4 | % | +10 | % | £568 | 41 | % | £477 | 42 | % | +19 | % | +11 | % | £465 | 43 | % | +3 | % | +9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
LexisNexis | 406 | 35 | 380 | 35 | +7 | +14 | 338 | 34 | +12 | +13 | 513 | 37 | 406 | 35 | +26 | +18 | 380 | 35 | +7 | +14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reed Business | 260 | 23 | 241 | 22 | +8 | +10 | 214 | 21 | +13 | +14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reed Exhibitions | 183 | 13 | 139 | 12 | +32 | +14 | 129 | 12 | +8 | +10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reed Business Information | 126 | 9 | 121 | 11 | +4 | −4 | 112 | 10 | +8 | +10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | £1,143 | 100 | % | £1,086 | 100 | % | £1,001 | 100 | % | £1,390 | 100 | % | £1,143 | 100 | % | £1,086 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate costs | (45 | ) | (39 | ) | (32 | ) | (50 | ) | (45 | ) | (39 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated net pension credit(4) | 39 | 34 | 12 | 39 | 39 | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | £1,137 | £1,081 | +5 | % | +11 | % | £981 | +10 | % | +14 | % | £1,379 | £1,137 | +21 | % | +12 | % | £1,081 | +5 | % | +11 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2123
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Operating profit | £888 | £837 | 752 | £901 | £888 | £837 | |||||||||||||||
Adjustments: | |||||||||||||||||||||
Amortisation of acquired intangible assets | 221 | 211 | 203 | ||||||||||||||||||
Acquisition integration costs | 20 | 23 | 20 | ||||||||||||||||||
Amortisation of acquired intangible assets and goodwill impairment | 290 | 221 | 211 | ||||||||||||||||||
Exceptional restructuring costs | 152 | — | — | ||||||||||||||||||
Acquisition related costs | 27 | 20 | 23 | ||||||||||||||||||
Reclassification of tax in joint ventures | 8 | 10 | 6 | 9 | 8 | 10 | |||||||||||||||
Adjusted operating profit | £1,137 | £1,081 | £981 | £1,379 | £1,137 | £1,081 | |||||||||||||||
(1) | Represents percentage change in 2008 over 2007 at constant rates of exchange, which have been calculated using the average and hedge exchange rates for the 2007 financial year. These rates were used in the preparation of the 2007 combined financial statements. | |
(2) | Represents percentage change in 2007 over 2006 at constant rates of exchange, which have been calculated using the average and hedge exchange rates for the 2006 financial year. These rates were used in the preparation of the 2006 combined financial statements. | |
(3) | Adjusted operating profit represents operating profit before the amortisation of acquired intangible assets and goodwill impairment, exceptional restructuring and acquisition | |
(4) | The unallocated net pension credit of £39 million | |
(5) | Following announcement in February 2007 of the planned sale of Harcourt Education, the division is presented as a discontinued operation and is excluded from the above analysis. On December 10, 2008 Reed Elsevier announced the termination of discussions to sell Reed Business Information (RBI) as it was judged not possible to structure a transaction on acceptable terms at that time. RBI has therefore been presented as a continuing operation of the combined businesses in the current and prior periods. |
24
25
26
27
22
28
23
24
25
29
26
30
27
31
28
US Dollars | Sterling | Euro | Other | Total | US Dollars | Sterling | Euro | Other | Total | ||||||||||||||||||||||||||
Revenue | 46% | 19% | 26% | 9% | 100% | 47% | 17% | 27% | 9% | 100% | |||||||||||||||||||||||||
Operating profit | 39% | 20% | 33% | 8% | 100% | 36% | 20% | 37% | 7% | 100% | |||||||||||||||||||||||||
Profit before tax | 34% | 21% | 34% | 11% | 100% | 12% | 22% | 55% | 11% | 100% | |||||||||||||||||||||||||
32
29
Less than | After | Less than | After | ||||||||||||||||||||||||||||||||
Total | 1 year | 1-3 years | 3-5 years | 5 years | Total | 1 year | 1-3 years | 3-5 years | 5 years | ||||||||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||||||||||||||
Short term debt(1)(2) | £753 | £753 | £— | £— | £— | £ | 446 | £ | 446 | £ | — | £ | — | £ | — | ||||||||||||||||||||
Long term debt (including finance leases) | 3,415 | 503 | 436 | 871 | 1,605 | 6,919 | 214 | 3,883 | 850 | 1,972 | |||||||||||||||||||||||||
Operating leases | 698 | 104 | 176 | 143 | 275 | 863 | 144 | 238 | 188 | 293 | |||||||||||||||||||||||||
Total | £4,866 | £1,360 | £612 | £1,014 | £1,880 | £ | 8,228 | £ | 804 | £ | 4,121 | £ | 1,038 | £ | 2,265 | ||||||||||||||||||||
(1) | Short term debt is supported by committed facilities and by centrally managed cash and cash equivalents, and primarily comprises commercial paper. During February 2009, Reed Elsevier cancelled its $3.0 billion committed bank facility down to $2.5 billion and, at the |
33
same time, a new $2.0 billion committed bank facility, forward starting in May 2010 and maturing in May 2012, was put in place. Together, these two back up facilities provide security of funding for $2.5 billion of debt to May 2010 and $2.0 billion of debt from May 2010 to May 2012. | ||
(2) | Short and long term debt obligations comprise undiscounted principal and interest cash flows. | |
(3) | In January 2009 term debt of £1,086 million due after five years from December 31, 2008 was issued and used to repay long term debt maturing in one to three years. |
30
34
31
35
3236
37
3338
3439
Reed Elsevier | Elsevier Reed | |||||||||
Name (Age) | Reed Elsevier PLC | Reed Elsevier NV | Group plc | Finance BV | ||||||
Executive Director and Chief Financial Officer | Member of the Executive Board and Chief Financial Officer | Executive Director | ||||||||
Member of the | ||||||||||
Supervisory Board | ||||||||||
Jacques Billy | — | — | — | Member of the Management Board | ||||||
Dien de Boer-Kruyt | — | Member of the Supervisory Board(4) | — | Member of the | ||||||
Supervisory Board | ||||||||||
Rudolf van den Brink | — | — | — | Chairman of the Supervisory Board | ||||||
Sir Crispin Davis | Executive Director and Chief Executive Officer(3) | Chairman of the Executive Board and Chief Executive Officer(3) | Executive Director and Chief Executive Officer | — | ||||||
Mark Elliott | Non-executive Director(3)(4) | Member of the Supervisory Board(3)(4) | Non-executive Director(2) | — | ||||||
Erik Engstrom | Executive Director | Member of the Executive Board | Executive Director | — | ||||||
Jan Hommen | Non-executive Chairman(3)(4) | Chairman of the Supervisory Board(3)®(4) | Non-executive Chairman(2) | — | ||||||
Lisa Hook | Non-executive Director(1)(4) | Member of the Supervisory Board(1)(4) | Non-executive Director(1) | — | ||||||
Gerben de Jong | — | — | — | Member of the Management Board | ||||||
Robert Polet | Non-executive Director(4) | Member of the Supervisory Board(4) | Non-executive Director(2) | — | ||||||
Andrew Prozes | Executive Director | Member of the Executive Board | Executive Director | — | ||||||
David Reid | Non-executive | |||||||||
Director(1)(3)(4)(5) | Member of the Supervisory | |||||||||
Board(1)(3)(4)(5) | ||||||||||
Non-executive | Director(1)(2)(5) | — | ||||||||
Lord Sharman (66) | Non-executive Director(1)(3)(4) | Member of the Supervisory | ||||||||
Board(1)(3)(4) | ||||||||||
Non-executive | Director(1) | — | ||||||||
Ian Smith (55) | Executive Director and Chief Executive Officer designate | — | ||||||||
— |
(1) | Member of the Audit Committees of the boards of Reed Elsevier PLC, Reed Elsevier NV and Reed Elsevier Group plc. | |
(2) | Member of the Remuneration Committee of the board of Reed Elsevier Group plc. | |
(3) | Member of the joint Nominations Committee of the boards of Reed Elsevier PLC and Reed Elsevier NV. | |
(4) | Member of the joint Corporate Governance Committee of the boards of Reed Elsevier PLC and Reed Elsevier NV. | |
(5) | Senior independent non-executive director, as defined by The Combined Code: Principles of Good Governance and Code of Best Practice in the United Kingdom. | |
(6) | Will be proposed for appointment to the Executive Board of Reed Elsevier NV at the 2009 Annual General Meeting and, upon appointment, will become Chairman of the Executive Board, replacing Sir Crispin Davis who has announced his retirement. |
3540
36
41
• | setting the remuneration in all its forms, and the terms of the service contracts and all other terms and conditions of employment of directors of Reed Elsevier Group plc appointed to any executive office of employment; |
• | advising the Chief Executive Officer on the remuneration of members of the Management Committee (other than executive directors) of Reed Elsevier Group plc and of the Company Secretary; |
• | providing advice to the Chief Executive Officer, as required, on major policy issues affecting the remuneration of executives at a senior level below the board; and |
• | establishing and amending the rules of all |
3742
• | Performance-related compensation; this | |
• | Creation of shareholder value; this is at the heart of our corporate strategy and is vital to meeting our investors’ goals. | |
• | Competitive remuneration opportunity; this helps Reed Elsevier attract and retain the best executive talent from anywhere in the world. | |
• | Balanced mix of remuneration; | |
• | Aligning the interests of executive directors with |
• | Reed Elsevier aims to provide a total remuneration package that is able to attract and retain the best executive talent from anywhere in the world, at an appropriate level of cost. | |
• | In reaching decisions on executive remuneration, the Committee takes into account the remuneration arrangements and levels of increase applicable to senior management and Reed Elsevier employees generally. | |
• | The Committee considers environmental, social and governance matters in making its decisions on remuneration policy, practice and setting performance | |
• | Total remuneration of senior executives will be competitive with that of executives in similar positions in comparable companies, | |
• | Competitiveness | |
• | The intention is to provide total remuneration that reflects sustained individual and business performance; i.e. median performance will be rewarded by total remuneration that is positioned around the median of relevant market data and upper quartile performance by upper quartile total remuneration. | |
• | The Committee will consider all available discretion to claw back any payouts made on the basis of materially misstated data. With effect from 2009, the rules of all incentive plans have been amended to provide for specific provisions in this regard. |
43
38
• | Global peers in the media | |
• | UK listed companies of similar size and international scope (excluding those in the financial services sector). | |
• | US listed companies of similar size and international scope (excluding those in the financial services sector). | |
• | Companies listed in the Netherlands of similar size and international scope. |
• | First, the overall competitiveness of the remuneration packages is assessed in terms of total remuneration. | |
• | The | |
• | The | |
• | If it is determined that a competitive gap exists in total remuneration terms, the Committee believes that this should be addressed via a review of performance linked compensation elements in the first instance. | |
• | Benefits, including medical and retirement benefits, are positioned to reflect local country practice. |
Element | Purpose | Performance period | Performance measure | |||
Salary | Positions the role and individual appropriately within the relevant market for executive talent | Not applicable | Reflects the sustained value of | |||
Annual Incentive Plan (AIP) | Provides focus on the delivery of Motivates the achievement of annual strategic | One year | ||||
Bonus Investment Plan (BIP) | Encourages personal investment in and ongoing holding of Reed Elsevier shares | Three years | retention of personal investment in Reed Elsevier securities and continued employment | |||
Supports the retention of key talent | There is no retesting of the performance condition |
3944
Element | Purpose | Performance period | Performance measure | |||
Executive Share Option Scheme (ESOS) | Provides focus on longer term share price growth Rewards sustained delivery and quality of earnings growth | Three years | On grant — Adjusted EPS growth On vesting — Adjusted EPS growth over the three-year performance period post grant There is no retesting of the performance condition | |||
Long Term Incentive Plan (LTIP) | Drives value creation via | Three years | Vesting subject to Adjusted EPS growth There is no retesting of the performance conditions | |||
Retirement benefits | Positioned to ensure broad competitiveness with local country practice | Not applicable |
Measure | Weighting | |||
— Revenue | 30% | |||
— Profit* | 30% | |||
— Cash Flow Conversion Rate | 10% | |||
— Key Performance Objectives (KPOs) | 30% |
* | The Profit measure for the Reed Elsevier CEO and CFO is Adjusted Profit After Tax for the Reed Elsevier combined businesses. The profit measure for Divisional CEOs is Adjusted Operating Profit for their respective divisions. |
45
40
4146
Adjusted EPS Growth | ||||
per annum | ||||
Target Grant Pool | ||||
Less than 8% | ||||
8% or more | ||||
10% or more | ||||
12% or more | ||||
14% or more |
Test 1 | On grant | The size of the Target Grant Pool determined as above. | ||
Test 2 | On grant | Individual performance | ||
Test 3 | On vesting | Compound Adjusted EPS growth during the three years following grant of at least 8% per annum |
• | Award of a target number of shares | |
• | Performance is measured over a three-year performance period | |
• | Vesting depends on compound growth in | |
• | Relative TSR performance can increase or decrease the target award | |
• |
• | If TSR performance is below median, this will reduce the target award. |
47
• | The maximum uplift to the target award will be applied if TSR performance places Reed Elsevier at or above the upper quartile of the comparator group. |
TSR Ranking | ||||||||||||||||
62.5th | Upper quartile | |||||||||||||||
Adjusted EPS growth p.a. | Below median | Median | percentile | and above | ||||||||||||
Below 10% | 0% | 0% | 0% | 0% | ||||||||||||
10% | 28% | 35% | 42% | 49% | ||||||||||||
12% | 80% | 100% | 120% | 140% | ||||||||||||
14% and above | 108% | 135% | 162% | 189% |
TSR Ranking | ||||||||||||||||
62.5th | Upper quartile | |||||||||||||||
Adjusted EPS Growth (constant currencies) p.a. | Below median | Median | percentile | and above | ||||||||||||
Below 10% | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
10% | 28 | % | 35 | % | 42 | % | 49 | % | ||||||||
12% | 80 | % | 100 | % | 120 | % | 140 | % | ||||||||
14% and above | 108 | % | 135 | % | 162 | % | 189 | % |
42
2009 Award | 2008 Award | 2007 Award | 2006 Award | |||||||||||||
ChoicePoint | ü | ü | ü | |||||||||||||
DMGT | ü | ü | ü | ü | ||||||||||||
Dow Jones | ü | ü | ||||||||||||||
Dun & Bradstreet | ü | ü | ü | ü | ||||||||||||
Emap | ü | ü | ü | |||||||||||||
Experian | ü | |||||||||||||||
Fair Issac | ü | ü | ü | ü | ||||||||||||
Informa | ü | ü | ü | ü | ||||||||||||
John Wiley & Sons | ü | ü | ü | ü | ||||||||||||
Lagardere Groupe | ü | ü | ü | ü | ||||||||||||
McGraw-Hill | ü | ü | ü | ü | ||||||||||||
Pearson | ü | ü | ü | ü | ||||||||||||
Reuters Group | ü | ü | ||||||||||||||
Taylor Nelson Sofres | ü | ü | ü | |||||||||||||
The Thomson Corporation | ü | ü | ||||||||||||||
Thomson Reuters | ü | ü | ||||||||||||||
United Business Media | ü | ü | ü | ü | ||||||||||||
VNU | ü | |||||||||||||||
Wolters Kluwer | ü | ü | ü | ü | ||||||||||||
WPP Group | ü | ü | ü | ü |
* | Reflects the composition of the comparator group as at the date of grant. |
48
43
• | the main UK Reed Elsevier Pension Scheme for salary restricted to a cap, determined annually on the same basis as the pre-April 2006 Inland Revenue earnings | |
• | Reed Elsevier’s unfunded unapproved pension arrangement for salary above the cap. |
49
Transfer | ||||||||||||||||||||||||||||||||||||
value at | ||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||
2008 of | ||||||||||||||||||||||||||||||||||||
increase | ||||||||||||||||||||||||||||||||||||
Increase in | Increase in | in accrued | ||||||||||||||||||||||||||||||||||
Transfer | Transfer | transfer | Increase in | accrued | pension | |||||||||||||||||||||||||||||||
value | value | value during | Accrued | accrued | annual | during the | ||||||||||||||||||||||||||||||
of accrued | of accrued | the year | annual | annual | pension | year (net | ||||||||||||||||||||||||||||||
pension | pension | (net of | pension | pension | during the year | of inflation | ||||||||||||||||||||||||||||||
Age | Director’s | December 31, | December 31, | director’s | December 31, | during | (net of | and director’s | ||||||||||||||||||||||||||||
December 31, | contributions | 2007 | 2008 | contributions)*** | 2008 | the year | inflation) | contributions) | ||||||||||||||||||||||||||||
2008 | £ | £ | £ | £ | £ | £ | £ | £ | ||||||||||||||||||||||||||||
Gerard van de Aast* | 51 | 5,820 | 1,379,993 | 2,352,882 | 967,069 | 170,943 | 40,385 | 35,163 | 478,166 | |||||||||||||||||||||||||||
Mark Armour | 54 | 5,820 | 3,466,035 | 4,358,939 | 887,084 | 284,535 | 30,613 | 20,470 | 307,772 | |||||||||||||||||||||||||||
Sir Crispin Davis | 59 | 5,820 | 9,416,905 | 9,609,144 | 186,419 | 519,601 | 73,514 | 55,670 | 1,023,707 | |||||||||||||||||||||||||||
Erik Engstrom** | 45 | 5,820 | 28,306 | 271,227 | 237,101 | 24,415 | 21,054 | 20,919 | 226,568 | |||||||||||||||||||||||||||
Andrew Prozes | 62 | — | 2,498,231 | 3,059,120 | 560,889 | 231,184 | 47,302 | 47,302 | 625,913 | |||||||||||||||||||||||||||
Patrick Tierney | 63 | — | 3,095,761 | 3,020,215 | (75,546 | ) | 237,838 | — | — | — |
* | On January 1, 2009 he started to draw his pension of £137,894 p.a. | |
** | Based on a sterling salary which at January 1, 2008 was £627,612. | |
*** | For UK directors, includes changes in the calculation basis of transfer values adopted by the scheme trustees from October 1, 2008. |
50
• | non-compete provisions which prevent them from working with specified competitors, from recruiting Reed Elsevier employees and from soliciting Reed Elsevier customers for a period of 12 months after leaving employment; | |
• | in the event of their resigning, they will immediately lose all rights to any outstanding awards under the LTIP, ESOS and BIP granted from 2004 onwards including any vested but unexercised options; and | |
• | in the event that they were to join a specified competitor within 12 months of termination, any gains made in the six months prior to termination on the vesting or exercise of an LTIP, ESOS and BIP award made from 2004 onwards shall be repayable. |
44
Expiry date | ||||||||
(subject to | ||||||||
Contract Date | notice period) | Notice period | Subject to: | |||||
G J A van de Aast(i) | November 15, 2000 | English law | ||||||
M H Armour(i) | October 7, 1996 | July 29, 2014 | 12 months | English law | ||||
Sir Crispin Davis(i) | July 19, 1999 | March 19, 2009 | 12 months | English law | ||||
E Engstrom(i) | June 25, 2004 | June 14, 2025 | 12 months | English law | ||||
A Prozes(ii) | July 5, 2000 | Indefinite | 12 | New York law | ||||
I Smith(i) | November 3, 2008 | January 22, 2019 | ||||||
English law | ||||||||
P Tierney(ii) | November 19, 2002 | Retired January 30, 2008 | — | New York law |
(i) | Employed by Reed Elsevier Group plc | |
(ii) | Employed by Reed Elsevier Inc. |
• | a gross cash sum of £391,000, equal to eight months’ annual base salary, representing a mitigated payment in respect of his notice period (this payment was made in January 2009); and | |
• | an augmentation of his accrued benefit under the UK defined benefit pension arrangement by an amount that reflects the crediting of his pensionable service by eight months (also reflecting mitigation). |
• | he will continue to be eligible for a pro rata 2009 annual bonus under the AIP. Any bonus due will be paid in the first quarter of 2010 and will be subject to performance in the same way as the bonuses payable to the other executive directors; | |
• | as is standard practice for retirements early in the year, he did not receive 2009 grants under ESOS and LTIP and will not participate in the 2009 BIP; | |
• | no termination payments are due since he will be retiring; | |
• | all unvested share-based awards will be treated in accordance with the rules of the plans, and outstanding options will be exercisable forthree-and-a-half years from retirement; and | |
• | his LTIP shareholding requirement will cease on retirement. |
51
• | Gerard van de Aast | |
• | Sir Crispin Davis is a non-executive director of GlaxoSmithKline plc and received a fee of | |
• | Andrew Prozes is a non-executive director of the Cott Corporation and received a fee of |
45
52
(a) | Aggregate emoluments |
2007 | 2006 | 2008 | 2007 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Salaries and fees | £4,566 | £4,502 | £4,360 | £4,566 | ||||||||||||
Benefits | 117 | 126 | 115 | 117 | ||||||||||||
Annual performance-related bonuses | 4,073 | 3,273 | 5,547 | 4,073 | ||||||||||||
Pension contributions | 131 | 139 | 51 | 131 | ||||||||||||
Pension in respect of former director | 203 | 221 | ||||||||||||||
Pension in respect of former directors | 429 | 203 | ||||||||||||||
Total | £9,090 | £8,261 | £10,502 | £9,090 | ||||||||||||
46
2007 | 2006 | |||||||||||||||||||
Salary | Benefits | Bonus | Total | Total | ||||||||||||||||
G J A van de Aast | £552,825 | £17,535 | £594,563 | £1,164,923 | £1,061,603 | |||||||||||||||
M H Armour | 589,838 | 19,843 | 666,222 | 1,275,903 | 1,072,305 | |||||||||||||||
Sir Crispin Davis | 1,135,680 | 28,137 | 1,267,419 | 2,431,236 | 2,040,008 | |||||||||||||||
E Engstrom | 578,328 | 18,359 | 592,004 | 1,188,691 | 1,153,480 | |||||||||||||||
A Prozes | 584,220 | 23,184 | 525,798 | 1,133,202 | 1,193,922 | |||||||||||||||
P Tierney (until February 1, 2008) | 535,600 | 9,714 | 427,329 | 972,643 | 805,462 | |||||||||||||||
Total | £3,976,491 | £116,772 | £4,073,335 | £8,166,598 | £7,326,780 | |||||||||||||||
(b) | Individual emoluments of executive directors |
2008 | 2007 | |||||||||||||||||||
Salary | Benefits | Bonus | Total | Total | ||||||||||||||||
G J A van de Aast | £585,996 | £17,792 | £344,273 | £948,061 | £1,164,923 | |||||||||||||||
M H Armour | 613,440 | 21,381 | 558,230 | 1,193,051 | 1,275,903 | |||||||||||||||
Sir Crispin Davis | 1,181,100 | 29,246 | 1,074,801 | 2,285,147 | 2,431,236 | |||||||||||||||
E Engstrom | 629,026 | * | 22,949 | 667,643 | 1,319,618 | 1,188,691 | ||||||||||||||
A Prozes | 656,854 | 18,278 | 513,988 | 1,189,120 | 1,133,202 | |||||||||||||||
P Tierney (until January 30, 2008) | 52,706 | 5,372 | 2,387,649 | ** | 2,445,727 | 972,643 | ||||||||||||||
Total | £3,719,122 | £115,018 | £5,546,584 | £9,380,724 | £8,166,598 | |||||||||||||||
* | This reflects the pro-rating of his sterling salary to the end of November 2008 and one month of his US dollar denominated salary for December 2008. | |
** | As disclosed in the 2007 Annual Report on Form 20-F filed with the SEC on March 20, 2008, in connection with Patrick Tierney’s agreement to defer his planned retirement in early 2007 in order to manage and oversee the sale of Harcourt Education and the successful completion of the Harcourt Education sale in January 2008, the Committee awarded Patrick Tierney a sale bonus of $2,917,150 calculated by reference to the excess of the sale proceeds over a predetermined target figure and a payment of $1,500,000 under the terms of his retention bonus in recognition of his outstanding management contribution to the Harcourt Education performance in meeting financial targets during the extended sale period. |
4753
Transfer | ||||||||||||||||||||||||||||||||||||
value | ||||||||||||||||||||||||||||||||||||
of increase | ||||||||||||||||||||||||||||||||||||
Increase in | in accrued | |||||||||||||||||||||||||||||||||||
Increase in | accrued | annual | ||||||||||||||||||||||||||||||||||
Transfer | Transfer | transfer | Increase in | annual | pension | |||||||||||||||||||||||||||||||
value | value | value during | Accrued | accrued | pension | during the | ||||||||||||||||||||||||||||||
of accrued | of accrued | the period | annual | annual | during | period (net | ||||||||||||||||||||||||||||||
pension | pension | (net of | pension | pension | the period | of inflation | ||||||||||||||||||||||||||||||
Age | Directors’ | December 31, | December 31, | directors’ | December 31, | during | (net of | and directors’ | ||||||||||||||||||||||||||||
December 31, | contributions | 2006 | 2007 | contributions) | 2007 | the period | inflation) | contributions) | ||||||||||||||||||||||||||||
2007 | £ | £ | £ | £ | £ | £ | £ | £ | ||||||||||||||||||||||||||||
G J A van de Aast | 50 | 5,587 | 1,074,289 | 1,379,993 | 300,117 | 130,558 | 28,342 | 23,844 | 246,445 | |||||||||||||||||||||||||||
M H Armour | 53 | 5,587 | 2,866,803 | 3,466,035 | 593,645 | 253,922 | 30,824 | 21,023 | 281,381 | |||||||||||||||||||||||||||
Sir Crispin Davis | 58 | 5,587 | 7,361,487 | 9,416,905 | 2,049,831 | 446,087 | 72,218 | 55,768 | 1,171,671 | |||||||||||||||||||||||||||
E Engstrom | 44 | 940 | — | 28,306 | 27,366 | 3,362 | 3,362 | 3,362 | 27,366 | |||||||||||||||||||||||||||
A Prozes(i) | 61 | — | — | 2,310,864 | 2,310,864 | 170,092 | 170,092 | 170,092 | 2,310,864 | |||||||||||||||||||||||||||
P Tierney | 62 | — | 2,089,880 | 2,502,228 | 412,348 | 190,933 | 22,000 | 22,000 | 285,385 |
2008 | 2007 | |||||||||||||||
2007 | 2006 | £ | £ | |||||||||||||
G J de Boer-Kruyt | £23,151 | £22,993 | 38,095 | 23,151 | ||||||||||||
M W Elliott | 48,500 | 45,000 | 70,000 | 48,500 | ||||||||||||
J Hommen | 239,726 | 238,095 | 277,778 | 239,726 | ||||||||||||
L Hook (from April 19, 2006) | 45,000 | 30,000 | ||||||||||||||
C J A van Lede (until April 18, 2007) | 11,130 | 44,218 | ||||||||||||||
L Hook | 55,000 | 45,000 | ||||||||||||||
R Polet (from April 17, 2007) | 31,785 | — | 55,000 | 31,785 | ||||||||||||
D E Reid | 45,000 | 45,000 | 55,000 | 45,000 | ||||||||||||
Lord Sharman | 52,000 | 52,000 | 70,000 | 52,000 | ||||||||||||
R W H Stomberg | 48,630 | 52,381 | ||||||||||||||
R W H Stomberg (until April 23, 2008) | 19,841 | 48,630 | ||||||||||||||
C J A van Lede (until April 18, 2007) | — | 11,130 | ||||||||||||||
S Zelnick (until December 7, 2007) | 45,000 | 45,000 | — | 45,000 | ||||||||||||
Total | £589,922 | £574,687 | 640,714 | 589,922 | ||||||||||||
4854
— | Audit — comprising three independent non-executive directors | |
— | Remuneration — comprising |
4955
— | Audit — comprising three independent non-executive directors; and | |
— | Corporate Governance — a joint committee of Reed Elsevier PLC and Reed Elsevier NV, comprising all non-executive directors and members of the supervisory board of each company, all of whom are independent. |
— | Audit — comprising three independent members of the Reed Elsevier NV Supervisory Board; and | |
— | Corporate Governance — a joint committee of Reed Elsevier NV and Reed Elsevier PLC, comprising all members of the Supervisory Board and non-executive directors of each company, all of whom are independent. |
56
50
5157
Market | ||||||||||||||||||||||||||||||||||||
price at | ||||||||||||||||||||||||||||||||||||
2004-2006 | Granted | Exercised | exercise | |||||||||||||||||||||||||||||||||
January 1, | performance | during | Option | during | date | December 31, | Exercisable | Exercisable | ||||||||||||||||||||||||||||
2007 | adjustment | the year | price (pence) | the year | (pence) | 2007 | from | until | ||||||||||||||||||||||||||||
Gerard van de Aast — ESOS | 50,940 | 638.00 | 50,940 | December 1, 2003 | December 1, 2010 | |||||||||||||||||||||||||||||||
49,317 | 659.00 | 49,317 | February 23, 2004 | February 23, 2011 | ||||||||||||||||||||||||||||||||
58,000 | 600.00 | 58,000 | February 22, 2005 | February 22, 2012 | ||||||||||||||||||||||||||||||||
124,956 | 487.25 | 124,956 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||||
120,900 | 533.50 | 120,900 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
127,662 | 530.50 | 127,662 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
122,536 | 644.50 | 122,536 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 31,217 | Nil | 31,217 | 605.00 | — | |||||||||||||||||||||||||||||||
18,633 | Nil | 18,633 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
— LTIP (options) | 229,087 | 4,868 | 487.25 | 233,955 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||
— LTIP (shares) | 104,130 | 2,212 | Nil | 106,342 | 578.00 | — | ||||||||||||||||||||||||||||||
70,364 | Nil | 70,364 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
57,898 | Nil | 57,898 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
Total | 985,206 | 7,080 | 180,434 | 137,559 | 1,035,161 | |||||||||||||||||||||||||||||||
Mark Armour — ESOS | 52,000 | 565.75 | 52,000 | 607.00 | — | |||||||||||||||||||||||||||||||
66,900 | 523.00 | 66,900 | August 17, 2001 | August 17, 2008 | ||||||||||||||||||||||||||||||||
33,600 | 537.50 | 33,600 | February 21, 2003 | April 19, 2009 | ||||||||||||||||||||||||||||||||
88,202 | 436.50 | 88,202 | 607.00 | — | ||||||||||||||||||||||||||||||||
62,974 | 659.00 | 62,974 | February 23, 2004 | February 23, 2011 | ||||||||||||||||||||||||||||||||
74,000 | 600.00 | 74,000 | February 22, 2005 | February 22, 2012 | ||||||||||||||||||||||||||||||||
104,319 | 451.50 | 104,319 | 607.00 | — | ||||||||||||||||||||||||||||||||
155,147 | 487.25 | 155,147 | 607.00 | — | ||||||||||||||||||||||||||||||||
150,422 | 533.50 | 150,422 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
158,836 | 530.50 | 158,836 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
130,740 | 644.50 | 130,740 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 19,225 | Nil | 19,225 | 605.00 | — | |||||||||||||||||||||||||||||||
21,861 | Nil | 21,861 | April 14, 2008 | April 14, 2008 | ||||||||||||||||||||||||||||||||
21,653 | Nil | 21,653 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
19,859 | Nil | 19,859 | April 4, 2010 | April 4, 2010 | ||||||||||||||||||||||||||||||||
— LTIP (options) | 284,437 | 6,044 | 487.25 | 290,481 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||
— LTIP (shares) | 129,289 | 2,747 | Nil | 132,036 | 578.00 | — | ||||||||||||||||||||||||||||||
75,075 | Nil | 75,075 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
61,775 | Nil | 61,775 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
— SAYE | 4,329 | 377.60 | 4,329 | August 1, 2009 | January 31, 2010 | |||||||||||||||||||||||||||||||
Total | 1,502,269 | 8,791 | 212,374 | 550,929 | 1,172,505 | |||||||||||||||||||||||||||||||
Sir Crispin Davis — ESOS | 160,599 | 467.00 | 160,599 | February 21, 2003 | September 1, 2009 | |||||||||||||||||||||||||||||||
80,300 | 467.00 | 80,300 | September 1, 2003 | September 1, 2009 | ||||||||||||||||||||||||||||||||
80,300 | 467.00 | 80,300 | September 1, 2004 | September 1, 2009 | ||||||||||||||||||||||||||||||||
171,821 | 436.50 | 171,821 | May 2, 2003 | May 2, 2010 | ||||||||||||||||||||||||||||||||
122,914 | 659.00 | 122,914 | February 23, 2004 | February 23, 2011 | ||||||||||||||||||||||||||||||||
148,500 | 600.00 | 148,500 | February 22, 2005 | February 22, 2012 | ||||||||||||||||||||||||||||||||
209,192 | 451.50 | 209,192 | February 21, 2006 | February 21, 2013 | ||||||||||||||||||||||||||||||||
305,303 | 487.25 | 305,303 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||||
292,409 | 533.50 | 292,409 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
305,824 | 530.50 | 305,824 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
251,730 | 644.50 | 251,730 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 39,554 | Nil | 39,554 | 605.00 | — | |||||||||||||||||||||||||||||||
86,042 | Nil | 86,042 | April 14, 2008 | April 14, 2008 | ||||||||||||||||||||||||||||||||
42,092 | Nil | 42,092 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
74,708 | Nil | 74,708 | April 4, 2010 | April 4, 2010 | ||||||||||||||||||||||||||||||||
— LTIP (options) | 559,722 | 11,894 | 487.25 | 571,616 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||
— LTIP (shares) | 254,419 | 5,406 | Nil | 259,825 | 578.00 | — | ||||||||||||||||||||||||||||||
144,550 | Nil | 144,550 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
118,942 | Nil | 118,942 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
— SAYE | 3,793 | 424.40 | 3,793 | August 1, 2011 | January 31, 2012 | |||||||||||||||||||||||||||||||
Total | 3,007,334 | 17,300 | 445,380 | 299,379 | 3,170,635 | |||||||||||||||||||||||||||||||
No. of | No. of | No. of | Gross | No. of | ||||||||||||||||||||||||||||||||||||||
options | options | options | Market | gains | options | |||||||||||||||||||||||||||||||||||||
held on | ganted | exercised | price per | made on | held on | Unvested | Options | |||||||||||||||||||||||||||||||||||
Year of | Option | Jan 1, | during | Option | during | share at | exercise | Dec 31, | options | exercisable | ||||||||||||||||||||||||||||||||
Options | grant | over: | 2008 | 2008 | price | 2008 | exercise | £/€ | 2008 | vesting on: | until: | |||||||||||||||||||||||||||||||
ESOS | 2000 | PLC ord | 50,940 | £ | 6.380 | 50,940 | Dec 1, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 35,866 | € | 14.87 | 35,866 | Dec 1, 2010 | |||||||||||||||||||||||||||||||||||||
2001 | PLC ord | 49,317 | £ | 6.590 | 49,317 | Dec 31, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 35,148 | € | 14.75 | 35,148 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||||
2002 | PLC ord | 58,000 | £ | 6.000 | 58,000 | Dec 31, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 40,699 | € | 13.94 | 40,699 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||||
2004 | PLC ord | 124,956 | £ | 4.872 | 124,956 | Dec 31, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 85,805 | € | 10.57 | 85,805 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||||
2005 | PLC ord | 120,900 | £ | 5.335 | 120,900 | Dec 31, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 82,478 | € | 11.31 | 82,478 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||||
2006 | PLC ord | 127,662 | £ | 5.305 | 127,662 | Dec 31, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 85,775 | € | 11.47 | 85,775 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||||
2007 | * | PLC ord | 122,536 | £ | 6.445 | 81,690 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 80,928 | € | 14.51 | 53,952 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||||
2008 | * | PLC ord | 134,000 | £ | 6.275 | 44,666 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 89,000 | € | 12.21 | 29,666 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||||
LTIP | 2004 | PLC ord | 233,955 | £ | 4.872 | 233,955 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 160,651 | € | 10.57 | 160,651 | Dec 31, 2010 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 888,266 | 134,000 | 892,086 | |||||||||||||||||||||||||||||||||||||||
Total NV ords | 607,350 | 89,000 | 610,040 | |||||||||||||||||||||||||||||||||||||||
No. of | No. of | |||||||||||||||||||||||||||||||||||||||||
unvested | No. of | No. of | Notional | unvested | ||||||||||||||||||||||||||||||||||||||
shares | shares | Market | shares | Market | gross | shares | ||||||||||||||||||||||||||||||||||||
held on | awarded | price per | vested | price per | gains at | held on | ||||||||||||||||||||||||||||||||||||
Year of | Type of | Jan 1, | during | share at | during | share at | vesting | Dec 31, | Date of | |||||||||||||||||||||||||||||||||
Shares | grant | security | 2008 | 2008 | award | 2008 | vesting | £/€ | 2008 | vesting | ||||||||||||||||||||||||||||||||
BIP | 2005 | NV ord | 26,347 | € | 11.35 | 26,347 | €12.05 | € | 317,481 | — | Apr 14, 2008 | |||||||||||||||||||||||||||||||
2006 | PLC ord | 18,633 | £ | 5.470 | 17,068 | £5.055 | £86,279 | — | Dec 31, 2008 | |||||||||||||||||||||||||||||||||
NV ord | 12,311 | € | 11.74 | 11,277 | €8.42 | €94,952 | — | Dec 31, 2008 | ||||||||||||||||||||||||||||||||||
2007 | * | NV ord | 29,483 | € | 13.49 | 17,179 | €8.42 | € | 144,647 | — | Dec 31, 2008 | |||||||||||||||||||||||||||||||
2008 | * | NV ord | 30,856 | € | 12.44 | 7,552 | €8.42 | €63,588 | — | Dec 31, 2008 | ||||||||||||||||||||||||||||||||
LTIP | 2006 | PLC ord | 70,364 | £ | 5.350 | 70,364 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||
NV ord | 46,332 | € | 11.76 | 46,332 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | * | PLC ord | 57,898 | £ | 6.445 | 38,598 | Feb 15, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 38,238 | € | 14.51 | 25,492 | Feb 15, 2010 | |||||||||||||||||||||||||||||||||||||
2008 | * | PLC ord | 64,000 | £ | 6.275 | 21,333 | Feb 21, 2011 | |||||||||||||||||||||||||||||||||||
NV ord | 42,000 | € | 12.21 | 14,000 | Feb 21, 2011 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 146,895 | 64,000 | 17,068 | £86,279 | 130,295 | |||||||||||||||||||||||||||||||||||||
Total NV ords | 152,711 | 72,856 | 62,355 | € | 620,668 | 85,824 | ||||||||||||||||||||||||||||||||||||
* | All awardes granted in 2007 and 2008 under ESOS, BIP and LTIP have been prorated for service. |
5258
Market | ||||||||||||||||||||||||||||||||||||
price at | ||||||||||||||||||||||||||||||||||||
2004-2006 | Granted | Exercised | exercise | |||||||||||||||||||||||||||||||||
January 1, | performance | during | Option | during | date | December 31, | Exercisable | Exercisable | ||||||||||||||||||||||||||||
2007 | adjustment | the year | price (pence) | the year | (pence) | 2007 | from | until | ||||||||||||||||||||||||||||
Erik Engstrom — ESOS | 63,460 | 478.00 | 63,460 | August 23, 2007 | August 23, 2014 | |||||||||||||||||||||||||||||||
154,517 | 533.50 | 154,517 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
178,895 | 530.50 | 178,895 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
130,060 | 644.50 | 130,060 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 14,020 | Nil | 14,020 | April 14, 2008 | April 14, 2008 | |||||||||||||||||||||||||||||||
— LTIP (options) | 318,398 | 6,765 | 478.00 | 325,163 | August 23, 2007 | August 23, 2014 | ||||||||||||||||||||||||||||||
— LTIP (shares) | 144,726 | 3,075 | Nil | 147,801 | 578.00 | — | ||||||||||||||||||||||||||||||
82,092 | Nil | 82,092 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
61,453 | Nil | 61,453 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
— Restricted shares | 38,593 | Nil | 38,593 | 591.50 | — | |||||||||||||||||||||||||||||||
Total | 994,701 | 9,840 | 191,513 | 186,394 | 1,009,660 | |||||||||||||||||||||||||||||||
Andrew Prozes — ESOS | 188,281 | 566.00 | 188,281 | August 9, 2003 | August 9, 2010 | |||||||||||||||||||||||||||||||
83,785 | 659.00 | 83,785 | February 23, 2004 | February 23, 2011 | ||||||||||||||||||||||||||||||||
103,722 | 600.00 | 103,722 | February 22, 2005 | February 22, 2012 | ||||||||||||||||||||||||||||||||
132,142 | 451.50 | 132,142 | February 21, 2006 | February 21, 2013 | ||||||||||||||||||||||||||||||||
162,666 | 487.25 | 162,666 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||||
154,517 | 533.50 | 154,517 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
182,303 | 530.50 | 182,303 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
132,537 | 644.50 | 132,537 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 20,104 | Nil | 20,104 | 605.00 | — | |||||||||||||||||||||||||||||||
23,756 | Nil | 23,756 | April 14, 2008 | April 14, 2008 | ||||||||||||||||||||||||||||||||
26,400 | Nil | 26,400 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
21,548 | Nil | 21,548 | April 4, 2010 | April 4, 2010 | ||||||||||||||||||||||||||||||||
— LTIP (options) | 298,221 | 6,337 | 487.25 | 304,558 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||
— LTIP (shares) | 135,555 | 2,880 | Nil | 138,435 | 578.00 | — | ||||||||||||||||||||||||||||||
83,656 | Nil | 83,656 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
62,623 | Nil | 62,623 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
Total | 1,595,108 | 9,217 | 216,708 | 158,539 | 1,662,494 | |||||||||||||||||||||||||||||||
Patrick Tierney — ESOS | 371,426 | 451.50 | 371,426 | 632.75 | — | |||||||||||||||||||||||||||||||
162,666 | 487.25 | 162,666 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||||
154,517 | 533.50 | 154,517 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
175,488 | 530.50 | 175,488 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
121,628 | 644.50 | 121,628 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 19,572 | Nil | 19,572 | 605.00 | — | |||||||||||||||||||||||||||||||
24,156 | �� | Nil | 24,156 | April 14, 2008 | April 14, 2008 | |||||||||||||||||||||||||||||||
8,124 | Nil | 8,124 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
8,012 | Nil | 8,012 | April 4, 2010 | April 4, 2010 | ||||||||||||||||||||||||||||||||
— LTIP (options) | 298,221 | (100,259 | ) | 487.25 | 90,000 | 636.00 | 107,962 | February 19, 2007 | February 19, 2014 | |||||||||||||||||||||||||||
— LTIP (shares) | 135,555 | (45,573 | ) | Nil | 89,982 | 578.00 | — | |||||||||||||||||||||||||||||
80,528 | Nil | 80,528 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
57,412 | Nil | 57,412 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
Total | 1,430,253 | (145,832 | ) | 187,052 | 570,980 | 900,493 | ||||||||||||||||||||||||||||||
No. of | No. of | No. of | Gross | No. of | ||||||||||||||||||||||||||||||||||||||
options | options | options | Market | gains | options | |||||||||||||||||||||||||||||||||||||
held on | granted | exercised | price per | made on | held on | Unvested | Options | |||||||||||||||||||||||||||||||||||
Year of | Option | Jan 1, | during | Option | during | share at | exercise | Dec 31, | options | exercisable | ||||||||||||||||||||||||||||||||
Options | grant | over: | 2008 | 2008 | price | 2008 | exercise | £/€ | 2008 | vesting on: | until: | |||||||||||||||||||||||||||||||
ESOS | 1998 | PLC ord | 66,900 | £ | 5.230 | 66,900 | £ | 5.810 | £ | 38,802 | — | Aug 17, 2008 | ||||||||||||||||||||||||||||||
1999 | PLC ord | 33,600 | £ | 5.375 | 33,600 | Apr 19, 2009 | ||||||||||||||||||||||||||||||||||||
NV ord | 20,244 | € | 13.55 | 20,244 | Apr 19, 2009 | |||||||||||||||||||||||||||||||||||||
2001 | PLC ord | 62,974 | £ | 6.590 | 62,974 | Feb 23, 2011 | ||||||||||||||||||||||||||||||||||||
NV ord | 44,882 | € | 14.75 | 44,882 | Feb 23, 2011 | |||||||||||||||||||||||||||||||||||||
2002 | PLC ord | 74,000 | £ | 6.000 | 74,000 | Feb 22, 2012 | ||||||||||||||||||||||||||||||||||||
NV ord | 51,926 | € | 13.94 | 51,926 | Feb 22, 2012 | |||||||||||||||||||||||||||||||||||||
2005 | PLC ord | 150,422 | £ | 5.335 | 150,422 | Feb 17, 2015 | ||||||||||||||||||||||||||||||||||||
NV ord | 102,618 | € | 11.31 | 102,618 | Feb 17, 2015 | |||||||||||||||||||||||||||||||||||||
2006 | PLC ord | 158,836 | £ | 5.305 | 158,836 | Mar 13, 2009 | Mar 13, 2016 | |||||||||||||||||||||||||||||||||||
NV ord | 106,720 | € | 11.47 | 106,720 | Mar 13, 2009 | Mar 13, 2016 | ||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 130,740 | £ | 6.445 | 130,740 | Feb 15, 2010 | Feb 15, 2017 | |||||||||||||||||||||||||||||||||||
NV ord | 86,347 | € | 14.51 | 86,347 | Feb 15, 2010 | Feb 15, 2017 | ||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 144,000 | £ | 6.275 | 144,000 | Feb 21, 2011 | Feb 21, 2018 | |||||||||||||||||||||||||||||||||||
NV ord | 94,000 | € | 12.21 | 94,000 | Feb 21, 2011 | Feb 21, 2018 | ||||||||||||||||||||||||||||||||||||
LTIP | 2004 | PLC ord | 290,481 | £ | 4.872 | 290,481 | Feb 19, 2014 | |||||||||||||||||||||||||||||||||||
NV ord | 199,467 | € | 10.57 | 199,467 | Feb 19, 2014 | |||||||||||||||||||||||||||||||||||||
SAYE | 2006 | PLC ord | 4,329 | £ | 3.776 | 4,329 | Aug 1, 2009 | Jan 31, 2010 | ||||||||||||||||||||||||||||||||||
Total PLC ords | 972,282 | 144,000 | 66,900 | £ | 38,802 | 1,049,382 | ||||||||||||||||||||||||||||||||||||
Total NV ords | 612,204 | 94,000 | 706,204 | |||||||||||||||||||||||||||||||||||||||
No. of | No. of | |||||||||||||||||||||||||||||||||||||||||
unvested | No. of | No. of | Notional | unvested | ||||||||||||||||||||||||||||||||||||||
shares | shares | Market | shares | Market | gross | shares | ||||||||||||||||||||||||||||||||||||
held on | awarded | price per | vested | price per | gains at | held on | ||||||||||||||||||||||||||||||||||||
Year of | Type of | Jan 1, | during | share at | during | share at | vesting | Dec 31, | Date of | |||||||||||||||||||||||||||||||||
Shares | grant | security | 2008 | 2008 | award | 2008 | vesting | £/€ | 2008 | vesting | ||||||||||||||||||||||||||||||||
BIP | 2005 | PLC ord | 21,861 | £ | 5.365 | 21,861 | £ | 6.435 | £ | 140,676 | — | Apr 14, 2008 | ||||||||||||||||||||||||||||||
NV ord | 15,098 | € | 11.35 | 15,098 | € | 12.05 | € | 181,931 | — | Apr 14, 2008 | ||||||||||||||||||||||||||||||||
2006 | PLC ord | 21,653 | £ | 5.470 | 21,653 | Apr 4, 2009 | ||||||||||||||||||||||||||||||||||||
NV ord | 14,306 | € | 11.74 | 14,306 | Apr 4, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 19,859 | £ | 6.155 | 19,859 | Apr 4, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 13,371 | € | 13.49 | 13,371 | Apr 4, 2010 | |||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 25,291 | £ | 6.600 | 25,291 | Apr 8, 2011 | ||||||||||||||||||||||||||||||||||||
NV ord | 16,993 | € | 12.44 | 16,993 | Apr 8, 2011 | |||||||||||||||||||||||||||||||||||||
LTIP | 2006 | PLC ord | 75,075 | £ | 5.350 | 75,075 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||
NV ord | 49,434 | € | 11.76 | 49,434 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 61,775 | £ | 6.445 | 61,775 | Feb 15, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 40,799 | € | 14.51 | 40,799 | Feb 15, 2010 | |||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 67,000 | £ | 6.275 | 67,000 | Feb 21, 2011 | ||||||||||||||||||||||||||||||||||||
NV ord | 44,000 | € | 12.21 | 44,000 | Feb 21, 2011 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 200,223 | 92,291 | 21,861 | £ | 140,676 | 270,653 | ||||||||||||||||||||||||||||||||||||
Total NV ords | 133,008 | 60,993 | 15,098 | € | 181,931 | 178,903 | ||||||||||||||||||||||||||||||||||||
59
No. of | No. of | No. of | Gross | No. of | ||||||||||||||||||||||||||||||||||||||
options | options | options | Market | gains | options | |||||||||||||||||||||||||||||||||||||
held on | granted | exercised | price per | made on | held on | Unvested | Options | |||||||||||||||||||||||||||||||||||
Year of | Option | Jan 1, | during | Option | during | share at | exercise | Dec 31, | options | exercisable | ||||||||||||||||||||||||||||||||
Options | grant | over: | 2008 | 2008 | price | 2008 | exercise | £/€ | 2008 | vesting on: | until: | |||||||||||||||||||||||||||||||
ESOS | 1999 | PLC ord | 321,199 | £ | 4.67 | 321,199 | Sept 1, 2009 | |||||||||||||||||||||||||||||||||||
NV ord | 191,550 | € | 12.00 | 191,550 | Sept 1, 2009 | |||||||||||||||||||||||||||||||||||||
2000 | PLC ord | 171,821 | £ | 4.365 | 171,821 | May 2, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 120,245 | € | 10.73 | 120,245 | May 2, 2010 | |||||||||||||||||||||||||||||||||||||
2001 | PLC ord | 122,914 | £ | 6.590 | 122,914 | Feb 23, 2011 | ||||||||||||||||||||||||||||||||||||
NV ord | 87,601 | € | 14.75 | 87,601 | Feb 23, 2011 | |||||||||||||||||||||||||||||||||||||
2002 | PLC ord | 148,500 | £ | 6.000 | 148,500 | �� | Feb 22, 2012 | |||||||||||||||||||||||||||||||||||
NV ord | 104,204 | € | 13.94 | 104,204 | Feb 22, 2012 | |||||||||||||||||||||||||||||||||||||
2003 | PLC ord | 209,192 | £ | 4.515 | 209,192 | Feb 21, 2013 | ||||||||||||||||||||||||||||||||||||
NV ord | 148,946 | € | 9.34 | 148,946 | Feb 21, 2013 | |||||||||||||||||||||||||||||||||||||
2004 | PLC ord | 305,303 | £ | 4.872 | 305,303 | Feb 19, 2014 | ||||||||||||||||||||||||||||||||||||
NV ord | 209,645 | € | 10.57 | 209,645 | Feb 19, 2014 | |||||||||||||||||||||||||||||||||||||
2005 | PLC ord | 292,409 | £ | 5.335 | 292,409 | Feb 17, 2015 | ||||||||||||||||||||||||||||||||||||
NV ord | 199,481 | € | 11.31 | 199,481 | Feb 17, 2015 | |||||||||||||||||||||||||||||||||||||
2006 | PLC ord | 305,824 | £ | 5.305 | 305,824 | Mar 13, 2009 | Mar 13, 2016 | |||||||||||||||||||||||||||||||||||
NV ord | 205,480 | € | 11.47 | 205,480 | Mar 13, 2009 | Mar 13, 2016 | ||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 251,730 | £ | 6.445 | 251,730 | Feb 15, 2010 | Feb 15, 2017 | |||||||||||||||||||||||||||||||||||
NV ord | 166,254 | € | 14.51 | 166,254 | Feb 15, 2010 | Feb 15, 2017 | ||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 276,000 | £ | 6.275 | 276,000 | Feb 21, 2011 | Feb 21, 2018 | |||||||||||||||||||||||||||||||||||
NV ord | 182,000 | € | 12.21 | 182,000 | Feb 21, 2011 | Feb 21, 2018 | ||||||||||||||||||||||||||||||||||||
LTIP | 2004 | PLC ord | 571,616 | £ | 4.872 | 571,616 | Feb 19, 2014 | |||||||||||||||||||||||||||||||||||
NV ord | 392,516 | € | 10.57 | 392,516 | Feb 19, 2014 | |||||||||||||||||||||||||||||||||||||
SAYE | 2008 | PLC ord | 3,793 | £ | 4.244 | 3,793 | Aug 1, 2011 | Jan 31, 2010 | ||||||||||||||||||||||||||||||||||
Total PLC ords | 2,704,301 | 276,000 | 2,980,301 | |||||||||||||||||||||||||||||||||||||||
Total NV ords | 1,825,922 | 182,000 | 2,007,922 | |||||||||||||||||||||||||||||||||||||||
No. of | No. of | |||||||||||||||||||||||||||||||||||||||||
unvested | No. of | No. of | Notional | unvested | ||||||||||||||||||||||||||||||||||||||
shares | shares | Market | shares | Market | gross | shares | ||||||||||||||||||||||||||||||||||||
held on | awarded | price per | vested | price per | gains at | held on | ||||||||||||||||||||||||||||||||||||
Year of | Type of | Jan 1, | during | share at | during | share at | vesting | Dec 31, | Date of | |||||||||||||||||||||||||||||||||
Shares | grant | security | 2008 | 2008 | award | 2008 | vesting | £/€ | 2008 | vesting | ||||||||||||||||||||||||||||||||
BIP | 2005 | PLC ord | 86,042 | £ | 5.365 | 86,042 | £ | 6.435 | £ | 553,680 | — | Apr 14, 2008 | ||||||||||||||||||||||||||||||
2006 | PLC ord | 42,092 | £ | 5.470 | 42,092 | Apr 4, 2009 | ||||||||||||||||||||||||||||||||||||
NV ord | 27,810 | € | 11.74 | 27,810 | Apr 4, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 74,708 | £ | 6.155 | 74,708 | Apr 4, 2010 | ||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 96,227 | £ | 6.600 | 96,227 | Apr 8, 2011 | ||||||||||||||||||||||||||||||||||||
LTIP | 2006 | PLC ord | 144,550 | £ | 5.350 | 144,550 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||
NV ord | 95,181 | € | 11.76 | 95,181 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 118,942 | £ | 6.445 | 118,942 | Feb 15, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 78,555 | € | 14.51 | 78,555 | Feb 15, 2010 | |||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 129,000 | £ | 6.275 | 129,000 | Feb 21, 2011 | ||||||||||||||||||||||||||||||||||||
NV ord | 85,000 | € | 12.21 | 85,000 | Feb 21, 2011 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 466,334 | 225,227 | 86,042 | £ | 553,680 | 605,519 | ||||||||||||||||||||||||||||||||||||
Total NV ords | 201,546 | 85,000 | 286,546 | |||||||||||||||||||||||||||||||||||||||
* | Subsequent to Sir Crispin Davis’ retirement, the 2007 and 2008 awards will be treated in accordance with the rules of the respective plans. |
60
No. of | No. of | No. of | Gloss | No. of | ||||||||||||||||||||||||||||||||||||||
options | options | options | Market | Gains | options | |||||||||||||||||||||||||||||||||||||
held on | granted | exercised | price per | Made on | held on | Unvested | Options | |||||||||||||||||||||||||||||||||||
Year of | Option | Jan 1, | during | Option | during | share at | Exercise | Dec 31, | options | exercisable | ||||||||||||||||||||||||||||||||
Options | grant | over: | 2008 | 2008 | price | 2008 | exercise | £/€ | 2008 | vesting on: | until: | |||||||||||||||||||||||||||||||
ESOS | 2004 | PLC ord | 63,460 | £ | 4.780 | 63,460 | Aug 23, 2014 | |||||||||||||||||||||||||||||||||||
NV ord | 43,866 | € | 10.30 | 43,866 | Aug 23, 2014 | |||||||||||||||||||||||||||||||||||||
2005 | PLC ord | 154,517 | £ | 5.335 | 154,517 | Feb 17, 2015 | ||||||||||||||||||||||||||||||||||||
NV ord | 105,412 | € | 11.31 | 105,412 | Feb 17, 2015 | |||||||||||||||||||||||||||||||||||||
2006 | PLC ord | 178,895 | £ | 5.305 | 178,895 | Mar 13, 2009 | Mar 13, 2016 | |||||||||||||||||||||||||||||||||||
NV ord | 120,198 | € | 11.47 | 120,198 | �� | Mar 13, 2009 | Mar 13, 2016 | |||||||||||||||||||||||||||||||||||
2007 | PLC ord | 130,060 | £ | 6.445 | 130,060 | Feb 15, 2010 | Feb 15, 2017 | |||||||||||||||||||||||||||||||||||
NV ord | 85,897 | € | 14.51 | 85,897 | Feb 15, 2010 | Feb 15, 2017 | ||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 143,000 | £ | 6.275 | 143,000 | Feb 21, 2011 | Feb 21, 2018 | |||||||||||||||||||||||||||||||||||
NV ord | 94,000 | € | 12.21 | 94,000 | Feb 21, 2011 | Feb 21, 2018 | ||||||||||||||||||||||||||||||||||||
LTIP | 2004 | PLC ord | 325,163 | £4.78 | 325,163 | Aug 23, 2014 | ||||||||||||||||||||||||||||||||||||
NV ord | 224,766 | € | 10.30 | 224,766 | Aug 23, 2014 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 852,095 | 143,000 | 995,095 | |||||||||||||||||||||||||||||||||||||||
Total NV ords | 580,139 | 94,000 | 674,139 | |||||||||||||||||||||||||||||||||||||||
No. of | No. of | |||||||||||||||||||||||||||||||||||||||||
unvested | No. of | No. of | Notional | unvested | ||||||||||||||||||||||||||||||||||||||
shares | shares | Market | shares | Market | gross | shares | ||||||||||||||||||||||||||||||||||||
held on | awarded | price per | vested | price per | gains at | held on | ||||||||||||||||||||||||||||||||||||
Year of | Type of | Jan 1, | during | share at | during | share at | vesting | Dec 31, | Date of | |||||||||||||||||||||||||||||||||
Shares | grant | security | 2008 | 2008 | award | 2008 | vesting | £/€ | 2008 | vesting | ||||||||||||||||||||||||||||||||
BIP | 2005 | PLC ord | 14,020 | £ | 5.365 | 14,020 | £ | 6.435 | £ | 90,219 | — | Apr 14, 2008 | ||||||||||||||||||||||||||||||
2006 | NV ord | 29,442 | € | 11.74 | 29,442 | Apr 4, 2009 | ||||||||||||||||||||||||||||||||||||
2007 | NV ord | 27,572 | € | 13.49 | 27,572 | Apr 4, 2010 | ||||||||||||||||||||||||||||||||||||
2008 | NV ord | 30,318 | € | 12.44 | 30,318 | Apr 8, 2011 | ||||||||||||||||||||||||||||||||||||
LTIP | 2006 | PLC ord | 82,092 | £ | 5.350 | 82,092 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||
NV ord | 54,055 | € | 11.76 | 54,055 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 61,453 | £ | 6.445 | 61,453 | Feb 15, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 40,586 | € | 14.51 | 40,586 | Feb 15, 2010 | |||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 68,500 | £ | 6.275 | 68,500 | Feb 21, 2011 | ||||||||||||||||||||||||||||||||||||
NV ord | 45,000 | € | 12.21 | 45,000 | Feb 21, 2011 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 157,565 | 68,500 | 14,020 | £ | 90,219 | 212,045 | ||||||||||||||||||||||||||||||||||||
Total NV ords | 151,655 | 75,318 | 226,973 | |||||||||||||||||||||||||||||||||||||||
61
No. of | No. of | No. of | Gross | No. of | ||||||||||||||||||||||||||||||||||||||
options | options | options | Market | gains | options | |||||||||||||||||||||||||||||||||||||
held on | granted | exercised | price per | made on | held on | Unvested | Options | |||||||||||||||||||||||||||||||||||
Year of | Option | Jan 1 | during | Option | during | share at | exercise | Dec 31 | options | exercisable | ||||||||||||||||||||||||||||||||
Options | grant | over: | 2008 | 2008 | price | 2008 | exercise | £/€ | 2008 | vesting on: | until: | |||||||||||||||||||||||||||||||
ESOS | 2000 | PLC ord | 188,281 | £ | 5.660 | 188,281 | Aug 9, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 131,062 | € | 13.60 | 131,062 | Aug 9, 2010 | |||||||||||||||||||||||||||||||||||||
2001 | PLC ord | 83,785 | £ | 6.590 | 83,785 | Feb 23, 2011 | ||||||||||||||||||||||||||||||||||||
NV ord | 59,714 | € | 14.75 | 59,714 | Feb 23, 2011 | |||||||||||||||||||||||||||||||||||||
2002 | PLC ord | 103,722 | £ | 6.000 | 103,722 | Feb 22, 2012 | ||||||||||||||||||||||||||||||||||||
NV ord | 72,783 | € | 13.94 | 72,783 | Feb 22, 2012 | |||||||||||||||||||||||||||||||||||||
2003 | PLC ord | 132,142 | £ | 4.515 | 132,142 | Feb 21, 2013 | ||||||||||||||||||||||||||||||||||||
NV ord | 94,086 | €9.34 | 94,086 | Feb 21, 2013 | ||||||||||||||||||||||||||||||||||||||
2004 | PLC ord | 162,666 | £ | 4.872 | 162,666 | Feb 19, 2014 | ||||||||||||||||||||||||||||||||||||
NV ord | 111,699 | € | 10.57 | 111,699 | Feb 19, 2014 | |||||||||||||||||||||||||||||||||||||
2005 | PLC ord | 154,517 | £ | 5.335 | 154,517 | Feb 17, 2015 | ||||||||||||||||||||||||||||||||||||
NV ord | 105,412 | € | 11.31 | 105,412 | Feb 17, 2015 | |||||||||||||||||||||||||||||||||||||
2006 | PLC ord | 182,303 | £ | 5.305 | 182,303 | Mar 13, 2009 | Mar 13, 2016 | |||||||||||||||||||||||||||||||||||
NV ord | 122,487 | € | 11.47 | 122,487 | Mar 13, 2009 | Mar 13, 2016 | ||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 132,537 | £ | 6.445 | 132,537 | Feb 15, 2010 | Feb 15, 2017 | |||||||||||||||||||||||||||||||||||
NV ord | 87,533 | € | 14.51 | 87,533 | Feb 15, 2010 | Feb 15, 2017 | ||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 145,000 | £ | 6.275 | 145,000 | Feb 21, 2011 | Feb 21, 2018 | |||||||||||||||||||||||||||||||||||
NV ord | 96,000 | € | 12.21 | 96,000 | Feb 21, 2011 | Feb 21, 2018 | ||||||||||||||||||||||||||||||||||||
LTIP | 2004 | PLC ord | 304,558 | £ | 4.872 | 304,558 | Feb 19, 2014 | |||||||||||||||||||||||||||||||||||
NV ord | 209,133 | € | 10.57 | 209,133 | Feb 19, 2014 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 1,444,511 | 145,000 | 1,589,511 | |||||||||||||||||||||||||||||||||||||||
Total NV ords | 993,909 | 96,000 | 1,089,909 | |||||||||||||||||||||||||||||||||||||||
No. of | No. of | |||||||||||||||||||||||||||||||||||||||||
unvested | No. of | No. of | Notional | unvested | ||||||||||||||||||||||||||||||||||||||
shares | shares | Market | shares | Market | gross | shares | ||||||||||||||||||||||||||||||||||||
held on | awarded | price per | vested | price per | gains at | held on | ||||||||||||||||||||||||||||||||||||
Year of | Type of | Jan 1, | during | share at | during | share at | vesting | Dec 31, | Date of | |||||||||||||||||||||||||||||||||
Shares | grant | security | 2008 | 2008 | award | 2008 | vesting | £/€ | 2008 | vesting | ||||||||||||||||||||||||||||||||
BIP | 2005 | PLC ord | 23,756 | £ | 5.365 | 23,756 | £ | 6.435 | £ | 152,870 | — | Apr 14, 2008 | ||||||||||||||||||||||||||||||
NV ord | 16,522 | € | 11.35 | 16,522 | € | 12.05 | € | 199,090 | — | Apr 14, 2008 | ||||||||||||||||||||||||||||||||
2006 | PLC ord | 26,400 | £ | 5.470 | 26,400 | Apr 4, 2009 | ||||||||||||||||||||||||||||||||||||
NV ord | 17,636 | € | 11.74 | 17,636 | Apr 4, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 21,548 | £ | 6.155 | 21,548 | Apr 4, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 14,574 | € | 13.49 | 14,574 | Apr 4, 2010 | |||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 20,030 | £ | 6.600 | 20,030 | Apr 8, 2011 | ||||||||||||||||||||||||||||||||||||
NV ord | 13,505 | € | 12.44 | 13,505 | Apr 8, 2011 | |||||||||||||||||||||||||||||||||||||
LTIP | 2006 | PLC ord | 83,656 | £ | 5.350 | 83,656 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||
NV ord | 55,085 | € | 11.76 | 55,085 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 62,623 | £ | 6.445 | 62,623 | Feb 15, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 41,359 | € | 14.51 | 41,359 | Feb 15, 2010 | |||||||||||||||||||||||||||||||||||||
2008 | PLC ord | 68,000 | £ | 6.275 | 68,000 | Feb 21, 2011 | ||||||||||||||||||||||||||||||||||||
NV ord | 44,500 | € | 12.21 | 44,500 | Feb 21, 2011 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 217,983 | 88,030 | 23,756 | £ | 152,870 | 282,257 | ||||||||||||||||||||||||||||||||||||
Total NV ords | 145,176 | 58,005 | 16,522 | € | 199,090 | 186,659 | ||||||||||||||||||||||||||||||||||||
62
Gross | ||||||||||||||||||||||||||||||||||||||||||
No. of | gains | |||||||||||||||||||||||||||||||||||||||||
No. of | No. of | options | made on | No. of | ||||||||||||||||||||||||||||||||||||||
options | options | exercised | Market | exercise | options | |||||||||||||||||||||||||||||||||||||
held on | granted | on Jan 30, | price per | at Jan 30, | held on | Unvested | Options | |||||||||||||||||||||||||||||||||||
Year of | Option | Jan 1, | during | Option | 2008 | share at | 2008 | Jan 30, | options | exercisable | ||||||||||||||||||||||||||||||||
Options | grant | over: | 2008 | 2008 | price | inclusive | exercise | £/€ | 2008 | vesting on: | until: | |||||||||||||||||||||||||||||||
ESOS | 2004 | PLC ord | 162,666 | £ | 4.872 | 162,666 | Jan 30, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 111,699 | € | 10.57 | 111,699 | Jan 30, 2010 | |||||||||||||||||||||||||||||||||||||
2005 | PLC ord | 154,517 | £ | 5.335 | 154,517 | Jan 30, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 105,412 | € | 11.31 | 105,412 | Jan 30, 2010 | |||||||||||||||||||||||||||||||||||||
2006 | * | PLC ord | 175,488 | £ | 5.305 | 116,992 | Jan 30, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 117,908 | € | 11.47 | 78,605 | Jan 30, 2010 | |||||||||||||||||||||||||||||||||||||
2007 | * | PLC ord | 121,628 | £ | 6.445 | 40,542 | Jan 30, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 80,329 | € | 14.51 | 26,776 | Jan 30, 2010 | |||||||||||||||||||||||||||||||||||||
LTIP | 2004 | PLC ord | 107,962 | £ | 4.872 | 107,962 | Jan 30, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 75,936 | € | 10.57 | 75,936 | Jan 30, 2010 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 722,261 | 582,679 | ||||||||||||||||||||||||||||||||||||||||
Total NV ords | 491,284 | 398,428 | ||||||||||||||||||||||||||||||||||||||||
Notional | ||||||||||||||||||||||||||||||||||||||||||
No. of | No. of | gross | No. of | |||||||||||||||||||||||||||||||||||||||
unvested | No. of | shares | gains at | unvested | ||||||||||||||||||||||||||||||||||||||
shares | shares | Market | vested on | Market | vesting at | shares | ||||||||||||||||||||||||||||||||||||
held on | awarded | price per | Jan 30, | price per | Jan 30, | held on | ||||||||||||||||||||||||||||||||||||
Year of | Type of | Jan 1, | during | share at | 2008 | share at | 2008 | Jan 30, | Date of | |||||||||||||||||||||||||||||||||
Shares | grant | security | 2008 | 2008 | award | inclusive | vesting | £/€ | 2008 | vesting | ||||||||||||||||||||||||||||||||
BIP | 2005 | PLC ord | 24,156 | £ | 5.365 | 24,156 | Apr 14, 2008 | |||||||||||||||||||||||||||||||||||
NV ord | 16,800 | € | 11.35 | 16,800 | Apr 14, 2008 | |||||||||||||||||||||||||||||||||||||
2006 | PLC ord | 8,124 | £ | 5.470 | 8,124 | Apr 4, 2009 | ||||||||||||||||||||||||||||||||||||
NV ord | 5,426 | € | 11.74 | 5,426 | Apr 4, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | PLC ord | 8,012 | £ | 6.155 | 8,012 | Apr 4, 2010 | ||||||||||||||||||||||||||||||||||||
NV ord | 5,420 | € | 12.44 | 5,420 | Apr 4, 2010 | |||||||||||||||||||||||||||||||||||||
LTIP | 2006 | * | PLC ord | 80,528 | £ | 5.350 | 53,685 | Feb 27, 2009 | ||||||||||||||||||||||||||||||||||
NV ord | 53,025 | € | 11.76 | 35,350 | Feb 27, 2009 | |||||||||||||||||||||||||||||||||||||
2007 | * | PLC ord | 57,412 | £ | 6.445 | 19,137 | Feb 15, 2010 | |||||||||||||||||||||||||||||||||||
NV ord | 37,917 | € | 14.51 | 12,639 | Feb 15, 2010 | |||||||||||||||||||||||||||||||||||||
Total PLC ords | 178,232 | 113,114 | ||||||||||||||||||||||||||||||||||||||||
Total NV ords | 118,588 | 75,635 | ||||||||||||||||||||||||||||||||||||||||
* | Proration for service applied in respect of these awards. |
53
63
Market | ||||||||||||||||||||||||||||||||||||
price at | ||||||||||||||||||||||||||||||||||||
2004-2006 | Granted | Exercised | exercise | |||||||||||||||||||||||||||||||||
January 1, | performance | during | Option | during | date | December 31, | Exercisable | Exercisable | ||||||||||||||||||||||||||||
2007 | adjustment | the year | price (€) | the year | (€) | 2007 | from | until | ||||||||||||||||||||||||||||
Gerard van de Aast — ESOS | 35,866 | 14.87 | 35,866 | December 1, 2003 | December 1, 2010 | |||||||||||||||||||||||||||||||
35,148 | 14.75 | 35,148 | February 23, 2004 | February 23, 2011 | ||||||||||||||||||||||||||||||||
40,699 | 13.94 | 40,699 | February 22, 2005 | February 22, 2012 | ||||||||||||||||||||||||||||||||
85,805 | 10.57 | 85,805 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||||
82,478 | 11.31 | 82,478 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
85,775 | 11.47 | 85,775 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
80,928 | 14.51 | 80,928 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 26,347 | Nil | 26,347 | April 14, 2008 | April 14, 2008 | |||||||||||||||||||||||||||||||
12,311 | Nil | 12,311 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
29,483 | Nil | 29,483 | April 4, 2010 | April 4, 2010 | ||||||||||||||||||||||||||||||||
— LTIP (options) | 157,309 | 3,342 | 10.57 | 160,651 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||
— LTIP (shares) | 71,504 | 1,519 | Nil | 73,023 | 12.93 | — | ||||||||||||||||||||||||||||||
46,332 | Nil | 46,332 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
38,238 | Nil | 38,238 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
Total | 679,574 | 4,861 | 148,649 | 73,023 | 760,061 | |||||||||||||||||||||||||||||||
Mark Armour — ESOS | 20,244 | 13.55 | 20,244 | February 21, 2003 | April 19, 2009 | |||||||||||||||||||||||||||||||
61,726 | 10.73 | 61,726 | 13.27 | — | ||||||||||||||||||||||||||||||||
44,882 | 14.75 | 44,882 | February 23, 2004 | February 23, 2011 | ||||||||||||||||||||||||||||||||
51,926 | 13.94 | 51,926 | February 22, 2005 | February 22, 2012 | ||||||||||||||||||||||||||||||||
74,276 | 9.34 | 74,276 | 13.27 | — | ||||||||||||||||||||||||||||||||
106,536 | 10.57 | 106,536 | 13.27 | — | ||||||||||||||||||||||||||||||||
102,618 | 11.31 | 102,618 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
106,720 | 11.47 | 106,720 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
86,347 | 14.51 | 86,347 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 12,842 | Nil | 12,842 | 13.25 | — | |||||||||||||||||||||||||||||||
15,098 | Nil | 15,098 | April 14, 2008 | April 14, 2008 | ||||||||||||||||||||||||||||||||
14,306 | Nil | 14,306 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
13,371 | Nil | 13,371 | April 4, 2010 | April 4, 2010 | ||||||||||||||||||||||||||||||||
— LTIP (options) | 195,317 | 4,150 | 10.57 | 199,467 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||
— LTIP (shares) | 88,780 | 1,886 | Nil | 90,666 | 12.93 | — | ||||||||||||||||||||||||||||||
49,434 | Nil | 49,434 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
40,799 | Nil | 40,799 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
Total | 944,705 | 6,036 | 140,517 | 346,046 | 745,212 | |||||||||||||||||||||||||||||||
Sir Crispin Davis — ESOS | 95,774 | 12.00 | 95,774 | February 21, 2003 | September 1, 2009 | |||||||||||||||||||||||||||||||
47,888 | 12.00 | 47,888 | September 1, 2003 | September 1, 2009 | ||||||||||||||||||||||||||||||||
47,888 | 12.00 | 47,888 | September 1, 2004 | September 1, 2009 | ||||||||||||||||||||||||||||||||
120,245 | 10.73 | 120,245 | May 2, 2003 | May 2, 2010 | ||||||||||||||||||||||||||||||||
87,601 | 14.75 | 87,601 | February 23, 2004 | February 23, 2011 | ||||||||||||||||||||||||||||||||
104,204 | 13.94 | 104,204 | February 22, 2005 | February 22, 2012 | ||||||||||||||||||||||||||||||||
148,946 | 9.34 | 148,946 | February 21, 2006 | February 21, 2013 | ||||||||||||||||||||||||||||||||
209,645 | 10.57 | 209,645 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||||
199,481 | 11.31 | 199,481 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
205,480 | 11.47 | 205,480 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
166,254 | 14.51 | 166,254 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 26,421 | Nil | 26,421 | 13.25 | — | |||||||||||||||||||||||||||||||
27,810 | Nil | 27,810 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
— LTIP (options) | 384,349 | 8,167 | 10.57 | 392,516 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||
— LTIP (shares) | 174,704 | 3,712 | Nil | 178,416 | 12.93 | — | ||||||||||||||||||||||||||||||
95,181 | Nil | 95,181 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
78,555 | Nil | 78,555 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
Total | 1,975,617 | 11,879 | 244,809 | 204,837 | 2,027,468 | |||||||||||||||||||||||||||||||
54
Market | ||||||||||||||||||||||||||||||||||||
price at | ||||||||||||||||||||||||||||||||||||
2004-2006 | Granted | Exercised | exercise | |||||||||||||||||||||||||||||||||
January 1, | performance | during | Option | during | date | December 31, | Exercisable | Exercisable | ||||||||||||||||||||||||||||
2007 | adjustment | the year | price (€) | the year | (€) | 2007 | from | until | ||||||||||||||||||||||||||||
Erik Engstrom — ESOS | 43,866 | 10.30 | 43,866 | August 23, 2007 | August 23, 2014 | |||||||||||||||||||||||||||||||
105,412 | 11.31 | 105,412 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
120,198 | 11.47 | 120,198 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
85,897 | 14.51 | 85,897 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 29,442 | Nil | 29,442 | April 4, 2009 | April 4, 2009 | |||||||||||||||||||||||||||||||
27,572 | Nil | 27,572 | April 4, 2010 | April 4, 2010 | ||||||||||||||||||||||||||||||||
— LTIS (options) | 220,090 | 4,676 | 10.30 | 224,766 | August 23, 2007 | August 23, 2014 | ||||||||||||||||||||||||||||||
— LTIS (shares) | 100,040 | 2,125 | Nil | 102,165 | 12.93 | — | ||||||||||||||||||||||||||||||
54,055 | Nil | 54,055 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
40,586 | Nil | 40,586 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
— Restricted shares | 26,677 | Nil | 26,677 | 13.02 | — | |||||||||||||||||||||||||||||||
Total | 699,780 | 6,801 | 154,055 | 128,842 | 731,794 | |||||||||||||||||||||||||||||||
Andrew Prozes — ESOS | 131,062 | 13.60 | 131,062 | August 9, 2003 | August 9, 2010 | |||||||||||||||||||||||||||||||
59,714 | 14.75 | 59,714 | February 23, 2004 | February 23, 2011 | ||||||||||||||||||||||||||||||||
72,783 | 13.94 | 72,783 | February 22, 2005 | February 22, 2012 | ||||||||||||||||||||||||||||||||
94,086 | 9.34 | 94,086 | February 21, 2006 | February 21, 2013 | ||||||||||||||||||||||||||||||||
111,699 | 10.57 | 111,699 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||||
105,412 | 11.31 | 105,412 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
122,487 | 11.47 | 122,487 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
87,533 | 14.51 | 87,533 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 13,612 | Nil | 13,612 | 13.25 | — | |||||||||||||||||||||||||||||||
16,522 | Nil | 16,522 | April 14, 2008 | April 14, 2008 | ||||||||||||||||||||||||||||||||
17,636 | Nil | 17,636 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
14,574 | Nil | 14,574 | April 4, 2010 | April 4, 2010 | ||||||||||||||||||||||||||||||||
— LTIS (options) | 204,782 | 4,351 | 10.57 | 209,133 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||
— LTIS (shares) | 93,083 | 1,978 | Nil | 95,061 | 12.93 | — | ||||||||||||||||||||||||||||||
55,085 | Nil | 55,085 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
41,359 | Nil | 41,359 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
Total | 1,097,963 | 6,329 | 143,466 | 108,673 | 1,139,085 | |||||||||||||||||||||||||||||||
Patrick Tierney — ESOS | 266,258 | 9.34 | 266,258 | 14.08 | — | |||||||||||||||||||||||||||||||
111,699 | 10.57 | 111,699 | February 19, 2007 | February 19, 2014 | ||||||||||||||||||||||||||||||||
105,412 | 11.31 | 105,412 | February 17, 2008 | February 17, 2015 | ||||||||||||||||||||||||||||||||
117,908 | 11.47 | 117,908 | March 13, 2009 | March 13, 2016 | ||||||||||||||||||||||||||||||||
80,329 | 14.51 | 80,329 | February 15, 2010 | February 15, 2017 | ||||||||||||||||||||||||||||||||
— BIP | 13,252 | Nil | 13,252 | 13.25 | — | |||||||||||||||||||||||||||||||
16,800 | Nil | 16,800 | April 14, 2008 | April 14, 2008 | ||||||||||||||||||||||||||||||||
5,426 | Nil | 5,426 | April 4, 2009 | April 4, 2009 | ||||||||||||||||||||||||||||||||
5,420 | Nil | 5,420 | April 4, 2010 | April 4, 2010 | ||||||||||||||||||||||||||||||||
— LTIS (options) | 204,782 | (68,846 | ) | 10.57 | 60,000 | 13.19 | 75,936 | February 19, 2007 | February 19, 2014 | |||||||||||||||||||||||||||
— LTIS (shares) | 93,083 | (31,295 | ) | Nil | 61,788 | 12.93 | — | |||||||||||||||||||||||||||||
53,025 | Nil | 53,025 | April 19, 2009 | April 19, 2009 | ||||||||||||||||||||||||||||||||
37,917 | Nil | 37,917 | February 15, 2010 | February 15, 2010 | ||||||||||||||||||||||||||||||||
Total | 987,645 | (100,141 | ) | 123,666 | 401,298 | 609,872 | ||||||||||||||||||||||||||||||
55
(i) | Awards made |
Number of | Number of | Number of | ||||||||||||||||||||||||||||||
Reed Elsevier PLC | Reed Elsevier NV | Reed Elsevier PLC | Number of | |||||||||||||||||||||||||||||
options granted | options granted | options granted | Reed Elsevier NV | |||||||||||||||||||||||||||||
at 627.50p | at €12.21 | Exercisable | Exercisable | at £5.42 | options granted | Exercisable | Exercisable | |||||||||||||||||||||||||
per share | per share | from | to | per share | at €9.415 per share | from | to | |||||||||||||||||||||||||
G J A van de Aast | 134,000 | 89,000 | Feb 21, 2011 | Feb 21, 2018 | ||||||||||||||||||||||||||||
M H Armour | 144,000 | 94,000 | Feb 21, 2011 | Feb 21, 2018 | 147,692 | 95,899 | February 19, 2012 | February 19, 2019 | ||||||||||||||||||||||||
Sir Crispin Davis | 276,000 | 182,000 | Feb 21, 2011 | Feb 21, 2018 | ||||||||||||||||||||||||||||
E Engstrom | 143,000 | 94,000 | Feb 21, 2011 | Feb 21, 2018 | 146,923 | 95,399 | February 19, 2012 | February 19, 2019 | ||||||||||||||||||||||||
A Prozes | 145,000 | 96,000 | Feb 21, 2011 | Feb 21, 2018 | 149,722 | 97,216 | February 19, 2012 | February 19, 2019 | ||||||||||||||||||||||||
I Smith | 83,025 | 53,910 | February 19, 2012 | February 19, 2019 |
Number of | Number of | Number of | Number of | |||||||||||||||||||||
Reed Elsevier PLC | Reed Elsevier NV | Reed Elsevier PLC | Reed Elsevier NV | |||||||||||||||||||||
nil cost | nil cost | nil cost | nil cost | |||||||||||||||||||||
conditional | conditional | Exercisable | Exercisable | conditional | conditional | |||||||||||||||||||
shares awarded | shares awarded | from | to | shares awarded | shares awarded | |||||||||||||||||||
G J A van de Aast | 64,000 | 42,000 | Feb 21, 2011 | Feb 21, 2011 | ||||||||||||||||||||
M H Armour | 67,000 | 44,000 | Feb 21, 2011 | Feb 21, 2011 | 76,397 | 49,605 | ||||||||||||||||||
Sir Crispin Davis | 129,000 | 85,000 | Feb 21, 2011 | Feb 21, 2011 | ||||||||||||||||||||
E Engstrom | 68,500 | 45,000 | Feb 21, 2011 | Feb 21, 2011 | 103,902 | 67,465 | ||||||||||||||||||
A Prozes | 68,000 | 44,500 | Feb 21, 2011 | Feb 21, 2011 | 105,881 | 68,750 | ||||||||||||||||||
I Smith | 112,084 | 72,778 |
Number of | Number of | |||||||
Reed Elsevier PLC | Reed Elsevier NV | |||||||
nil cost | nil cost | |||||||
conditional | conditional | |||||||
shares awarded | shares awarded | |||||||
I Smith | 64,541 | 43,956 |
64
(ii) | Awards vested |
Accrued | ||||||||||||||||
No. of shares subject to | No. of shares | notional | ||||||||||||||
Type of security | target award | vesting | dividends | |||||||||||||
Gerard van de Aast | PLC ord | 70,364 | 132,987 | £66,493 | ||||||||||||
NV ord | 46,332 | 87,567 | €106,131 | |||||||||||||
Mark Armour | PLC ord | 75,075 | 141,891 | £70,945 | ||||||||||||
NV ord | 49,434 | 93,430 | €113,237 | |||||||||||||
Sir Crispin Davis | PLC ord | 144,550 | 273,199 | £136,599 | ||||||||||||
NV ord | 95,181 | 179,892 | €218,029 | |||||||||||||
Erik Engstrom | PLC ord | 82,092 | 155,153 | £77,576 | ||||||||||||
NV ord | 54,055 | 102,163 | €123,821 | |||||||||||||
Andrew Prozes | PLC ord | 83,656 | 158,109 | £79,054 | ||||||||||||
NV ord | 55,085 | 104,110 | €126,181 | |||||||||||||
Patrick Tierney | PLC ord | 53,685 | 101,464 | £50,732 | ||||||||||||
NV ord | 35,350 | 66,811 | €80,974 |
65
(i) | All-Employee Share Option Plans |
(a) | Reed Elsevier Group plc SAYE Share Option Scheme (the “SAYE Scheme”) |
56
(b) | Convertible debenture stock arrangements |
66
(ii) | Executive |
(a) | Reed Elsevier Group plc executive share option schemes |
57
(b) | Reed Elsevier Group plc Retention Share Plan |
67
Reed Elsevier NV executive option arrangements |
Long term incentive plans |
58
Bonus |
68
Number of | ||||||||||||
outstanding | Options over | Option price | ||||||||||
options | shares | range | ||||||||||
Reed Elsevier Group plc SAYE Share Option Schemes | Reed Elsevier PLC | 504.00p | ||||||||||
Reed Elsevier NV Convertible Debenture Stock Scheme | Reed Elsevier NV | € | ||||||||||
Reed Elsevier Group plc Executive Share Option Schemes | Reed Elsevier PLC | 424.00p — 700.00p | ||||||||||
Reed Elsevier NV | € | |||||||||||
Reed Elsevier NV Executive Options Arrangements | 110,463 | Reed Elsevier NV | €13.55 | |||||||||
Reed Elsevier Group plc Long Term Incentive Share Option | Reed Elsevier PLC | 478.00p — | 525.50p | |||||||||
Reed Elsevier NV | €10.30 — €11.35 |
Number of | ||||||||
outstanding | Awards over | |||||||
awards | shares in | |||||||
Reed Elsevier Group plc Long Term Incentive Share Option Scheme | Reed Elsevier PLC | |||||||
Reed Elsevier NV | ||||||||
Reed Elsevier Group plc Retention Share Plan | Reed Elsevier PLC | |||||||
Reed Elsevier NV | ||||||||
Reed Elsevier Group plc Bonus Investment | Reed Elsevier PLC | |||||||
Reed Elsevier NV |
* | For disclosure purposes, any Reed Elsevier PLC and Reed Elsevier NV ADRs awarded under this plan have been converted into ordinary share equivalents. |
59
Reed Elsevier PLC | Reed Elsevier NV | |||||||||||||||||||
ordinary shares | ordinary shares | |||||||||||||||||||
�� | January 1, | December 31, | January 1, | December 31, | ||||||||||||||||
2007(i) | 2007 | 2007(i) | 2007 | |||||||||||||||||
G J A van de Aast | 39,169 | 124,287 | 57,941 | 120,523 | ||||||||||||||||
M H Armour | 112,007 | 112,378 | 47,150 | 47,461 | ||||||||||||||||
G J de Boer-Kruyt | — | — | — | — | ||||||||||||||||
Sir Crispin Davis | 567,174 | 787,577 | 324,344 | 445,197 | ||||||||||||||||
M W Elliott | — | — | — | — | ||||||||||||||||
E Engstrom | 29,479 | 79,379 | 73,415 | 219,867 | ||||||||||||||||
J Hommen | — | — | — | — | ||||||||||||||||
L Hook | — | — | — | — | ||||||||||||||||
R Polet | — | — | — | — | ||||||||||||||||
A Prozes | 123,740 | 230,981 | 95,954 | 169,334 | ||||||||||||||||
D E Reid | — | — | — | — | ||||||||||||||||
Lord Sharman | — | — | — | — | ||||||||||||||||
R W H Stomberg | — | — | — | — | ||||||||||||||||
P Tierney | 72,212 | 37,416 | 48,090 | 25,448 |
Reed Elsevier PLC | Reed Elsevier NV | |||||||||||||||
ordinary shares | ordinary shares | |||||||||||||||
January 1, | December 31, | January 1, | December 31, | |||||||||||||
2008 | 2008(i) | 2008 | 2008(i) | |||||||||||||
Mark Armour | 112,378 | 131,572 | 47,661 | 62,384 | ||||||||||||
Dien de Boer-Kruyt | — | — | — | — | ||||||||||||
Sir Crispin Davis | 787,577 | 800,639 | 445,197 | 386,940 | ||||||||||||
Mark Elliott | — | — | — | — | ||||||||||||
Erlk Engstrom | 79,379 | 77,856 | 219,867 | 211,760 | ||||||||||||
Jan Hommen | — | — | — | — | ||||||||||||
Lisa Hook | — | — | — | — | ||||||||||||
Robert Polet | — | — | — | — | ||||||||||||
Andrew Prozes | 230,981 | 231,709 | 169,334 | 168,676 | ||||||||||||
David Reid | — | — | — | — | ||||||||||||
Lord Sharman | — | — | — | — |
(i) | On |
69
Interest in | Interest in | |||||||
Reed Elsevier | Reed Elsevier | |||||||
PLC ordinary | NV ordinary | |||||||
shares | shares | |||||||
G J A van de Aast | 109,018 | 109,478 | ||||||
M H Armour | 100,922 | 43,464 | ||||||
Sir Crispin Davis | 693,453 | 386,940 | ||||||
E Engstrom | 69,592 | 193,894 | ||||||
A Prozes | 204,893 | 150,227 |
Interest in | Interest in | |||||||
Reed Elsevier | Reed Elsevier | |||||||
PLC ordinary | NV ordinary | |||||||
shares | shares | |||||||
M H Armour | 215,287 | 117,507 | ||||||
Sir Crispin Davis | 961,826 | 493,076 | ||||||
E Engstrom | 107,040 | 313,923 | ||||||
A Prozes | 231,709 | 168,676 | ||||||
I Smith | — | — |
60
Reed | ||||||||||||||||||||||||||||
Elsevier | Reed | Reed | ||||||||||||||||||||||||||
Reed | PLC | Elsevier | Elsevier NV | Reed | ||||||||||||||||||||||||
Elsevier | ordinary | PLC | Reed | ordinary | Elsevier NV | |||||||||||||||||||||||
PLC | shares | conditional | Elsevier NV | shares | conditional | |||||||||||||||||||||||
ordinary | subject to | share | ordinary | subject to | share | |||||||||||||||||||||||
shares | options | awards | shares(l)(2) | options | awards | |||||||||||||||||||||||
Executive officers (other than directors) as a group | 90,329 | 611,820 | 330,070 | 17,412 | 485,445 | 143,966 |
Reed | ||||||||||||||||||||||||||||
Elsevier | Reed | Reed | ||||||||||||||||||||||||||
Reed | PLC | Elsevier | Elsevier NV | Reed | ||||||||||||||||||||||||
Elsevier | ordinary | PLC | Reed | ordinary | Elsevier NV | |||||||||||||||||||||||
PLC | shares | conditional | Elsevier NV | shares | conditional | |||||||||||||||||||||||
ordinary | subject to | share | ordinary | subject to | share | |||||||||||||||||||||||
shares | options | awards | shares(l) | options | awards | |||||||||||||||||||||||
Executive officers (other than directors) as a group | 137,988 | 563,943 | 354,717 | — | 379,282 | 161,878 |
(1) | The Reed Elsevier NV ordinary shares are in registered form, although most ordinary shares are traded in the Dutch Security giro system administered by Euroclear Netherlands. | |
6170
Identity of Person or Group(1) | % of Class | |||
Fidelity International Limited | ||||
Baillie Gifford & Co | 4.75 | |||
Legal & General Group plc | ||||
Directors and Officers | — |
(1) | Under UK Law, subject to certain limited exceptions, persons or groups owning or controlling 3% or more of the issued Reed Elsevier PLC ordinary shares are required to notify Reed Elsevier PLC of the level of their holdings. |
Identity of Person or Group(1) | % of Class | |||
Morgan Stanley | ||||
Franklin Resources Inc. | 5.30 | |||
Mondrian Investment Partners Limited | 5.24 | |||
Directors and Officers(2) | — |
(1) | Under Article 5:38 of the Netherlands Financial Supervision Statute, any person acquiring or disposing of shares or voting rights in public companies established under the laws of the Netherlands listed on a stock exchange in the European Union, is required to notify the Dutch Financial Markets Authority (AFM) without delay if such person knows, or should know, that such interest therein reaches, exceeds or drops below a 5% respectively a 10% threshold. The AFM’s public register discloses that as at | |
(2) | No individual member of the Supervisory Board or the Executive Board of Reed Elsevier NV or executive officer of Reed Elsevier NV has notified the AFM that they hold an interest of 5% or more in the issued share capital or voting rights of Reed Elsevier NV pursuant to the Statute described in the immediately preceding footnote. |
62
6371
See Item 18: | Financial Statements. |
6472
73
Pence per ordinary share | US dollars per ADS | Pence per ordinary share | US dollars per ADS | |||||||||||||||||||||||||
Calendar Periods | High | Low | High | Low | High | Low | High | Low | ||||||||||||||||||||
2008 | 690 | 451 | 54.60 | 27.06 | ||||||||||||||||||||||||
2007 | 690 | 558 | 54.85 | 44.02 | 690 | 558 | 54.85 | 44.02 | ||||||||||||||||||||
2006 | 608 | 504 | 46.17 | 35.90 | 608 | 504 | 46.17 | 35.90 | ||||||||||||||||||||
2005 | 554 | 475 | 42.67 | 35.26 | 554 | 475 | 42.67 | 35.26 | ||||||||||||||||||||
2004 | 543 | 450 | 39.75 | 33.33 | 543 | 450 | 39.75 | 33.33 | ||||||||||||||||||||
2003 | 552 | 392 | 37.14 | 26.15 | ||||||||||||||||||||||||
2008 | ||||||||||||||||||||||||||||
Fourth Quarter | 586 | 451 | 40.82 | 27.06 | ||||||||||||||||||||||||
Third Quarter | 636 | 528 | 47.25 | 37.25 | ||||||||||||||||||||||||
Second Quarter | 670 | 567 | 53.49 | 44.83 | ||||||||||||||||||||||||
First Quarter | 690 | 582 | 54.60 | 45.47 | ||||||||||||||||||||||||
2007 | ||||||||||||||||||||||||||||
Fourth Quarter | 682 | 558 | 54.34 | 46.18 | 682 | 558 | 54.34 | 46.18 | ||||||||||||||||||||
Third Quarter | 675 | 573 | 54.85 | 45.87 | 675 | 573 | 54.85 | 45.87 | ||||||||||||||||||||
Second Quarter | 690 | 612 | 54.41 | 48.60 | 690 | 612 | 54.41 | 48.60 | ||||||||||||||||||||
First Quarter | 645 | 561 | 50.44 | 44.02 | 645 | 561 | 50.44 | 44.02 | ||||||||||||||||||||
2006 | ||||||||||||||||||||||||||||
Fourth Quarter | 608 | 555 | 46.17 | 42.70 | ||||||||||||||||||||||||
Third Quarter | 594 | 514 | 45.06 | 37.65 | ||||||||||||||||||||||||
Second Quarter | 556 | 504 | 40.92 | 37.82 | ||||||||||||||||||||||||
First Quarter | 568 | 515 | 39.48 | 35.90 | ||||||||||||||||||||||||
Month | ||||||||||||||||||||||||||||
February 2008 (through February 20, 2008) | 619 | 582 | 48.55 | 45.47 | ||||||||||||||||||||||||
January 2008 | 690 | 583 | 54.60 | 46.82 | ||||||||||||||||||||||||
December 2007 | 682 | 601 | 54.34 | 49.31 | ||||||||||||||||||||||||
November 2007 | 622 | 558 | 51.95 | 46.18 | ||||||||||||||||||||||||
October 2007 | 628 | 599 | 52.67 | 48.96 | ||||||||||||||||||||||||
September 2007 | 634 | 583 | 51.13 | 47.52 | ||||||||||||||||||||||||
August 2007 | 612 | 573 | 49.70 | 45.87 | ||||||||||||||||||||||||
February 2009 (through February 18, 2009) | 543 | 505 | 32.06 | 28.72 | ||||||||||||||||||||||||
January 2009 | 560 | 506 | 32.36 | 29.80 | ||||||||||||||||||||||||
December 2008 | 543 | 451 | 32.50 | 27.06 | ||||||||||||||||||||||||
November 2008 | 562 | 489 | 35.98 | 29.05 | ||||||||||||||||||||||||
October 2008 | 586 | 456 | 40.82 | 31.35 | ||||||||||||||||||||||||
September 2008 | 636 | 541 | 45.81 | 37.25 | ||||||||||||||||||||||||
August 2008 | 625 | 570 | 47.25 | 43.51 |
6574
€ per ordinary share | US dollars per ADS | € per ordinary share | US dollars per ADS | |||||||||||||||||||||||||
Calendar Periods | High | Low | High | Low | High | Low | High | Low | ||||||||||||||||||||
2008 | 13.69 | 7.72 | 39.61 | 20.73 | ||||||||||||||||||||||||
2007 | 14.89 | 11.49 | 40.49 | 33.20 | 14.89 | 11.49 | 40.49 | 33.20 | ||||||||||||||||||||
2006 | 13.72 | 11.08 | 35.25 | 26.72 | 13.72 | 11.08 | 35.25 | 26.72 | ||||||||||||||||||||
2005 | 11.91 | 10.03 | 31.06 | 26.25 | 11.91 | 10.03 | 31.06 | 26.25 | ||||||||||||||||||||
2004 | 12.19 | 9.61 | 29.16 | 24.55 | 12.19 | 9.61 | 29.16 | 24.55 | ||||||||||||||||||||
2003 | 12.03 | 8.13 | 26.08 | 18.14 | ||||||||||||||||||||||||
2008 | ||||||||||||||||||||||||||||
Fourth Quarter | 10.97 | 7.72 | 30.00 | 20.73 | ||||||||||||||||||||||||
Third Quarter | 11.63 | 9.66 | 34.22 | 28.20 | ||||||||||||||||||||||||
Second Quarter | 12.71 | 10.54 | 39.54 | 32.95 | ||||||||||||||||||||||||
First Quarter | 13.69 | 11.45 | 39.61 | 33.81 | ||||||||||||||||||||||||
2007 | ||||||||||||||||||||||||||||
Fourth Quarter | 13.65 | 11.49 | 39.81 | 34.08 | 13.65 | 11.49 | 39.81 | 34.08 | ||||||||||||||||||||
Third Quarter | 14.70 | 12.50 | 40.49 | 33.85 | 14.70 | 12.50 | 40.49 | 33.85 | ||||||||||||||||||||
Second Quarter | 14.89 | 13.40 | 40.14 | 35.94 | 14.89 | 13.40 | 40.14 | 35.94 | ||||||||||||||||||||
First Quarter | 14.51 | 12.60 | 38.25 | 33.20 | 14.51 | 12.60 | 38.25 | 33.20 | ||||||||||||||||||||
2006 | ||||||||||||||||||||||||||||
Fourth Quarter | 13.72 | 12.68 | 35.25 | 33.31 | ||||||||||||||||||||||||
Third Quarter | 13.22 | 11.26 | 33.72 | 28.22 | ||||||||||||||||||||||||
Second Quarter | 12.17 | 11.08 | 30.40 | 28.29 | ||||||||||||||||||||||||
First Quarter | 12.20 | 11.18 | 29.32 | 26.62 | ||||||||||||||||||||||||
Month | ||||||||||||||||||||||||||||
February 2008 (through February 20, 2008) | 12.40 | 11.45 | 36.83 | 33.81 | ||||||||||||||||||||||||
January 2008 | 13.69 | 11.67 | 39.78 | 35.10 | ||||||||||||||||||||||||
December 2007 | 13.65 | 12.30 | 39.81 | 36.33 | ||||||||||||||||||||||||
November 2007 | 13.27 | 11.49 | 38.40 | 34.08 | ||||||||||||||||||||||||
October 2007 | 13.40 | 12.92 | 38.94 | 36.77 | ||||||||||||||||||||||||
September 2007 | 13.57 | 12.83 | 38.21 | 35.57 | ||||||||||||||||||||||||
August 2007 | 13.32 | 12.50 | 36.64 | 33.85 | ||||||||||||||||||||||||
February 2009 (through February 18, 2009) | 9.17 | 8.51 | 23.55 | 21.62 | ||||||||||||||||||||||||
January 2009 | 9.34 | 8.42 | 25.05 | 22.23 | ||||||||||||||||||||||||
December 2008 | 9.30 | 7.72 | 24.11 | 20.73 | ||||||||||||||||||||||||
November 2008 | 10.46 | 8.86 | 27.10 | 21.41 | ||||||||||||||||||||||||
October 2008 | 10.97 | 7.94 | 30.00 | 21.33 | ||||||||||||||||||||||||
September 2008 | 11.63 | 10.13 | 33.44 | 28.20 | ||||||||||||||||||||||||
August 2008 | 11.43 | 10.59 | 34.22 | 31.91 |
6675
6776
68
77
69
78
7079
80
71
(a) | Interest Rate Risk |
Fair Value | Fair Value Change | Fair Value | Fair Value | Fair Value Change | Fair Value | |||||||||||||||||||||||||||||||||||||||||||
December 31, | +100 | −100 | December 31, | Fair Value Change | December 31, | +100 | −100 | December 31, | Fair Value Change | |||||||||||||||||||||||||||||||||||||||
Financial Instrument | 2007 | basis points | basis points | 2006 | +100 basis points | −100 basis points | 2008 | basis points | basis points | 2007 | +100 basis points | −100 basis points | ||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Short term borrowings | £ | (753 | ) | £ | — | £ | — | £ (574 | ) | £ — | £ — | £ | (446 | ) | £ | — | £ | — | £ (753 | ) | £ — | £ — | ||||||||||||||||||||||||||
Long term borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||
(including current | ||||||||||||||||||||||||||||||||||||||||||||||||
portion) | (2,508 | ) | 109 | (121 | ) | (2,541 | ) | 107 | (121 | ) | ||||||||||||||||||||||||||||||||||||||
(including current portion) | (5,853 | ) | 167 | (197 | ) | (2,508 | ) | 109 | (121 | ) | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps (swapping fixed rate debt to floating) | 170 | (43 | ) | 48 | 169 | (38 | ) | 44 | 41 | (15 | ) | 16 | 170 | (43 | ) | 48 | ||||||||||||||||||||||||||||||||
Interest rate swaps (swapping floating rate debt to fixed) | (8 | ) | 11 | (10 | ) | 7 | 11 | (11 | ) | (88 | ) | 38 | (39 | ) | (8 | ) | 11 | (10 | ) |
(b) | Foreign Exchange Rate Risk |
Fair Value | Fair Value | |||||||||||||||||||||||
December 31, | Fair Value Change | December 31, | Fair Value Change | |||||||||||||||||||||
Financial Instrument | 2007 | +10% | −10% | 2006 | +10% | −10% | ||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||
Cash and cash equivalents | £ | 2,467 | £ | 143 | £ | (118 | ) | £519 | £39 | £ (32 | ) | |||||||||||||
Short term borrowings | (753 | ) | (82 | ) | 68 | (574 | ) | (61 | ) | 50 | ||||||||||||||
Long term borrowings (including current portion) | (2,508 | ) | (234 | ) | 192 | (2,541 | ) | (238 | ) | 195 | ||||||||||||||
Interest rate swaps (including cross currency interest rate swaps) | 162 | 18 | (15 | ) | 176 | 20 | (16 | ) | ||||||||||||||||
Forward foreign exchange contracts | 26 | (34 | ) | 34 | 34 | (31 | ) | 31 |
81
Fair Value | Fair Value | |||||||||||||||||||||||
December 31, | Fair Value Change | December 31, | Fair Value Change | |||||||||||||||||||||
Financial Instrument | 2008 | +10% | −10% | 2007 | +10% | −10% | ||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||
Cash and cash equivalents | £ | 375 | £ | 39 | £ | (32 | ) | £2,467 | £143 | £ (118 | ) | |||||||||||||
Short term borrowings | (446 | ) | (49 | ) | 41 | (753 | ) | (82 | ) | 68 | ||||||||||||||
Long term borrowings (including current portion) | (5,853 | ) | (606 | ) | 496 | (2,508 | ) | (234 | ) | 192 | ||||||||||||||
Interest rate swaps (including cross currency interest rate swaps) | (37 | ) | (4 | ) | 3 | 162 | 18 | (15 | ) | |||||||||||||||
Forward foreign exchange contracts | (145 | ) | (61 | ) | 61 | 26 | (34 | ) | 34 |
7282
7383
(i) | to monitor the integrity of the financial statements of the company, and any formal announcements relating to the company’s financial performance, reviewing significant financial reporting judgements contained in them; | |
(ii) | to review the company’s internal financial controls and the company’s internal control and risk management systems; | |
(iii) | to monitor and review the effectiveness of the company’s internal audit function; | |
(iv) | to make recommendations to the board, for it to put to the shareholders for their approval in general meetings, in relation to the appointment, re-appointment and removal of the external auditor and to approve the remuneration and terms of engagement of the external auditor; | |
(v) | to review and monitor the external auditor’s independence and objectivity and the effectiveness of the audit process, taking into consideration relevant professional and regulatory requirements; and |
84
(vi) | to develop and recommend policy on the engagement of the external auditor to supply non audit services, taking into account relevant ethical guidance regarding the provision of non audit services by the external audit firm, and to monitor compliance. |
74
7585
Year ended | Year ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||
(in millions) | (in millions) | |||||||||||||
Audit fees | £ | 3.9 | £ | 4.7 | £ | 4.8 | £ | 3.9 | ||||||
Audit related fees | 0.9 | 0.6 | 1.5 | 0.9 | ||||||||||
Tax fees | 0.6 | 0.6 | 0.6 | 0.6 | ||||||||||
All other fees | — | — | — | — | ||||||||||
Total | £ | 5.4 | £ | 5.9 | £ | 6.9 | £ | 5.4 | ||||||
7686
Reed Elsevier PLC ordinary shares | Reed Elsevier NV ordinary shares | |||||||||||
Total number of | Average price paid | Total number of | Average price paid | |||||||||
shares purchased | per share | shares purchased | per share | |||||||||
Period | £ | € | ||||||||||
February 1, 2007 to February 28, 2007 | 2,320,000 | £ | 6.40 | 1,530,000 | € | 14.56 | ||||||
April 1, 2007 to April 30, 2007 | 440,857 | 6.20 | 165,849 | 13.51 | ||||||||
September 1, 2007 to September 30, 2007 | 1,523,853 | 6.18 | 989,858 | 13.43 | ||||||||
October 1, 2007 to October 31, 2007 | 1,220,000 | 6.23 | 800,000 | 13.35 | ||||||||
November 1, 2007 to November 30, 2007 | 790,000 | 5.73 | 510,000 | 11.95 | ||||||||
Total | 6,294,710 | £ | 6.22 | 3,995,707 | € | 13.66 | ||||||
Reed Elsevier PLC ordinary shares | Reed Elsevier NV ordinary shares | |||||||||||||||
Total number of | Average price paid | Total number of | Average price paid | |||||||||||||
shares purchased | per share | shares purchased | per share | |||||||||||||
Period | £ | € | ||||||||||||||
January 1, 2008 to January 31, 2008 | 2,426,976 | £ | 5.94 | 1,229,592 | € | 8.88 | ||||||||||
February 1, 2008 to February 29, 2008 | 2,200,000 | 6.33 | 1,400,000 | 9.31 | ||||||||||||
April 1, 2008 to April 30, 2008 | 582,340 | 6.64 | 264,731 | 9.94 | ||||||||||||
Total | 5,209,316 | £ | 6.18 | 2,894,323 | € | 9.18 | ||||||||||
Reed Elsevier PLC ordinary shares | Reed Elsevier NV ordinary shares | |||||||||||||||||
Value of | Value of | |||||||||||||||||
Total number | Average price | shares that | Total number | Average price | shares that | |||||||||||||
of shares | paid per | may yet be | of shares | paid per | may yet be | |||||||||||||
purchased | share | repurchased | purchased | share | repurchased | |||||||||||||
Period | £ | £m | € | €m | ||||||||||||||
February 1, 2007 to February 28, 2007 | 885,000 | £ | 6.22 | 184 | 590,000 | € | 14.09 | 271 | ||||||||||
March 1, 2007 to March 31, 2007 | 1,450,000 | 5.90 | 176 | 955,000 | 13.08 | 259 | ||||||||||||
August 1, 2007 to August 31, 2007 | 9,235,000 | 5.90 | 121 | 8,965,000 | 12.90 | 143 | ||||||||||||
September 1, 2007 to September 30, 2007 | 2,140,000 | 5.98 | 108 | 1,410,000 | 13.18 | 124 | ||||||||||||
October 1, 2007 to October 31, 2007 | 1,543,000 | 6.23 | 99 | — | — | 124 | ||||||||||||
Total | 15,253,000 | £ | 5.96 | 11,920,000 | € | 13.01 | ||||||||||||
Reed Elsevier PLC ordinary shares | Reed Elsevier NV ordinary shares | |||||||||||||||
Average price | Average price | |||||||||||||||
Total number of | paid | Total number of | paid | |||||||||||||
shares purchased | per share | shares purchased | per share | |||||||||||||
Period | £ | € | ||||||||||||||
February 1, 2008 to February 29, 2008 | 500,000 | £ | 6.41 | 325,000 | € | 12.36 | ||||||||||
March 1, 2008 to March 31, 2008 | 1,465,000 | 6.31 | 950,000 | 12.08 | ||||||||||||
April 1, 2008 to April 30, 2008 | 600,000 | 6.44 | 400,000 | 12.22 | ||||||||||||
May 1, 2008 to May 31, 2008 | 300,000 | 6.59 | 175,000 | 12.54 | ||||||||||||
June 1, 2008 to June 30, 2008 | 300,000 | 5.85 | 200,000 | 10.89 | ||||||||||||
Total | 3,165,000 | £ | 6.33 | 2,050,000 | € | 12.07 | ||||||||||
7787
7888
Page | ||||
F-1 | ||||
F-3 | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
F-8 | ||||
F-9 | ||||
F-9 | ||||
F-10 | ||||
F-1
F-2
F-4
DELOITTE London, England February | DELOITTE ACCOUNTANTS B.V. Amsterdam, The Netherlands February |
F-5
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | £m | £m | £m | Note | £m | £m | £m | ||||||||||||||||||||||||
Revenue — continuing operations | 3 | 4,584 | 4,509 | 4,265 | 3 | 5,334 | 4,584 | 4,509 | |||||||||||||||||||||||
Cost of sales | (1,624 | ) | (1,602 | ) | (1,521 | ) | (1,916 | ) | (1,624 | ) | (1,602 | ) | |||||||||||||||||||
Gross profit | 2,960 | 2,907 | 2,744 | 3,418 | 2,960 | 2,907 | |||||||||||||||||||||||||
Selling and distribution costs | (938 | ) | (925 | ) | (896 | ) | (1,053 | ) | (938 | ) | (925 | ) | |||||||||||||||||||
Administration and other expenses | (1,150 | ) | (1,163 | ) | (1,112 | ) | (1,482 | ) | (1,150 | ) | (1,163 | ) | |||||||||||||||||||
Operating profit before joint ventures | 872 | 819 | 736 | ||||||||||||||||||||||||||||
Share of results of joint ventures | 16 | 18 | 16 | 18 | 16 | 18 | |||||||||||||||||||||||||
Operating profit — continuing operations | 5 | 888 | 837 | 752 | 5 | 901 | 888 | 837 | |||||||||||||||||||||||
Finance income | 10 | 43 | 21 | 36 | 10 | 33 | 43 | 21 | |||||||||||||||||||||||
Finance costs | 10 | (182 | ) | (179 | ) | (176 | ) | 10 | (225 | ) | (182 | ) | (179 | ) | |||||||||||||||||
Net finance costs | (139 | ) | (158 | ) | (140 | ) | (192 | ) | (139 | ) | (158 | ) | |||||||||||||||||||
Disposals and other non operating items | 11 | 63 | (1 | ) | 2 | 11 | (92 | ) | 63 | (1 | ) | ||||||||||||||||||||
Profit before tax — continuing operations | 812 | 678 | 614 | 617 | 812 | 678 | |||||||||||||||||||||||||
Taxation | 12 | 82 | (86 | ) | (219 | ) | 12 | (155 | ) | 82 | (86 | ) | |||||||||||||||||||
Net profit from continuing operations | 894 | 592 | 395 | 462 | 894 | 592 | |||||||||||||||||||||||||
Net profit from discontinued operations | 4 | 309 | 33 | 69 | 4 | 18 | 309 | 33 | |||||||||||||||||||||||
Net profit for the year | 1,203 | 625 | 464 | 480 | 1,203 | 625 | |||||||||||||||||||||||||
Attributable to: | |||||||||||||||||||||||||||||||
Parent companies’ shareholders | 1,200 | 623 | 462 | 476 | 1,200 | 623 | |||||||||||||||||||||||||
Minority interests | 3 | 2 | 2 | 4 | 3 | 2 | |||||||||||||||||||||||||
Net profit for the year | 1,203 | 625 | 464 | 480 | 1,203 | 625 | |||||||||||||||||||||||||
F-6
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | £m | £m | £m | Note | £m | £m | £m | ||||||||||||||||||||||||
Cash flow from operating activities — continuing operations | |||||||||||||||||||||||||||||||
Cash flows from operating activities — continuing operations | |||||||||||||||||||||||||||||||
Cash generated from operations | 13 | 1,218 | 1,213 | 1,081 | 13 | 1,452 | 1,218 | 1,213 | |||||||||||||||||||||||
Interest paid | (174 | ) | (172 | ) | (153 | ) | (222 | ) | (174 | ) | (172 | ) | |||||||||||||||||||
Interest received | 26 | 12 | 11 | 43 | 26 | 12 | |||||||||||||||||||||||||
Tax paid | (239 | ) | (165 | ) | (166 | ) | (215 | ) | (239 | ) | (165 | ) | |||||||||||||||||||
Net cash from operating activities | 831 | 888 | 773 | 1,058 | 831 | 888 | |||||||||||||||||||||||||
Cash flows from investing activities — continuing operations | |||||||||||||||||||||||||||||||
Acquisitions | 13 | (327 | ) | (163 | ) | (314 | ) | 13 | (2,161 | ) | (327 | ) | (163 | ) | |||||||||||||||||
Purchases of property, plant and equipment | (65 | ) | (68 | ) | (77 | ) | (57 | ) | (65 | ) | (68 | ) | |||||||||||||||||||
Expenditure on internally developed intangible assets | (80 | ) | (99 | ) | (96 | ) | (115 | ) | (80 | ) | (99 | ) | |||||||||||||||||||
Purchase of investments | (4 | ) | (9 | ) | (3 | ) | (4 | ) | (4 | ) | (9 | ) | |||||||||||||||||||
Proceeds on disposals of property, plant and equipment | 4 | 2 | 7 | ||||||||||||||||||||||||||||
Proceeds from disposals of property, plant and equipment | 5 | 4 | 2 | ||||||||||||||||||||||||||||
Proceeds from other disposals | 82 | 48 | 21 | 8 | 82 | 48 | |||||||||||||||||||||||||
Dividends received from joint ventures | 12 | 16 | 16 | 23 | 12 | 16 | |||||||||||||||||||||||||
Net cash used in investing activities | (378 | ) | (273 | ) | (446 | ) | (2,301 | ) | (378 | ) | (273 | ) | |||||||||||||||||||
Cash flows from financing activities — continuing operations | |||||||||||||||||||||||||||||||
Dividends paid to shareholders of the parent companies | (416 | ) | (371 | ) | (336 | ) | (2,404 | ) | (416 | ) | (371 | ) | |||||||||||||||||||
Increase/(decrease) in bank loans, overdrafts and commercial paper | 111 | 72 | (492 | ) | |||||||||||||||||||||||||||
(Decrease)/increase in short term bank loans, overdrafts and commercial paper | (407 | ) | 111 | 72 | |||||||||||||||||||||||||||
Issuance of other loans | 276 | 407 | 544 | 2,373 | 276 | 407 | |||||||||||||||||||||||||
Repayment of other loans | (311 | ) | (337 | ) | (90 | ) | (411 | ) | (311 | ) | (337 | ) | |||||||||||||||||||
Repayment of finance leases | (12 | ) | (12 | ) | (13 | ) | (56 | ) | (12 | ) | (12 | ) | |||||||||||||||||||
Redemption of debt related derivative financial instrument | 62 | — | — | ||||||||||||||||||||||||||||
Proceeds on issue of ordinary shares | 177 | 93 | 25 | 54 | 177 | 93 | |||||||||||||||||||||||||
Purchase of treasury shares | (273 | ) | (285 | ) | (27 | ) | (94 | ) | (273 | ) | (285 | ) | |||||||||||||||||||
Net cash used in financing activities | (448 | ) | (433 | ) | (389 | ) | (883 | ) | (448 | ) | (433 | ) | |||||||||||||||||||
Net cash from discontinued operations | 4 | 1,912 | 57 | 128 | |||||||||||||||||||||||||||
Net cash (used in)/from discontinued operations | 4 | (48 | ) | 1,912 | 57 | ||||||||||||||||||||||||||
Increase in cash and cash equivalents | 1,917 | 239 | 66 | ||||||||||||||||||||||||||||
(Decrease)/increase in cash and cash equivalents | (2,174 | ) | 1,917 | 239 | |||||||||||||||||||||||||||
Movement in cash and cash equivalents | |||||||||||||||||||||||||||||||
At start of year | 519 | 296 | 225 | 2,467 | 519 | 296 | |||||||||||||||||||||||||
Increase in cash and cash equivalents | 1,917 | 239 | 66 | ||||||||||||||||||||||||||||
(Decrease)/increase in cash and cash equivalents | (2,174 | ) | 1,917 | 239 | |||||||||||||||||||||||||||
Exchange translation differences | 31 | (16 | ) | 5 | 82 | 31 | (16 | ) | |||||||||||||||||||||||
At end of year | 2,467 | 519 | 296 | 375 | 2,467 | 519 | |||||||||||||||||||||||||
F-7
2007 | 2006 | 2008 | 2007 | ||||||||||||||||||||
Note | £m | £m | Note | £m | £m | ||||||||||||||||||
Non-current assets | |||||||||||||||||||||||
Goodwill | 16 | 2,462 | 2,802 | 16 | 4,901 | 2,462 | |||||||||||||||||
Intangible assets | 17 | 2,089 | 2,524 | 17 | 4,404 | 2,089 | |||||||||||||||||
Investments in joint ventures | 18 | 116 | 73 | 18 | 145 | 116 | |||||||||||||||||
Other investments | 18 | 111 | 50 | 18 | 49 | 111 | |||||||||||||||||
Property, plant and equipment | 19 | 239 | 298 | 19 | 329 | 239 | |||||||||||||||||
Net pension assets | 8 | 183 | 20 | 8 | 152 | 183 | |||||||||||||||||
Deferred tax assets | 21 | 141 | 170 | 21 | 353 | 141 | |||||||||||||||||
5,341 | 5,937 | 10,333 | 5,341 | ||||||||||||||||||||
Current assets | |||||||||||||||||||||||
Inventories and pre-publication costs | 22 | 271 | 633 | 22 | 348 | 271 | |||||||||||||||||
Trade and other receivables | 23 | 1,148 | 1,224 | 23 | 1,685 | 1,148 | |||||||||||||||||
Derivative financial instruments | 210 | 219 | 76 | 210 | |||||||||||||||||||
Cash and cash equivalents | 2,467 | 519 | 13 | 375 | 2,467 | ||||||||||||||||||
4,096 | 2,595 | 2,484 | 4,096 | ||||||||||||||||||||
Assets held for sale | 24 | 341 | — | 24 | 49 | 341 | |||||||||||||||||
Total assets | 9,778 | 8,532 | 12,866 | 9,778 | |||||||||||||||||||
Current liabilities | |||||||||||||||||||||||
Trade and other payables | 25 | 1,966 | 1,925 | 25 | 2,769 | 1,966 | |||||||||||||||||
Derivative financial instruments | 22 | 9 | 258 | 22 | |||||||||||||||||||
Borrowings | 26 | 1,127 | 921 | 26 | 448 | 1,127 | |||||||||||||||||
Taxation | 752 | 479 | 554 | 752 | |||||||||||||||||||
Provisions | 28 | 79 | — | ||||||||||||||||||||
3,867 | 3,334 | 4,108 | 3,867 | ||||||||||||||||||||
Non-current liabilities | |||||||||||||||||||||||
Borrowings | 26 | 2,002 | 2,085 | 26 | 5,694 | 2,002 | |||||||||||||||||
Deferred tax liabilities | 21 | 695 | 850 | 21 | 1,525 | 695 | |||||||||||||||||
Net pension obligations | 8 | 133 | 256 | 8 | 521 | 133 | |||||||||||||||||
Provisions | 28 | 21 | 28 | 28 | 35 | 21 | |||||||||||||||||
2,851 | 3,219 | 7,775 | 2,851 | ||||||||||||||||||||
Liabilities associated with assets held for sale | 24 | 84 | — | 24 | 2 | 84 | |||||||||||||||||
Total liabilities | 6,802 | 6,553 | 11,885 | 6,802 | |||||||||||||||||||
Net assets | 2,976 | 1,979 | 981 | 2,976 | |||||||||||||||||||
Capital and reserves | |||||||||||||||||||||||
Combined share capitals | 30 | 197 | 191 | 30 | 209 | 197 | |||||||||||||||||
Combined share premiums | 31 | 2,143 | 1,879 | 31 | 2,529 | 2,143 | |||||||||||||||||
Combined shares held in treasury | 32 | (619 | ) | (377 | ) | 32 | (783 | ) | (619 | ) | |||||||||||||
Translation reserve | 33 | (145 | ) | (136 | ) | 33 | (14 | ) | (145 | ) | |||||||||||||
Other combined reserves | 34 | 1,389 | 409 | 34 | (988 | ) | 1,389 | ||||||||||||||||
Combined shareholders’ equity | 2,965 | 1,966 | 953 | 2,965 | |||||||||||||||||||
Minority interests | 11 | 13 | 28 | 11 | |||||||||||||||||||
Total equity | 2,976 | 1,979 | 981 | 2,976 | |||||||||||||||||||
F-8
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | £m | £m | £m | Note | £m | £m | £m | ||||||||||||||||||||||||
Net profit for the year | 1,203 | 625 | 464 | 480 | 1,203 | 625 | |||||||||||||||||||||||||
Exchange differences on translation of foreign operations | (33 | ) | (244 | ) | 180 | 340 | (33 | ) | (244 | ) | |||||||||||||||||||||
Actuarial gains/(losses) on defined benefit pension schemes | 8 | 224 | 139 | (37 | ) | ||||||||||||||||||||||||||
Actuarial (losses)/gains on defined benefit pension schemes | 8 | (347 | ) | 224 | 139 | ||||||||||||||||||||||||||
Fair value movements on available for sale investments | — | 3 | 3 | (9 | ) | — | 3 | ||||||||||||||||||||||||
Fair value movements on cash flow hedges | 3 | 54 | (10 | ) | (243 | ) | 3 | 54 | |||||||||||||||||||||||
Tax recognised directly in equity | 12 | (50 | ) | (60 | ) | (3 | ) | 12 | 156 | (50 | ) | (60 | ) | ||||||||||||||||||
Net income/(expense) recognised directly in equity | 144 | (108 | ) | 133 | |||||||||||||||||||||||||||
Net (expense)/income recognised directly in equity | (103 | ) | 144 | (108 | ) | ||||||||||||||||||||||||||
Cumulative exchange differences on disposal of foreign operations | 148 | — | — | 27 | 148 | — | |||||||||||||||||||||||||
Cumulative fair value movements on disposal of available for sale investments | (7 | ) | — | — | — | (7 | ) | — | |||||||||||||||||||||||
Transfer to net profit from hedge reserve (net of tax) | 20 | (20 | ) | (5 | ) | (19 | ) | 20 | (14 | ) | (20 | ) | (5 | ) | |||||||||||||||||
Total recognised income and expense for the year | 1,468 | 512 | 578 | 390 | 1,468 | 512 | |||||||||||||||||||||||||
Attributable to: | |||||||||||||||||||||||||||||||
Parent companies’ shareholders | 1,465 | 510 | 576 | 386 | 1,465 | 510 | |||||||||||||||||||||||||
Minority interests | 3 | 2 | 2 | 4 | 3 | 2 | |||||||||||||||||||||||||
Total recognised income and expense for the year | 1,468 | 512 | 578 | 390 | 1,468 | 512 | |||||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | £m | £m | £m | Note | £m | £m | £m | ||||||||||||||||||||||||
Total recognised net income attributable to the parent companies’ shareholders | 1,465 | 510 | 576 | 386 | 1,465 | 510 | |||||||||||||||||||||||||
Dividends declared | 15 | (416 | ) | (371 | ) | (336 | ) | 15 | (2,404 | ) | (416 | ) | (371 | ) | |||||||||||||||||
Issue of ordinary shares, net of expenses | 177 | 93 | 25 | 54 | 177 | 93 | |||||||||||||||||||||||||
Increase in shares held in treasury | 32 | (273 | ) | (285 | ) | (27 | ) | 32 | (94 | ) | (273 | ) | (285 | ) | |||||||||||||||||
Increase in share based remuneration reserve | 46 | 49 | 57 | 46 | 46 | 49 | |||||||||||||||||||||||||
Net increase/(decrease) in combined shareholders’ equity | 999 | (4 | ) | 295 | |||||||||||||||||||||||||||
Net (decrease)/increase in combined shareholders’ equity | (2,012 | ) | 999 | (4 | ) | ||||||||||||||||||||||||||
Combined shareholders’ equity at January 1 | 1,966 | 1,970 | 1,664 | 2,965 | 1,966 | 1,970 | |||||||||||||||||||||||||
Transition adjustment on adoption of IAS 39 | — | — | 11 | ||||||||||||||||||||||||||||
Combined shareholders’ equity at December 31 | 2,965 | 1,966 | 1,970 | 953 | 2,965 | 1,966 | |||||||||||||||||||||||||
F-9
1. | Basis of preparation |
2. | Accounting policies |
F-10
2. | Accounting policies – (continued) |
F-11
2. | Accounting policies – (continued) |
F-12
2. | Accounting policies – (continued) |
F-13
2. | Accounting policies – (continued) |
F-13
F-14
2. | Accounting policies – (continued) |
F-14
3. | Segment analysis |
F-15
3. | Segment analysis – (continued) |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Elsevier | 1,507 | 1,521 | 1,436 | 1,700 | 1,507 | 1,521 | ||||||||||||||||||
LexisNexis | 1,594 | 1,570 | 1,466 | 1,940 | 1,594 | 1,570 | ||||||||||||||||||
Reed Business | 1,483 | 1,418 | 1,363 | |||||||||||||||||||||
Reed Exhibitions | 707 | 577 | 522 | |||||||||||||||||||||
Reed Business Information | 987 | 906 | 896 | |||||||||||||||||||||
Total | 4,584 | 4,509 | 4,265 | 5,334 | 4,584 | 4,509 | ||||||||||||||||||
Operating profit | ||||||||||||||||||||||||
Elsevier | 410 | 395 | 396 | 443 | 410 | 395 | ||||||||||||||||||
LexisNexis | 287 | 264 | 218 | 291 | 287 | 264 | ||||||||||||||||||
Reed Business | 197 | 183 | 158 | |||||||||||||||||||||
Reed Exhibitions | 123 | 106 | 98 | |||||||||||||||||||||
Reed Business Information | 55 | 91 | 85 | |||||||||||||||||||||
Subtotal | 894 | 842 | 772 | 912 | 894 | 842 | ||||||||||||||||||
Corporate costs | (45 | ) | (39 | ) | (32 | ) | (50 | ) | (45 | ) | (39 | ) | ||||||||||||
Unallocated net pension credit | 39 | 34 | 12 | 39 | 39 | 34 | ||||||||||||||||||
Total | 888 | 837 | 752 | 901 | 888 | 837 | ||||||||||||||||||
Adjusted operating profit | ||||||||||||||||||||||||
Elsevier | 477 | 465 | 449 | 568 | 477 | 465 | ||||||||||||||||||
LexisNexis | 406 | 380 | 338 | 513 | 406 | 380 | ||||||||||||||||||
Reed Business | 260 | 241 | 214 | |||||||||||||||||||||
Reed Exhibitions | 183 | 139 | 129 | |||||||||||||||||||||
Reed Business Information | 126 | 121 | 112 | |||||||||||||||||||||
Subtotal | 1,143 | 1,086 | 1,001 | 1,390 | 1,143 | 1,086 | ||||||||||||||||||
Corporate costs | (45 | ) | (39 | ) | (32 | ) | (50 | ) | (45 | ) | (39 | ) | ||||||||||||
Unallocated net pension credit | 39 | 34 | 12 | 39 | 39 | 34 | ||||||||||||||||||
Total | 1,137 | 1,081 | 981 | 1,379 | 1,137 | 1,081 | ||||||||||||||||||
F-15F-16
3. | Segment analysis – (continued) |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
North America | 2,147 | 2,219 | 2,118 | 2,544 | 2,147 | 2,219 | ||||||||||||||||||
United Kingdom | 896 | 828 | 795 | 905 | 896 | 828 | ||||||||||||||||||
The Netherlands | 505 | 497 | 494 | 594 | 505 | 497 | ||||||||||||||||||
Rest of Europe | 708 | 675 | 592 | 893 | 708 | 675 | ||||||||||||||||||
Rest of world | 328 | 290 | 266 | 398 | 328 | 290 | ||||||||||||||||||
Total | 4,584 | 4,509 | 4,265 | 5,334 | 4,584 | 4,509 | ||||||||||||||||||
Operating profit | ||||||||||||||||||||||||
North America | 353 | 329 | 291 | 334 | 353 | 329 | ||||||||||||||||||
United Kingdom | 180 | 167 | 153 | 183 | 180 | 167 | ||||||||||||||||||
The Netherlands | 179 | 172 | 158 | 179 | 179 | 172 | ||||||||||||||||||
Rest of Europe | 118 | 117 | 104 | 151 | 118 | 117 | ||||||||||||||||||
Rest of world | 58 | 52 | 46 | 54 | 58 | 52 | ||||||||||||||||||
Total | 888 | 837 | 752 | 901 | 888 | 837 | ||||||||||||||||||
Adjusted operating profit | ||||||||||||||||||||||||
North America | 505 | 486 | 454 | 618 | 505 | 486 | ||||||||||||||||||
United Kingdom | 211 | 196 | 177 | 239 | 211 | 196 | ||||||||||||||||||
The Netherlands | 181 | 175 | 163 | 206 | 181 | 175 | ||||||||||||||||||
Rest of Europe | 174 | 169 | 139 | 237 | 174 | 169 | ||||||||||||||||||
Rest of world | 66 | 55 | 48 | 79 | 66 | 55 | ||||||||||||||||||
Total | 1,137 | 1,081 | 981 | 1,379 | 1,137 | 1,081 | ||||||||||||||||||
2007 | 2006 | 2005 | ||||||||||
£m | £m | £m | ||||||||||
Operating profit | 888 | 837 | 752 | |||||||||
Adjustments: | ||||||||||||
Amortisation of acquired intangible assets | 221 | 211 | 203 | |||||||||
Acquisition integration costs | 20 | 23 | 20 | |||||||||
Reclassification of tax in joint ventures | 8 | 10 | 6 | |||||||||
Adjusted operating profit | 1,137 | 1,081 | 981 | |||||||||
F-16F-17
3. | Segment analysis – (continued) |
2008 | 2007 | 2006 | ||||||||||
£m | £m | £m | ||||||||||
Operating profit | 901 | 888 | 837 | |||||||||
Adjustments: | ||||||||||||
Amortisation of acquired intangible assets and goodwill impairment | 290 | 221 | 211 | |||||||||
Exceptional restructuring costs | 152 | — | — | |||||||||
Acquisition related costs | 27 | 20 | 23 | |||||||||
Reclassification of tax in joint ventures | 9 | 8 | 10 | |||||||||
Adjusted operating profit | 1,379 | 1,137 | 1,081 | |||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
North America | 2,233 | 2,322 | 2,212 | 2,624 | 2,233 | 2,322 | ||||||||||||||||||
United Kingdom | 603 | 531 | 503 | 580 | 603 | 531 | ||||||||||||||||||
The Netherlands | 206 | 196 | 195 | 234 | 206 | 196 | ||||||||||||||||||
Rest of Europe | 897 | 866 | 790 | 1,136 | 897 | 866 | ||||||||||||||||||
Rest of world | 645 | 594 | 565 | 760 | 645 | 594 | ||||||||||||||||||
Total | 4,584 | 4,509 | 4,265 | 5,334 | 4,584 | 4,509 | ||||||||||||||||||
F-18
3. | Segment analysis – (continued) |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Expenditure on acquired goodwill and intangible assets | ||||||||||||||||||||||||
Elsevier | 193 | 53 | 220 | 31 | 193 | 53 | ||||||||||||||||||
LexisNexis | 42 | 79 | 58 | 2,705 | 42 | 79 | ||||||||||||||||||
Reed Business | 128 | 51 | 46 | |||||||||||||||||||||
Reed Exhibitions | 58 | 61 | 22 | |||||||||||||||||||||
Reed Business Information | 64 | 67 | 29 | |||||||||||||||||||||
Total | 363 | 183 | 324 | 2,858 | 363 | 183 | ||||||||||||||||||
Capital expenditure in year | ||||||||||||||||||||||||
Capital expenditure additions | ||||||||||||||||||||||||
Elsevier | 50 | 51 | 60 | 54 | 50 | 51 | ||||||||||||||||||
LexisNexis | 76 | 95 | 95 | 74 | 76 | 94 | ||||||||||||||||||
Reed Business | 29 | 30 | 27 | |||||||||||||||||||||
Reed Exhibitions | 11 | 8 | 8 | |||||||||||||||||||||
Reed Business Information | 26 | 21 | 22 | |||||||||||||||||||||
Subtotal | 155 | 176 | 182 | 165 | 155 | 175 | ||||||||||||||||||
Corporate | 1 | 2 | 3 | 7 | 1 | 2 | ||||||||||||||||||
Total | 156 | 178 | 185 | 172 | 156 | 177 | ||||||||||||||||||
Amortisation of acquired intangible assets | ||||||||||||||||||||||||
Amortisation of acquired intangible assets and goodwill impairment | ||||||||||||||||||||||||
Elsevier | 62 | 57 | 49 | 76 | 62 | 57 | ||||||||||||||||||
LexisNexis | 105 | 104 | 102 | 137 | 105 | 104 | ||||||||||||||||||
Reed Business | 54 | 50 | 52 | |||||||||||||||||||||
Reed Exhibitions | 46 | 27 | 25 | |||||||||||||||||||||
Reed Business Information | 31 | 27 | 25 | |||||||||||||||||||||
Total | 221 | 211 | 203 | 290 | 221 | 211 | ||||||||||||||||||
Depreciation and other amortisation | ||||||||||||||||||||||||
Elsevier | 47 | 47 | 38 | 51 | 47 | 47 | ||||||||||||||||||
LexisNexis | 72 | 70 | 65 | 68 | 72 | 70 | ||||||||||||||||||
Reed Business | 27 | 27 | 25 | |||||||||||||||||||||
Reed Exhibitions | 6 | 4 | 5 | |||||||||||||||||||||
Reed Business Information | 25 | 23 | 22 | |||||||||||||||||||||
Subtotal | 146 | 144 | 128 | 150 | 146 | 144 | ||||||||||||||||||
Corporate | 2 | 3 | 2 | 17 | 2 | 3 | ||||||||||||||||||
Total | 148 | 147 | 130 | 167 | 148 | 147 | ||||||||||||||||||
F-17F-19
3. | Segment analysis – (continued) |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Expenditure on acquired goodwill and intangible assets | ||||||||||||||||||||||||
North America | 152 | 99 | 93 | 2,701 | 152 | 99 | ||||||||||||||||||
United Kingdom | 26 | 54 | 16 | 54 | 26 | 54 | ||||||||||||||||||
The Netherlands | — | — | 9 | 4 | — | — | ||||||||||||||||||
Rest of Europe | 163 | 15 | 196 | 34 | 163 | 15 | ||||||||||||||||||
Rest of world | 22 | 15 | 10 | 65 | 22 | 15 | ||||||||||||||||||
Total | 363 | 183 | 324 | 2,858 | 363 | 183 | ||||||||||||||||||
Capital expenditure in year | ||||||||||||||||||||||||
Capital expenditure additions | ||||||||||||||||||||||||
North America | 86 | 111 | 114 | 90 | 86 | 110 | ||||||||||||||||||
United Kingdom | 31 | 33 | 31 | 36 | 31 | 33 | ||||||||||||||||||
The Netherlands | 22 | 18 | 18 | 26 | 22 | 18 | ||||||||||||||||||
Rest of Europe | 11 | 10 | 13 | 11 | 11 | 10 | ||||||||||||||||||
Rest of world | 6 | 6 | 9 | 9 | 6 | 6 | ||||||||||||||||||
Total | 156 | 178 | 185 | 172 | 156 | 177 | ||||||||||||||||||
F-20
3. | Segment analysis – (continued) |
2007 | 2006 | 2008 | 2007 | |||||||||||
£m | £m | £m | £m | |||||||||||
Total assets | ||||||||||||||
Elsevier | 2,515 | 2,352 | 3,264 | 2,515 | ||||||||||
LexisNexis | 2,531 | 2,593 | 6,758 | 2,531 | ||||||||||
Reed Business | 1,340 | 1,146 | ||||||||||||
Reed Exhibitions | 862 | 658 | ||||||||||||
Reed Business Information | 864 | 682 | ||||||||||||
Subtotal | 6,386 | 6,091 | 11,748 | 6,386 | ||||||||||
Harcourt Education (discontinued) | — | 1,482 | ||||||||||||
Taxation | 141 | 170 | 353 | 141 | ||||||||||
Cash | 2,467 | 519 | 375 | 2,467 | ||||||||||
Net pension assets | 183 | 20 | 152 | 183 | ||||||||||
Assets held for sale | 341 | — | 49 | 341 | ||||||||||
Other assets | 260 | 250 | 189 | 260 | ||||||||||
Total | 9,778 | 8,532 | 12,866 | 9,778 | ||||||||||
Total liabilities | ||||||||||||||
Elsevier | 1,240 | 736 | ||||||||||||
LexisNexis | 774 | 415 | ||||||||||||
Reed Exhibitions | 379 | 285 | ||||||||||||
Reed Business Information | 418 | 321 | ||||||||||||
Subtotal | 2,811 | 1,757 | ||||||||||||
Taxation | 2,079 | 1,447 | ||||||||||||
Borrowings | 6,142 | 3,129 | ||||||||||||
Net pension obligations | 521 | 133 | ||||||||||||
Liabilities held for sale | 2 | 84 | ||||||||||||
Other liabilities | 330 | 252 | ||||||||||||
Total | 11,885 | 6,802 | ||||||||||||
Net assets/(liabilities) | ||||||||||||||
Elsevier | 2,024 | 1,779 | ||||||||||||
LexisNexis | 5,984 | 2,116 | ||||||||||||
Reed Exhibitions | 483 | 373 | ||||||||||||
Reed Business Information | 446 | 361 | ||||||||||||
Subtotal | 8,937 | 4,629 | ||||||||||||
Taxation | (1,726 | ) | (1,306 | ) | ||||||||||
Cash | 375 | 2,467 | ||||||||||||
Borrowings | (6,142 | ) | (3,129 | ) | ||||||||||
Net pension (obligations)/asset | (369 | ) | 50 | |||||||||||
Assets and liabilities held for sale | 47 | 257 | ||||||||||||
Other assets and liabilities | (141 | ) | 8 | |||||||||||
Total | 981 | 2,976 | ||||||||||||
F-18F-21
2007 | 2006 | |||||||
£m | £m | |||||||
Total liabilities | ||||||||
Elsevier | 736 | 726 | ||||||
LexisNexis | 415 | 383 | ||||||
Reed Business | 606 | 533 | ||||||
Subtotal | 1,757 | 1,642 | ||||||
Harcourt Education (discontinued) | — | 172 | ||||||
Taxation | 1,447 | 1,329 | ||||||
Borrowings | 3,129 | 3,006 | ||||||
Net pension obligations | 133 | 256 | ||||||
Liabilities held for sale | 84 | — | ||||||
Other liabilities | 252 | 148 | ||||||
Total | 6,802 | 6,553 | ||||||
Net assets/(liabilities) | ||||||||
Elsevier | 1,779 | 1,626 | ||||||
LexisNexis | 2,116 | 2,210 | ||||||
Reed Business | 734 | 613 | ||||||
Subtotal | 4,629 | 4,449 | ||||||
Harcourt Education (discontinued) | — | 1,310 | ||||||
Taxation | (1,306 | ) | (1,159 | ) | ||||
Cash | 2,467 | 519 | ||||||
Borrowings | (3,129 | ) | (3,006 | ) | ||||
Net pension asset/(obligations) | 50 | (236 | ) | |||||
Assets and liabilities held for sale | 257 | — | ||||||
Other assets and liabilities | 8 | 102 | ||||||
Total | 2,976 | 1,979 | ||||||
3. | Segment analysis – (continued) |
2007 | 2006 | |||||
£m | £m | |||||
Total assets | ||||||
North America | 4,549 | 5,606 | ||||
United Kingdom | 2,119 | 1,034 | ||||
The Netherlands | 1,541 | 573 | ||||
Rest of Europe | 1,300 | 1,097 | ||||
Rest of world | 269 | 222 | ||||
Total | 9,778 | 8,532 | ||||
Total liabilities | ||||||
North America | 3,452 | 3,313 | ||||
United Kingdom | 1,164 | 1,123 | ||||
The Netherlands | 312 | 463 | ||||
Rest of Europe | 1,691 | 1,511 | ||||
Rest of world | 183 | 143 | ||||
Total | 6,802 | 6,553 | ||||
F-19
2007 | 2006 | 2008 | 2007 | |||||||||||||
£m | £m | |||||||||||||||
Total assets | ||||||||||||||||
North America | 9,123 | 4,549 | ||||||||||||||
United Kingdom | 967 | 2,119 | ||||||||||||||
The Netherlands | 742 | 1,541 | ||||||||||||||
Rest of Europe | 1,630 | 1,300 | ||||||||||||||
Rest of world | 404 | 269 | ||||||||||||||
Total | 12,866 | 9,778 | ||||||||||||||
Total liabilities | ||||||||||||||||
North America | 6,565 | 3,452 | ||||||||||||||
United Kingdom | 1,298 | 1,164 | ||||||||||||||
The Netherlands | 724 | 312 | ||||||||||||||
Rest of Europe | 3,030 | 1,691 | ||||||||||||||
Rest of world | 268 | 183 | ||||||||||||||
Total | 11,885 | 6,802 | ||||||||||||||
£m | £m | |||||||||||||||
Net assets/(liabilities) | ||||||||||||||||
North America | 1,097 | 2,293 | 2,558 | 1,097 | ||||||||||||
United Kingdom | 955 | (89 | ) | (331 | ) | 955 | ||||||||||
The Netherlands | 1,229 | 110 | 18 | 1,229 | ||||||||||||
Rest of Europe | (391 | ) | (414 | ) | (1,400 | ) | (391 | ) | ||||||||
Rest of world | 86 | 79 | 136 | 86 | ||||||||||||
Total | 2,976 | 1,979 | 981 | 2,976 | ||||||||||||
4. | Discontinued operations |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Revenue | 752 | 889 | 901 | 12 | 752 | 889 | ||||||||||||||||||
Operating costs | (640 | ) | (846 | ) | (814 | ) | (12 | ) | (640 | ) | (846 | ) | ||||||||||||
Operating profit and profit before tax | 112 | 43 | 87 | — | 112 | 43 | ||||||||||||||||||
Taxation | (34 | ) | (10 | ) | (18 | ) | — | (34 | ) | (10 | ) | |||||||||||||
Profit after taxation | 78 | 33 | 69 | — | 78 | 33 | ||||||||||||||||||
Gain on disposals | 611 | — | — | 67 | 611 | — | ||||||||||||||||||
Tax on disposals | (380 | ) | — | — | (49 | ) | (380 | ) | — | |||||||||||||||
Net profit from discontinued operations | 309 | 33 | 69 | 18 | 309 | 33 | ||||||||||||||||||
F-22
4. | Discontinued operations – (continued) |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||||
Net cash flow from operating activities | 33 | 86 | 137 | 2 | 33 | 86 | |||||||||||||||||
Net cash flow from/(used in) investing activities | 1,879 | (29 | ) | (9 | ) | ||||||||||||||||||
Net cash flow (used in)/from investing activities | (50 | ) | 1,879 | (29 | ) | ||||||||||||||||||
Net cash flow from financing activities | — | — | — | — | — | — | |||||||||||||||||
Net movement in cash and cash equivalents | 1,912 | 57 | 128 | (48 | ) | 1,912 | 57 | ||||||||||||||||
F-20
5. | Operating profit |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | £m | £m | £m | Note | £m | £m | £m | ||||||||||||||||||||||||
Staff costs | |||||||||||||||||||||||||||||||
Wages and salaries | 1,192 | 1,186 | 1,127 | 1,384 | 1,192 | 1,186 | |||||||||||||||||||||||||
Social security costs | 144 | 133 | 123 | 164 | 144 | 133 | |||||||||||||||||||||||||
Pensions | 8 | 49 | 65 | 85 | 8 | 59 | 49 | 65 | |||||||||||||||||||||||
Share based remuneration | 9 | 38 | 44 | 48 | 9 | 46 | 38 | 44 | |||||||||||||||||||||||
Total staff costs | 1,423 | 1,428 | 1,383 | 1,653 | 1,423 | 1,428 | |||||||||||||||||||||||||
Depreciation and amortisation | |||||||||||||||||||||||||||||||
Amortisation of acquired intangible assets | 17 | 219 | 211 | 203 | 17 | 278 | 219 | 211 | |||||||||||||||||||||||
Share of joint ventures’ amortisation of acquired intangible assets | 2 | — | — | 3 | 2 | — | |||||||||||||||||||||||||
Goodwill impairment | 16 | 9 | — | — | |||||||||||||||||||||||||||
Amortisation of internally developed intangible assets | 17 | 72 | 66 | 53 | 17 | 88 | 72 | 66 | |||||||||||||||||||||||
Depreciation of property, plant and equipment | 19 | 76 | 81 | 77 | 19 | 79 | 76 | 81 | |||||||||||||||||||||||
Total depreciation and amortisation | 369 | 358 | 333 | 457 | 369 | 358 | |||||||||||||||||||||||||
Other expenses and income | |||||||||||||||||||||||||||||||
Pre-publication costs, inventory expenses and other cost of sales | 1,624 | 1,602 | 1,521 | 1,916 | 1,624 | 1,602 | |||||||||||||||||||||||||
Operating lease rentals expense | 105 | 106 | 99 | 116 | 105 | 106 | |||||||||||||||||||||||||
Operating lease rentals income | (15 | ) | (17 | ) | (14 | ) | (13 | ) | (15 | ) | (17 | ) | |||||||||||||||||||
F-23
6. | Auditors’ remuneration |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||||||
Note | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||
For audit services | 3.9 | 4.7 | 3.2 | 4.8 | 3.9 | 4.7 | ||||||||||||||||||||||
For non audit services | 1.5 | 1.2 | 1.6 | 2.1 | 1.5 | 1.2 | ||||||||||||||||||||||
Total auditors’ remuneration | 5.4 | 5.9 | 4.8 | 6.9 | 5.4 | 5.9 | ||||||||||||||||||||||
F-21
7. | Personnel |
At December 31, | Average during the year | At December 31, | Average during the year | ||||||||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2005 | 2008 | 2007 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Business segment | |||||||||||||||||||||||||||||||||||
Elsevier | 7,100 | 7,200 | 7,200 | 7,300 | 7,100 | 7,200 | 7,100 | 7,200 | 7,200 | 7,300 | |||||||||||||||||||||||||
LexisNexis | 13,300 | 13,800 | 13,400 | 13,700 | 13,200 | 15,900 | 13,300 | 13,800 | 13,400 | 13,700 | |||||||||||||||||||||||||
Reed Business | 10,800 | 10,300 | 10,700 | 10,300 | 10,200 | ||||||||||||||||||||||||||||||
Reed Exhibitions | 2,700 | 2,700 | 2,700 | 2,600 | 2,400 | ||||||||||||||||||||||||||||||
Reed Business Information | 8,200 | 8,100 | 8,300 | 8,100 | 7,900 | ||||||||||||||||||||||||||||||
Sub-total | 31,200 | 31,300 | 31,300 | 31,300 | 30,500 | 34,000 | 31,200 | 32,000 | 31,300 | 31,300 | |||||||||||||||||||||||||
Corporate/shared functions | 300 | 200 | 300 | 200 | 200 | 800 | 300 | 800 | 300 | 200 | |||||||||||||||||||||||||
Total | 31,500 | 31,500 | 31,600 | 31,500 | 30,700 | 34,800 | 31,500 | 32,800 | 31,600 | 31,500 | |||||||||||||||||||||||||
Geographical location | |||||||||||||||||||||||||||||||||||
North America | 15,500 | 15,700 | 15,600 | 15,600 | 15,700 | 18,800 | 15,500 | 16,600 | 15,600 | 15,600 | |||||||||||||||||||||||||
United Kingdom | 5,300 | 5,400 | 5,400 | 5,300 | 5,200 | 5,300 | 5,300 | 5,400 | 5,400 | 5,300 | |||||||||||||||||||||||||
The Netherlands | 2,400 | 2,400 | 2,400 | 2,500 | 2,500 | 2,300 | 2,400 | 2,400 | 2,400 | 2,500 | |||||||||||||||||||||||||
Rest of Europe | 4,600 | 4,600 | 4,600 | 4,600 | 4,300 | 4,700 | 4,600 | 4,700 | 4,600 | 4,600 | |||||||||||||||||||||||||
Rest of world | 3,700 | 3,400 | 3,600 | 3,500 | 3,000 | 3,700 | 3,700 | 3,700 | 3,600 | 3,500 | |||||||||||||||||||||||||
Total | 31,500 | 31,500 | 31,600 | 31,500 | 30,700 | 34,800 | 31,500 | 32,800 | 31,600 | 31,500 | |||||||||||||||||||||||||
8. | Pension schemes |
At December 31, | |||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
Discount rate | 5.9% | 5.3% | 4.9% | 6.2% | 5.9% | 5.3% | |||||||||||||||
Expected rate of return on scheme assets | 7.1% | 7.0% | 7.0% | 7.1% | 7.1% | 7.0% | |||||||||||||||
Expected rate of salary increases | 4.4% | 4.2% | 4.0% | 3.7% | 4.4% | 4.2% | |||||||||||||||
Inflation | 3.1% | 2.9% | 2.7% | 2.7% | 3.1% | 2.9% | |||||||||||||||
Future pension increases | 3.2% | 2.9% | 2.8% | 2.8% | 3.2% | 2.9% |
F-24
8. | Pension schemes – (continued) |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||
Average life expectancy | Male | Female | Male | Female | Male | Female | Male | Female | Male | Female | Male | Female | ||||||||||||||||||||||||||||||
(at December 31) | (years) | (years) | (years) | (years) | (years) | (years) | (years) | (years) | (years) | (years) | (years) | (years) | ||||||||||||||||||||||||||||||
Member currently aged 60 | 86 | 87 | 86 | 87 | 83 | 86 | 86 | 87 | 86 | 87 | 86 | 87 | ||||||||||||||||||||||||||||||
Member currently aged 45 | 86 | 87 | 86 | 87 | 83 | 86 | 86 | 87 | 86 | 87 | 86 | 87 |
F-22
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Service cost (including curtailment credits of £19 million (2006: £11 million; 2005: nil)) | 78 | 94 | 91 | |||||||||||||||||||||
Service cost (including curtailment credits of nil (2007: £19 million; 2006: £11 million)) | 75 | 78 | 94 | |||||||||||||||||||||
Interest on pension scheme liabilities | 157 | 144 | 137 | 180 | 157 | 144 | ||||||||||||||||||
Expected return on scheme assets | (196 | ) | (178 | ) | (149 | ) | (219 | ) | (196 | ) | (178 | ) | ||||||||||||
Net defined benefit pension expense | 39 | 60 | 79 | 36 | 39 | 60 | ||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined | Fair value | Net | Defined | Fair value | Net | Defined | Fair value | Net | Defined | Fair value | Net | Defined | Fair value | Net | Defined | Fair value | Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
benefit | of scheme | pension | benefit | of scheme | pension | benefit | of scheme | pension | benefit | of scheme | pension | benefit | of scheme | pension | benefit | of scheme | pension | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
obligations | assets | obligations | obligations | assets | obligations | obligations | assets | obligations | obligations | assets | obligations | obligations | assets | obligations | obligations | assets | obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
At start of year | (3,008 | ) | 2,772 | (236 | ) | (2,980 | ) | 2,575 | (405 | ) | (2,525 | ) | 2,204 | (321 | ) | (2,968 | ) | 3,018 | 50 | (3,008 | ) | 2,772 | (236 | ) | (2,980 | ) | 2,575 | (405 | ) | |||||||||||||||||||||||||||||||||||||||||||
Service cost | (78 | ) | — | (78 | ) | (94 | ) | — | (94 | ) | (91 | ) | — | (91 | ) | (75 | ) | — | (75 | ) | (78 | ) | — | (78 | ) | (94 | ) | — | (94 | ) | ||||||||||||||||||||||||||||||||||||||||||
Interest on pension scheme liabilities | (157 | ) | — | (157 | ) | (144 | ) | — | (144 | ) | (137 | ) | — | (137 | ) | (180 | ) | — | (180 | ) | (157 | ) | — | (157 | ) | (144 | ) | — | (144 | ) | ||||||||||||||||||||||||||||||||||||||||||
Expected return on scheme assets | — | 196 | 196 | — | 178 | 178 | — | 149 | 149 | — | 219 | 219 | — | 196 | 196 | — | 178 | 178 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial gain/(loss) | 190 | 34 | 224 | 40 | 99 | 139 | (267 | ) | 230 | (37 | ) | 418 | (765 | ) | (347 | ) | 190 | 34 | 224 | 40 | 99 | 139 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions by employer | — | 83 | 83 | — | 61 | 61 | — | 47 | 47 | — | 79 | 79 | — | 83 | 83 | — | 61 | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions by employees | (13 | ) | 13 | — | (13 | ) | 13 | — | (13 | ) | 13 | — | (13 | ) | 13 | — | (13 | ) | 13 | — | (13 | ) | 13 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | 114 | (110 | ) | 4 | 106 | (102 | ) | 4 | 94 | (94 | ) | — | 119 | (119 | ) | — | 114 | (110 | ) | 4 | 106 | (102 | ) | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | (9 | ) | — | (9 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment on disposal of operations | 11 | — | 11 | — | — | — | — | — | — | 3 | — | 3 | 11 | — | 11 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange translation differences | (27 | ) | 30 | 3 | 77 | (52 | ) | 25 | (41 | ) | 26 | (15 | ) | (346 | ) | 237 | (109 | ) | (27 | ) | 30 | 3 | 77 | (52 | ) | 25 | ||||||||||||||||||||||||||||||||||||||||||||||
At end of year | (2,968 | ) | 3,018 | 50 | (3,008 | ) | 2,772 | (236 | ) | (2,980 | ) | 2,575 | (405 | ) | (3,051 | ) | 2,682 | (369 | ) | (2,968 | ) | 3,018 | 50 | (3,008 | ) | 2,772 | (236 | ) | ||||||||||||||||||||||||||||||||||||||||||||
F-25
8. | Pension schemes – (continued) |
F-23
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected | Expected | Expected | Expected | Expected | Expected | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
rate of | Proportion | rate of | Proportion | rate of | Proportion | rate of | Proportion | rate of | Proportion | rate of | Proportion | ||||||||||||||||||||||||||||||||||||||||||||||||||||
return on | Fair value | of total | return on | Fair value | of total | return on | Fair value | of total | return on | Fair value | of total | return on | Fair value | of total | return on | Fair value | of total | ||||||||||||||||||||||||||||||||||||||||||||||
scheme | of scheme | scheme | scheme | of scheme | scheme | scheme | of scheme | scheme | scheme | of scheme | scheme | scheme | of scheme | scheme | scheme | of scheme | scheme | ||||||||||||||||||||||||||||||||||||||||||||||
assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | assets | ||||||||||||||||||||||||||||||||||||||||||||||
% | £m | % | % | £m | % | % | £m | % | % | £m | % | % | £m | % | % | £m | % | ||||||||||||||||||||||||||||||||||||||||||||||
Equities | 8.3 | 1,904 | 63 | 8.0 | 1,857 | 67% | 8.1 | 1,708 | 66 | 8.9 | 1,408 | 52 | 8.3 | 1,904 | 63 | 8.0 | 1,857 | 67% | |||||||||||||||||||||||||||||||||||||||||||||
Bonds | 4.6 | 970 | 32 | 4.4 | 777 | 28% | 4.3 | 757 | 30 | 4.3 | 1,167 | 44 | 4.6 | 970 | 32 | 4.4 | 777 | 28% | |||||||||||||||||||||||||||||||||||||||||||||
Other | 5.3 | 144 | 5 | 5.0 | 138 | 5% | 5.7 | 110 | 4 | 5.5 | 107 | 4 | 5.3 | 144 | 5 | 5.0 | 138 | 5% | |||||||||||||||||||||||||||||||||||||||||||||
Total | 7.1 | 3,018 | 100 | 7.0 | 2,772 | 100% | 7.0 | 2,575 | 100 | 7.1 | 2,682 | 100 | 7.1 | 3,018 | 100 | 7.0 | 2,772 | 100% | |||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||||
Fair value of scheme assets | 3,018 | 2,772 | 2,575 | 2,204 | 2,682 | 3,018 | 2,772 | 2,575 | 2,204 | |||||||||||||||||||||||||||
Defined benefit obligations | (2,968 | ) | (3,008 | ) | (2,980 | ) | (2,525 | ) | (3,051 | ) | (2,968 | ) | (3,008 | ) | (2,980 | ) | (2,525 | ) | ||||||||||||||||||
Net pension surplus/(obligations) | 50 | (236 | ) | (405 | ) | (321 | ) | |||||||||||||||||||||||||||||
Net pension (obligations)/surplus | (369 | ) | 50 | (236 | ) | (405 | ) | (321 | ) | |||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||||
Gains and losses arising during the year: | ||||||||||||||||||||||||||||||||||||
Experience losses on scheme liabilities | (28 | ) | (30 | ) | (25 | ) | (18 | ) | (9 | ) | (28 | ) | (30 | ) | (25 | ) | (18 | ) | ||||||||||||||||||
Experience gains on scheme assets | 34 | 99 | 230 | 66 | ||||||||||||||||||||||||||||||||
Experience (losses)/gains on scheme assets | (765 | ) | 34 | 99 | 230 | 66 | ||||||||||||||||||||||||||||||
Actuarial gains/(losses) arising on the present value of scheme liabilities due to changes in: | ||||||||||||||||||||||||||||||||||||
— discount rates | 367 | 198 | (217 | ) | (113 | ) | 202 | 367 | 198 | (217 | ) | (113 | ) | |||||||||||||||||||||||
— inflation | (152 | ) | (77 | ) | — | — | 198 | (152 | ) | (77 | ) | — | — | |||||||||||||||||||||||
— life expectancy and other actuarial assumptions | 3 | (51 | ) | (25 | ) | (9 | ) | 27 | 3 | (51 | ) | (25 | ) | (9 | ) | |||||||||||||||||||||
224 | 139 | (37 | ) | (74 | ) | (347 | ) | 224 | 139 | (37 | ) | (74 | ) | |||||||||||||||||||||||
Net cumulative gains/(losses) at start of year | 28 | (111 | ) | (74 | ) | — | 252 | 28 | (111 | ) | (74 | ) | — | |||||||||||||||||||||||
Net cumulative gains/(losses) at end of year | 252 | 28 | (111 | ) | (74 | ) | ||||||||||||||||||||||||||||||
Net cumulative (losses)/gains at end of year | (95 | ) | 252 | 28 | (111 | ) | (74 | ) | ||||||||||||||||||||||||||||
F-24F-26
8. | Pension schemes – (continued) |
£m | ||||
Increase/decrease of 0.25% in discount rate: | ||||
Decrease/increase in annual net pension expense | 6 | |||
Decrease/increase in defined benefit pension obligations | ||||
Increase/decrease of one year in assumed life expectancy: | ||||
Increase/decrease in annual net pension expense | ||||
Increase/decrease in defined benefit pension obligations | ||||
Increase/decrease of 0.25% in the expected inflation rate: | ||||
Increase/decrease in annual net pension expense | ||||
Increase/decrease in defined benefit pension obligations | ||||
9. | Share based remuneration |
F-25F-27
9. | Share based remuneration – (continued) |
In respect of Reed Elsevier PLC | In respect of Reed Elsevier NV | Total | ||||||||||||||||||||||||||
ordinary shares | ordinary shares | fair value | ||||||||||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||||||||||
average | average | |||||||||||||||||||||||||||
Number | fair value | Fair | Number | fair value | Fair | |||||||||||||||||||||||
of shares | per award | value | of shares | per award | value | |||||||||||||||||||||||
’000 | £ | £m | ’000 | £ | £m | £m | ||||||||||||||||||||||
Share options | ||||||||||||||||||||||||||||
ESOS | 4,397 | 1.14 | 5 | 2,891 | 1.57 | 4 | 9 | |||||||||||||||||||||
Other | 656 | 1.73 | 1 | 694 | 0.97 | 1 | 2 | |||||||||||||||||||||
Total share options | 5,053 | 1.22 | 6 | 3,585 | 1.45 | 5 | 11 | |||||||||||||||||||||
Conditional shares | ||||||||||||||||||||||||||||
ESOS | 717 | 5.79 | 4 | 469 | 8.85 | 4 | 8 | |||||||||||||||||||||
LTIP | 1,524 | 6.98 | 11 | 1,006 | 10.85 | 11 | 22 | |||||||||||||||||||||
RSP | 19 | 5.79 | — | 13 | 8.89 | — | — | |||||||||||||||||||||
BIP | 720 | 6.17 | 4 | 319 | 9.10 | 3 | 7 | |||||||||||||||||||||
Total conditional shares | 2,980 | 6.49 | 19 | 1,807 | 10.01 | 18 | 37 | |||||||||||||||||||||
Total | 25 | 23 | 48 | |||||||||||||||||||||||||
In respect of Reed Elsevier PLC | In respect of Reed Elsevier NV | Total | ||||||||||||||||||||||||||
ordinary shares | ordinary shares | fair value | ||||||||||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||||||||||
average | average | |||||||||||||||||||||||||||
Number | fair value | Fair | Number | fair value | Fair | |||||||||||||||||||||||
of shares | per award | value | of shares | per award | value | |||||||||||||||||||||||
’000 | £ | £m | ’000 | £ | £m | £m | ||||||||||||||||||||||
Share options | ||||||||||||||||||||||||||||
ESOS | 4,246 | 1.30 | 5 | 2,802 | 1.66 | 5 | 10 | |||||||||||||||||||||
Other | 1,058 | 1.78 | 2 | 423 | 0.99 | — | 2 | |||||||||||||||||||||
Total share options | 5,304 | 1.40 | 7 | 3,225 | 1.57 | 5 | 12 | |||||||||||||||||||||
Conditional shares | ||||||||||||||||||||||||||||
ESOS | 775 | 5.94 | 5 | 510 | 8.96 | 5 | 10 | |||||||||||||||||||||
LTIP | 1,584 | 7.14 | 11 | 1,047 | 10.92 | 11 | 22 | |||||||||||||||||||||
RSP | 78 | 5.50 | — | 53 | 7.78 | — | — | |||||||||||||||||||||
BIP | 662 | 5.67 | 4 | 308 | 8.20 | 3 | 7 | |||||||||||||||||||||
Total conditional shares | 3,099 | 6.48 | 20 | 1,918 | 9.88 | 19 | 39 | |||||||||||||||||||||
Total | 27 | 24 | 51 | |||||||||||||||||||||||||
F-28
9. | Share based remuneration – (continued) |
In respect of Reed Elsevier PLC | In respect of Reed Elsevier NV | Total | |||||||||||||||||||
ordinary shares | ordinary shares | fair value | |||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
average | average | ||||||||||||||||||||
Number | fair value | Fair | Number | fair value | Fair | ||||||||||||||||
of shares | per award | value | of shares | per award | value | ||||||||||||||||
’000 | £ | £m | ’000 | £ | £m | £m | |||||||||||||||
Share options | |||||||||||||||||||||
ESOS | 4,731 | 1.00 | 4 | 3,169 | 1.27 | 4 | 8 | ||||||||||||||
LTIP | 3 | 1.00 | — | 2 | 1.30 | — | — | ||||||||||||||
Other | 1,168 | 1.48 | 2 | 243 | 1.48 | — | 2 | ||||||||||||||
Total share options | 5,902 | 1.09 | 6 | 3,414 | 1.29 | 4 | 10 | ||||||||||||||
Conditional shares | |||||||||||||||||||||
ESOS | 1,202 | 4.92 | 6 | 806 | 7.15 | 6 | 12 | ||||||||||||||
LTIP | 2,003 | 5.43 | 11 | 1,318 | 8.14 | 11 | 22 | ||||||||||||||
BIP | 683 | 5.07 | 4 | 280 | 7.29 | 2 | 6 | ||||||||||||||
Total conditional shares | 3,888 | 5.21 | 21 | 2,404 | 7.71 | 19 | 40 | ||||||||||||||
Total | 27 | 23 | 50 | ||||||||||||||||||
F-26
In respect of Reed Elsevier PLC | In respect of Reed Elsevier NV | Total | In respect of Reed Elsevier PLC | In respect of Reed Elsevier NV | Total | ||||||||||||||||||||||||||||||||||||||||||||
ordinary shares | ordinary shares | fair value | ordinary shares | ordinary shares | fair value | ||||||||||||||||||||||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | ||||||||||||||||||||||||||||||||||||||||||||||
average | average | average | average | ||||||||||||||||||||||||||||||||||||||||||||||
Number | fair value | Fair | Number | fair value | Fair | Number | fair value | Fair | Number | fair value | Fair | ||||||||||||||||||||||||||||||||||||||
of shares | per award | value | of shares | per award | value | of shares | per award | value | of shares | per award | value | ||||||||||||||||||||||||||||||||||||||
’000 | £ | £m | ’000 | £ | £m | £m | ’000 | £ | £m | ’000 | £ | £m | £m | ||||||||||||||||||||||||||||||||||||
Share options | |||||||||||||||||||||||||||||||||||||||||||||||||
ESOS | 10,346 | 1.03 | 11 | 7,049 | 1.30 | 9 | 20 | 4,731 | 1.00 | 4 | 3,169 | 1.27 | 4 | 8 | |||||||||||||||||||||||||||||||||||
LTIP | 234 | 0.99 | — | 159 | 1.28 | — | — | 3 | 1.00 | — | 2 | 1.30 | — | — | |||||||||||||||||||||||||||||||||||
Other | 940 | 1.54 | 1 | 263 | 1.38 | 1 | 2 | 1,168 | 1.48 | 2 | 243 | 1.48 | — | 2 | |||||||||||||||||||||||||||||||||||
Total share options | 11,520 | 1.05 | 12 | 7,471 | 1.31 | 10 | 22 | 5,902 | 1.09 | 6 | 3,414 | 1.29 | 4 | 10 | |||||||||||||||||||||||||||||||||||
Conditional shares | |||||||||||||||||||||||||||||||||||||||||||||||||
LTIP | 107 | 4.63 | — | 74 | 6.68 | — | — | 1,202 | 4.92 | 6 | 806 | 7.15 | 6 | 12 | |||||||||||||||||||||||||||||||||||
RSP | 152 | 4.69 | 1 | 103 | 6.97 | 1 | 2 | 2,003 | 5.43 | 11 | 1,318 | 8.14 | 11 | 22 | |||||||||||||||||||||||||||||||||||
BIP | 692 | 4.95 | 4 | 229 | 7.18 | 2 | 6 | 683 | 5.07 | 4 | 280 | 7.29 | 2 | 6 | |||||||||||||||||||||||||||||||||||
Total conditional shares | 951 | 4.87 | 5 | 406 | 7.04 | 3 | 8 | 3,888 | 5.21 | 21 | 2,404 | 7.71 | 19 | 40 | |||||||||||||||||||||||||||||||||||
Total | 17 | 13 | 30 | 27 | 23 | 50 | |||||||||||||||||||||||||||||||||||||||||||
In respect of Reed Elsevier PLC | In respect of Reed Elsevier NV | In respect of Reed Elsevier PLC | In respect of Reed Elsevier NV | |||||||||||||||||||||
ordinary shares | ordinary shares | ordinary shares | ordinary shares | |||||||||||||||||||||
2007 | 2006 | 2005 | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | |||||||||||||
Weighted average share price at date of grant | ||||||||||||||||||||||||
ESOS | £6.42 | £5.32 | £5.33 | €14.41 | €11.51 | €11.31 | £6.26 | £6.42 | £5.32 | €12.16 | €14.41 | €11.51 | ||||||||||||
LTIP | £6.43 | £5.36 | £5.12 | €14.45 | €11.81 | €11.01 | £6.27 | £6.43 | £5.36 | €12.19 | €14.45 | €11.81 | ||||||||||||
RSP | £6.39 | — | £4.94 | €14.31 | — | €10.71 | £6.28 | £6.39 | — | €12.21 | €14.31 | — | ||||||||||||
BIP | £6.15 | £5.48 | £5.37 | €13.37 | €11.74 | €11.35 | £6.68 | £6.15 | £5.48 | €12.51 | €13.37 | €11.74 | ||||||||||||
Other | £6.01 | £5.30 | £5.30 | €13.44 | €12.05 | €11.19 | £6.30 | £6.01 | £5.30 | €11.55 | €13.44 | €12.05 | ||||||||||||
Expected share price volatility | 22% | 22% | 22% | 22% | 22% | 22% | 22% | 22% | 22% | 22% | 22% | 22% | ||||||||||||
Expected option life | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | ||||||||||||
Expected dividend yield | 2.7% | 2.6% | 2.6% | 3.2% | 3.1% | 2.6% | 2.7% | 2.7% | 2.6% | 3.2% | 3.2% | 3.1% | ||||||||||||
Risk free interest rate | 5.6% | 4.6% | 5.1% | 4.2% | 3.5% | 3.4% | 4.4% | 5.6% | 4.6% | 3.6% | 4.2% | 3.5% | ||||||||||||
Expected lapse rate | 3-5% | 3-5% | 3-5% | 3-5% | 3-5% | 3-5% | 3-5% | 3-5% | 3-5% | 3-4% | 3-5% | 3-5% |
F-27
In respect of Reed Elsevier PLC ordinary shares | ||||||||||||||||||||||||||||
ESOS | LTIP | Other | Total | |||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||||||
average | average | average | average | |||||||||||||||||||||||||
Number | exercise | Number | exercise | Number | exercise | Number | exercise | |||||||||||||||||||||
of shares | price | of shares | price | of shares | price | of shares | price | |||||||||||||||||||||
’000 | (pence) | ’000 | (pence) | ’000 | (pence) | ’000 | (pence) | |||||||||||||||||||||
Share options | ||||||||||||||||||||||||||||
Outstanding at January 1, 2005 | 54,641 | 508 | 5,138 | 487 | 3,876 | 408 | 63,655 | 500 | ||||||||||||||||||||
Granted | 10,346 | 533 | 234 | 516 | 940 | 424 | 11,520 | 524 | ||||||||||||||||||||
Exercised | (3,027 | ) | 441 | — | — | (602 | ) | 348 | (3,629 | ) | 426 | |||||||||||||||||
Forfeited | (4,146 | ) | 532 | (91 | ) | 487 | (678 | ) | 442 | (4,915 | ) | 519 | ||||||||||||||||
Expired | (74 | ) | 443 | — | — | (18 | ) | 423 | (92 | ) | 439 | |||||||||||||||||
Outstanding at January 1, 2006 | 57,740 | 514 | 5,281 | 488 | 3,518 | 416 | 66,539 | 507 | ||||||||||||||||||||
Granted | 4,731 | 532 | 3 | 535 | 1,168 | 424 | 5,902 | 510 | ||||||||||||||||||||
Exercised | (9,691 | ) | 461 | — | — | (792 | ) | 411 | (10,483 | ) | 457 | |||||||||||||||||
Forfeited | (4,088 | ) | 543 | (267 | ) | 487 | (299 | ) | 413 | (4,654 | ) | 532 | ||||||||||||||||
Expired | (500 | ) | 584 | — | — | (222 | ) | 507 | (722 | ) | 561 | |||||||||||||||||
Outstanding at January 1, 2007 | 48,192 | 523 | 5,017 | 488 | 3,373 | 414 | 56,582 | 513 | ||||||||||||||||||||
Granted | 4,246 | 642 | — | — | 1,058 | 480 | 5,304 | 610 | ||||||||||||||||||||
Exercised | (16,724 | ) | 497 | (2,145 | ) | 487 | (771 | ) | 411 | (19,640 | ) | 493 | ||||||||||||||||
Forfeited | (1,105 | ) | 564 | — | — | (476 | ) | 431 | (1,581 | ) | 524 | |||||||||||||||||
Expired | (542 | ) | 571 | — | — | (74 | ) | 415 | (616 | ) | 552 | |||||||||||||||||
Outstanding at December 31, 2007 | 34,067 | 547 | 2,872 | 489 | 3,110 | 434 | 40,049 | 534 | ||||||||||||||||||||
Exercisable at December 31, 2005 | 22,471 | 552 | 65 | 487 | 211 | 506 | 22,747 | 552 | ||||||||||||||||||||
Exercisable at December 31, 2006 | 22,121 | 537 | 105 | 487 | 91 | 425 | 22,317 | 537 | ||||||||||||||||||||
Exercisable at December 31, 2007 | 19,704 | 536 | 2,872 | 489 | 50 | 425 | 22,626 | 530 | ||||||||||||||||||||
In respect of Reed Elsevier NV ordinary shares | ||||||||||||||||||||||||||||
ESOS | LTIP | Other | Total | |||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||||||
average | average | average | average | |||||||||||||||||||||||||
Number | exercise | Number | exercise | Number | exercise | Number | exercise | |||||||||||||||||||||
of shares | price | of shares | price | of shares | price | of shares | price | |||||||||||||||||||||
’000 | (€) | ’000 | (€) | ’000 | (€) | ’000 | (€) | |||||||||||||||||||||
Share options | ||||||||||||||||||||||||||||
Outstanding at January 1, 2005 | 36,770 | 11.33 | 3,529 | 10.55 | 1,804 | 12.07 | 42,103 | 11.30 | ||||||||||||||||||||
Granted | 7,049 | 11.31 | 159 | 11.21 | 263 | 11.19 | 7,471 | 11.30 | ||||||||||||||||||||
Exercised | (1,817 | ) | 10.29 | — | — | (75 | ) | 12.26 | (1,892 | ) | 10.37 | |||||||||||||||||
Forfeited | (2,750 | ) | 11.88 | (62 | ) | 10.57 | — | — | (2,812 | ) | 11.85 | |||||||||||||||||
Expired | — | — | — | — | (111 | ) | 10.16 | (111 | ) | 10.16 | ||||||||||||||||||
Outstanding at January 1, 2006 | 39,252 | 11.33 | 3,626 | 10.58 | 1,881 | 12.05 | 44,759 | 11.30 | ||||||||||||||||||||
Granted | 3,169 | 11.51 | 2 | 11.76 | 243 | 12.05 | 3,414 | 11.55 | ||||||||||||||||||||
Exercised | (6,666 | ) | 9.98 | — | — | (243 | ) | 10.76 | (6,909 | ) | 10.01 | |||||||||||||||||
Forfeited | (2,799 | ) | 12.13 | (183 | ) | 10.57 | (35 | ) | 12.83 | (3,017 | ) | 12.04 | ||||||||||||||||
Outstanding at January 1, 2007 | 32,956 | 11.55 | 3,445 | 10.58 | 1,846 | 12.21 | 38,247 | 11.50 | ||||||||||||||||||||
Granted | 2,802 | 14.41 | — | — | 423 | 13,44 | 3,225 | 14.28 | ||||||||||||||||||||
Exercised | (10,737 | ) | 10.73 | (1,527 | ) | 10.57 | (202 | ) | 11.50 | (12,466 | ) | 10.73 | ||||||||||||||||
Forfeited | (738 | ) | 12.29 | — | — | (23 | ) | 13.89 | (761 | ) | 12.34 | |||||||||||||||||
Expired | (390 | ) | 13.28 | — | — | — | — | (390 | ) | 13.28 | ||||||||||||||||||
Outstanding at December 31, 2007 | 23,893 | 12.16 | 1,918 | 10.60 | 2,044 | 12.54 | 27,855 | 12.08 | ||||||||||||||||||||
Exercisable at December 31, 2005 | 14,631 | 12.91 | 45 | 10.57 | 1,881 | 12.05 | 16,557 | 12.81 | ||||||||||||||||||||
Exercisable at December 31, 2006 | 15,055 | 12.24 | 72 | 10.57 | 1,846 | 12.21 | 16.973 | 12.23 | ||||||||||||||||||||
Exercisable at December 31, 2007 | 14,266 | 12.16 | 1,918 | 10.60 | 2,044 | 12.54 | 18,228 | 12.04 | ||||||||||||||||||||
F-28F-29
9. | Share based remuneration – (continued) |
Number of Reed Elsevier PLC ordinary shares (’000) | In respect of Reed Elsevier PLC ordinary shares | |||||||||||||||||||||||||||||||||||||||||||||||||||
ESOS | LTIP | RSP | BIP | Total | ESOS | LTIP | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||||||||||||||||||||||||||||||
Conditional shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2005 | — | 2,346 | 2,285 | 710 | 5,341 | |||||||||||||||||||||||||||||||||||||||||||||||
Granted | — | 107 | 152 | 692 | 951 | |||||||||||||||||||||||||||||||||||||||||||||||
Exercised | — | — | (46 | ) | (5 | ) | (51 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Forfeited | — | (40 | ) | (259 | ) | (18 | ) | (317 | ) | |||||||||||||||||||||||||||||||||||||||||||
average | average | average | average | |||||||||||||||||||||||||||||||||||||||||||||||||
Number | exercise | Number | exercise | Number | exercise | Number | exercise | |||||||||||||||||||||||||||||||||||||||||||||
of shares | price | of shares | price | of shares | price | of shares | price | |||||||||||||||||||||||||||||||||||||||||||||
’000 | (pence) | ’000 | (pence) | ’000 | (pence) | ’000 | (pence) | |||||||||||||||||||||||||||||||||||||||||||||
Share options | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2006 | — | 2,413 | 2,132 | 1,379 | 5,924 | 57,740 | 514 | 5,281 | 488 | 3,518 | 416 | 66,539 | 507 | |||||||||||||||||||||||||||||||||||||||
Granted | 1,202 | 2,003 | — | 683 | 3,888 | 4,731 | 532 | 3 | 535 | 1,168 | 424 | 5,902 | 510 | |||||||||||||||||||||||||||||||||||||||
Exercised | (4 | ) | — | (54 | ) | (221 | ) | (279 | ) | (9,691 | ) | 461 | — | — | (792 | ) | 411 | (10,483 | ) | 457 | ||||||||||||||||||||||||||||||||
Forfeited | (49 | ) | (172 | ) | (246 | ) | (108 | ) | (575 | ) | (4,088 | ) | 543 | (267 | ) | 487 | (299 | ) | 413 | (4,654 | ) | 532 | ||||||||||||||||||||||||||||||
Expired | (500 | ) | 584 | — | — | (222 | ) | 507 | (722 | ) | 561 | |||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2007 | 1,149 | 4,244 | 1,832 | 1,733 | 8,958 | 48,192 | 523 | 5,017 | 488 | 3,373 | 414 | 56,582 | 513 | |||||||||||||||||||||||||||||||||||||||
Granted | 775 | 1,584 | 78 | 662 | 3,099 | 4,246 | 642 | — | — | 1,058 | 480 | 5,304 | 610 | |||||||||||||||||||||||||||||||||||||||
Exercised | (112 | ) | (2,226 | ) | (1,698 | ) | (457 | ) | (4,493 | ) | (16,724 | ) | 497 | (2,145 | ) | 487 | (771 | ) | 411 | (19,640 | ) | 493 | ||||||||||||||||||||||||||||||
Forfeited | (156 | ) | (170 | ) | (67 | ) | (95 | ) | (488 | ) | (1,105 | ) | 564 | — | — | (476 | ) | 431 | (1,581 | ) | 524 | |||||||||||||||||||||||||||||||
Expired | (542 | ) | 571 | — | — | (74 | ) | 415 | (616 | ) | 552 | |||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2007 | 1,656 | 3,432 | 145 | 1,843 | 7,076 | |||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2008 | 34,067 | 547 | 2,872 | 489 | 3,110 | 434 | 40,049 | 534 | ||||||||||||||||||||||||||||||||||||||||||||
Granted | 4,397 | 626 | — | — | 656 | 504 | 5,053 | 610 | ||||||||||||||||||||||||||||||||||||||||||||
Exercised | (6,134 | ) | 517 | (547 | ) | 487 | (659 | ) | 411 | (7,340 | ) | 505 | ||||||||||||||||||||||||||||||||||||||||
Forfeited | (846 | ) | 607 | — | — | (441 | ) | 459 | (1,287 | ) | 556 | |||||||||||||||||||||||||||||||||||||||||
Expired | (1,312 | ) | 570 | — | — | (35 | ) | 407 | (1,347 | ) | 561 | |||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2008 | 30,172 | 562 | 2,325 | 489 | 2,631 | 454 | 35,128 | 549 | ||||||||||||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2006 | 22,121 | 537 | 105 | 487 | 91 | 425 | 22,317 | 537 | ||||||||||||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2007 | 19,704 | 536 | 2,872 | 489 | 50 | 425 | 22,626 | 530 | ||||||||||||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2008 | 19,692 | 540 | 2,325 | 489 | 69 | 420 | 22,086 | 534 | ||||||||||||||||||||||||||||||||||||||||||||
Number of Reed Elsevier NV ordinary shares (’000) | In respect of Reed Elsevier NV ordinary shares | |||||||||||||||||||||||||||||||||||||||||||||||||||
ESOS | LTIP | RSP | BIP | Total | ESOS | LTIP | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||||||||||||||||||||||||||||||
Conditional shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2005 | — | 1,611 | 1,568 | 304 | 3,483 | |||||||||||||||||||||||||||||||||||||||||||||||
Granted | — | 74 | 103 | 229 | 406 | |||||||||||||||||||||||||||||||||||||||||||||||
Exercised | — | — | (32 | ) | — | (32 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Forfeited | — | (28 | ) | (176 | ) | (18 | ) | (222 | ) | |||||||||||||||||||||||||||||||||||||||||||
average | average | average | average | |||||||||||||||||||||||||||||||||||||||||||||||||
Number | exercise | Number | exercise | Number | exercise | Number | exercise | |||||||||||||||||||||||||||||||||||||||||||||
of shares | price | of shares | price | of shares | price | of shares | price | |||||||||||||||||||||||||||||||||||||||||||||
’000 | (€) | ’000 | (€) | ’000 | (€) | ’000 | (€) | |||||||||||||||||||||||||||||||||||||||||||||
Share options | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2006 | — | 1,657 | 1,463 | 515 | 3,635 | 39,252 | 11.33 | 3,626 | 10.58 | 1,881 | 12.05 | 44,759 | 11.30 | |||||||||||||||||||||||||||||||||||||||
Granted | 806 | 1,318 | — | 280 | 2,404 | 3,169 | 11.51 | 2 | 11.76 | 243 | 12.05 | 3,414 | 11.55 | |||||||||||||||||||||||||||||||||||||||
Exercised | (3 | ) | — | (36 | ) | (101 | ) | (140 | ) | (6,666 | ) | 9.98 | — | — | (243 | ) | 10.76 | (6,909 | ) | 10.01 | ||||||||||||||||||||||||||||||||
Forfeited | (33 | ) | (117 | ) | (149 | ) | (45 | ) | (344 | ) | (2,799 | ) | 12.13 | (183 | ) | 10.57 | (35 | ) | 12.83 | (3,017 | ) | 12.04 | ||||||||||||||||||||||||||||||
Outstanding at January 1, 2007 | 770 | 2,858 | 1,278 | 649 | 5,555 | 32,956 | 11.55 | 3,445 | 10.58 | 1,846 | 12.21 | 38,247 | 11.50 | |||||||||||||||||||||||||||||||||||||||
Granted | 510 | 1,047 | 53 | 308 | 1,918 | 2,802 | 14.41 | — | — | 423 | 13,44 | 3,225 | 14.28 | |||||||||||||||||||||||||||||||||||||||
Exercised | (71 | ) | (1,523 | ) | (1,165 | ) | (199 | ) | (2,958 | ) | (10,737 | ) | 10.73 | (1,527 | ) | 10.57 | (202 | ) | 11.50 | (12,466 | ) | 10.73 | ||||||||||||||||||||||||||||||
Forfeited | (151 | ) | (151 | ) | (68 | ) | (34 | ) | (404 | ) | (738 | ) | 12.29 | — | — | (23 | ) | 13.89 | (761 | ) | 12.34 | |||||||||||||||||||||||||||||||
Expired | (390 | ) | 13.28 | — | — | — | — | (390 | ) | 13.28 | ||||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2007 | 1,058 | 2,231 | 98 | 724 | 4,111 | |||||||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2008 | 23,893 | 12.16 | 1,918 | 10.60 | 2,044 | 12.54 | 27,855 | 12.08 | ||||||||||||||||||||||||||||||||||||||||||||
Granted | 2,891 | 12.16 | — | — | 694 | 11.55 | 3,585 | 12.04 | ||||||||||||||||||||||||||||||||||||||||||||
Exercised | (2,579 | ) | 10.78 | (109 | ) | 10.57 | (5 | ) | 10.85 | (2,693 | ) | 10.77 | ||||||||||||||||||||||||||||||||||||||||
Forfeited | (560 | ) | 13.04 | — | — | (376 | ) | 12.94 | (936 | ) | 13.00 | |||||||||||||||||||||||||||||||||||||||||
Expired | (1,834 | ) | 13.43 | — | — | — | — | (1,834 | ) | 13.43 | ||||||||||||||||||||||||||||||||||||||||||
Outstanding at December 31, 2008 | 21,811 | 12.23 | 1,809 | 10.60 | 2,357 | 12.19 | 25,977 | 12.11 | ||||||||||||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2006 | 15,055 | 12.24 | 72 | 10.57 | 1,846 | 12.21 | 16,973 | 12.23 | ||||||||||||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2007 | 14,266 | 12.16 | 1,918 | 10.60 | 2,044 | 12.54 | 18,228 | 12.04 | ||||||||||||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2008 | 14,875 | 12.04 | 1,809 | 10.60 | 2,357 | 12.19 | 19,041 | 11.92 | ||||||||||||||||||||||||||||||||||||||||||||
F-30
9. | Share based remuneration – (continued) |
Number of Reed Elsevier PLC ordinary shares (’000) | ||||||||||||||||||||
ESOS | LTIP | RSP | BIP | Total | ||||||||||||||||
Conditional shares | ||||||||||||||||||||
Outstanding at January 1, 2006 | — | 2,413 | 2,132 | 1,379 | 5,924 | |||||||||||||||
Granted | 1,202 | 2,003 | — | 683 | 3,888 | |||||||||||||||
Exercised | (4 | ) | — | (54 | ) | (221 | ) | (279 | ) | |||||||||||
Forfeited | (49 | ) | (172 | ) | (246 | ) | (108 | ) | (575 | ) | ||||||||||
Outstanding at January 1, 2007 | 1,149 | 4,244 | 1,832 | 1,733 | 8,958 | |||||||||||||||
Granted | 775 | 1,584 | 78 | 662 | 3,099 | |||||||||||||||
Exercised | (112 | ) | (2,226 | ) | (1,698 | ) | (457 | ) | (4,493 | ) | ||||||||||
Forfeited | (156 | ) | (170 | ) | (67 | ) | (95 | ) | (488 | ) | ||||||||||
Outstanding at January 1, 2008 | 1,656 | 3,432 | 145 | 1,843 | 7,076 | |||||||||||||||
Granted | 717 | 1,524 | 19 | 720 | 2,980 | |||||||||||||||
Exercised | (85 | ) | — | (101 | ) | (561 | ) | (747 | ) | |||||||||||
Forfeited | (237 | ) | (440 | ) | (28 | ) | (101 | ) | (806 | ) | ||||||||||
Outstanding at December 31, 2008 | 2,051 | 4,516 | 35 | 1,901 | 8,503 | |||||||||||||||
Number of Reed Elsevier NV ordinary shares (’000) | ||||||||||||||||||||
ESOS | LTIP | RSP | BIP | Total | ||||||||||||||||
Conditional shares | ||||||||||||||||||||
Outstanding at January 1, 2006 | — | 1,657 | 1,463 | 515 | 3,635 | |||||||||||||||
Granted | 806 | 1,318 | — | 280 | 2,404 | |||||||||||||||
Exercised | (3 | ) | — | (36 | ) | (101 | ) | (140 | ) | |||||||||||
Forfeited | (33 | ) | (117 | ) | (149 | ) | (45 | ) | (344 | ) | ||||||||||
Outstanding at January 1, 2007 | 770 | 2,858 | 1,278 | 649 | 5,555 | |||||||||||||||
Granted | 510 | 1,047 | 53 | 308 | 1,918 | |||||||||||||||
Exercised | (71 | ) | (1,523 | ) | (1,165 | ) | (199 | ) | (2,958 | ) | ||||||||||
Forfeited | (151 | ) | (151 | ) | (68 | ) | (34 | ) | (404 | ) | ||||||||||
Outstanding at January 1, 2008 | 1,058 | 2,231 | 98 | 724 | 4,111 | |||||||||||||||
Granted | 469 | 1,006 | 13 | 319 | 1,807 | |||||||||||||||
Exercised | (57 | ) | — | (63 | ) | (176 | ) | (296 | ) | |||||||||||
Forfeited | (112 | ) | (259 | ) | (24 | ) | (29 | ) | (424 | ) | ||||||||||
Outstanding at December 31, 2008 | 1,358 | 2,978 | 24 | 838 | 5,198 | |||||||||||||||
F-29F-31
9. | Share based remuneration – (continued) |
2007 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||||||||
Weighted | Weighted | Weighted | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||
average | average | average | Weighted | Weighted | Weighted | |||||||||||||||||||||||||||||||||||||
Number of | remaining | Number of | remaining | Number of | remaining | Number of | average | Number of | average | Number of | average | |||||||||||||||||||||||||||||||
share | contractual | share | contractual | share | contractual | share | remaining | share | remaining | share | remaining | |||||||||||||||||||||||||||||||
options | period till | options | period till | options | period till | options | period till | options | period till | options | period till | |||||||||||||||||||||||||||||||
outstanding | expiry | outstanding | expiry | outstanding | expiry | outstanding | expiry | outstanding | expiry | outstanding | expiry | |||||||||||||||||||||||||||||||
’000 | (years) | ’000 | (years) | ’000 | (years) | ’000 | (years) | ’000 | (years) | ’000 | (years) | |||||||||||||||||||||||||||||||
Reed Elsevier PLC ordinary shares (pence) | Reed Elsevier PLC ordinary shares (pence) | Reed Elsevier PLC ordinary shares (pence) | ||||||||||||||||||||||||||||||||||||||||
301-350 | — | — | — | — | 38 | 0.1 | ||||||||||||||||||||||||||||||||||||
351-400 | 668 | 1.6 | 1,345 | 1.4 | 2,161 | 2.3 | 252 | 1.2 | 668 | 1.6 | 1,345 | 1.4 | ||||||||||||||||||||||||||||||
401-450 | 2,652 | 2.4 | 4,733 | 3.0 | 6,110 | 4.0 | 1,927 | 1.5 | 2,652 | 2.4 | 4,733 | 3.0 | ||||||||||||||||||||||||||||||
451-500 | 12,356 | 4.8 | 23,953 | 5.5 | 31,858 | 6.6 | 9,111 | 4.6 | 12,356 | 4.8 | 23,953 | 5.5 | ||||||||||||||||||||||||||||||
501-550 | 12,716 | 7.1 | 15,462 | 7.8 | 12,981 | 8.1 | 9,834 | 6.1 | 12,716 | 7.1 | 15,462 | 7.8 | ||||||||||||||||||||||||||||||
551-600 | 4,331 | 4.3 | 6,639 | 4.7 | 8,283 | 5.2 | 3,856 | 3.4 | 4,331 | 4.3 | 6,639 | 4.7 | ||||||||||||||||||||||||||||||
601-650 | 4,280 | 8.8 | 852 | 2.8 | 1,019 | 3.6 | 7,452 | 8.5 | 4,280 | 8.8 | 852 | 2.8 | ||||||||||||||||||||||||||||||
651-700 | 3,046 | 3.2 | 3,598 | 4.1 | 4,089 | 5.1 | 2,696 | 2.2 | 3,046 | 3.2 | 3,598 | 4.1 | ||||||||||||||||||||||||||||||
Total | 40,049 | 4.8 | 56,582 | 5.6 | 66,539 | 6.2 | 35,128 | 5.3 | 40,049 | 4.8 | 56,582 | 5.6 | ||||||||||||||||||||||||||||||
Reed Elsevier NV ordinary shares (euro) | Reed Elsevier NV ordinary shares (euro) | Reed Elsevier NV ordinary shares (euro) | ||||||||||||||||||||||||||||||||||||||||
8.01-9.00 | — | — | — | — | 9 | 7.2 | ||||||||||||||||||||||||||||||||||||
9.01-10.00 | 1,954 | 5.1 | 4,146 | 6.2 | 8,034 | 7.0 | 1,617 | 4.3 | 1,954 | 5.1 | 4,146 | 6.2 | ||||||||||||||||||||||||||||||
10.01-11.00 | 6,791 | 5.8 | 14,595 | 5.1 | 17,919 | 5.9 | 5,771 | 4.8 | 6,791 | 5.8 | 14,595 | 5.1 | ||||||||||||||||||||||||||||||
11.01-12.00 | 8,912 | 7.2 | 10,589 | 8.0 | 8,774 | 8.0 | 6,866 | 6.2 | 8,912 | 7.2 | 10,589 | 8.0 | ||||||||||||||||||||||||||||||
12.01-13.00 | 402 | 5.3 | 307 | 5.6 | 356 | 3.3 | 3,362 | 8.7 | 402 | 5.3 | 307 | 5.6 | ||||||||||||||||||||||||||||||
13.01-14.00 | 4,269 | 4.6 | 5,163 | 4.8 | 5,808 | 5.4 | 3,777 | 3.0 | 4,269 | 4.6 | 5,163 | 4.8 | ||||||||||||||||||||||||||||||
14.01-15.00 | 5,041 | 6.5 | 2,896 | 4.2 | 3,223 | 4.7 | 4,382 | 4.9 | 5,041 | 6.5 | 2,896 | 4.2 | ||||||||||||||||||||||||||||||
15.01-16.00 | 486 | 2.3 | 551 | 2.7 | 636 | 2.6 | 202 | 2.4 | 486 | 2.3 | 551 | 2.7 | ||||||||||||||||||||||||||||||
Total | 27,855 | 6.0 | 38,247 | 5.9 | 44,759 | 6.3 | 25,977 | 5.4 | 27,855 | 6.0 | 38,247 | 5.9 | ||||||||||||||||||||||||||||||
F-30
10. | Net finance costs |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Interest on bank loans, overdrafts and commercial paper | (45 | ) | (44 | ) | (44 | ) | ||||||||||||||||||
Interest on short term bank loans, overdrafts and commercial paper | (62 | ) | (45 | ) | (44 | ) | ||||||||||||||||||
Interest on other loans | (130 | ) | (128 | ) | (105 | ) | (137 | ) | (130 | ) | (128 | ) | ||||||||||||
Interest on obligations under finance leases | (1 | ) | (1 | ) | (1 | ) | — | (1 | ) | (1 | ) | |||||||||||||
Total borrowing costs | (176 | ) | (173 | ) | (150 | ) | (199 | ) | (176 | ) | (173 | ) | ||||||||||||
Acquisition related finance costs | (18 | ) | — | — | ||||||||||||||||||||
Fair value losses on designated fair value hedge relationships | (2 | ) | — | — | — | (2 | ) | — | ||||||||||||||||
Losses on derivatives not designated as hedges | (2 | ) | (3 | ) | (20 | ) | (8 | ) | (2 | ) | (3 | ) | ||||||||||||
Fair value losses on interest rate derivatives formerly designated as cash flow hedges transferred from equity | (2 | ) | (3 | ) | (6 | ) | — | (2 | ) | (3 | ) | |||||||||||||
Finance costs | (182 | ) | (179 | ) | (176 | ) | (225 | ) | (182 | ) | (179 | ) | ||||||||||||
Interest on bank deposits | 34 | 14 | 10 | 31 | 34 | 14 | ||||||||||||||||||
Gains on loans and derivatives not designated as hedges | 9 | 7 | 26 | 2 | 9 | 7 | ||||||||||||||||||
Finance income | 43 | 21 | 36 | 33 | 43 | 21 | ||||||||||||||||||
Net finance costs | (139 | ) | (158 | ) | (140 | ) | (192 | ) | (139 | ) | (158 | ) | ||||||||||||
F-32
10. | Net finance costs – (continued) |
11. | Disposals and other non operating items |
2007 | 2006 | 2005 | ||||||||||
£m | £m | £m | ||||||||||
Revaluation of held for trading investments | (2 | ) | 1 | 3 | ||||||||
Gain/(loss) on disposal of businesses and other assets | 65 | (2 | ) | (1 | ) | |||||||
Net gain/(loss) on disposals and other non operating items | 63 | (1 | ) | 2 | ||||||||
2008 | 2007 | 2006 | ||||||||||
£m | £m | £m | ||||||||||
Revaluation of held for trading investments | (6 | ) | (2 | ) | 1 | |||||||
(Loss)/gain on disposal and write down of businesses and other assets | (86 | ) | 65 | (2 | ) | |||||||
Net (loss)/gain on disposals and other non operating items | (92 | ) | 63 | (1 | ) | |||||||
12. | Taxation |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||||
Current tax | |||||||||||||||||||||||
United Kingdom | 59 | 52 | 82 | 40 | 59 | 52 | |||||||||||||||||
The Netherlands | 40 | 50 | 48 | 49 | 40 | 50 | |||||||||||||||||
Rest of world | (111 | ) | (26 | ) | 46 | 36 | (111 | ) | (26 | ) | |||||||||||||
Total current tax (credit)/charge | (12 | ) | 76 | 176 | |||||||||||||||||||
Total current tax charge/(credit) | 125 | (12 | ) | 76 | |||||||||||||||||||
Deferred tax | |||||||||||||||||||||||
Origination and reversal of temporary differences | (70 | ) | 10 | 43 | 30 | (70 | ) | 10 | |||||||||||||||
Total taxation (credit)/charge on profit from continuing operations | (82 | ) | 86 | 219 | |||||||||||||||||||
Total taxation charge/(credit) on profit from continuing operations | 155 | (82 | ) | 86 | |||||||||||||||||||
F-31
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Profit before tax from continuing operations | 812 | 678 | 614 | 617 | 812 | 678 | ||||||||||||||||||
Tax at average applicable rates | 195 | 156 | 124 | 127 | 195 | 156 | ||||||||||||||||||
Tax on share of results of joint ventures | (5 | ) | (6 | ) | (6 | ) | (5 | ) | (5 | ) | (6 | ) | ||||||||||||
Deferred tax on unrealised exchange differences on long term inter affiliate lending | (21 | ) | (22 | ) | 44 | — | (21 | ) | (22 | ) | ||||||||||||||
Adjustments relating to prior year disposals | — | (65 | ) | — | — | — | (65 | ) | ||||||||||||||||
Offset of tax reliefs against capital gains and tax base differences on disposals | (251 | ) | — | — | — | (251 | ) | — | ||||||||||||||||
Non deductible amounts and other items | — | 23 | 57 | 33 | — | 23 | ||||||||||||||||||
Tax (credit)/expense | (82 | ) | 86 | 219 | ||||||||||||||||||||
Tax expense/(credit) | 155 | (82 | ) | 86 | ||||||||||||||||||||
Tax (credit)/expense as a percentage of profit before tax | (10 | )% | 13 | % | 36 | % | ||||||||||||||||||
Tax expense/(credit) as a percentage of profit before tax | 25 | % | (10 | )% | 13 | % |
2007 | 2006 | 2005 | ||||||||||
£m | £m | £m | ||||||||||
Tax on actuarial movements on defined benefit pension schemes | (65 | ) | (45 | ) | 10 | |||||||
Tax on fair value movements on cash flow hedges | (2 | ) | (18 | ) | (13 | ) | ||||||
Deferred tax credits on share based remuneration | 17 | 3 | — | |||||||||
Net tax charge recognised directly in equity | (50 | ) | (60 | ) | (3 | ) | ||||||
F-33
12. | Taxation – (continued) |
2008 | 2007 | 2006 | ||||||||||
£m | £m | £m | ||||||||||
Tax on actuarial movements on defined benefit pension schemes | 116 | (65 | ) | (45 | ) | |||||||
Tax on fair value movements on cash flow hedges | 59 | (2 | ) | (18 | ) | |||||||
Deferred tax (charge)/credits on share based remuneration | (19 | ) | 17 | 3 | ||||||||
Net tax credit/(charge) recognised directly in equity | 156 | (50 | ) | (60 | ) | |||||||
13. | Cash flow statement |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Profit before tax | 812 | 678 | 614 | 617 | 812 | 678 | ||||||||||||||||||
Disposals and other non operating items | (63 | ) | 1 | (2 | ) | 92 | (63 | ) | 1 | |||||||||||||||
Net finance costs | 139 | 158 | 140 | 192 | 139 | 158 | ||||||||||||||||||
Share of results of joint ventures | (16 | ) | (18 | ) | (16 | ) | (18 | ) | (16 | ) | (18 | ) | ||||||||||||
Operating profit before joint ventures | 872 | 819 | 736 | 883 | 872 | 819 | ||||||||||||||||||
Amortisation of acquired intangible assets | 219 | 211 | 203 | |||||||||||||||||||||
Amortisation of acquired intangible assets and goodwill impairment | 287 | 219 | 211 | |||||||||||||||||||||
Amortisation of internally developed intangible assets | 72 | 66 | 53 | 88 | 72 | 66 | ||||||||||||||||||
Depreciation of property, plant and equipment | 76 | 81 | 77 | 79 | 76 | 81 | ||||||||||||||||||
Share based remuneration | 38 | 44 | 48 | 46 | 38 | 44 | ||||||||||||||||||
Total non cash items | 405 | 402 | 381 | 500 | 405 | 402 | ||||||||||||||||||
Increase in inventories and pre-publication costs | (11 | ) | (1 | ) | (20 | ) | ||||||||||||||||||
Decrease/(increase) in inventories and pre-publication costs | 4 | (11 | ) | (1 | ) | |||||||||||||||||||
Increase in receivables | (35 | ) | (44 | ) | (97 | ) | (106 | ) | (35 | ) | (44 | ) | ||||||||||||
(Decrease)/increase in payables | (13 | ) | 37 | 81 | ||||||||||||||||||||
Increase/(decrease) in payables | 171 | (13 | ) | 37 | ||||||||||||||||||||
Increase in working capital | (59 | ) | (8 | ) | (36 | ) | ||||||||||||||||||
Decrease/(increase) in working capital | 69 | (59 | ) | (8 | ) | |||||||||||||||||||
Cash generated from operations | 1,218 | 1,213 | 1,081 | 1,452 | 1,218 | 1,213 | ||||||||||||||||||
F-32
2007 | 2006 | 2005 | |||||||||||||
Note | £m | £m | £m | ||||||||||||
Purchase of businesses | 14 | (293 | ) | (149 | ) | (290 | ) | ||||||||
Investments in joint ventures | (24 | ) | (1 | ) | (15 | ) | |||||||||
Deferred payments relating to prior year acquisitions | (10 | ) | (13 | ) | (9 | ) | |||||||||
Total | (327 | ) | (163 | ) | (314 | ) | |||||||||
2008 | 2007 | 2006 | ||||||||||||||
Note | £m | £m | £m | |||||||||||||
Purchase of businesses | 14 | (2,112 | ) | (293 | ) | (149 | ) | |||||||||
Payment of ChoicePoint change of control and other non operating payables assumed | (19 | ) | — | — | ||||||||||||
Investments in joint ventures | — | (24 | ) | (1 | ) | |||||||||||
Deferred payments relating to prior year acquisitions | (30 | ) | (10 | ) | (13 | ) | ||||||||||
Total | (2,161 | ) | (327 | ) | (163 | ) | ||||||||||
F-34
14. | Acquisitions |
ChoicePoint | Other | |||||||||||||||||||||||
Book value | Book value | |||||||||||||||||||||||
on | on | Total | ||||||||||||||||||||||
acquisition | Fair value | acquisition | Fair value | Fair value | ||||||||||||||||||||
Note | £m | £m | £m | £m | £m | |||||||||||||||||||
Goodwill | (i | ) | — | 1,162 | — | 117 | 1,279 | |||||||||||||||||
Intangible assets | (ii | ) | 15 | 1,471 | — | 108 | 1,579 | |||||||||||||||||
Property, plant and equipment | 46 | 46 | 2 | 2 | 48 | |||||||||||||||||||
Current assets | 117 | 117 | 11 | 11 | 128 | |||||||||||||||||||
Current liabilities | (221 | ) | (221 | ) | (16 | ) | (16 | ) | (237 | ) | ||||||||||||||
Borrowings | (219 | ) | (219 | ) | — | — | (219 | ) | ||||||||||||||||
Current tax | 19 | 19 | 3 | 3 | 22 | |||||||||||||||||||
Deferred tax | 6 | (444 | ) | — | (25 | ) | (469 | ) | ||||||||||||||||
Net assets acquired | (237 | ) | 1,931 | — | 200 | 2,131 | ||||||||||||||||||
Consideration (after taking account of £51 million net cash acquired) | (iii | ) | 2,131 | |||||||||||||||||||||
Less: consideration deferred to future years | (19 | ) | ||||||||||||||||||||||
Net cash flow | 2,112 | |||||||||||||||||||||||
(i) | 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, acquisition synergies that are specific to Reed Elsevier, and high barriers to market entry. 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. |
(ii) | The provisional fair value of intangible assets acquired with ChoicePoint have been established with advice from independent qualified valuers. |
(iii) | Consideration for ChoicePoint comprises £1,955 million to acquire the entire share capital and £22 million of professional fees and other costs relating to the acquisition. |
F-35
14. | Acquisitions — (continued) |
Book value | ||||||||||||
on | Fair value | |||||||||||
acquisition | adjustments | Fair value | ||||||||||
£m | £m | £m | ||||||||||
Goodwill | — | 101 | 101 | |||||||||
Intangible assets | — | 262 | 262 | |||||||||
Property, plant and equipment | — | — | — | |||||||||
Current assets | 7 | — | 7 | |||||||||
Current liabilities | (14 | ) | — | (14 | ) | |||||||
Deferred tax | (2 | ) | (35 | ) | (37 | ) | ||||||
Net assets acquired | (9 | ) | 328 | 319 | ||||||||
Consideration (after taking account of £11 million net cash acquired) | 319 | |||||||||||
Less: consideration deferred to future years | (26 | ) | ||||||||||
Net cash flow | 293 | |||||||||||
Book value | ||||||||
on | ||||||||
acquisition | Fair value | |||||||
£m | £m | |||||||
Goodwill | — | 101 | ||||||
Intangible assets | — | 262 | ||||||
Property, plant and equipment | — | — | ||||||
Current assets | 7 | 7 | ||||||
Current liabilities | (14 | ) | (14 | ) | ||||
Deferred tax | (2 | ) | (37 | ) | ||||
Net assets acquired | (9 | ) | 319 | |||||
Consideration (after taking account of £4 million net cash acquired) | 319 | |||||||
Less: consideration deferred to future years | (26 | ) | ||||||
Net cash flow | 293 | |||||||
15. | Equity dividends |
F-33
Book value | ||||||||||||
on | Fair value | |||||||||||
acquisition | adjustments | Fair value | ||||||||||
£m | £m | £m | ||||||||||
Goodwill | — | 102 | 102 | |||||||||
Intangible assets | 1 | 86 | 87 | |||||||||
Property, plant and equipment | 1 | — | 1 | |||||||||
Current assets | 9 | — | 9 | |||||||||
Current liabilities | (17 | ) | — | (17 | ) | |||||||
Deferred tax | — | (11 | ) | (11 | ) | |||||||
Net assets acquired | (6 | ) | 177 | 171 | ||||||||
�� | ||||||||||||
Consideration (after taking account of £7 million net cash acquired) | 171 | |||||||||||
Less: consideration deferred to future years | (22 | ) | ||||||||||
Net cash flow | 149 | |||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||
Reed Elsevier PLC | 206 | 186 | 168 | 204 | 206 | 186 | |||||||||||||||
Reed Elsevier NV | 210 | 185 | 168 | 214 | 210 | 185 | |||||||||||||||
Total | 416 | 371 | 336 | 418 | 416 | 371 | |||||||||||||||
F-36
15. | Equity dividends – (continued) |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||
Reed Elsevier PLC | 204 | 200 | 183 | 220 | 204 | 200 | |||||||||||||||
Reed Elsevier NV | 205 | 204 | 182 | 217 | 205 | 204 | |||||||||||||||
Total | 409 | 404 | 365 | 437 | 409 | 404 | |||||||||||||||
F-34
16. | Goodwill |
2007 | 2006 | 2005 | 2008 | 2007 | |||||||||||||||||||
Note | £m | £m | £m | £m | £m | ||||||||||||||||||
At January 1 | 2,802 | 3,030 | 2,611 | 2,462 | 2,802 | ||||||||||||||||||
Acquisitions | 101 | 102 | 182 | 1,279 | 101 | ||||||||||||||||||
Disposals | (323 | ) | (20 | ) | (14 | ) | (4 | ) | (323 | ) | |||||||||||||
Impairment | (9 | ) | — | ||||||||||||||||||||
Reclassified as held for sale | 24 | (117 | ) | — | — | — | (117 | ) | |||||||||||||||
Exchange translation differences | (1 | ) | (310 | ) | 251 | 1,173 | (1 | ) | |||||||||||||||
At December 31 | 2,462 | 2,802 | 3,030 | 4,901 | 2,462 | ||||||||||||||||||
F-37
16. | Goodwill – (Continued) |
2007 | 2006 | 2005 | 2008 | 2007 | |||||||||||||
£m | £m | £m | £m | £m | |||||||||||||
Goodwill | |||||||||||||||||
Elsevier | 767 | 744 | 821 | 1,074 | 767 | ||||||||||||
LexisNexis US | 1,058 | 1,077 | 1,201 | ||||||||||||||
LexisNexis US Legal | 1,104 | 787 | |||||||||||||||
LexisNexis Risk | 1,846 | 271 | |||||||||||||||
LexisNexis International | 118 | 120 | 103 | 137 | 118 | ||||||||||||
Harcourt Schools US | — | 302 | 345 | ||||||||||||||
LexisNexis | 3,087 | 1,176 | |||||||||||||||
Reed Exhibitions Continental Europe | 336 | 264 | |||||||||||||||
Reed Exhibitions other | 71 | 38 | |||||||||||||||
Reed Exhibitions | 302 | 264 | 267 | 407 | 302 | ||||||||||||
Other | 217 | 295 | 293 | ||||||||||||||
Reed Business Information US | 162 | 113 | |||||||||||||||
Reed Business Information UK | 71 | 41 | |||||||||||||||
Reed Business Information NL | 33 | 23 | |||||||||||||||
Reed Business Information International | 67 | 40 | |||||||||||||||
Reed Business Information | 333 | 217 | |||||||||||||||
Total | 2,462 | 2,802 | 3,030 | 4,901 | 2,462 | ||||||||||||
F-35F-38
17. | Intangible assets |
Market | Content, | Total | Internally | Market | Content, | Total | Internally | |||||||||||||||||||||||||||||||||
and | software | acquired | developed | and | software | acquired | developed | |||||||||||||||||||||||||||||||||
customer | and | intangible | intangible | customer | and | intangible | intangible | |||||||||||||||||||||||||||||||||
related | other | assets | assets | Total | related | other | assets | assets | Total | |||||||||||||||||||||||||||||||
Note | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||||||||||
At January 1, 2006 | 1,489 | 3,083 | 4,572 | 647 | 5,219 | |||||||||||||||||||||||||||||||||||
Acquisitions | 43 | 44 | 87 | — | 87 | |||||||||||||||||||||||||||||||||||
Additions | — | — | — | 108 | 108 | |||||||||||||||||||||||||||||||||||
Disposals | (2 | ) | (16 | ) | (18 | ) | (73 | ) | (91 | ) | ||||||||||||||||||||||||||||||
Exchange translation differences | (175 | ) | (240 | ) | (415 | ) | (49 | ) | (464 | ) | ||||||||||||||||||||||||||||||
At January 1, 2007 | 1,355 | 2,871 | 4,226 | 633 | 4,859 | 1,355 | 2,871 | 4,226 | 633 | 4,859 | ||||||||||||||||||||||||||||||
Acquisitions | 63 | 199 | 262 | — | 262 | 63 | 199 | 262 | — | 262 | ||||||||||||||||||||||||||||||
Additions | — | — | — | 80 | 80 | — | — | — | 80 | 80 | ||||||||||||||||||||||||||||||
Disposals | (544 | ) | (118 | ) | (662 | ) | (60 | ) | (722 | ) | (544) | (118 | ) | (662 | ) | (60 | ) | (722 | ) | |||||||||||||||||||||
Reclassified as held for sale | 24 | (29 | ) | (116 | ) | (145 | ) | (32 | ) | (177 | ) | (29) | (116 | ) | (145 | ) | (32 | ) | (177 | ) | ||||||||||||||||||||
Exchange translation differences | (27 | ) | 33 | 6 | 16 | 22 | (27) | 33 | 6 | 16 | 22 | |||||||||||||||||||||||||||||
At December 31, 2007 | 818 | 2,869 | 3,687 | 637 | 4,324 | |||||||||||||||||||||||||||||||||||
Amortisation | ||||||||||||||||||||||||||||||||||||||||
At January 1, 2006 | 201 | 1,682 | 1,883 | 357 | 2,240 | |||||||||||||||||||||||||||||||||||
Charge for the year | 106 | 191 | 297 | 71 | 368 | |||||||||||||||||||||||||||||||||||
At January 1, 2008 | 818 | 2,869 | 3,687 | 637 | 4,324 | |||||||||||||||||||||||||||||||||||
Acquisitions | 1,349 | 230 | 1,579 | — | 1,579 | |||||||||||||||||||||||||||||||||||
Additions | — | — | — | 115 | 115 | |||||||||||||||||||||||||||||||||||
Disposals | (1 | ) | (16 | ) | (17 | ) | (65 | ) | (82 | ) | — | (15 | ) | (15 | ) | (19 | ) | (34 | ) | |||||||||||||||||||||
Exchange translation differences | (30 | ) | (137 | ) | (167 | ) | (24 | ) | (191 | ) | 652 | 85 | 1,503 | 207 | 1,710 | |||||||||||||||||||||||||
At December 31, 2008 | 2,819 | 3,935 | 6,754 | 940 | 7,694 | |||||||||||||||||||||||||||||||||||
Amortisation | ||||||||||||||||||||||||||||||||||||||||
At January 1, 2007 | 276 | 1,720 | 1,996 | 339 | 2,335 | 276 | 1,720 | 1,996 | 339 | 2,335 | ||||||||||||||||||||||||||||||
Charge for the year | 52 | 176 | 228 | 73 | 301 | 52 | 176 | 228 | 73 | 301 | ||||||||||||||||||||||||||||||
Disposals | (166 | ) | (111 | ) | (277 | ) | �� | (52 | ) | (329 | ) | (166) | (111 | ) | (277 | ) | (52 | ) | (329 | ) | ||||||||||||||||||||
Reclassified as held for sale | 24 | (2 | ) | (77 | ) | (79 | ) | (9 | ) | (88 | ) | (2) | (77 | ) | (79 | ) | (9 | ) | (88 | ) | ||||||||||||||||||||
Exchange translation differences | (8 | ) | 13 | 5 | 11 | 16 | (8) | 13 | 5 | 11 | 16 | |||||||||||||||||||||||||||||
At December 31, 2007 | 152 | 1,721 | 1,873 | 362 | 2,235 | |||||||||||||||||||||||||||||||||||
At January 1, 2008 | 152 | 1,721 | 1,873 | 362 | 2,235 | |||||||||||||||||||||||||||||||||||
Charge for the year | 84 | 194 | 278 | 88 | 366 | |||||||||||||||||||||||||||||||||||
Disposals | — | (15 | ) | (15 | ) | (8 | ) | (23 | ) | |||||||||||||||||||||||||||||||
Exchange translation differences | 74 | 515 | 589 | 123 | 712 | |||||||||||||||||||||||||||||||||||
At December 31, 2008 | 310 | 2,415 | 2,725 | 565 | 3,290 | |||||||||||||||||||||||||||||||||||
Net book amount | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2006 | 1,079 | 1,151 | 2,230 | 294 | 2,524 | |||||||||||||||||||||||||||||||||||
At December 31, 2007 | 666 | 1,148 | 1,814 | 275 | 2,089 | 666 | 1,148 | 1,814 | 275 | 2,089 | ||||||||||||||||||||||||||||||
At December 31, 2008 | 2,509 | 1,520 | 4,029 | 375 | 4,404 | |||||||||||||||||||||||||||||||||||
F-36F-39
18. | Investments |
2007 | 2006 | 2008 | 2007 | |||||||||||
£m | £m | £m | £m | |||||||||||
Investments in joint ventures | 116 | 73 | 145 | 116 | ||||||||||
Available for sale investments | 90 | 25 | 24 | 90 | ||||||||||
Venture capital investments held for trading | 21 | 25 | 25 | 21 | ||||||||||
Total | 227 | 123 | 194 | 227 | ||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
At January 1 | 73 | 71 | 116 | 73 | ||||||||||||
Share of results of joint ventures | 16 | 18 | 18 | 16 | ||||||||||||
Dividends received from joint ventures | (12 | ) | (16 | ) | (23 | ) | (12 | ) | ||||||||
Additions | 31 | 1 | 4 | 31 | ||||||||||||
Exchange translation differences | 8 | (1 | ) | 30 | 8 | |||||||||||
At December 31 | 116 | 73 | 145 | 116 | ||||||||||||
Total joint ventures | Reed Elsevier share | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
Revenue | 214 | 222 | 103 | 108 | ||||||||||||
Net profit for the year | 36 | 36 | 16 | 18 | ||||||||||||
Total assets | 302 | 215 | 143 | 99 | ||||||||||||
Total liabilities | (165 | ) | (121 | ) | (76 | ) | (55 | ) | ||||||||
Net assets | 137 | 94 | 67 | 44 | ||||||||||||
Goodwill | 49 | 29 | ||||||||||||||
Total | 116 | 73 | ||||||||||||||
Total joint ventures | Reed Elsevier share | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
Revenue | 209 | 214 | 104 | 103 | ||||||||||||
Net profit for the year | 37 | 36 | 18 | 16 | ||||||||||||
Total assets | 325 | 302 | 152 | 143 | ||||||||||||
Total liabilities | (163 | ) | (165 | ) | (75 | ) | (76 | ) | ||||||||
Net assets | 162 | 137 | 77 | 67 | ||||||||||||
Goodwill | 68 | 49 | ||||||||||||||
Total | 145 | 116 | ||||||||||||||
F-37F-40
19. | Property, plant and equipment |
2007 | 2006 | 2008 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||
Land | Fixtures | Land | Fixtures | Land | Fixtures | Land | Fixtures | ||||||||||||||||||||||||||||||||||||||||||||
and | and | and | and | and | and | and | and | ||||||||||||||||||||||||||||||||||||||||||||
buildings | equipment | Total | buildings | equipment | Total | buildings | equipment | Total | buildings | equipment | Total | ||||||||||||||||||||||||||||||||||||||||
Note | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||||||||||||||||||||||||
At January 1 | 179 | 667 | 846 | 192 | 695 | 887 | 157 | 510 | 667 | 179 | 667 | 846 | |||||||||||||||||||||||||||||||||||||||
Acquisitions | — | 1 | 1 | — | 2 | 2 | 30 | 18 | 48 | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Capital expenditure | 6 | 70 | 76 | 9 | 89 | 98 | 13 | 44 | 57 | 6 | 70 | 76 | |||||||||||||||||||||||||||||||||||||||
Disposals | (26 | ) | (183 | ) | (209 | ) | (3 | ) | (55 | ) | (58 | ) | (1 | ) | (66 | ) | (67 | ) | (26 | ) | (183 | ) | (209 | ) | |||||||||||||||||||||||||||
Reclassified as held for sale | 24 | (2 | ) | (45 | ) | (47 | ) | — | — | — | — | — | — | (2 | ) | (45 | ) | (47 | ) | ||||||||||||||||||||||||||||||||
Exchange translation differences | — | — | — | (19 | ) | (64 | ) | (83 | ) | 60 | 138 | 198 | — | — | — | ||||||||||||||||||||||||||||||||||||
At December 31 | 157 | 510 | 667 | 179 | 667 | 846 | 259 | 644 | 903 | 157 | 510 | 667 | |||||||||||||||||||||||||||||||||||||||
Accumulated depreciation | |||||||||||||||||||||||||||||||||||||||||||||||||||
At January 1 | 83 | 465 | 548 | 84 | 489 | 573 | 71 | 357 | 428 | 83 | 465 | 548 | |||||||||||||||||||||||||||||||||||||||
Acquisitions | — | 1 | 1 | — | 1 | 1 | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Disposals | (19 | ) | (148 | ) | (167 | ) | (3 | ) | (55 | ) | (58 | ) | (1 | ) | (56 | ) | (57 | ) | (19 | ) | (148 | ) | (167 | ) | |||||||||||||||||||||||||||
Reclassified as held for sale | 24 | (1 | ) | (30 | ) | (31 | ) | — | — | — | — | — | — | (1 | ) | (30 | ) | (31 | ) | ||||||||||||||||||||||||||||||||
Charge for the year | 8 | 69 | 77 | 8 | 83 | 91 | 10 | 69 | 79 | 8 | 69 | 77 | |||||||||||||||||||||||||||||||||||||||
Exchange translation differences | — | — | — | (6 | ) | (53 | ) | (59 | ) | 26 | 98 | 124 | — | — | — | ||||||||||||||||||||||||||||||||||||
At December 31 | 71 | 357 | 428 | 83 | 465 | 548 | 106 | 468 | 574 | 71 | 357 | 428 | |||||||||||||||||||||||||||||||||||||||
Net book amount | 86 | 153 | 239 | 96 | 202 | 298 | 153 | 176 | 329 | 86 | 153 | 239 | |||||||||||||||||||||||||||||||||||||||
20. | Financial instruments |
F-38F-41
20. | Financial instruments |
Contractual cash flow | Contractual cash flow | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying | Within | More than | Carrying | Within | More than | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
amount | 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5 Years | Total | amount | 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5 years | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2007 | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2008 | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate borrowings | (1,993 | ) | (486 | ) | (95 | ) | (95 | ) | (368 | ) | (327 | ) | (1,602 | ) | (2,973 | ) | (2,265 | ) | (124 | ) | (123 | ) | (504 | ) | (447 | ) | (177 | ) | (1,967 | ) | (3,342 | ) | ||||||||||||||||||||||||||||||||
Floating rate borrowings | (1,136 | ) | (770 | ) | (14 | ) | (232 | ) | (7 | ) | (169 | ) | (3 | ) | (1,195 | ) | (3,877 | ) | (536 | ) | (1,740 | ) | (1,516 | ) | (225 | ) | (1 | ) | (5 | ) | (4,023 | ) | ||||||||||||||||||||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate derivatives | (9 | ) | (5 | ) | (5 | ) | (2 | ) | — | — | (6 | ) | (18 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial liabilities Interest rate derivatives | (89 | ) | (27 | ) | (37 | ) | (20 | ) | (7 | ) | (3 | ) | — | (94 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Cross currency interest rate swaps | — | (241 | ) | (6 | ) | (7 | ) | (7 | ) | (8 | ) | (158 | ) | (427 | ) | — | (13 | ) | (8 | ) | (13 | ) | (14 | ) | (199 | ) | (204 | ) | (451 | ) | ||||||||||||||||||||||||||||||||||
Forward foreign exchange contracts | (13 | ) | (654 | ) | (265 | ) | (118 | ) | — | — | — | (1,037 | ) | (169 | ) | (909 | ) | (358 | ) | (177 | ) | (45 | ) | — | — | (1,489 | ) | |||||||||||||||||||||||||||||||||||||
Derivative financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate derivatives | 16 | 4 | 7 | 5 | 3 | 2 | 4 | 25 | 1 | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cross currency interest rate swaps | 155 | 395 | 5 | 5 | 5 | 5 | 166 | 581 | 51 | 15 | 13 | 15 | 15 | 211 | 237 | 506 | ||||||||||||||||||||||||||||||||||||||||||||||||
Forward foreign exchange contracts | 39 | 680 | 276 | 120 | — | — | — | 1,076 | 24 | 837 | 307 | 157 | 42 | — | — | 1,343 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | (2,941 | ) | (1,077 | ) | (97 | ) | (324 | ) | (374 | ) | (497 | ) | (1,599 | ) | (3,968 | ) | (6,324 | ) | (756 | ) | (1,946 | ) | (2,058 | ) | (681 | ) | (169 | ) | (1,939 | ) | (7,549 | ) | ||||||||||||||||||||||||||||||||
Contractual cash flow | Contractual cash flow | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying | Within | More than | Carrying | Within | More than | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
amount | 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5 Years | Total | amount | 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5 years | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2006 | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2007 | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate borrowings | (2,089 | ) | (406 | ) | (445 | ) | (89 | ) | (89 | ) | (369 | ) | (1,781 | ) | (3,179 | ) | (1,993 | ) | (486 | ) | (95 | ) | (95 | ) | (368 | ) | (327 | ) | (1,602 | ) | (2,973 | ) | ||||||||||||||||||||||||||||||||
Floating rate borrowings | (917 | ) | (659 | ) | (13 | ) | (13 | ) | (281 | ) | — | (2 | ) | (968 | ) | (1,136 | ) | (770 | ) | (14 | ) | (232 | ) | (7 | ) | (169 | ) | (3 | ) | (1,195 | ) | |||||||||||||||||||||||||||||||||
Derivative financial liabilities Interest rate derivatives | (6 | ) | (6 | ) | (4 | ) | (1 | ) | (1 | ) | (1 | ) | (8 | ) | (21 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate derivatives | (9 | ) | (5 | ) | (5 | ) | (2 | ) | — | — | (6 | ) | (18 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cross currency interest rate swaps | — | (172 | ) | (238 | ) | — | — | — | — | (410 | ) | — | (241 | ) | (6 | ) | (7 | ) | (7 | ) | (8 | ) | (158 | ) | (427 | ) | ||||||||||||||||||||||||||||||||||||||
Forward foreign exchange contracts | (3 | ) | (506 | ) | (212 | ) | (96 | ) | — | — | — | (814 | ) | (13 | ) | (654 | ) | (265 | ) | (118 | ) | — | — | — | (1,037 | ) | ||||||||||||||||||||||||||||||||||||||
Derivative financial assets Interest rate derivatives | 8 | 9 | 4 | 1 | 1 | 1 | 3 | 19 | 16 | 4 | 7 | 5 | 3 | 2 | 4 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cross currency interest rate swaps | 174 | 237 | 355 | — | — | — | — | 592 | 155 | 395 | 5 | 5 | 5 | 5 | 166 | 581 | ||||||||||||||||||||||||||||||||||||||||||||||||
Forward foreign exchange contracts | 37 | 528 | 228 | 100 | — | — | — | 856 | 39 | 680 | 276 | 120 | — | — | — | 1,076 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | (2,796 | ) | (975 | ) | (325 | ) | (98 | ) | (370 | ) | (369 | ) | (1,788 | ) | (3,925 | ) | (2,941 | ) | (1,077 | ) | (97 | ) | (324 | ) | (374 | ) | (497 | ) | (1,599 | ) | (3,968 | ) | ||||||||||||||||||||||||||||||||
F-39F-42
20. | Financial instruments |
F-43
20. | Financial instruments – (continued) |
F-40
F-44
20. | Financial instruments – (continued) |
Fair value | Fair value | |||||||||||||||||||||||||||||||
January 1, | movement | Exchange | December 31, | January 1, | movement | Exchange | December 31, | |||||||||||||||||||||||||
2005 | gain/(loss) | gain/(loss) | 2005 | 2006 | gain/(loss) | gain/(loss) | 2006 | |||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||
USD debt | (5 | ) | (9 | ) | (1 | ) | (15 | ) | (15 | ) | 15 | 1 | 1 | |||||||||||||||||||
Related interest rate swaps | 5 | 9 | 1 | 15 | 15 | (15 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Euro debt | (151 | ) | 62 | (15 | ) | (104 | ) | (104 | ) | (26 | ) | 14 | (116 | ) | ||||||||||||||||||
Related Euro to USD cross currency interest rate swaps | 152 | (62 | ) | 15 | 105 | 105 | 26 | (14 | ) | 117 | ||||||||||||||||||||||
1 | — | — | 1 | 1 | — | — | 1 | |||||||||||||||||||||||||
CHF debt | (86 | ) | 41 | (8 | ) | (53 | ) | (53 | ) | (10 | ) | 7 | (56 | ) | ||||||||||||||||||
Related CHF to USD cross currency interest rate swaps | 87 | (41 | ) | 8 | 54 | 54 | 10 | (7 | ) | 57 | ||||||||||||||||||||||
1 | — | — | 1 | 1 | — | — | 1 | |||||||||||||||||||||||||
Total USD, Euro and CHF debt | (242 | ) | 94 | (24 | ) | (172 | ) | (172 | ) | (21 | ) | 22 | (171 | ) | ||||||||||||||||||
Total related interest rate derivatives | 244 | (94 | ) | 24 | 174 | 174 | 21 | (22 | ) | 173 | ||||||||||||||||||||||
Net gain | 2 | — | — | 2 | 2 | — | — | 2 | ||||||||||||||||||||||||
Fair value | ||||||||||||||||
January 1, | movement | Exchange | December 31, | |||||||||||||
2007 | gain/(loss) | gain/(loss) | 2007 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
USD debt | 1 | (16 | ) | — | (15 | ) | ||||||||||
Related interest rate swaps | (1 | ) | 16 | — | 15 | |||||||||||
— | — | — | — | |||||||||||||
Euro debt | (116 | ) | (35 | ) | 2 | (149 | ) | |||||||||
Related Euro to USD cross currency interest rate swaps | 117 | 34 | (2 | ) | 149 | |||||||||||
1 | (1 | ) | — | — | ||||||||||||
CHF debt | (56 | ) | 49 | 1 | (6 | ) | ||||||||||
Related CHF to USD cross currency interest rate swaps | 57 | (50 | ) | (1 | ) | 6 | ||||||||||
1 | (1 | ) | — | — | ||||||||||||
Total USD, Euro and CHF debt | (171 | ) | (2 | ) | 3 | (170 | ) | |||||||||
Total related interest rate derivatives | 173 | — | (3 | ) | 170 | |||||||||||
Net gain | 2 | (2 | ) | — | — | |||||||||||
F-41F-45
20. | Financial instruments |
Fair value | ||||||||||||||||
January 1, | movement | Exchange | December 31, | |||||||||||||
2006 | gain/(loss) | gain/(loss) | 2006 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
USD debt | (15 | ) | 15 | 1 | 1 | |||||||||||
Related interest rate swaps | 15 | (15 | ) | (1 | ) | (1 | ) | |||||||||
— | — | — | — | |||||||||||||
Euro debt | (104 | ) | (26 | ) | 14 | (116 | ) | |||||||||
Related Euro to USD cross currency interest rate swaps | 105 | 26 | (14 | ) | 117 | |||||||||||
1 | — | — | 1 | |||||||||||||
CHF debt | (53 | ) | (10 | ) | 7 | (56 | ) | |||||||||
Related CHF to USD cross currency interest rate swaps | 54 | 10 | (7 | ) | 57 | |||||||||||
1 | — | — | 1 | |||||||||||||
Total USD, Euro and CHF debt | (172 | ) | (21 | ) | 22 | (171 | ) | |||||||||
Total related interest rate derivatives | 174 | 21 | (22 | ) | 173 | |||||||||||
Net gain | 2 | — | — | 2 | ||||||||||||
Fair value | Fair value | |||||||||||||||||||||||||||||||||||
January 1, | movement | Exchange | December 31, | January 1, | movement | Exchange | December 31, | |||||||||||||||||||||||||||||
2007 | gain/(loss) | gain/(loss) | 2007 | 2008 | gain/(loss) | De-designated | gain/(loss) | 2008 | ||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | ||||||||||||||||||||||||||||
USD debt | 1 | (16 | ) | — | (15 | ) | (15 | ) | (46 | ) | 62 | (1 | ) | — | ||||||||||||||||||||||
Related interest rate swaps | (1 | ) | 16 | — | 15 | 15 | 46 | (62 | ) | 1 | — | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Euro debt | (116 | ) | (35 | ) | 2 | (149 | ) | (149 | ) | 161 | — | (12 | ) | — | ||||||||||||||||||||||
Related Euro to USD cross currency interest rate swaps | 117 | 34 | (2 | ) | 149 | 149 | (161 | ) | — | 12 | — | |||||||||||||||||||||||||
1 | (1 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
CHF debt | (56 | ) | 49 | 1 | (6 | ) | (6 | ) | (25 | ) | — | (10 | ) | (41 | ) | |||||||||||||||||||||
Related CHF to USD cross currency interest rate swaps | 57 | (50 | ) | (1 | ) | 6 | 6 | 25 | — | 10 | 41 | |||||||||||||||||||||||||
1 | (1 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total USD, Euro and CHF debt | (171 | ) | (2 | ) | 3 | (170 | ) | (170 | ) | 90 | 62 | (23 | ) | (41 | ) | |||||||||||||||||||||
Total related interest rate derivatives | 173 | — | (3 | ) | 170 | 170 | (90 | ) | (62 | ) | 23 | 41 | ||||||||||||||||||||||||
Net gain | 2 | (2 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
(1) | Interest rate derivatives which fix the interest expense on a portion of forecast floating rate denominated debt (including commercial paper, short term bank loans and floating rate term debt). | |
(2) | Foreign exchange derivatives which fix the exchange rate on a portion of future foreign currency subscription revenues forecast by the Elsevier science and medical businesses for up to 50 months. |
F-42F-46
20. | Financial instruments |
Total | Total | |||||||||||||||||||||||||||||||
Foreign | hedge | Foreign | hedge | |||||||||||||||||||||||||||||
Transition | Interest rate | exchange | reserve | Transition | Interest rate | exchange | reserve | |||||||||||||||||||||||||
loss | hedges | hedges | pre-tax | loss | hedges | hedges | pre-tax | |||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||
Hedge reserve at January 1, 2005: (losses)/gains deferred | (10 | ) | (15 | ) | 65 | 40 | ||||||||||||||||||||||||||
Gains/(losses) arising in 2005 | — | 11 | (21 | ) | (10 | ) | ||||||||||||||||||||||||||
Amounts recognised in income statement | 6 | 5 | (30 | ) | (19 | ) | ||||||||||||||||||||||||||
Exchange translation differences | (1 | ) | (1 | ) | (2 | ) | (4 | ) | ||||||||||||||||||||||||
Hedge reserve at January 1, 2006: (losses)/gains deferred | (5 | ) | — | 12 | 7 | (5 | ) | — | 12 | 7 | ||||||||||||||||||||||
Gains/(losses) arising in 2006 | — | 1 | 53 | 54 | ||||||||||||||||||||||||||||
Gains arising in 2006 | — | 1 | 53 | 54 | ||||||||||||||||||||||||||||
Amounts recognised in income statement | 3 | 3 | (14 | ) | (8 | ) | 3 | 3 | (14 | ) | (8 | ) | ||||||||||||||||||||
Exchange translation differences | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||
Hedge reserve at January 1, 2007: (losses)/gains deferred | (2 | ) | 4 | 50 | 52 | (2 | ) | 4 | 50 | 52 | ||||||||||||||||||||||
(Losses)/gains arising in 2007 | — | (11 | ) | 14 | 3 | — | (11 | ) | 14 | 3 | ||||||||||||||||||||||
Amounts recognised in income statement | 2 | (1 | ) | (30 | ) | (29 | ) | 2 | (1 | ) | (30 | ) | (29 | ) | ||||||||||||||||||
Exchange translation differences | — | — | 2 | 2 | — | — | 2 | 2 | ||||||||||||||||||||||||
Hedge reserve at December 31, 2007: (losses)/gains deferred | — | (8 | ) | 36 | 28 | |||||||||||||||||||||||||||
Hedge reserve at January 1, 2008: (losses)/gains deferred | — | (8 | ) | 36 | 28 | |||||||||||||||||||||||||||
Losses arising in 2008 | — | (60 | ) | (183 | ) | (243 | ) | |||||||||||||||||||||||||
Amounts recognised in income statement | — | 6 | (25 | ) | (19 | ) | ||||||||||||||||||||||||||
Exchange translation differences | — | (18 | ) | (4 | ) | (22 | ) | |||||||||||||||||||||||||
Hedge reserve at December 31, 2008: losses deferred | — | (80 | ) | (176 | ) | (256 | ) | |||||||||||||||||||||||||
Total | Total | ||||||||||||||||||||||||||
Foreign | hedge | Foreign | hedge | ||||||||||||||||||||||||
Transition | Interest rate | exchange | reserve | Interest rate | exchange | reserve | |||||||||||||||||||||
loss | hedges | hedges | pre-tax | hedges | hedges | pre-tax | |||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||
2008 | — | (2 | ) | 26 | 24 | ||||||||||||||||||||||
2009 | — | (4 | ) | 10 | 6 | (23 | ) | (63 | ) | (86 | ) | ||||||||||||||||
2010 | — | (2 | ) | 1 | (1 | ) | (29 | ) | (66 | ) | (95 | ) | |||||||||||||||
2011 | — | — | (1 | ) | (1 | ) | (16 | ) | (38 | ) | (54 | ) | |||||||||||||||
2012 | (9 | ) | (9 | ) | (18 | ) | |||||||||||||||||||||
2013 | (3 | ) | — | (3 | ) | ||||||||||||||||||||||
(Losses)/gains deferred in hedge reserve at end of year | — | (8 | ) | 36 | 28 | ||||||||||||||||||||||
Losses deferred in hedge reserve at end of year | (80 | ) | (176 | ) | (256 | ) | |||||||||||||||||||||
F-43F-47
21. | Deferred tax |
2007 | 2006 | 2008 | 2007 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
Deferred tax assets | 141 | 170 | 353 | 141 | ||||||||||||
Deferred tax liabilities | (695 | ) | (850 | ) | (1,525 | ) | (695 | ) | ||||||||
Total | (554 | ) | (680 | ) | (1,172 | ) | (554 | ) | ||||||||
Deferred tax liabilities | Deferred tax assets | Deferred tax liabilities | Deferred tax assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess of | Other | Other | Excess of | Other | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
tax allowances | Acquired | temporary | Tax losses | temporary | tax allowances | Acquired | temporary | Tax losses | temporary | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
over | intangible | Pensions | differences - | carried | Pensions | differences - | over | intangible | Pensions | differences - | carried | Pensions | differences - | |||||||||||||||||||||||||||||||||||||||||||||||||||
amortisation | assets | assets | liabilities | forward | liabilities | assets | Total | amortisation | assets | assets | liabilities | forward | liabilities | assets | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax (liability)/asset at January 1, 2006 | (115 | ) | (799 | ) | — | (66 | ) | 54 | 133 | 79 | (714 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Charge)/credit to profit | (27 | ) | 87 | (4 | ) | 7 | (47 | ) | 5 | (4 | ) | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Charge)/credit to equity | — | — | (6 | ) | (18 | ) | — | (39 | ) | 3 | (60 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers | (4 | ) | 5 | 4 | (1 | ) | 3 | 2 | (4 | ) | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | — | (11 | ) | — | — | — | — | — | (11 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange translation differences | 13 | 76 | — | 9 | (3 | ) | (9 | ) | (3 | ) | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax (liability)/asset at January 1, 2007 | (133 | ) | (642 | ) | (6 | ) | (69 | ) | 7 | 92 | 71 | (680 | ) | (133 | ) | (642 | ) | (6 | ) | (69 | ) | 7 | 92 | 71 | (680 | ) | ||||||||||||||||||||||||||||||||||||||
(Charge)/credit to profit | (29 | ) | 63 | — | 35 | (3 | ) | (15 | ) | 19 | 70 | (29 | ) | 63 | — | 35 | (3 | ) | (15 | ) | 19 | 70 | ||||||||||||||||||||||||||||||||||||||||||
(Charge)/credit to equity | — | — | (44 | ) | (2 | ) | — | (21 | ) | 17 | (50 | ) | — | — | (44 | ) | (2 | ) | — | (21 | ) | 17 | (50 | ) | ||||||||||||||||||||||||||||||||||||||||
Acquisitions | — | (38 | ) | — | — | 1 | — | — | (37 | ) | — | (38 | ) | — | — | 1 | — | — | (37 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Disposals | 34 | 95 | (1 | ) | — | — | (3 | ) | (25 | ) | 100 | 34 | 95 | (1 | ) | — | — | (3 | ) | (25 | ) | 100 | ||||||||||||||||||||||||||||||||||||||||||
Reclassified as held for sale | 1 | 24 | — | 15 | — | — | — | 40 | 1 | 24 | — | 15 | — | — | — | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||
Exchange translation differences | 2 | — | — | — | — | (1 | ) | 2 | 3 | 2 | — | — | — | — | (1 | ) | 2 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax (liability)/asset at December 31, 2007 | (125 | ) | (498 | ) | (51 | ) | (21 | ) | 5 | 52 | 84 | (554 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax (liability)/asset at January 1, 2008 | (125 | ) | (498 | ) | (51 | ) | (21 | ) | 5 | 52 | 84 | (554 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Charge)/credit to profit | (37 | ) | 69 | (6 | ) | (5 | ) | — | (10 | ) | (41 | ) | (30 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Credit to equity | — | — | 13 | 7 | — | 103 | 33 | 156 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | — | (536 | ) | — | — | — | 4 | 63 | (469 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposals | — | 7 | — | — | — | — | — | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange translation differences | (57 | ) | (281 | ) | — | (4 | ) | 1 | 41 | 18 | (282 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax (liability)/asset at December 31, 2008 | (219 | ) | (1,239 | ) | (44 | ) | (23 | ) | 6 | 190 | 157 | (1,172 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
22. | Inventories and pre-publication costs |
2007 | 2006 | 2008 | 2007 | |||||||||||
£m | £m | £m | £m | |||||||||||
Raw materials | 9 | 16 | 11 | 9 | ||||||||||
Pre-publication costs | 154 | 403 | 233 | 154 | ||||||||||
Finished goods | 108 | 214 | 104 | 108 | ||||||||||
Total | 271 | 633 | 348 | 271 | ||||||||||
F-44F-48
23. | Trade and other receivables |
2007 | 2006 | 2008 | 2007 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
Trade receivables | 1,054 | 1,105 | 1,578 | 1,054 | ||||||||||||
Allowance for doubtful debts | (48 | ) | (50 | ) | (77 | ) | (48 | ) | ||||||||
1,006 | 1,055 | 1,501 | 1,006 | |||||||||||||
Prepayment and accrued income | 142 | 169 | ||||||||||||||
Prepayments and accrued income | 184 | 142 | ||||||||||||||
Total | 1,148 | 1,224 | 1,685 | 1,148 | ||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
At January 1 | 50 | 66 | 73 | 48 | 50 | 66 | ||||||||||||||||||
Charge for the year | 19 | 10 | 5 | 29 | 19 | 10 | ||||||||||||||||||
Trade receivables written off | (17 | ) | (20 | ) | (13 | ) | (20 | ) | (17 | ) | (20 | ) | ||||||||||||
Acquisitions | 4 | — | — | |||||||||||||||||||||
Reclassified as held for sale | (5 | ) | — | — | — | (5 | ) | — | ||||||||||||||||
Exchange translation differences | 1 | (6 | ) | 1 | 16 | 1 | (6 | ) | ||||||||||||||||
At December 31 | 48 | 50 | 66 | 77 | 48 | 50 | ||||||||||||||||||
24. | Assets and liabilities held for sale |
2007 | 2006 | 2008 | 2007 | |||||||||||
£m | £m | £m | £m | |||||||||||
Goodwill | 117 | — | 24 | 117 | ||||||||||
Intangible assets | 89 | — | 3 | 89 | ||||||||||
Property, plant and equipment | 16 | — | 7 | 16 | ||||||||||
Inventories and pre-publication costs | 54 | — | — | 54 | ||||||||||
Trade and other receivables | 65 | — | 15 | 65 | ||||||||||
Total assets held for sale | 341 | — | 49 | 341 | ||||||||||
Trade and other payables | 44 | — | 2 | 44 | ||||||||||
Deferred tax liabilities | 40 | — | — | 40 | ||||||||||
Total liabilities associated with assets held for sale | 84 | — | 2 | 84 | ||||||||||
25. | Trade and other payables |
2007 | 2006 | 2008 | 2007 | |||||||||||
£m | £m | £m | £m | |||||||||||
Payables and accruals | 1,000 | 956 | 1,394 | 1,000 | ||||||||||
Deferred income | 966 | 969 | 1,375 | 966 | ||||||||||
Total | 1,966 | 1,925 | 2,769 | 1,966 | ||||||||||
F-45F-49
26. | Borrowings |
2007 | 2006 | 2008 | 2007 | |||||||||||||||||||||||||||||||||||||||
Falling due | Falling due | Falling due | Falling due | Falling due | Falling due | Falling due | Falling due | |||||||||||||||||||||||||||||||||||
within | in more | within | in more | within | in more | within | in more | |||||||||||||||||||||||||||||||||||
1 year | than 1 year | Total | 1 year | than 1 year | Total | 1 year | than 1 year | Total | 1 year | than 1 year | Total | |||||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||||||||
Financial liabilities measured at amortised cost: | ||||||||||||||||||||||||||||||||||||||||||
Bank loans, overdrafts and commercial paper | 753 | — | 753 | 574 | — | 574 | ||||||||||||||||||||||||||||||||||||
Short term bank loans, overdrafts and commercial paper | 446 | — | 446 | 753 | — | 753 | ||||||||||||||||||||||||||||||||||||
Finance leases | 5 | 6 | 11 | 6 | 6 | 12 | 2 | 1 | 3 | 5 | 6 | 11 | ||||||||||||||||||||||||||||||
Other loans | — | 1,378 | 1,378 | 131 | 1,279 | 1,410 | — | 4,652 | 4,652 | — | 1,378 | 1,378 | ||||||||||||||||||||||||||||||
Other loans in fair value hedging relationships | 369 | 618 | 987 | 210 | 800 | 1,010 | — | 341 | 341 | 369 | 618 | 987 | ||||||||||||||||||||||||||||||
Other loans previously in fair value hedging relationships | — | 700 | 700 | — | — | — | ||||||||||||||||||||||||||||||||||||
Total | 1,127 | 2,002 | 3,129 | 921 | 2,085 | 3,006 | 448 | 5,694 | 6,142 | 1,127 | 2,002 | 3,129 | ||||||||||||||||||||||||||||||
2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | Short term | Short term | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, | Bank loans, | bank loans, | bank loans, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
overdrafts | overdrafts | overdrafts | overdrafts | |||||||||||||||||||||||||||||||||||||||||||||||||||||
and | and | and | and | |||||||||||||||||||||||||||||||||||||||||||||||||||||
commercial | Other | Finance | commercial | Other | Finance | commercial | Other | Finance | commercial | Other | Finance | |||||||||||||||||||||||||||||||||||||||||||||
paper | loans | leases | Total | paper | loans | leases | Total | paper | loans | leases | Total | paper | loans | leases | Total | |||||||||||||||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||||||||||||||||||
Within 1 year | 753 | 369 | 5 | 1,127 | 574 | 341 | 6 | 921 | 446 | — | 2 | 448 | 753 | 369 | 5 | 1,127 | ||||||||||||||||||||||||||||||||||||||||
Within 1 to 2 years | — | — | 3 | 3 | — | 340 | 3 | 343 | — | 1,706 | 1 | 1,707 | — | — | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||
Within 2 to 3 years | — | 220 | 3 | 223 | — | — | 2 | 2 | — | 1,885 | — | 1,885 | — | 220 | 3 | 223 | ||||||||||||||||||||||||||||||||||||||||
Within 3 to 4 years | — | 276 | — | 276 | — | 275 | 1 | 276 | — | 578 | — | 578 | — | 276 | — | 276 | ||||||||||||||||||||||||||||||||||||||||
Within 4 to 5 years | — | 423 | — | 423 | — | 282 | — | 282 | — | 104 | — | 104 | — | 423 | — | 423 | ||||||||||||||||||||||||||||||||||||||||
After 5 years | — | 1,077 | — | 1,077 | — | 1,182 | — | 1,182 | — | 1,420 | — | 1,420 | — | 1,077 | — | 1,077 | ||||||||||||||||||||||||||||||||||||||||
— | 1,996 | 6 | 2,002 | — | 2,079 | 6 | 2,085 | — | 5,693 | 1 | 5,694 | — | 1,996 | 6 | 2,002 | |||||||||||||||||||||||||||||||||||||||||
Total | 753 | 2,365 | 11 | 3,129 | 574 | 2,420 | 12 | 3,006 | 446 | 5,693 | 3 | 6,142 | 753 | 2,365 | 11 | 3,129 | ||||||||||||||||||||||||||||||||||||||||
F-50
26. | Borrowings – (continued) |
2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | Short term | Short term | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, | Bank loans, | bank loans, | bank loans, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
overdrafts | overdrafts | overdrafts | overdrafts | |||||||||||||||||||||||||||||||||||||||||||||||||||||
and | and | and | and | |||||||||||||||||||||||||||||||||||||||||||||||||||||
commercial | Other | Finance | commercial | Other | Finance | commercial | Other | Finance | commercial | Other | Finance | |||||||||||||||||||||||||||||||||||||||||||||
paper | loans | leases | Total | paper | loans | leases | Total | paper | loans | leases | Total | paper | loans | leases | Total | |||||||||||||||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||||||||||||||||||
US Dollars | 108 | 1,841 | 11 | 1,960 | 327 | 1,877 | 12 | 2,216 | 10 | 5,128 | 3 | 5,141 | 108 | 1,841 | 11 | 1,960 | ||||||||||||||||||||||||||||||||||||||||
£ Sterling | 7 | 400 | — | 407 | 20 | 400 | — | 420 | — | 400 | — | 400 | 7 | 400 | — | 407 | ||||||||||||||||||||||||||||||||||||||||
Euro | 572 | 124 | — | 696 | 180 | 143 | — | 323 | 375 | 165 | — | 540 | 572 | 124 | — | 696 | ||||||||||||||||||||||||||||||||||||||||
Other currencies | 66 | — | — | 66 | 47 | — | — | 47 | 61 | — | — | 61 | 66 | — | — | 66 | ||||||||||||||||||||||||||||||||||||||||
Total | 753 | 2,365 | 11 | 3,129 | 574 | 2,420 | 12 | 3,006 | 446 | 5,693 | 3 | 6,142 | 753 | 2,365 | 11 | 3,129 | ||||||||||||||||||||||||||||||||||||||||
F-46
27. | Lease arrangements |
2007 | 2006 | 2008 | 2007 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
Within one year | 5 | 6 | 2 | 5 | ||||||||||||
In the second to fifth years inclusive | 7 | 7 | 1 | 7 | ||||||||||||
12 | 13 | 3 | 12 | |||||||||||||
Less future finance charges | (1 | ) | (1 | ) | — | (1 | ) | |||||||||
Total | 11 | 12 | 3 | 11 | ||||||||||||
Present value of future finance lease obligations payable: | ||||||||||||||||
Within one year | 5 | 6 | 2 | 5 | ||||||||||||
In the second to fifth years inclusive | 6 | 6 | 1 | 6 | ||||||||||||
Total | 11 | 12 | 3 | 11 | ||||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||
£m | £m | £m | £m | |||||||||||
Within one year | 104 | 115 | 144 | 104 | ||||||||||
In the second to fifth years inclusive | 319 | 354 | 426 | 319 | ||||||||||
After five years | 275 | 358 | 293 | 275 | ||||||||||
Total | 698 | 827 | 863 | 698 | ||||||||||
F-51
27. | Lease arrangements – (Continued) |
2007 | 2006 | 2008 | 2007 | |||||||||||
£m | £m | £m | £m | |||||||||||
Within one year | 14 | 15 | 21 | 14 | ||||||||||
In the second to fifth years inclusive | 42 | 47 | 52 | 42 | ||||||||||
After five years | 11 | 21 | 14 | 11 | ||||||||||
Total | 67 | 83 | 87 | 67 | ||||||||||
28. | Provisions |
2008 | 2007 | |||||||||||||||||||||||||||||||
2007 | 2006 | Property | Restructuring | Total | Property | Restructuring | Total | |||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||
At January 1 | 28 | 44 | 21 | — | 21 | 28 | — | 28 | ||||||||||||||||||||||||
Charged | 22 | 57 | 79 | — | — | — | ||||||||||||||||||||||||||
Utilised | (6 | ) | (11 | ) | (9 | ) | — | (9 | ) | (6 | ) | — | (6 | ) | ||||||||||||||||||
Exchange translation differences | (1 | ) | (5 | ) | 11 | 12 | 23 | (1 | ) | — | (1 | ) | ||||||||||||||||||||
At December 31 | 21 | 28 | 45 | 69 | 114 | 21 | — | 21 | ||||||||||||||||||||||||
F-47
2008 | 2007 | |||||||
£m | £m | |||||||
Current liabilities | 79 | — | ||||||
Non-current liabilities | 35 | 21 | ||||||
Total | 114 | 21 | ||||||
29. | Contingent liabilities and capital commitments |
30. | Combined share capitals |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||||
At January 1 | 191 | 190 | 191 | 197 | 191 | 190 | |||||||||||||||||
Issue of ordinary shares | 3 | 2 | 1 | 1 | 3 | 2 | |||||||||||||||||
Exchange translation differences | 3 | (1 | ) | (2 | ) | 11 | 3 | (1 | ) | ||||||||||||||
At December 31 | 197 | 191 | 190 | 209 | 197 | 191 | |||||||||||||||||
F-52
31. | Combined share premiums |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||||
At January 1 | 1,879 | 1,805 | 1,805 | 2,143 | 1,879 | 1,805 | |||||||||||||||||
Issue of ordinary shares, net of expenses | 174 | 91 | 24 | 53 | 174 | 91 | |||||||||||||||||
Exchange translation differences | 90 | (17 | ) | (24 | ) | 333 | 90 | (17 | ) | ||||||||||||||
At December 31 | 2,143 | 1,879 | 1,805 | 2,529 | 2,143 | 1,879 | |||||||||||||||||
32. | Combined shares held in treasury |
Shares held | Shares held | |||||||||||||||||||||||
Shares held | by parent | Shares held | by parent | |||||||||||||||||||||
by EBT | companies | Total | by EBT | companies | Total | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
At January 1, 2005 | 66 | — | 66 | |||||||||||||||||||||
Purchase of shares | 27 | — | 27 | |||||||||||||||||||||
Exchange translation differences | — | — | — | |||||||||||||||||||||
At January 1, 2006 | 93 | — | 93 | 93 | — | 93 | ||||||||||||||||||
Purchase of shares | 68 | 217 | 285 | 68 | 217 | 285 | ||||||||||||||||||
Exchange translation differences | — | (1 | ) | (1 | ) | — | (1 | ) | (1 | ) | ||||||||||||||
At January 1, 2007 | 161 | 216 | 377 | 161 | 216 | 377 | ||||||||||||||||||
Purchase of shares | 74 | 199 | 273 | 74 | 199 | 273 | ||||||||||||||||||
Settlement of share awards | (49 | ) | — | (49 | ) | (49 | ) | — | (49 | ) | ||||||||||||||
Exchange translation differences | — | 18 | 18 | — | 18 | 18 | ||||||||||||||||||
At December 31, 2007 | 186 | 433 | 619 | |||||||||||||||||||||
At January 1, 2008 | 186 | 433 | 619 | |||||||||||||||||||||
Purchase of shares | 54 | 40 | 94 | |||||||||||||||||||||
Settlement of share awards | (8 | ) | — | (8 | ) | |||||||||||||||||||
Exchange translation differences | — | 78 | 78 | |||||||||||||||||||||
At December 31, 2008 | 232 | 551 | 783 | |||||||||||||||||||||
F-48
33. | Translation reserve |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
At January 1 | (136 | ) | 89 | (122 | ) | (145 | ) | (136 | ) | 89 | ||||||||||||||
Exchange differences on translation of foreign operations | (33 | ) | (244 | ) | 180 | 340 | (33 | ) | (244 | ) | ||||||||||||||
Cumulative exchange differences on disposal of foreign operations | 148 | — | — | 27 | 148 | — | ||||||||||||||||||
Exchange translation differences on capital and reserves | (124 | ) | 19 | 31 | (236 | ) | (124 | ) | 19 | |||||||||||||||
At December 31 | (145 | ) | (136 | ) | 89 | (14 | ) | (145 | ) | (136 | ) | |||||||||||||
F-53
34. | Other combined reserves |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||
Hedge | Other | Hedge | Other | |||||||||||||||||||||||||||||||||||||
reserve | reserves | Total | Total | Total | reserve | reserves | Total | Total | Total | |||||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||||||||
At January 1 | 37 | 372 | 409 | (21 | ) | (144 | ) | 20 | 1,369 | 1,389 | 409 | (21 | ) | |||||||||||||||||||||||||||
Transition adjustment on adoption of IAS39 | — | — | — | — | 11 | |||||||||||||||||||||||||||||||||||
At January 1, as restated | 37 | 372 | 409 | (21 | ) | (133 | ) | |||||||||||||||||||||||||||||||||
Profit attributable to parent companies’ shareholders | — | 1,200 | 1,200 | 623 | 462 | — | 476 | 476 | 1,200 | 623 | ||||||||||||||||||||||||||||||
Dividends declared | — | (416 | ) | (416 | ) | (371 | ) | (336 | ) | — | (2,404 | ) | (2,404 | ) | (416 | ) | (371 | ) | ||||||||||||||||||||||
Actuarial gains/(losses) on defined benefit pension schemes | — | 224 | 224 | 139 | (37 | ) | ||||||||||||||||||||||||||||||||||
Actuarial (losses)/gains on defined benefit pension schemes | — | (347 | ) | (347 | ) | 224 | 139 | |||||||||||||||||||||||||||||||||
Fair value movements on available for sale investments | — | — | — | 3 | 3 | — | (9 | ) | (9 | ) | — | 3 | ||||||||||||||||||||||||||||
Cumulative fair value movements on disposals of available for sale investments | — | (7 | ) | (7 | ) | — | — | — | — | — | (7 | ) | — | |||||||||||||||||||||||||||
Fair value movements on cash flow hedges | 3 | — | 3 | 54 | (10 | ) | (243 | ) | — | (243 | ) | 3 | 54 | |||||||||||||||||||||||||||
Tax recognised directly in equity | (2 | ) | (48 | ) | (50 | ) | (60 | ) | (3 | ) | 59 | 97 | 156 | (50 | ) | (60 | ) | |||||||||||||||||||||||
Increase in share based remuneration reserve | — | 46 | 46 | 49 | 57 | — | 46 | 46 | 46 | 49 | ||||||||||||||||||||||||||||||
Settlement of share awards | — | (49 | ) | (49 | ) | — | — | — | (8 | ) | (8 | ) | (49 | ) | — | |||||||||||||||||||||||||
Transfer from hedge reserve to net profit (net of tax) | (20 | ) | — | (20 | ) | (5 | ) | (19 | ) | (14 | ) | — | (14 | ) | (20 | ) | (5 | ) | ||||||||||||||||||||||
Exchange translation differences | 2 | 47 | 49 | (2 | ) | (5 | ) | (17 | ) | (13 | ) | (30 | ) | 49 | (2 | ) | ||||||||||||||||||||||||
At December 31 | 20 | 1,369 | 1,389 | 409 | (21 | ) | (195 | ) | (793 | ) | (988 | ) | 1,389 | 409 | ||||||||||||||||||||||||||
35. | Related party transactions |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||
Salaries and other short term employee benefits | 8 | 7 | 7 | 7 | 8 | 7 | |||||||||||||||
Post employment benefits | 1 | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
Share based remuneration | 9 | 7 | 10 | 10 | 9 | 7 | |||||||||||||||
Total | 18 | 15 | 18 | 18 | 18 | 15 | |||||||||||||||
F-49
36. | Post balance sheet |
F-50F-54
F-52F-56
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | £m | £m | £m | Note | £m | £m | £m | ||||||||||||||||||||||||
Administrative expenses | 3 | (1 | ) | (2 | ) | (2 | ) | 3 | (1 | ) | (1 | ) | (2 | ) | |||||||||||||||||
Effect of tax credit equalisation on distributed earnings | 4 | (11 | ) | (10 | ) | (9 | ) | 4 | (11 | ) | (11 | ) | (10 | ) | |||||||||||||||||
Share of results of joint ventures | 12 | 658 | 343 | 252 | 12 | 258 | 658 | 343 | |||||||||||||||||||||||
Operating profit | 646 | 331 | 241 | 246 | 646 | 331 | |||||||||||||||||||||||||
Finance (charges)/income | 7 | (3 | ) | (3 | ) | 1 | |||||||||||||||||||||||||
Finance income/(charges) | 7 | 1 | (3 | ) | (3 | ) | |||||||||||||||||||||||||
Profit before tax | 643 | 328 | 242 | 247 | 643 | 328 | |||||||||||||||||||||||||
Taxation | 8 | (19 | ) | (8 | ) | (7 | ) | 8 | (6 | ) | (19 | ) | (8 | ) | |||||||||||||||||
Profit attributable to ordinary shareholders | 624 | 320 | 235 | 241 | 624 | 320 | |||||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||||||
Note | pence | pence | pence | Note | pence | pence | pence | |||||||||||||||||||||
Earnings per ordinary share (EPS) | ||||||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||
From continuing operations of the combined businesses | 10 | 36.6p | 24.1p | 15.7p | 10 | 21.2p | 36.6p | 24.1p | ||||||||||||||||||||
From discontinued operations of the combined businesses | 10 | 13.1p | 1.5p | 2.9p | 10 | 0.9p | 13.1p | 1.5p | ||||||||||||||||||||
From total operations of the combined businesses | 10 | 49.7p | 25.6p | 18.6p | 10 | 22.1p | 49.7p | 25.6p | ||||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||
From continuing operations of the combined businesses | 10 | 36.2p | 23.8p | 15.6p | 10 | 21.0p | 36.2p | 23.8p | ||||||||||||||||||||
From discontinued operations of the combined businesses | 10 | 12.9p | 1.5p | 2.8p | 10 | 0.9p | 12.9p | 1.5p | ||||||||||||||||||||
From total operations of the combined businesses | 10 | 49.1p | 25.3p | 18.4p | 10 | 21.9p | 49.1p | 25.3p | ||||||||||||||||||||
F-53F-57
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | £m | £m | £m | Note | £m | £m | £m | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||
Cash used by operations | 11 | (2 | ) | (2 | ) | (2 | ) | 11 | (1 | ) | (2 | ) | (2 | ) | |||||||||||||||||
Interest (paid)/received | (3 | ) | (3 | ) | 1 | ||||||||||||||||||||||||||
Interest paid | — | (3 | ) | (3 | ) | ||||||||||||||||||||||||||
Tax paid | (16 | ) | (6 | ) | (8 | ) | (10 | ) | (16 | ) | (6 | ) | |||||||||||||||||||
Net cash used in operating activities | (21 | ) | (11 | ) | (9 | ) | (11 | ) | (21 | ) | (11 | ) | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||||
Dividends received from joint ventures | 850 | 596 | 168 | 500 | 850 | 596 | |||||||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||||
Equity dividends paid | 9 | (206 | ) | (186 | ) | (168 | ) | 9 | (1,245 | ) | (206 | ) | (186 | ) | |||||||||||||||||
Proceeds on issue of ordinary shares | 92 | 47 | 14 | 32 | 92 | 47 | |||||||||||||||||||||||||
Purchase of treasury shares | (92 | ) | (112 | ) | — | (20 | ) | (92 | ) | (112 | ) | ||||||||||||||||||||
Repayment of loan from joint venture | 11 | (36 | ) | — | — | ||||||||||||||||||||||||||
Increase in net funding balances due from joint ventures | 11 | (587 | ) | (334 | ) | (5 | ) | ||||||||||||||||||||||||
Repayment of loan from joint ventures | 11 | — | (36 | ) | — | ||||||||||||||||||||||||||
Decrease/(increase) in net funding balances due from joint ventures | 11 | 744 | (587 | ) | (334 | ) | |||||||||||||||||||||||||
Net cash used in financing activities | (829 | ) | (585 | ) | (159 | ) | (489 | ) | (829 | ) | (585 | ) | |||||||||||||||||||
Movement in cash and cash equivalents | — | — | — | — | — | — | |||||||||||||||||||||||||
F-54F-58
2007 | 2006 | 2008 | 2007 | ||||||||||||||||||||
Note | £m | £m | Note | £m | £m | ||||||||||||||||||
Non-current assets | |||||||||||||||||||||||
Investments in joint ventures | 12 | 1,584 | 1,090 | 12 | 515 | 1,584 | |||||||||||||||||
Total assets | 1,584 | 1,090 | 515 | 1,584 | |||||||||||||||||||
Current liabilities | |||||||||||||||||||||||
Amounts owed to joint ventures | — | 36 | |||||||||||||||||||||
Payables | — | 1 | |||||||||||||||||||||
Taxation | 16 | 13 | 11 | 16 | |||||||||||||||||||
Total liabilities | 16 | 50 | 11 | 16 | |||||||||||||||||||
Net assets | 1,568 | 1,040 | 504 | 1,568 | |||||||||||||||||||
Capital and reserves | |||||||||||||||||||||||
Called up share capital | 13 | 163 | 161 | 13 | 164 | 163 | |||||||||||||||||
Share premium account | 14 | 1,123 | 1,033 | 14 | 1,154 | 1,123 | |||||||||||||||||
Shares held in treasury (including in joint ventures) | 15 | (302 | ) | (200 | ) | 15 | (347 | ) | (302 | ) | |||||||||||||
Capital redemption reserve | 16 | 4 | 4 | 16 | 4 | 4 | |||||||||||||||||
Translation reserve | 17 | (37 | ) | (98 | ) | 17 | 157 | (37 | ) | ||||||||||||||
Other reserves | 18 | 617 | 140 | 18 | (628 | ) | 617 | ||||||||||||||||
Total equity | 1,568 | 1,040 | 504 | 1,568 | |||||||||||||||||||
F-55F-59
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Profit attributable to ordinary shareholders | 624 | 320 | 235 | 241 | 624 | 320 | ||||||||||||||||||
Share of joint ventures’ net income/(expense) recognised directly in equity | 77 | (57 | ) | 71 | ||||||||||||||||||||
Share of joint ventures’ net (expense)/income recognised directly in equity | (54 | ) | 77 | (57 | ) | |||||||||||||||||||
Share of joint ventures’ cumulative exchange differences on disposal of foreign operations | 78 | — | — | 14 | 78 | — | ||||||||||||||||||
Share of joint ventures’ cumulative fair value movements on disposal of available for sale investments | (4 | ) | — | — | — | (4 | ) | — | ||||||||||||||||
Share of joint ventures’ transfer to net profit from hedge reserve | (11 | ) | (3 | ) | (10 | ) | (8 | ) | (11 | ) | (3 | ) | ||||||||||||
Total recognised income and expense for the year | 764 | 260 | 296 | 193 | 764 | 260 | ||||||||||||||||||
Share of joint ventures’ transition adjustment on adoption of IAS39 | — | — | 6 | |||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | £m | £m | £m | Note | £m | £m | £m | ||||||||||||||||||||||||
Total recognised net income | 764 | 260 | 296 | 193 | 764 | 260 | |||||||||||||||||||||||||
Equity dividends declared | 9 | (206 | ) | (186 | ) | (168 | ) | 9 | (1,245 | ) | (206 | ) | (186 | ) | |||||||||||||||||
Issue of ordinary shares, net of expenses | 92 | 47 | 14 | 32 | 92 | 47 | |||||||||||||||||||||||||
Increase in shares held in treasury (including in joint ventures) | 15 | (130 | ) | (151 | ) | (14 | ) | 15 | (49 | ) | (130 | ) | (151 | ) | |||||||||||||||||
Increase in share based remuneration reserve | 24 | 26 | 30 | 24 | 24 | 26 | |||||||||||||||||||||||||
Equalisation adjustments | (16 | ) | 2 | (2 | ) | (19 | ) | (16 | ) | 2 | |||||||||||||||||||||
Net increase/(decrease) in shareholders’ equity | 528 | (2 | ) | 156 | |||||||||||||||||||||||||||
Net (decrease)/increase in shareholders’ equity | (1,064 | ) | 528 | (2 | ) | ||||||||||||||||||||||||||
Shareholders’ equity at January 1 | 1,040 | 1,042 | 880 | 1,568 | 1,040 | 1,042 | |||||||||||||||||||||||||
Share of joint ventures’ transition adjustment on adoption of IAS39 | — | — | 6 | ||||||||||||||||||||||||||||
Shareholders’ equity at December 31 | 1,568 | 1,040 | 1,042 | 504 | 1,568 | 1,040 | |||||||||||||||||||||||||
F-56F-60
1. | Basis of financial statements |
2. | Accounting policies |
F-57F-61
2. | Accounting policies |
3. | Administrative expenses |
4. | Effect of tax credit equalisation on distributed earnings |
5. | Auditors’ remuneration |
6. | Related party transactions |
7. | Finance income/(charges) |
2007 | 2006 | 2005 | |||||||||
£m | £m | £m | |||||||||
Finance (charges)/income from joint ventures | (3 | ) | (3 | ) | 1 | ||||||
2008 | 2007 | 2006 | ||||||||||
£m | £m | £m | ||||||||||
Finance income/(charges) from joint ventures | 1 | (3 | ) | (3 | ) | |||||||
8. | Taxation |
2007 | 2006 | 2005 | |||||||
£m | £m | £m | |||||||
UK corporation tax | 19 | 8 | 7 | ||||||
2008 | 2007 | 2006 | ||||||||||
£m | £m | £m | ||||||||||
UK corporation tax | 6 | 19 | 8 | |||||||||
F-58
2007 | 2006 | 2005 | ||||||||||
£m | £m | £m | ||||||||||
Profit before tax | 643 | 328 | 242 | |||||||||
Tax at applicable rate 30% (2006: 30%; 2005: 30%) | 193 | 98 | 73 | |||||||||
Tax on share of results of joint ventures | (194 | ) | (103 | ) | (73 | ) | ||||||
Other | 20 | 13 | 7 | |||||||||
Tax expense | 19 | 8 | 7 | |||||||||
F-62
8. | Taxation — (Continued) |
2008 | 2007 | 2006 | ||||||||||
£m | £m | £m | ||||||||||
Profit before tax | 247 | 643 | 328 | |||||||||
Tax at applicable rate 28% (2007: 30%; 2006: 30%) | 69 | 193 | 98 | |||||||||
Tax on share of results of joint ventures | (72 | ) | (194 | ) | (103 | ) | ||||||
Other | 9 | 20 | 13 | |||||||||
Tax expense | 6 | 19 | 8 | |||||||||
9. | Equity dividends |
2007 | 2006 | 2005 | 2007 | 2006 | 2005 | ||||||||||||||||
Dividends declared in the year | pence | pence | pence | £m | £m | £m | |||||||||||||||
Ordinary shares | |||||||||||||||||||||
Final for prior financial year | 11.8 | p | 10.7 | p | 9.6 | p | 149 | 135 | 120 | ||||||||||||
Interim for financial year | 4.5 | p | 4.1 | p | 3.7 | p | 57 | 51 | 48 | ||||||||||||
Total | 16.3 | p | 14.8 | p | 13.3 | p | 206 | 186 | 168 | ||||||||||||
2008 | 2007 | 2006 | 2008 | 2007 | 2006 | |||||||||||||||||||
Ordinary dividends declared in the year | pence | pence | pence | £m | £m | £m | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||
Final for prior financial year | 13.6 | p | 11.8 | p | 10.7 | p | 146 | 149 | 135 | |||||||||||||||
Interim for financial year | 5.3 | p | 4.5 | p | 4.1 | p | 58 | 57 | 51 | |||||||||||||||
Total | 18.9 | p | 16.3 | p | 14.8 | p | 204 | 206 | 186 | |||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Dividends paid and proposed relating to the financial year | pence | pence | pence | |||||||||||||||||||||
Ordinary dividends paid and proposed relating to the financial year | pence | pence | pence | |||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||
Interim (paid) | 4.5 | p | 4.1 | p | 3.7 | p | 5.3 | p | 4.5 | p | 4.1p | |||||||||||||
Final (proposed) | 13.6 | p | 11.8 | p | 10.7 | p | 15.0 | p | 13.6 | p | 11.8p | |||||||||||||
Total | 18.1 | p | 15.9 | p | 14.4 | p | 20.3 | p | 18.1 | p | 15.9p | |||||||||||||
10. | Earnings per ordinary share (“EPS”) |
2007 | 2008 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
average | average | ||||||||||||||||||||
number of | number of | ||||||||||||||||||||
shares | Earnings | EPS | shares | Earnings | EPS | ||||||||||||||||
(millions) | £m | pence | (millions) | £m | pence | ||||||||||||||||
Basic EPS | |||||||||||||||||||||
From continuing operations of the combined businesses | 1,256.5 | 460 | 36.6p | 1,089.5 | 231 | 21.2p | |||||||||||||||
From discontinued operations of the combined businesses | 1,256.5 | 164 | 13.1p | 1,089.5 | 10 | 0.9p | |||||||||||||||
From total operations of the combined businesses | 1,256.5 | 624 | 49.7p | 1,089.5 | 241 | 22.1p | |||||||||||||||
Diluted EPS | |||||||||||||||||||||
From continuing operations of the combined businesses | 1,271.3 | 460 | 36.2p | 1,101.3 | 231 | 21.0p | |||||||||||||||
From discontinued operations of the combined businesses | 1,271.3 | 164 | 12.9p | 1,101.3 | 10 | 0.9p | |||||||||||||||
From total operations of the combined businesses | 1,271.3 | 624 | 49.1p | 1,101.3 | 241 | 21.9p | |||||||||||||||
F-59F-63
10. | Earnings per ordinary share (“EPS”) |
2006 | 2007 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
average | average | ||||||||||||||||||||
number of | number of | ||||||||||||||||||||
shares | Earnings | EPS | shares | Earnings | EPS | ||||||||||||||||
(millions) | £m | pence | (millions) | £m | pence | ||||||||||||||||
Basic EPS | |||||||||||||||||||||
From continuing operations of the combined businesses | 1,251.9 | 302 | 24.1p | 1,256.5 | 460 | 36.6p | |||||||||||||||
From discontinued operations of the combined businesses | 1,251.9 | 18 | 1.5p | 1,256.5 | 164 | 13.1p | |||||||||||||||
From total operations of the combined businesses | 1,251.9 | 320 | 25.6p | 1,256.5 | 624 | 49.7p | |||||||||||||||
Diluted EPS | |||||||||||||||||||||
From continuing operations of the combined businesses | 1,266.4 | 302 | 23.8p | 1,271.3 | 460 | 36.2p | |||||||||||||||
From discontinued operations of the combined businesses | 1,266.4 | 18 | 1.5p | 1,271.3 | 164 | 12.9p | |||||||||||||||
From total operations of the combined businesses | 1,266.4 | 320 | 25.3p | 1,271.3 | 624 | 49.1p | |||||||||||||||
2005 | 2006 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
average | average | ||||||||||||||||||||
number of | number of | ||||||||||||||||||||
shares | Earnings | EPS | shares | Earnings | EPS | ||||||||||||||||
(millions) | £m | pence | (millions) | £m | pence | ||||||||||||||||
Basic EPS | |||||||||||||||||||||
From continuing operations of the combined businesses | 1,266.2 | 199 | 15.7p | 1,251.9 | 302 | 24.1p | |||||||||||||||
From discontinued operations of the combined businesses | 1,266.2 | 36 | 2.9p | 1,251.9 | 18 | 1.5p | |||||||||||||||
From total operations of the combined businesses | 1,266.2 | 235 | 18.6p | 1,251.9 | 320 | 25.6p | |||||||||||||||
Diluted EPS | |||||||||||||||||||||
From continuing operations of the combined businesses | 1,277.2 | 199 | 15.6p | 1,266.4 | 302 | 23.8p | |||||||||||||||
From discontinued operations of the combined businesses | 1,277.2 | 36 | 2.8p | 1,266.4 | 18 | 1.5p | |||||||||||||||
From total operations of the combined businesses | 1,277.2 | 235 | 18.4p | 1,266.4 | 320 | 25.3p | |||||||||||||||
F-64
10. | Earnings per ordinary share (“EPS”) – (continued) |
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||
Shares in | Shares in | Shares in | Shares in | Shares in | Shares in | ||||||||||||||||||||||||||||||||||
issue net of | issue net of | issue net of | issue net of | issue net of | issue net of | ||||||||||||||||||||||||||||||||||
Shares in | Treasury | treasury | treasury | treasury | Shares in | Treasury | treasury | treasury | treasury | ||||||||||||||||||||||||||||||
issue | shares | shares | shares | shares | issue | shares | shares | shares | shares | ||||||||||||||||||||||||||||||
(millions) | (millions) | (millions) | (millions) | (millions) | (millions) | (millions) | (millions) | (millions) | (millions) | ||||||||||||||||||||||||||||||
Number of ordinary shares | |||||||||||||||||||||||||||||||||||||||
At January 1 | 1,287.4 | (37.8 | ) | 1,249.6 | 1,266.2 | 1,265.4 | 1,305.9 | (54.6 | ) | 1,251.3 | 1,249.6 | 1,266.2 | |||||||||||||||||||||||||||
Share consolidation | (175.4 | ) | 7.3 | (168.1 | ) | — | — | ||||||||||||||||||||||||||||||||
Issue of ordinary shares | 18.5 | — | 18.5 | 10.4 | 3.6 | 6.4 | — | 6.4 | 18.5 | 10.4 | |||||||||||||||||||||||||||||
Share repurchases | — | (15.2 | ) | (15.2 | ) | (20.6 | ) | — | — | (3.2 | ) | (3.2 | ) | (15.2 | ) | (20.6 | ) | ||||||||||||||||||||||
Net purchase of shares by employee benefit trust | — | (1.6 | ) | (1.6 | ) | (6.4 | ) | (2.8 | ) | — | (3.8 | ) | (3.8 | ) | (1.6 | ) | (6.4 | ) | |||||||||||||||||||||
At December 31 | 1,305.9 | (54.6 | ) | 1,251.3 | 1,249.6 | 1,266.2 | 1,136.9 | (54.3 | ) | 1,082.6 | 1,251.3 | 1,249.6 | |||||||||||||||||||||||||||
Weighted average number of equivalent ordinary shares during the year | 1,256.5 | 1,251.9 | 1,266.2 | 1,089.5 | 1,256.5 | 1,251.9 | |||||||||||||||||||||||||||||||||
F-60
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
(millions) | (millions) | (millions) | (millions) | (millions) | (millions) | ||||||||||||||||
Weighted average number of shares — Basic | 1,256.5 | 1,251.9 | 1,266.2 | 1,089.5 | 1,256.5 | 1,251.9 | |||||||||||||||
Weighted average number of dilutive shares under option | 14.8 | 14.5 | 11.0 | 11.8 | 14.8 | 14.5 | |||||||||||||||
Weighted average number of shares — Diluted | 1,271.3 | 1,266.4 | 1,277.2 | 1,101.3 | 1,271.3 | 1,266.4 | |||||||||||||||
11. | Cash flow statement |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
Administrative expenses | (1 | ) | (2 | ) | (2 | ) | (1 | ) | (1 | ) | (2 | ) | ||||||||||||
Net movement in payables | (1 | ) | — | — | — | (1 | ) | — | ||||||||||||||||
Cash used by operations | (2 | ) | (2 | ) | (2 | ) | (1 | ) | (2 | ) | (2 | ) | ||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||
At January 1 | 898 | 564 | 559 | 1,521 | 898 | 564 | |||||||||||||||
Cash flow | 623 | 334 | 5 | (744 | ) | 623 | 334 | ||||||||||||||
At December 31 | 1,521 | 898 | 564 | 777 | 1,521 | 898 | |||||||||||||||
F-65
12. | Investments in joint ventures |
2007 | 2006 | 2008 | 2007 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
Share of results of joint ventures | 658 | 343 | 258 | 658 | ||||||||||||
Share of joint ventures’: | ||||||||||||||||
Net income/(expense) recognised directly in equity | 77 | (57 | ) | |||||||||||||
Net (expense)/income recognised directly in equity | (54 | ) | 77 | |||||||||||||
Cumulative exchange differences on disposal of foreign operations | 78 | — | 14 | 78 | ||||||||||||
Cumulative fair value movements on disposal of available for sale investments | (4 | ) | — | — | (4 | ) | ||||||||||
Transfer to net profit from hedge reserve | (11 | ) | (3 | ) | (8 | ) | (11 | ) | ||||||||
Purchases of treasury shares by employee benefit trust | (38 | ) | (39 | ) | (29 | ) | (38 | ) | ||||||||
Increase in share based remuneration reserve | 24 | 26 | 24 | 24 | ||||||||||||
Equalisation adjustments | (27 | ) | (8 | ) | (30 | ) | (27 | ) | ||||||||
Dividends received from joint ventures | (850 | ) | (596 | ) | (500 | ) | (850 | ) | ||||||||
Increase in net funding balances due from joint ventures | 587 | 334 | ||||||||||||||
(Decrease)/increase in net funding balances due from joint ventures | (744 | ) | 587 | |||||||||||||
Net movement in the year | 494 | — | (1,069 | ) | 494 | |||||||||||
At January 1 | 1,090 | 1,090 | 1,584 | 1,090 | ||||||||||||
At December 31 | 1,584 | 1,090 | 515 | 1,584 | ||||||||||||
F-61
Total joint ventures | Reed Elsevier PLC shareholders’ share | Total joint ventures | Reed Elsevier PLC shareholders’ share | |||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |||||||||||||||||||||||||||||||
Revenue | 4,584 | 4,509 | 4,265 | 2,425 | 2,385 | 2,256 | 5,334 | 4,584 | 4,509 | 2,822 | 2,425 | 2,385 | ||||||||||||||||||||||||||||||
Net profit for the year | 1,203 | 625 | 464 | 658 | 343 | 252 | 480 | 1,203 | 625 | 258 | 658 | 343 | ||||||||||||||||||||||||||||||
Reed Elsevier PLC | ||||||||||||||||
Total joint ventures | shareholders’ share | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
Total assets | 9,778 | 8,532 | 5,173 | 4,549 | ||||||||||||
Total liabilities | (6,802 | ) | (6,553 | ) | (5,110 | ) | (4,393 | ) | ||||||||
Net assets | 2,976 | 1,979 | 63 | 156 | ||||||||||||
Attributable to: | ||||||||||||||||
Joint ventures | 2,965 | 1,966 | 63 | 156 | ||||||||||||
Minority interests | 11 | 13 | — | — | ||||||||||||
2,976 | 1,979 | 63 | 156 | |||||||||||||
Funding balances due from joint ventures | 1,521 | 934 | ||||||||||||||
Total | 1,584 | 1,090 | ||||||||||||||
Reed Elsevier PLC | ||||||||||||||||
Total joint ventures | shareholders’ share | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
£m | £m | £m | £m | |||||||||||||
Total assets | 12,866 | 9,778 | 6,806 | 5,173 | ||||||||||||
Total liabilities | (11,885 | ) | (6,802 | ) | (7,068 | ) | (5,110 | ) | ||||||||
Net assets/(liabilities) | 981 | 2,976 | (262 | ) | 63 | |||||||||||
Attributable to: | ||||||||||||||||
Joint ventures | 953 | 2,965 | (262 | ) | 63 | |||||||||||
Minority interests | 28 | 11 | — | — | ||||||||||||
981 | 2,976 | (262 | ) | 63 | ||||||||||||
Funding balances due from joint ventures | 777 | 1,521 | ||||||||||||||
Total | 515 | 1,584 | ||||||||||||||
F-66
13. | Share capital |
No. of shares | £m | |||||||||||||
Authorised | No. of shares | £m | ||||||||||||
Ordinary shares of 12.5p each | 1,305,891,497 | 163 | ||||||||||||
Unclassified shares of 12.5p each | 165,561,679 | 21 | ||||||||||||
Ordinary shares of 1451/116p each | 1,136,924,693 | 164 | ||||||||||||
Unclassified shares of 1451/116p each | 136,870,379 | 20 | ||||||||||||
Total | 184 | 184 | ||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||
No. of shares | £m | No. of shares | £m | No. of shares | £m | No. of shares | £m | No. of shares | £m | No. of shares | £m | |||||||||||||||||||||||||||||||
At January 1 | 1,287,364,048 | 161 | 1,277,013,440 | 160 | 1,273,674,009 | 159 | 1,305,891,497 | 163 | 1,287,364,048 | 161 | 1,277,013,440 | 160 | ||||||||||||||||||||||||||||||
Share consolidation | (175,418,253 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Issue of ordinary shares | 18,527,449 | 2 | 10,350,608 | 1 | 3,339,431 | 1 | 6,451,449 | 1 | 18,527,449 | 2 | 10,350,608 | 1 | ||||||||||||||||||||||||||||||
At December 31 | 1,305,891,497 | 163 | 1,287,364,048 | 161 | 1,277,013,440 | 160 | 1,136,924,693 | 164 | 1,305,891,497 | 163 | 1,287,364,048 | 161 | ||||||||||||||||||||||||||||||
F-62
14. | Share premium |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
£m | £m | £m | £m | £m | £m | ||||||||||||||||
At January 1 | 1,033 | 987 | 974 | 1,123 | 1,033 | 987 | |||||||||||||||
Issue of ordinary shares, net of expenses | 90 | 46 | 13 | 31 | 90 | 46 | |||||||||||||||
At December 31 | 1,123 | 1,033 | 987 | 1,154 | 1,123 | 1,033 | |||||||||||||||
15. | Shares held in treasury |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||
At January 1 | 200 | 49 | 35 | 302 | 200 | 49 | ||||||||||||||||
Share repurchases | 92 | 112 | — | 20 | 92 | 112 | ||||||||||||||||
Share of joint ventures’ employee benefit trust purchases | 38 | 39 | 14 | 29 | 38 | 39 | ||||||||||||||||
Share of joint ventures’ settlement of share awards by employee benefit trust | (28 | ) | — | — | (4 | ) | (28 | ) | — | |||||||||||||
At December 31 | 302 | 200 | 49 | 347 | 302 | 200 | ||||||||||||||||
16. | Capital redemption reserve |
2007 | 2006 | 2005 | |||||||
£m | £m | £m | |||||||
At January 1 and December 31 | 4 | 4 | 4 | ||||||
2008 | 2007 | 2006 | ||||||||||
£m | £m | £m | ||||||||||
At January 1 and December 31 | 4 | 4 | 4 | |||||||||
F-67
17. | Translation reserve |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
At January 1 | (98 | ) | 31 | (64 | ) | (37 | ) | (98 | ) | 31 | ||||||||||||||
Share of joint ventures’ exchange differences on translation of foreign operations | (17 | ) | (129 | ) | 95 | 180 | (17 | ) | (129 | ) | ||||||||||||||
Share of joint ventures’ cumulative exchange differences on disposal of foreign operations | 78 | — | — | 14 | 78 | — | ||||||||||||||||||
At December 31 | (37 | ) | (98 | ) | 31 | 157 | (37 | ) | (98 | ) | ||||||||||||||
F-63
18. | Other reserves |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
£m | £m | £m | £m | £m | £m | |||||||||||||||||||
At January 1 | 140 | (91 | ) | (158 | ) | 617 | 140 | (91 | ) | |||||||||||||||
Share of joint ventures’ transition adjustment on adoption of IAS39 | — | — | 6 | |||||||||||||||||||||
At January 1 restated | 140 | (91 | ) | (152 | ) | |||||||||||||||||||
Profit attributable to ordinary shareholders | 624 | 320 | 235 | 241 | 624 | 320 | ||||||||||||||||||
Share of joint ventures’: | ||||||||||||||||||||||||
Actuarial gains/(losses) on defined benefit pension schemes | 118 | 73 | (19 | ) | ||||||||||||||||||||
Actuarial (losses)/gains on defined benefit pension schemes | (184 | ) | 118 | 73 | ||||||||||||||||||||
Fair value movements on available for sale investments | — | 2 | 2 | (5 | ) | — | 2 | |||||||||||||||||
Cumulative fair value movements on disposal of available for sale investments | (4 | ) | — | — | — | (4 | ) | — | ||||||||||||||||
Fair value movements on cash flow hedges | 2 | 29 | (5 | ) | (129 | ) | 2 | 29 | ||||||||||||||||
Tax recognised directly in equity | (26 | ) | (32 | ) | (2 | ) | 84 | (26 | ) | (32 | ) | |||||||||||||
Increase in share based remuneration reserve | 24 | 26 | 30 | 24 | 24 | 26 | ||||||||||||||||||
Settlement of share awards by employee benefit trust | (28 | ) | — | — | (4 | ) | (28 | ) | — | |||||||||||||||
Transfer to net profit from hedge reserve | (11 | ) | (3 | ) | (10 | ) | (8 | ) | (11 | ) | (3 | ) | ||||||||||||
Equalisation adjustments | (16 | ) | 2 | (2 | ) | (19 | ) | (16 | ) | 2 | ||||||||||||||
Equity dividends declared | (206 | ) | (186 | ) | (168 | ) | (1,245 | ) | (206 | ) | (186 | ) | ||||||||||||
At December 31 | 617 | 140 | (91 | ) | (628 | ) | 617 | 140 | ||||||||||||||||
19. | Contingent liabilities |
2007 | 2006 | |||||
£m | £m | |||||
Fully and unconditionally guaranteed jointly and severally with Reed Elsevier NV | 2,759 | 2,589 | ||||
2008 | 2007 | |||||||
£m | £m | |||||||
Fully and unconditionally guaranteed jointly and severally with Reed Elsevier NV | 5,765 | 2,759 | ||||||
20. | Post balance sheet events |
F-64F-68
F-65
F-66
F-68F-70
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | €m | €m | €m | Note | €m | €m | €m | ||||||||||||||||||||||||
Administrative expenses | 3 | (3 | ) | (3 | ) | (3 | ) | 4 | (3 | ) | (3 | ) | �� | (3 | ) | ||||||||||||||||
Share of results of joint ventures | 11 | 803 | 455 | 339 | 12 | 239 | 803 | 455 | |||||||||||||||||||||||
Operating profit | 800 | 452 | 336 | 236 | 800 | 452 | |||||||||||||||||||||||||
Finance income | 6 | 73 | 7 | 2 | 7 | 77 | 73 | 7 | |||||||||||||||||||||||
Profit before tax | 873 | 459 | 338 | 313 | 873 | 459 | |||||||||||||||||||||||||
Taxation | 7 | (18 | ) | (1 | ) | — | 8 | (19 | ) | (18 | ) | (1 | ) | ||||||||||||||||||
Profit attributable to ordinary shareholders | 855 | 458 | 338 | 294 | 855 | 458 | |||||||||||||||||||||||||
Note | 2007 | 2006 | 2005 | Note | 2008 | 2007 | 2006 | |||||||||||||||||||||
Earnings per ordinary share (EPS) | ||||||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||
From continuing operations of the combined business | 9 | € | 0.84 | € | 0.56 | € | 0.37 | |||||||||||||||||||||
From discontinued operations of the combined business | 9 | € | 0.26 | € | 0.03 | € | 0.06 | |||||||||||||||||||||
From continuing operations of the combined businesses | 10 | € | 0.43 | € | 0.84 | € | 0.56 | |||||||||||||||||||||
From discontinued operations of the combined businesses | 10 | € | 0.01 | € | 0.26 | € | 0.03 | |||||||||||||||||||||
From total operations of the combined businesses | 9 | € | 1.10 | € | 0.59 | € | 0.43 | 10 | € | 0.44 | € | 1.10 | € | 0.59 | ||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||
From continuing operations of the combined business | 9 | € | 0.83 | € | 0.56 | € | 0.36 | |||||||||||||||||||||
From discontinued operations of the combined business | 9 | € | 0.26 | € | 0.03 | € | 0.07 | |||||||||||||||||||||
From continuing operations of the combined businesses | 10 | € | 0.43 | € | 0.83 | € | 0.56 | |||||||||||||||||||||
From discontinued operations of the combined businesses | 10 | € | 0.01 | € | 0.26 | € | 0.03 | |||||||||||||||||||||
From total operations of the combined businesses | 9 | € | 1.09 | € | 0.59 | € | 0.43 | 10 | € | 0.44 | € | 1.09 | € | 0.59 | ||||||||||||||
F-69F-71
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | €m | €m | €m | Note | €m | €m | €m | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||
Cash used by operations | 10 | (2 | ) | (3 | ) | (5 | ) | 11 | (2 | ) | (2 | ) | (3 | ) | |||||||||||||||||
Interest received | 71 | 12 | 1 | 78 | 71 | 12 | |||||||||||||||||||||||||
Tax (paid)/received | (18 | ) | (1 | ) | 2 | ||||||||||||||||||||||||||
Tax paid | (17 | ) | (18 | ) | (1 | ) | |||||||||||||||||||||||||
Net cash from/(used in) operating activities | 51 | 8 | (2 | ) | |||||||||||||||||||||||||||
Net cash from operating activities | 59 | 51 | 8 | ||||||||||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||||
Dividends received from joint ventures | 1,410 | 1,111 | 189 | 1,200 | 1,410 | 1,111 | |||||||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||||
Equity dividends paid | 8 | (310 | ) | (272 | ) | (245 | ) | 9 | (1,569 | ) | (310 | ) | (272 | ) | |||||||||||||||||
Proceeds on issue of ordinary shares | 124 | 68 | 18 | 27 | 124 | 68 | |||||||||||||||||||||||||
Purchase of treasury shares | (176 | ) | (156 | ) | — | (25 | ) | (176 | ) | (156 | ) | ||||||||||||||||||||
(Increase)/decrease in net funding balances due from joint ventures | 10 | (1,238 | ) | (612 | ) | 16 | |||||||||||||||||||||||||
Decrease/(increase) in net funding balances due from joint ventures | 11 | 311 | (1,238 | ) | (612 | ) | |||||||||||||||||||||||||
Net cash used in financing activities | (1,600 | ) | (972 | ) | (211 | ) | (1,256 | ) | (1,600 | ) | (972 | ) | |||||||||||||||||||
Movement in cash and cash equivalents | (139 | ) | 147 | (24 | ) | 3 | (139 | ) | 147 | ||||||||||||||||||||||
F-70F-72
2007 | 2006 | 2008 | 2007 | ||||||||||||||||||||
Note | €m | €m | Note | €m | €m | ||||||||||||||||||
Non-current assets | |||||||||||||||||||||||
Investments in joint ventures | 11 | 2,075 | 1,386 | 12 | 551 | 2,075 | |||||||||||||||||
Current assets | |||||||||||||||||||||||
Amounts due from joint ventures | 5 | 3 | 4 | 5 | |||||||||||||||||||
Cash and cash equivalents | 9 | 148 | 12 | 9 | |||||||||||||||||||
14 | 151 | 16 | 14 | ||||||||||||||||||||
Total assets | 2,089 | 1,537 | 567 | 2,089 | |||||||||||||||||||
Current liabilities | |||||||||||||||||||||||
Payables | 12 | 9 | 8 | 13 | 10 | 9 | |||||||||||||||||
Taxation | 64 | 64 | 66 | 64 | |||||||||||||||||||
Total liabilities | 73 | 72 | 76 | 73 | |||||||||||||||||||
Net assets | 2,016 | 1,465 | 491 | 2,016 | |||||||||||||||||||
Capital and reserves | |||||||||||||||||||||||
Share capital issued | 13 | 49 | 48 | 14 | 49 | 49 | |||||||||||||||||
Paid-in surplus | 14 | 1,685 | 1,562 | 15 | 1,712 | 1,685 | |||||||||||||||||
Shares held in treasury (including in joint ventures) | 15 | (459 | ) | (282 | ) | 16 | (477 | ) | (459 | ) | |||||||||||||
Translation reserve | 16 | (159 | ) | (70 | ) | 17 | (138 | ) | (159 | ) | |||||||||||||
Other reserves | 17 | 900 | 207 | 18 | (655 | ) | 900 | ||||||||||||||||
Total equity | 2,016 | 1,465 | 491 | 2,016 | |||||||||||||||||||
F-71F-73
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
€m | €m | €m | €m | €m | €m | |||||||||||||||||||
Profit attributable to ordinary shareholders | 855 | 458 | 338 | 294 | 855 | 458 | ||||||||||||||||||
Share of joint ventures’ net (expense)/income recognised directly in equity | (45 | ) | (50 | ) | 138 | |||||||||||||||||||
Share of joint ventures’ net expense recognised directly in equity | (250 | ) | (45 | ) | (50 | ) | ||||||||||||||||||
Share of joint ventures’ cumulative exchange differences on disposal of foreign operations | 103 | — | — | 27 | 103 | — | ||||||||||||||||||
Shares of joint ventures’ cumulative fair value movements on disposal of available for sale investments | (5 | ) | — | — | — | (5 | ) | — | ||||||||||||||||
Share of joint ventures’ transfer to net profit from hedge reserve | (15 | ) | (4 | ) | (14 | ) | (9 | ) | (15 | ) | (4 | ) | ||||||||||||
Total recognised income and expense for the year | 893 | 404 | 462 | 62 | 893 | 404 | ||||||||||||||||||
Share of joint ventures’ transition adjustment on adoption of IAS 39 | — | — | 8 | |||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||
Note | €m | €m | €m | Note | €m | €m | €m | ||||||||||||||||||||||||
Total recognised net income | 893 | 404 | 462 | 62 | 893 | 404 | |||||||||||||||||||||||||
Equity dividends declared | 8 | (310 | ) | (272 | ) | (245 | ) | 9 | (1,569 | ) | (310 | ) | (272 | ) | |||||||||||||||||
Issue of ordinary shares, net of expenses | 124 | 68 | 18 | 27 | 124 | 68 | |||||||||||||||||||||||||
Increase in shares held in treasury (including in joint ventures) | 15 | (230 | ) | (210 | ) | (20 | ) | 16 | (59 | ) | (230 | ) | (210 | ) | |||||||||||||||||
Increase in share based remuneration reserve | 34 | 36 | 42 | 29 | 34 | 36 | |||||||||||||||||||||||||
Equalisation adjustments | 40 | 1 | — | (15 | ) | 40 | 1 | ||||||||||||||||||||||||
Net increase in shareholders’ equity | 551 | 27 | 257 | ||||||||||||||||||||||||||||
Net (decrease)/increase in shareholders’ equity | (1,525 | ) | 551 | 27 | |||||||||||||||||||||||||||
Shareholders’ equity at January 1 | 1,465 | 1,438 | 1,173 | 2,016 | 1,465 | 1,438 | |||||||||||||||||||||||||
Share of joint ventures’ transition adjustment on adoption of IAS39 | — | — | 8 | ||||||||||||||||||||||||||||
Shareholders’ equity at December 31 | 2,016 | 1,465 | 1,438 | 491 | 2,016 | 1,465 | |||||||||||||||||||||||||
F-72F-74
1. | Basis of financial statements |
2. | Accounting policies |
F-73F-75
2. | Accounting policies |
3. | Basis of preparation |
Reed Elsevier NV consolidated profit attributable to ordinary shareholders | Note | 2008 | 2007 | 2006 | ||||||||||||
Reed Elsevier combined businesses net profit attributable to parent company shareholders in pounds sterling | £476m | £1,200m | £ | 623m | ||||||||||||
Reed Elsevier combined businesses net profit attributable to parent company shareholders in pounds sterling translated into euros at average exchange rates | €600m | €1,752m | € | 916m | ||||||||||||
Impact of exchange translation differences | (i | ) | €(13)m | €(43)m | — | |||||||||||
Reed Elsevier combined businesses net profit attributable to parent company shareholders in euros | €587m | €1,709m | € | 916m | ||||||||||||
Reed Elsevier NV’s 50% share of combined net profit attributable to ordinary shareholders | €294m | €855m | € | 458m | ||||||||||||
(i) | The combined financial statements include gains on disposal of discontinued operations which, due to their individual significance, are translated using exchange rates prevailing on the date of the transaction rather than the average exchange rates for the year. The gains on disposal also include cumulative currency translation losses since adoption of IFRS previously taken to reserves. Consequently, the gains expressed in euros, are €13 million (2007: €43 million, 2006: nil) lower than the amounts derived by translating the gains expressed in sterling at average euro:sterling exchange rates (2008: €1.26 to £1.00; 2007: €1.46 to £1.00; 2006: €1.47 to £1.00). |
F-76
3. | Basis of preparation – (Continued) |
Reed Elsevier NV consolidated total equity | 2008 | 2007 | ||||||
Reed Elsevier combined shareholders’ equity in pounds sterling | £ | 953m | £ | 2,965m | ||||
Reed Elsevier combined shareholders’ equity in pounds sterling translated into euros at year end exchange rates (2008: €1.03 to £1.00; 2007: €1.36 to £1.00) | € | 982m | € | 4,032m | ||||
Reed Elsevier NV’s 50% share of combined equity | € | 491m | € | 2,016m | ||||
4. | Administrative expenses |
Auditors’ remuneration |
Related party transactions |
Finance income |
2007 | 2006 | 2005 | ||||
€m | €m | €m | ||||
Finance income from joint ventures | 73 | 7 | 2 | |||
2008 | 2007 | 2006 | ||||||||||
€m | €m | €m | ||||||||||
Finance income from joint ventures | 77 | 73 | 7 | |||||||||
Taxation |
F-74
2007 | 2006 | 2005 | ||||
€m | €m | €m | ||||
Profit before tax | 873 | 459 | 338 | |||
Tax at applicable rate 25.5% (2006: 29.6%; 2005: 31.5%) | 223 | 136 | 106 | |||
Tax on share of results of joint ventures | (205) | (135) | (106) | |||
Tax expense | 18 | 1 | — | |||
2007 | 2006 | 2005 | 2007 | 2006 | 2005 | |||||||
Dividends declared in the year | € | € | € | €m | €m | €m | ||||||
Ordinary shares | ||||||||||||
Final for prior financial year | € 0.304 | € 0.267 | € 0.240 | 225 | 197 | 177 | ||||||
Interim for financial year | € 0.114 | € 0.102 | € 0.092 | 85 | 75 | 68 | ||||||
R-shares | — | — | — | — | — | — | ||||||
�� | ||||||||||||
Total | € 0.418 | € 0.369 | € 0.332 | 310 | 272 | 245 | ||||||
2007 | 2006 | 2005 | |||||
Dividends paid and proposed relating to the financial year | € | € | € | ||||
Ordinary shares | |||||||
Interim (paid) | € | 0.114 | € 0.102 | € 0.092 | |||
Final (proposed) | € | 0.311 | € 0.304 | € 0.267 | |||
R-Shares | — | — | — | ||||
Total | € | 0.425 | € 0.406 | € 0.359 | |||
2008 | 2007 | 2006 | ||||||||||
€m | €m | €m | ||||||||||
Profit before tax | 313 | 873 | 459 | |||||||||
Tax at applicable rate 25.5% (2007: 25.5%; 2006: 29.6%) | 80 | 223 | 136 | |||||||||
Tax on share of results of joint ventures | (61 | ) | (205 | ) | (135 | ) | ||||||
Tax expense | 19 | 18 | 1 | |||||||||
9. |
2007 | |||||||
Weighted | |||||||
average | |||||||
number of | |||||||
shares | Earnings | EPS | |||||
(millions) | €m | € | |||||
Basic EPS | |||||||
From continuing operations of the combined businesses | 774.9 | 651 | €0.84 | ||||
From discontinued operations of the combined businesses | 774.9 | 204 | €0.26 | ||||
From total operations of the combined businesses | 774.9 | 855 | €1.10 | ||||
Diluted EPS | |||||||
From continuing operations of the combined businesses | 784.1 | 651 | €0.83 | ||||
From discontinued operations of the combined businesses | 784.1 | 204 | €0.26 | ||||
From total operations of the combined businesses | 784.1 | 855 | €1.09 | ||||
F-75F-77
9. | Equity dividends — (Continued) |
2008 | 2007 | 2006 | 2008 | 2007 | 2006 | |||||||
Ordinary dividends declared in the year | € | € | € | €m | €m | €m | ||||||
Ordinary shares | ||||||||||||
Final for prior financial year | €0.311 | €0.304 | €0.267 | 198 | 225 | 197 | ||||||
Interim for financial year | €0.114 | €0.114 | €0.102 | 72 | 85 | 75 | ||||||
R shares | — | — | — | — | — | — | ||||||
Total | €0.425 | €0.418 | €0.369 | 270 | 310 | 272 | ||||||
2008 | 2007 | 2006 | |||||||
Ordinary dividends paid and proposed relating to the financial year | € | € | € | ||||||
Ordinary shares | |||||||||
Interim (paid) | € | 0.114 | € | 0.114 | € | 0.102 | |||
Final (proposed) | € | 0.290 | € | 0.311 | € | 0.304 | |||
R shares | — | — | — | ||||||
Total | € | 0.404 | € | 0.425 | € | 0.406 | |||
10. | Earnings per ordinary share (“EPS”) |
2008 | ||||||||||||
Weighted | ||||||||||||
average | ||||||||||||
number of | ||||||||||||
shares | Earnings | EPS | ||||||||||
(millions) | €m | € | ||||||||||
Basic EPS | ||||||||||||
From continuing operations of the combined businesses | 669.0 | 289 | € | 0.43 | ||||||||
From discontinued operations of the combined businesses | 669.0 | 5 | € | 0.01 | ||||||||
From total operations of the combined businesses | 669.0 | 294 | € | 0.44 | ||||||||
Diluted EPS | ||||||||||||
From continuing operations of the combined businesses | 674.9 | 289 | € | 0.43 | ||||||||
From discontinued operations of the combined businesses | 674.9 | 5 | € | 0.01 | ||||||||
From total operations of the combined businesses | 674.9 | 294 | € | 0.44 | ||||||||
2007 | ||||||||||||
Weighted | ||||||||||||
average | ||||||||||||
number of | ||||||||||||
shares | Earnings | EPS | ||||||||||
(millions) | €m | € | ||||||||||
Basic EPS | ||||||||||||
From continuing operations of the combined businesses | 774.9 | 651 | € | 0.84 | ||||||||
From discontinued operations of the combined businesses | 774.9 | 204 | € | 0.26 | ||||||||
From total operations of the combined businesses | 774.9 | 855 | € | 1.10 | ||||||||
Diluted EPS | ||||||||||||
From continuing operations of the combined businesses | 784.1 | 651 | € | 0.83 | ||||||||
From discontinued operations of the combined businesses | 784.1 | 204 | € | 0.26 | ||||||||
From total operations of the combined businesses | 784.1 | 855 | € | 1.09 | ||||||||
F-78
10. | Earnings per ordinary share (“EPS”) – (continued) |
2006 | ||||||||||||
Weighted | ||||||||||||
average | ||||||||||||
number of | ||||||||||||
shares | Earnings | EPS | ||||||||||
(millions) | €m | € | ||||||||||
Basic EPS | ||||||||||||
From continuing operations of the combined businesses | 772.1 | 434 | € | 0.56 | ||||||||
From discontinued operations of the combined businesses | 772.1 | 24 | € | 0.03 | ||||||||
From total operations of the combined businesses | 772.1 | 458 | € | 0.59 | ||||||||
Diluted EPS | ||||||||||||
From continuing operations of the combined businesses | 781.7 | 434 | € | 0.56 | ||||||||
From discontinued operations of the combined businesses | 781.7 | 24 | € | 0.03 | ||||||||
From total operations of the combined businesses | 781.7 | 458 | € | 0.59 | ||||||||
2005 | |||||||||
Weighted | |||||||||
average | |||||||||
number of | |||||||||
shares | Earnings | EPS | |||||||
(millions) | €m | € | |||||||
Basic EPS | |||||||||
From continuing operations of the combined businesses | 783.1 | 288 | € | 0.37 | |||||
From discontinued operations of the combined businesses | 783.1 | 50 | € | 0.06 | |||||
From total operations of the combined businesses | 783.1 | 338 | € | 0.43 | |||||
Diluted EPS | |||||||||
From continuing operations of the combined businesses | 789.9 | 288 | € | 0.36 | |||||
From discontinued operations of the combined businesses | 789.9 | 50 | € | 0.07 | |||||
From total operations of the combined businesses | 789.9 | 338 | € | 0.43 | |||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||
Shares in | Shares in | Shares in | Shares in | Shares in | Shares in | |||||||||||||||||||||||||
issue net of | issue net of | issue net of | issue net of | issue net of | issue net of | |||||||||||||||||||||||||
Shares in | Treasury | treasury | treasury | treasury | Shares in | Treasury | treasury | treasury | treasury | |||||||||||||||||||||
issue | shares | shares | shares | shares | issue | shares | shares | shares | shares | |||||||||||||||||||||
(millions) | (millions) | (millions) | (millions) | (millions) | (millions) | (millions) | (millions) | (millions) | (millions) | |||||||||||||||||||||
Number of ordinary shares | ||||||||||||||||||||||||||||||
At January 1 | 748.6 | (22.6) | 726.0 | 736.3 | 736.4 | 760.3 | (35.4 | ) | 724.9 | 726.0 | 736.3 | |||||||||||||||||||
Share consolidation | (102.1 | ) | 4.7 | (97.4 | ) | — | — | �� | ||||||||||||||||||||||
Issue of ordinary shares | 11.7 | — | 11.7 | 6.8 | 1.9 | 2.4 | — | 2.4 | 11.7 | 6.8 | ||||||||||||||||||||
Share repurchases | — | (11.9) | (11.9) | (13.4) | — | — | (2.1 | ) | (2.1 | ) | (11.9 | ) | (13.4 | ) | ||||||||||||||||
Net purchase of shares by employee benefit trust | — | (0.9) | (0.9) | (3.7) | (2.0) | — | (2.4 | ) | (2.4 | ) | (0.9 | ) | (3.7 | ) | ||||||||||||||||
At December 31 | 760.3 | (35.4) | 724.9 | 726.0 | 736.3 | 660.6 | (35.2 | ) | 625.4 | 724.9 | 726.0 | |||||||||||||||||||
Weighted average number of equivalent ordinary shares during the year | 774.9 | 772.1 | 783.1 | 669.0 | 774.9 | 772.1 | ||||||||||||||||||||||||
F-76
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||
(millions) | (millions) | (millions) | (millions) | (millions) | (millions) | |||||||||||||
Weighted average number of shares — Basic | 774.9 | 772.1 | 783.1 | 669.0 | 774.9 | 772.1 | ||||||||||||
Weighted average number of dilutive shares under options | 9.2 | 9.6 | 6.8 | 5.9 | 9.2 | 9.6 | ||||||||||||
Weighted average number of shares — Diluted | 784.1 | 781.7 | 789.9 | 674.9 | 784.1 | 781.7 | ||||||||||||
F-79
11. | Cash flow statement |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
€m | €m | €m | €m | €m | €m | |||||||||||||||||||
Administrative expenses | (3 | ) | (3 | ) | (3 | ) | (3 | ) | (3 | ) | (3 | ) | ||||||||||||
Net movement in payables | 1 | — | (2 | ) | 1 | 1 | — | |||||||||||||||||
Cash used by operations | (2 | ) | (3 | ) | (5 | ) | (2 | ) | (2 | ) | (3 | ) | ||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||
€m | €m | €m | €m | €m | €m | |||||||||||||||||
At January 1 | 626 | 14 | 30 | 1,864 | 626 | 14 | ||||||||||||||||
Cash flow | 1,238 | 612 | (16 | ) | (311 | ) | 1,238 | 612 | ||||||||||||||
At December 31 | 1,864 | 626 | 14 | 1,553 | 1,864 | 626 | ||||||||||||||||
12. | Investments in joint ventures |
2007 | 2006 | 2008 | 2007 | |||||||||||||
€m | €m | €m | €m | |||||||||||||
Share of results of joint ventures | 803 | 455 | 239 | 803 | ||||||||||||
Share of joint ventures’: | ||||||||||||||||
Net expense recognised directly in equity | �� | (45 | ) | (50 | ) | (250 | ) | (45 | ) | |||||||
Cumulative exchange differences on disposal of foreign operations | 103 | — | 27 | 103 | ||||||||||||
Cumulative fair value movements on disposal of available for sale investments | (5 | ) | — | — | (5 | ) | ||||||||||
Transfer to net profit from hedge reserve | (15 | ) | (4 | ) | (9 | ) | (15 | ) | ||||||||
Purchases of treasury shares by employee benefit trust | (54 | ) | (54 | ) | (34 | ) | (54 | ) | ||||||||
Increase in share based remuneration reserve | 34 | 36 | 29 | 34 | ||||||||||||
Equalisation adjustments | 40 | 1 | (15 | ) | 40 | |||||||||||
Dividends received from joint ventures | (1,410 | ) | (1,111 | ) | (1,200 | ) | (1,410 | ) | ||||||||
Increase in net funding balances due from joint ventures | 1,238 | 612 | ||||||||||||||
(Decrease)/increase in net funding balances due from joint ventures | (311 | ) | 1,238 | |||||||||||||
Net movement in the year | 689 | (115 | ) | (1,524 | ) | 689 | ||||||||||
At January 1 | 1,386 | 1,501 | 2,075 | 1,386 | ||||||||||||
At December 31 | 2,075 | 1,386 | 551 | 2,075 | ||||||||||||
F-77
Total joint ventures | Reed Elsevier NV share | Total joint ventures | Reed Elsevier NV share | |||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2007 | 2006 | 2005 | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||
€m | €m | €m | €m | €m | €m | €m | €m | €m | €m | €m | €m | |||||||||||||||||||||||||||||||
Revenue | 6,693 | 6,628 | 6,227 | 3,347 | 3,314 | 3,114 | 6,721 | 6,693 | 6,628 | 3,361 | 3,347 | 3,314 | ||||||||||||||||||||||||||||||
Net profit for the year | 1,713 | 919 | 677 | 803 | 455 | 339 | 592 | 1,713 | 919 | 239 | 803 | 455 | ||||||||||||||||||||||||||||||
Total joint ventures | Reed Elsevier NV share | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
€m | €m | €m | €m | |||||||||||||
Total assets | 13,298 | 12,713 | 6,635 | 6,209 | ||||||||||||
Total liabilities | (9,251 | ) | (9,764 | ) | (6,424 | ) | (5,449 | ) | ||||||||
Net assets | 4,047 | 2,949 | 211 | 760 | ||||||||||||
Attributable to: | ||||||||||||||||
Joint ventures | 4,032 | 2,929 | 211 | 760 | ||||||||||||
Minority interests | 15 | 20 | — | — | ||||||||||||
4,047 | 2,949 | 211 | 760 | |||||||||||||
Net funding balances due from joint ventures | 1,864 | 626 | ||||||||||||||
Total | 2,075 | 1,386 | ||||||||||||||
F-80
12. | Investments in joint ventures – (continued) |
Total joint ventures | Reed Elsevier NV shareholders’ share | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
€m | €m | €m | €m | |||||||||||||
Total assets | 13,251 | 13,298 | 6,610 | 6,635 | ||||||||||||
Total liabilities | (12,241 | ) | (9,251 | ) | (7,612 | ) | (6,424 | ) | ||||||||
Net assets/(liabilities) | 1,010 | 4,047 | (1,002 | ) | 211 | |||||||||||
Attributable to: | ||||||||||||||||
Joint ventures | 981 | 4,032 | (1,002 | ) | 211 | |||||||||||
Minority interests | 29 | 15 | — | — | ||||||||||||
1,010 | 4,047 | (1,002 | ) | 211 | ||||||||||||
Net funding balances due from joint ventures | 1,553 | 1,864 | ||||||||||||||
Total | 551 | 2,075 | ||||||||||||||
13. | Payables |
14. | Share capital |
No. of shares | €m | |||||
Ordinary shares of €0.06 each | 2,100,000,000 | 126 | ||||
Unclassified shares of €0.60 each | 30,000,000 | 18 | ||||
Total | 144 | |||||
No. of shares | €m | |||||||
Ordinary shares of €0.07 each | 1,800,000,000 | 126 | ||||||
R shares of €0.70 each | 26,000,000 | 18 | ||||||
Total | 144 | |||||||
F-78
Ordinary | Ordinary | ||||||||||||||
R-shares | shares | R-shares | shares | Total | |||||||||||
Number | Number | €m | €m | €m | |||||||||||
At January 1, 2005 | 4,679,249 | 740,090,600 | 3 | 44 | 47 | ||||||||||
Issue of ordinary shares | — | 1,714,630 | — | — | — | ||||||||||
At January 1, 2006 | 4,679,249 | 741,805,230 | 3 | 44 | 47 | ||||||||||
Issue of ordinary shares | — | 6,791,894 | — | 1 | 1 | ||||||||||
At January 1, 2007 | 4,679,249 | 748,597,124 | 3 | 45 | 48 | ||||||||||
Issue of ordinary shares | — | 11,653,240 | — | 1 | 1 | ||||||||||
At December 31, 2007 | 4,679,249 | 760,250,364 | 3 | 46 | 49 | ||||||||||
Ordinary | Ordinary | |||||||||||||||||||
R shares | shares | R shares | shares | Total | ||||||||||||||||
Number | Number | €m | €m | €m | ||||||||||||||||
At January 1, 2006 | 4,679,249 | 741,805,230 | 3 | 44 | 47 | |||||||||||||||
Issue of ordinary shares | — | 6,791,894 | — | 1 | 1 | |||||||||||||||
At January 1, 2007 | 4,679,249 | 748,597,124 | 3 | 45 | 48 | |||||||||||||||
Issue of ordinary shares | — | 11,653,240 | — | 1 | 1 | |||||||||||||||
At January 1, 2008 | 4,679,249 | 760,250,364 | 3 | 46 | 49 | |||||||||||||||
Share consolidation | (628,529 | ) | (102,123,146 | ) | — | — | — | |||||||||||||
Issue of ordinary shares | — | 2,502,244 | — | — | — | |||||||||||||||
At December 31, 2008 | 4,050,720 | 660,629,462 | 3 | 46 | 49 | |||||||||||||||
F-81
14. | Share capital – (continued) |
15. | Paid-in surplus |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | ||||||||||||||||
€m | €m | €m | €m | €m | €m | ||||||||||||||||
At January 1 | 1,562 | 1,495 | 1,477 | 1,685 | 1,562 | 1,495 | |||||||||||||||
Issue of ordinary shares | 123 | 67 | 18 | 27 | 123 | 67 | |||||||||||||||
At December 31 | 1,685 | 1,562 | 1,495 | 1,712 | 1,685 | 1,562 | |||||||||||||||
16. | Shares held in treasury |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||
€m | €m | €m | €m | €m | €m | |||||||||||||||||
At January 1 | 282 | 68 | 47 | 459 | 282 | 68 | ||||||||||||||||
Share repurchases | 176 | 156 | — | 25 | 176 | 156 | ||||||||||||||||
Share of joint ventures’ employee benefit trust purchases | 54 | 54 | 20 | 34 | 54 | 54 | ||||||||||||||||
Share of joint ventures’ settlement of share awards by employee benefit trust | (36 | ) | — | — | (5 | ) | (36 | ) | — | |||||||||||||
Exchange translation differences | (17 | ) | 4 | 1 | (36 | ) | (17 | ) | 4 | |||||||||||||
At December 31 | 459 | 282 | 68 | 477 | 459 | 282 | ||||||||||||||||
17. | Translation reserve |
2008 | 2007 | 2006 | ||||||||||
€m | €m | €m | ||||||||||
At January 1 | (159 | ) | (70 | ) | 76 | |||||||
Share of joint ventures’ exchange differences on translation of foreign operations | (6 | ) | (192 | ) | (146 | ) | ||||||
Share of joint ventures’ cumulative exchange differences on disposal of foreign operations | 27 | 103 | — | |||||||||
At December 31 | (138 | ) | (159 | ) | (70 | ) | ||||||
F-79F-82
18. | Other reserves |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
€m | €m | €m | €m | €m | €m | |||||||||||||||||||
At January 1 | (70 | ) | 76 | (98 | ) | 900 | 207 | (112 | ) | |||||||||||||||
Share of joint ventures’ exchange differences on translation of foreign operations | (192 | ) | (146 | ) | 174 | |||||||||||||||||||
Share of joint ventures’ cumulative exchange differences on disposal of foreign operations | 103 | — | — | |||||||||||||||||||||
Profit attributable to ordinary shareholders | 294 | 855 | 458 | |||||||||||||||||||||
Share of joint ventures’: | ||||||||||||||||||||||||
Actuarial (losses)/gains on defined benefit pension schemes | (219 | ) | 165 | 102 | ||||||||||||||||||||
Fair value movements on available for sale investments | (6 | ) | — | 2 | ||||||||||||||||||||
Cumulative fair value movements on disposal of available for sale investments | — | (5 | ) | — | ||||||||||||||||||||
Fair value movements on cash flow hedges | (153 | ) | 2 | 40 | ||||||||||||||||||||
Tax recognised directly in equity | 98 | (37 | ) | (44 | ) | |||||||||||||||||||
Increase in share based remuneration reserve | 29 | 34 | 36 | |||||||||||||||||||||
Settlement of share awards by employee benefit trust | (5 | ) | (36 | ) | — | |||||||||||||||||||
Transfer to net profit from hedge reserve | (9 | ) | (15 | ) | (4 | ) | ||||||||||||||||||
Equalisation adjustments | (15 | ) | 40 | 1 | ||||||||||||||||||||
Equity dividends declared | (1,569 | ) | (310 | ) | (272 | ) | ||||||||||||||||||
At December 31 | (159 | ) | (70 | ) | 76 | (655 | ) | 900 | 207 | |||||||||||||||
2007 | 2006 | 2005 | ||||||||||
€m | €m | €m | ||||||||||
At January 1 | 207 | (112 | ) | (206 | ) | |||||||
Share of joint ventures’ transition adjustment on adoption of IAS39 | — | — | 8 | |||||||||
At January 1 as restated | 207 | (112 | ) | (198 | ) | |||||||
Profit attributable to ordinary shareholders | 855 | 458 | 338 | |||||||||
Share of joint ventures’: | ||||||||||||
Actuarial gains/(losses) on defined benefit pension schemes | 165 | 102 | (27 | ) | ||||||||
Fair value movements on available for sale investments | — | 2 | 2 | |||||||||
Cumulative fair value movements on disposal of available for sale investments | (5 | ) | — | — | ||||||||
Fair value movements on cash flow hedges | 2 | 40 | (8 | ) | ||||||||
Tax recognised directly in equity | (37 | ) | (44 | ) | (2 | ) | ||||||
Increase in share based remuneration reserve | 34 | 36 | 42 | |||||||||
Settlement of share awards by employee benefit trust | (36 | ) | — | — | ||||||||
Transfer to net profit from hedge reserve | (15 | ) | (4 | ) | (14 | ) | ||||||
Equalisation adjustments | 40 | 1 | — | |||||||||
Equity dividends declared | (310 | ) | (272 | ) | (245 | ) | ||||||
At December 31 | 900 | 207 | (112 | ) | ||||||||
19. | Contingent liabilities |
2007 | 2006 | |||||
€m | €m | |||||
Fully and unconditionally guaranteed jointly and severally with Reed Elsevier PLC | 3,745 | 3,858 | ||||
2008 | 2007 | |||||||
€m | €m | |||||||
Fully and unconditionally guaranteed jointly and severally with Reed Elsevier PLC | 5,917 | 3,745 | ||||||
20. | Post balance sheet events |
F-80
F-81F-83
Terms used in Annual Report onForm 20-F | US equivalent or brief description | |
Accruals | Accrued expenses | |
Adjusted operating cash flow | Cash generated from operations plus dividends from joint ventures less net capital expenditure on property, plant and equipment and internally developed intangible assets, and excluding payments in relation to exceptional restructuring and acquisition related costs | |
Adjusted operating margin | Adjusted operating profit expressed as a percentage of revenue. This is a key financial measure used by management to evaluate performance and allocate resources | |
Adjusted operating profit | Operating profit before amortisation of acquired intangible assets and goodwill impairment, exceptional restructuring and acquisition | |
Allotted | Issued | |
Associate | An entity in which Reed Elsevier has a participating interest and, in the opinion of the directors, can exercise significant influence on its management | |
Bank borrowings | Payable to banks | |
Called up share capital | Issued share capital | |
Capital allowances | Tax term equivalent to US tax depreciation allowances | |
Capital and reserves | Shareholders’ equity | |
Cash flow conversion | Adjusted operating cash flow expressed as a percentage of adjusted operating profit | |
Combined businesses | Reed Elsevier PLC, Reed Elsevier NV, Reed Elsevier Group plc and Elsevier Reed Finance BV and their respective subsidiaries, associates and joint ventures | |
Current instalments of loans | Long term debt due within one year | |
EPS | Earnings per ordinary share | |
Finance lease | Capital lease | |
Free cash flow | Operating cash flow excluding the effects of interest, tax and dividends | |
Investments | Non-current investments | |
Freehold | Ownership with absolute rights in perpetuity | |
Interest receivable | Interest income | |
Interest payable | Interest expense | |
Net borrowings | Gross borrowings, less related derivative financial instrument assets and cash and cash equivalents | |
Net cash acquired | Cash less debt acquired with a business | |
Prepayments | Prepaid expenses | |
Profit | Income | |
Profit attributable | Net income | |
Reed Elsevier | Reed Elsevier PLC, Reed Elsevier NV, Reed Elsevier Group plc and Elsevier Reed Finance BV and their respective subsidiaries, associates and joint ventures | |
Share based remuneration | Stock based compensation | |
Shareholders’ equity | Shareholders’ funds | |
Share premium account | Premiums paid in excess of par value of ordinary shares | |
Revenue | Sales | |
Underlying growth | The year on year growth calculated excluding the effects of acquisitions, disposals and the impact of currency |
F-82F-84
1 | .1 | Memorandum and Articles of Association of Reed Elsevier PLC (incorporated by reference from Exhibit 1.1 to the 2002 Annual Report onForm 20-F filed with the SEC on March 10, 2003) | ||
1 | .2 | Articles of Association of Reed Elsevier NV | ||
1 | .3 | Governing Agreement, dated April 15, 1999 between Reed International P.L.C. and Elsevier NV (incorporated by reference from Exhibit 3.3 to the 2000 Annual Report onForm 20-F filed with the SEC on March 13, 2001) | ||
1 | .4 | RHBV Agreement, dated December 23, 1992 among Elsevier NV and Reed Holding B.V. (incorporated by reference from Exhibit 1.4 to the 2002 Annual Report onForm 20-F filed with the SEC on March 10, 2003) | ||
2 | .1 | Deposit Agreement, dated as of October 27, 2003 among Reed Elsevier PLC, The Bank of New York and all holders from time to time of American Depositary Receipts (incorporated by reference from Exhibit (a)(1) to Amendment No. 1 to the Registration Statement onForm F-6 filed by Reed Elsevier PLC with the SEC on October 17, 2003) | ||
2 | .2 | Deposit Agreement, dated as of October 27, 2003 among Reed Elsevier NV, The Bank of New York and all holders from time to time of American Depositary Receipts (incorporated by reference from Exhibit (a)(1) to Amendment No. 1 to the Registration Statement onForm F-6 filed by Reed Elsevier NV with the SEC on October 17, 2003) | ||
4 | .1 | Agreement and Plan of Merger, dated October 27, 2000 among Reed Elsevier Inc., REH Mergersub Inc. and Harcourt General, Inc. (incorporated by reference from Exhibit 10.11 to the Registration Statement onForm F-3 filed with the SEC on November 29, 2000 (the “2000Form F-3 Registration Statement”) | ||
4 | .2 | Sale and Purchase Agreement, dated October 27, 2000 between Reed Elsevier Inc. and The Thomson Corporation (incorporated by reference from Exhibit 10.13 to the 2000Form F-3 Registration Statement) | ||
4 | .3 | Reed Elsevier Group plc Share Option Scheme (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .4 | Reed Elsevier Group plc Long Term Incentive Share Option Scheme (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .5 | Reed Elsevier Group plc Bonus Investment Plan (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .6 | Reed Elsevier Group plc Bonus Investment Plan (2002) (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .7 | Reed Elsevier Group plc Executive Share Option Schemes (No. 2) (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .8 | Reed Elsevier Group plc Executive UK and Overseas Share Option Schemes (incorporated by reference from Exhibit 10.6 to the 2000Form F-3 Registration Statement) | ||
4 | .9 | Reed Elsevier Group plc Retention Share Plan (as amended on March 13, 2006) (incorporated by reference from exhibit 4.9 on the 2006 Annual Report onForm 20-F filed with the SEC on March 22, 2007) | ||
4 | .10 | Reed Elsevier US Salary Investment Plan (incorporated by reference from Exhibit 4.10 to the Registration Statement onForm S-8 filed with the SEC on October 2, 2000) | ||
4 | .11 | Reed Elsevier Group plc Long Term Incentive Share Option Scheme (as restated for awards granted on or after April 19, 2006) (incorporated by reference from exhibit 4.11 on the 2006 Annual Report onForm 20-F filed with the SEC on March 22, 2007) | ||
4 | .12 | Sale and Purchase Agreement, dated July 16, 2007 between Reed Elsevier Group plc, HMRH Acquisition Co., Houghton Mifflin Riverdeep Group plc and Education Media and Publishing Group Limited | ||
4 | .13 | Sale and Purchase Agreement, dated May 4, 2007 between Reed Elsevier Group plc and Pearson plc | ||
4 | .14 | Agreement and plan of merger by and among ChoicePoint Inc., Reed Elsevier Group plc and Deuce Acquisition Inc., dated February 20, 2008 | ||
8 | List of significant subsidiaries, associates, joint ventures and business units | |||
12 | .1 | Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002, by the Chief Executive Officer of Reed Elsevier PLC | ||
12 | .2 | Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002, by the Chief Financial Officer of Reed Elsevier PLC | ||
12 | .3 | Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002, by the Chief Executive Officer of Reed Elsevier NV | ||
12 | .4 | Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002, by the Chief Financial Officer of Reed Elsevier NV |
1 | .1 | Articles of Association of Reed Elsevier PLC | ||
1 | .2 | Articles of Association of Reed Elsevier NV (incorporated by reference from Exhibit 1.2 to the 2007 Annual Report onForm 20-F filed with the SEC on March 20, 2008) | ||
1 | .3 | Governing Agreement, dated April 15, 1999 between Reed International P.L.C. and Elsevier NV (incorporated by reference from Exhibit 3.3 to the 2000 Annual Report onForm 20-F filed with the SEC on March 13, 2001) | ||
1 | .4 | RHBV Agreement, dated December 23, 1992 among Elsevier NV and Reed Holding B.V. (incorporated by reference from Exhibit 1.4 to the 2002 Annual Report onForm 20-F filed with the SEC on March 10, 2003) | ||
2 | .1 | Deposit Agreement, dated as of October 27, 2003 among Reed Elsevier PLC, The Bank of New York and all holders from time to time of American Depositary Receipts (incorporated by reference from Exhibit(a)(1) to Amendment No. 1 to the Registration Statement onForm F-6 filed by Reed Elsevier PLC with the SEC on October 17, 2003) | ||
2 | .2 | Deposit Agreement, dated as of October 27, 2003 among Reed Elsevier NV, The Bank of New York and all holders from time to time of American Depositary Receipts (incorporated by reference from Exhibit(a)(1) to Amendment No. 1 to the Registration Statement onForm F-6 filed by Reed Elsevier NV with the SEC on October 17, 2003) | ||
4 | .1 | Agreement and Plan of Merger, dated October 27, 2000 among Reed Elsevier Inc., REH Mergersub Inc. and Harcourt General, Inc. (incorporated by reference from Exhibit 10.11 to the Registration Statement onForm F-3 filed with the SEC on November 29, 2000 (the “2000Form F-3 Registration Statement”) | ||
4 | .2 | Sale and Purchase Agreement, dated October 27, 2000 between Reed Elsevier Inc. and The Thomson Corporation (incorporated by reference from Exhibit 10.13 to the 2000Form F-3 Registration Statement) | ||
4 | .3 | Reed Elsevier Group plc Share Option Scheme (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .4 | Reed Elsevier Group plc Long Term Incentive Share Option Scheme (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .5 | Reed Elsevier Group plc Bonus Investment Plan (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .6 | Reed Elsevier Group plc Bonus Investment Plan (2002) (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .7 | Reed Elsevier Group plc Executive Share Option Schemes (No. 2) (incorporated by reference from Exhibit 4.3 to the 2003 Annual Report onForm 20-F filed with the SEC on March 15, 2004) | ||
4 | .8 | Reed Elsevier Group plc Executive UK and Overseas Share Option Schemes (incorporated by reference from Exhibit 10.6 to the 2000Form F-3 Registration Statement) | ||
4 | .9 | Reed Elsevier Group plc Retention Share Plan (as amended on March 13, 2006) (incorporated by reference from exhibit 4.9 on the 2006 Annual Report onForm 20-F filed with the SEC on March 22, 2007) | ||
4 | .10 | Reed Elsevier US Salary Investment Plan (incorporated by reference from Exhibit 4.10 to the Registration Statement onForm S-8 filed with the SEC on October 2, 2000) | ||
4 | .11 | Reed Elsevier Group plc Long Term Incentive Share Option Scheme (as restated for awards granted on or after April 19, 2006) (incorporated by reference from exhibit 4.11 to the 2006 Annual Report onForm 20-F filed with the SEC on March 22, 2007) | ||
4 | .12 | Sale and Purchase Agreement, dated July 16, 2007 between Reed Elsevier Group plc, HMRH Acquisition Co., Houghton Mifflin Riverdeep Group plc and Education Media and Publishing Group Limited (incorporated by reference from exhibit 4.12 to the 2007 Annual Report onForm 20-F filed with the SEC on March 20, 2008) | ||
4 | .13 | Sale and Purchase Agreement, dated May 4, 2007 between Reed Elsevier Group plc and Pearson plc (incorporated by reference from exhibit 4.13 to the 2007 Annual Report onForm 20-F filed with the SEC on March 20, 2008) | ||
4 | .14 | Agreement and plan of merger by and among ChoicePoint Inc., Reed Elsevier Group plc and Deuce Acquisition Inc., dated February 20, 2008 (incorporated by reference from exhibit 4.14 to the 2007 Annual Report onForm 20-F filed with the SEC on March 20, 2008) | ||
8 | List of significant subsidiaries, associates, joint ventures and business units | |||
12 | .1 | Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002, by the Chief Executive Officer of Reed Elsevier PLC | ||
12 | .2 | Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002, by the Chief Financial Officer of Reed Elsevier PLC |
F-83S-1
13 | .1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Executive Officer of Reed Elsevier PLC | ||
13 | .2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Financial Officer of Reed Elsevier PLC | ||
13 | .3 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Executive Officer of Reed Elsevier NV | ||
13 | .4 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Financial Officer of Reed Elsevier NV | ||
15 | .1 | Independent Registered Public Accounting Firm’s Consent — Reed Elsevier Combined Financial Statements | ||
15 | .2 | Independent Registered Public Accounting Firm’s Consent — Reed Elsevier PLC Consolidated Financial Statements | ||
15 | .3 | Independent Registered Public Accounting Firm’s Consent — Reed Elsevier NV Consolidated Financial Statements | ||
15 | .4 | Report of Independent Registered Public Accounting Firm on internal control over financial reporting — Reed Elsevier combined businesses | ||
15 | .5 | Report of Independent Registered Public Accounting Firm on internal control over financial reporting — Reed Elsevier PLC | ||
15 | .6 | Report of Independent Registered Public Accounting Firm on internal control over financial reporting — Reed Elsevier NV |
12 | .3 | Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002, by the Chief Executive Officer of Reed Elsevier NV | ||
12 | .4 | Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002, by the Chief Financial Officer of Reed Elsevier NV | ||
13 | .1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Executive Officer of Reed Elsevier PLC | ||
13 | .2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Financial Officer of Reed Elsevier PLC | ||
13 | .3 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Executive Officer of Reed Elsevier NV | ||
13 | .4 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Financial Officer of Reed Elsevier NV | ||
15 | .1 | Independent Registered Public Accounting Firm’s Consent — Reed Elsevier Combined Financial Statements | ||
15 | .2 | Independent Registered Public Accounting Firm’s Consent — Reed Elsevier PLC Consolidated Financial Statements | ||
15 | .3 | Independent Registered Public Accounting Firm’s Consent — Reed Elsevier NV Consolidated Financial Statements | ||
15 | .4 | Report of Independent Registered Public Accounting Firm on internal control over financial reporting — Reed Elsevier combined businesses | ||
15 | .5 | Report of Independent Registered Public Accounting Firm on internal control over financial reporting — Reed Elsevier PLC | ||
15 | .6 | Report of Independent Registered Public Accounting Firm on internal control over financial reporting — Reed Elsevier NV |
F-84S-2
REED ELSEVIER PLC Registrant | REED ELSEVIER NV Registrant | |
By: /s/ SIR CRISPIN DAVIS Sir Crispin Davis Chief Executive Officer | By: /s/ SIR CRISPIN DAVIS Sir Crispin Davis Chairman of the Executive Board & Chief Executive Officer | |
By: /s/ M H ARMOUR M H Armour Chief Financial Officer | By: /s/ M H ARMOUR M H Armour Member, Executive Board & Chief Financial Officer | |
Dated: March | Dated: March |
S-1S-3