Reed Elsevier has achieved the targets we established three years ago when we laid out our strategy for growth, despite a very different and more challenging global economic environment

We are pleased to report a further year of strong financial performance and strategic progress in 2002. Reed Elsevier has achieved the targets we established three years ago when we laid out our strategy for growth despite a very different and more challenging global economic environment: organic revenue growth is ahead of the market in each of our four divisions; adjusted earnings per share saw double digit growth at constant currencies; and a good conversion of earnings into cash has been delivered. The Harcourt Science & Medical and Education businesses acquired in 2001 have strongly contributed in their first full year within Reed Elsevier.

Reed Elsevier’s performance this year demonstrates the strong fundamentals of our business: leading brands and market positions; high quality and in-depth content; international business spread; and financial strength. The performance in 2002 also underscores the turnaround in the business over the last three years as we have aggressively executed against our strategy, and gives us much confidence for the future. Continuing investment in new products and innovation, and in sales and marketing initiatives, is driving momentum across our businesses, together with a constant focus on operational efficiency and cash generation. The organisation is now much stronger, with a sound structure in place and much greater depth of proven management talent.