BASIS OF PREPARATION
The Reed Elsevier combined financial statements encompass the businesses of Reed Elsevier Group plc and Elsevier Reed Finance BV and their respective subsidiaries, associates and joint ventures, together with the two parent companies, Reed Elsevier PLC and Reed Elsevier NV (‘the combined businesses’).

The Reed Elsevier PLC summary financial information reflects its shareholders’ 52.9% economic interest in the Reed Elsevier combined businesses. The Reed Elsevier NV summary financial information reflects its shareholders’ 50% economic interest in the Reed Elsevier combined businesses. The respective economic interests of the Reed Elsevier PLC and Reed Elsevier NV shareholders take account of Reed Elsevier PLC’s 5.8% equity interest in Reed Elsevier NV.

The summary financial statements include adjusted figures for profit and cash flows, which exclude the amortisation of goodwill and intangible assets, exceptional items and related tax effects. These figures are used by Reed Elsevier as additional performance measures. Adjusted operating profit is also shown after share of operating profit in joint ventures. Adjusted operating cash flow is measured after dividends from joint ventures, tangible fixed asset spend and proceeds from the sale of tangible fixed assets.