2. Highlights Successful delivery of 3 year strategic programme Successful delivery of 3 year strategic programme Achievement of 2002 financial targets despite economic downturn Achievement of 2002 financial targets despite economic downturn Harcourt makes strong contribution in first full year Harcourt makes strong contribution in first full year On track to meet strategic and financial targets for 2003 On track to meet strategic and financial targets for 2003

3. Financial Update Mark Armour Chief Financial Officer

4. Adjusted figures exclude amortisation of goodwill and intangible assets and exceptional items Turnover Adjusted operating profit Operating margin Net interest expense Adjusted profit before tax % % % % change constant 2001 m 2002 m 2001 £m 2002 £m 4,560 1,594990 22%22% (229)(142) 1,365848 12 months to 31 December 7,3425,020 1,133 23% (206) 927 7,982 1,801 23% (327) 1,474 +13 +17 +11 Adjusted Profit And Loss

5. Revenues Adjusted operating profit 20012002200120022001200220012002 Science & Medical: Revenues up 29% - adjusted operating profit up 26% - margin 33.1% Underlying revenues up 6%; operating profit up 11% Underlying revenues up 6%; operating profit up 11% Strong renewals, growing online sales, successful publishing programme Strong renewals, growing online sales, successful publishing programme Integration of Harcourt mostly complete Integration of Harcourt mostly complete Harcourt STM proforma revenues up 6%; operating profit up 14% Harcourt STM proforma revenues up 6%; operating profit up 14% £mm£mm

6. Legal: Revenues up 5% - adjusted operating profit up 10% - margin 21.3% Underlying revenues up 4%; operating profit up 11% Underlying revenues up 4%; operating profit up 11% Operating margins improved 1.2% points; cost programmes implemented Operating margins improved 1.2% points; cost programmes implemented US Legal revenues up 4%; online up 8% US Legal revenues up 4%; online up 8% Corporate and Federal revenues up 5%; strong risk solutions Corporate and Federal revenues up 5%; strong risk solutions LexisNexis International solid performance ex Latin America LexisNexis International solid performance ex Latin America Revenues Adjusted operating profit 20012002200120022001200220012002£m£mmm

7. Education: Revenues up 78% - adjusted operating profit up 45% - margin 18.4% Underlying revenues up 2%; operating profit up 4% Underlying revenues up 2%; operating profit up 4% Harcourt K-12 and Testing proforma revenues up 2%; adjusted operating profit up 6% Harcourt K-12 and Testing proforma revenues up 2%; adjusted operating profit up 6% Strong performance against a market down 5%; integration benefits increasing Strong performance against a market down 5%; integration benefits increasing Testing underlying revenues up 8% on strong prior year; operating profit up 25% Testing underlying revenues up 8% on strong prior year; operating profit up 25% Harcourt International underlying revenues flat; profit down 10% Harcourt International underlying revenues flat; profit down 10% Revenues Adjusted operating profit 20012002200120022001200220012002£m£mmm

8. Business: Revenues down 14% - adjusted operating profit down 4% - margin 16.9% Underlying revenues down 6%; operating profit up 2% Underlying revenues down 6%; operating profit up 2% No recovery in advertising markets No recovery in advertising markets Cost actions taken across the business Cost actions taken across the business Strong outperformance of market; continued share gains and yield management Strong outperformance of market; continued share gains and yield management Exhibitions resilient: underlying revenues down 1%; operating profit flat Exhibitions resilient: underlying revenues down 1%; operating profit flat Revenues Adjusted operating profit 20012002200120022001200220012002£m£mmm

9. Adjusted Profit Before Tax: Reconciliation +8%1,474+9%927 2002 Adjusted profit before tax -3%(41)-2%(14) Currency translation effect -3%(45)-3%(28)Acquisitions/Disposals+11%150+11%93 Base business (including Harcourt proforma) 1,365848 2001 Adjusted profit before tax %changem%change£m 12 months to 31 December Adjusted figures exclude amortisation of goodwill and intangibles and exceptional items +3%45+3%28 Harcourt (2001 full year adj.)

10. 2001 m2002 m2001£m2002£m 12 months to 31 December Adjusted Operating and Free Cash Flow 1,6201,6061,0061,010 Adjusted operating cash flow 85%93%85%93% Before Harcourt 102%89%102%89% Total 189%79%189%79% Harcourt businesses % conversion: (184)(326)(114)(205)Interest (287)(245)(178)(154)Tax 1,1491,035714651 Free cash flow before dividends

11. Free Cash Flow (2,731)305(1,696)192 Total cash inflow/(outflow) before financing 71(157)44(99) Other exceptional items 15416896106Disposals (3,694)(307)(2,295)(193) Acquisition spend 2001 m2002 m2001£m2002£m 12 months to 31 December (411)(434)(255)(273)Dividends 1,1491,035714651 Free cash flow before dividends 738601459378 Free cash flow after dividends

12. Exceptional Items 13019481122 Net tax credit (117)(176)(72)(111) Exceptional charge before tax 41(19)26(12) Net (loss)/ profit on sale of businesses and fixed asset investments (158)(157)(98)(99) Charged to operating profit (102)(90)(63)(57) Acquisition related costs (56)(67)(35)(42) Reorganisation costs 2001 m 2002 m 2001£m2002£m 1318911 Total exceptional credit 12 months to 31 December

13. Adjusted Earnings and Dividends -0.30+7%11.2p Equalised dividends +11%+8%0.69+9%28.5p Adjusted EPS % change constant Reed Elsevier NV Reed Elsevier PLC

14. Strategy & Execution Crispin Davis Chief Executive Officer

15. Focus on four core businesses Clear and Consistent Strategy Optimise operations/ cost efficiency Substantially increased investment Powerful marketing/sales programmes Demonstrably superior products Infill acquisitions/ alliances UpgradeorganisationeffectivenessUpgradeorganisationeffectiveness Strengthen global portfolio

16. Reed Elsevier: Key Objectives 2002 Maximise above market organic growth from four core businesses Maximise above market organic growth from four core businesses Execute and deliver on all strategic milestones Execute and deliver on all strategic milestones Ensure Harcourt achieves growth objective; complete integration well Mostly Ensure Harcourt achieves growth objective; complete integration well Mostly Improve operating margin further through increased efficiency Improve operating margin further through increased efficiency Deliver double digit earnings growth Deliver double digit earnings growth

17. Science & Medical: 2002 Priorities Maintain ScienceDirect momentum on key performance yardsticks: usage, penetration and attrition Maintain ScienceDirect momentum on key performance yardsticks: usage, penetration and attrition Deliver on new product initiatives programme driving additional revenues Deliver on new product initiatives programme driving additional revenues Implement core medical growth strategy Implement core medical growth strategy Finalise online medical strategy; start implementation Finalise online medical strategy; start implementation Complete Harcourt integration, deliver revenue and cost targets Complete Harcourt integration, deliver revenue and cost targets

18. Science & Medical: Growth Momentum - ScienceDirect Content increased from 1.8 million to 3.3 million articles Content increased from 1.8 million to 3.3 million articles Penetration up 6 percentage points to 72% Penetration up 6 percentage points to 72% Usage up 70% to 86 million article downloads Usage up 70% to 86 million article downloads Strong growth in e-only sales to $110 million Strong growth in e-only sales to $110 million

19. Science & Medical: ScienceDirect: Increasing Usage Article downloads (millions) Article downloads (millions) 1999200020012002 86 28 50 16

20. Science & Medical: ScienceDirect: Increasing Penetration 60% 69% 65% 72% 45% 35% Aug00Dec00Aug01Dec01Aug02Dec02 Aug00Dec00Aug01Dec01Aug02Dec02

21. Science & Medical: Growth Momentum: Health Sciences Upgrade management effectiveness Upgrade management effectiveness –Cohesive market driven organisation –Strong new management team Develop superior products Develop superior products –Strong new publishing programme –Investment in product development Major upgrade of sales and marketing Major upgrade of sales and marketing Develop superior online capabilities Develop superior online capabilities –Upgrade of MD Consult (subscribers up 15%; sales up over 30%) –Launch of PDAs/EVOLVE ( e -learning platform)

22. Science & Medical: Turnaround in Health Sciences Double digit Single digit Profit Growth Mid 20s Low 20s Margin +6% +3% Revenue Growth 824495 Size ($m) Post Acquisition Pre Acquisition

23. Science & Medical: Growth Momentum: Harcourt Acquired business performing well Acquired business performing well –2002 proforma revenue growth accelerated to 6%, ahead of market –Margin improvement delivering double digit profit growth Integration successful Integration successful –$40m cost savings target to be exceeded –More effective organisation driving further savings Outlook is very encouraging Outlook is very encouraging –Accelerated journals growth within ScienceDirect –Developing Health Sciences electronic product –Platform for global expansion, e.g. Holtzbrinck STM –Continuing programme of margin improvement

24. Science & Medical: Growth Momentum Strong front list publishing Strong front list publishing Expand digital collections and electronic services Expand digital collections and electronic services Enhanced navigation and delivery Enhanced navigation and delivery Superior products Focused branding and customer relationships Focused branding and customer relationships Optimum electronic pricing strategies Optimum electronic pricing strategies Enhance sales force effectiveness Enhance sales force effectiveness Powerful sales & marketing Complete product rationalisation Complete product rationalisation Standardisation of production Standardisation of production Enhanced systems effectiveness Enhanced systems effectiveness Cost efficiency Global expansion Acquisition of national health publishers Acquisition of national health publishers Product geocloning Product geocloning Widening distribution Widening distribution

25. Legal: 2002 Priorities Further upgrade of electronic product: content, functionality, customisation to achieve preferred product status Further upgrade of electronic product: content, functionality, customisation to achieve preferred product status Accelerated growth of online usage; monetise Accelerated growth of online usage; monetise Maintain competitive position in law schools Maintain competitive position in law schools Implement margin improvement programme - towards mid-20s target Implement margin improvement programme - towards mid-20s target Accelerate global expansion: geography, global platform, branding, organisation Accelerate global expansion: geography, global platform, branding, organisation SEESAW

26. Legal: Developing Superior US Legal Products Navigation Improvements Improved Company Dossier Annotated Codes Leading Risk Solution Application Case Law Summaries New Global Product Platform Court Docket e-Filing State by State Customisation

27. Legal: US Legal Online Usage Growing Growth in commercial searches Growth in commercial searches 1999200020012002 +22% +17% +31% 2002 Online Revenue Growth +8%

28. Legal: Growth Momentum - Risk Solutions Strong growth market; increasing concerns over fraud, identity theft and national security Strong growth market; increasing concerns over fraud, identity theft and national security Superior information and risk assessment solutions Superior information and risk assessment solutions –Most comprehensive, reliable public records database –Application of advanced data linking and scoring technologies Revenues up 29% in 2002 Revenues up 29% in 2002

29. Legal: Optimising Cost Efficiency 1999200020012002 21.3% 19.7% 20.1% 24.9% Operating Margin Operating Margin

30. Legal: Accelerating Global Expansion Global regional organisation structure in place Global regional organisation structure in place Global delivery platform on target; rollout 2003 Global delivery platform on target; rollout 2003 Geographic expansion Geographic expansion –Established German operations; MBO Verlag –Acquisition of Quicklaw in Canada –Acquisition of FactLANE in The Netherlands Global brand established Global brand established

31. Legal: Growth Momentum More content: dockets, codes, summaries More content: dockets, codes, summaries More functionality: e-filing, company dossier, risk solutions More functionality: e-filing, company dossier, risk solutions More customisation: small law, litigation support, One Search More customisation: small law, litigation support, One Search Superior products Focus on market segmentation Focus on market segmentation Maintain strong law schools programme Maintain strong law schools programme Enhanced sales force effectiveness Enhanced sales force effectiveness Powerful sales & marketing Margin improvement programme Margin improvement programme Operational/fulfilment improvements Operational/fulfilment improvements Cost efficiency Global expansion Rollout of global delivery platform Rollout of global delivery platform Priority countries penetrated/targeted Priority countries penetrated/targeted

32. Education: 2002 Priorities Win greatest share of new K-12 basal and supplementary spending: US and international Win greatest share of new K-12 basal and supplementary spending: US and international Win greatest share of new educational testing contracts Win greatest share of new educational testing contracts Establish strong core competencies and focus in electronic product development and sales Establish strong core competencies and focus in electronic product development and sales Ensure basal/supplementary publishing programmes on track for 2003/2004 growth Ensure basal/supplementary publishing programmes on track for 2003/2004 growth Organisation: appoint division head; align Harcourt values/culture with Reed Elsevier Organisation: appoint division head; align Harcourt values/culture with Reed Elsevier x

33. Education: Winning Performance in 2002 Adoptions # 2 # 1 Science # 2 # 1 Social Studies # 4 # 1 Mathematics Language Arts #2 # 2 Reading/Literature SecondaryElementary Overall # 1 Overall # 2 Based on estimated share obtained from total available sales across all adoptions in these subjects in 2002

34. Outperform US Education Market* Growth % 3138 Harcourt US Education Growth % Note: * US Education Market represent total K-12 textbook sales as reported by Association of American Publishers (AAP). Education: Market Outperformance 33411 - 5 0 12 9 19981999200020012002

35. Education: Market Outperformance # 1 overall market share in 2002 adoptions # 1 overall market share in 2002 adoptions Good growth in open territories and backlist Good growth in open territories and backlist Short term market weakness Short term market weakness –Low point in adoption cycle –State budget pressures –Delayed spending in anticipation of federal monies Investment in e-learning, funded by integration savings Investment in e-learning, funded by integration savings

36. Education: US K-12 Historic Market Growth 14% 13% 7% 6% 5% 11% 3%3%3%3% 2%2%2%2% -2% 11% -7% 15%15%15%15% 6% 13%13%13%13% 12%12%12%12% 3% 13% 8% -5% -10% -5% 0% 5% 10% 15% 20% 1984198519861987198819891990199119921993199419951996199719981999200020012002 Last 20 years : Av Growth +6% Last 10 years : Av Growth +7% Last 5 years : Av Growth +6% Source : AAP Industry Data

37. Education: Growth Momentum: Testing Good growth on top of exceptional 2001 Good growth on top of exceptional 2001 –New state contract wins –New assessment publishing Stanford Achievement Test 10 launched Stanford Achievement Test 10 launched –Strong norm reference heritage –Adaptable to state specific criteria California state contract not renewed California state contract not renewed –Impact on 2003 revenue growth (approximately $45m) Strong profit performance driven by Strong profit performance driven by –New organisation and management appointments –Substantial improvement in process efficiency Investment in e-assessment stepped up Investment in e-assessment stepped up

38. Education: Growth Momentum Proven programme development process Proven programme development process Expansion across curriculum range Expansion across curriculum range Building online products: e-learning, e-testing, e-professional development Building online products: e-learning, e-testing, e-professional development Superior products Market research embedded in development and sales process Market research embedded in development and sales process Strengthen Open Territories sales force Strengthen Open Territories sales force Powerful sales & marketing Greater focus on organisational efficiency Greater focus on organisational efficiency Further supply chain savings targeted Further supply chain savings targeted Cost efficiency Global expansion Appointment of Global CEO to drive strategic development Appointment of Global CEO to drive strategic development Product transfer across markets Product transfer across markets Acquisition potential Acquisition potential

39. Business: 2002 Priorities Deliver above market revenue growth in all key markets Deliver above market revenue growth in all key markets Further upgrade magazine quality and sales effectiveness Further upgrade magazine quality and sales effectiveness Build more integrated global B2B business: brands, sectors, customers Build more integrated global B2B business: brands, sectors, customers Achieve meaningful margin improvement at RBI US Achieve meaningful margin improvement at RBI US Drive internet solutions to achieve double digit revenue growth Drive internet solutions to achieve double digit revenue growth

40. Business: Continuing Tough Markets UK Technology and Air Transport hardest hit; recovery in Agriculture; Social Services strong Technology and Air Transport hardest hit; recovery in Agriculture; Social Services strong Rate of decline now slowed; more stable/ predictable trend; no real sign of recovery Rate of decline now slowed; more stable/ predictable trend; no real sign of recovery Overall US Electronics and Manufacturing hardest hit; growth in Construction and Entertainment Electronics and Manufacturing hardest hit; growth in Construction and Entertainment Significant sector variation; subscription and circulation holding up Significant sector variation; subscription and circulation holding up ContinentalEurope Leading shows hold up well; Asia Pacific growth offset by US Manufacturing weakness; 2002 cycling broadly neutral Leading shows hold up well; Asia Pacific growth offset by US Manufacturing weakness; 2002 cycling broadly neutral GlobalExhibitions

41. Business: Market Outperformance Leadership positions in almost all sectors Leadership positions in almost all sectors Geographic and sector spread Geographic and sector spread Investment led momentum has built share Investment led momentum has built share Effective management of costs Effective management of costs Continued strong online growth Continued strong online growth

42. Gifts & Decorative Acc.+6% Laboratory Equipment+7% Professional Builder+8% Variety - weekly+9% RBI US RBI Europe Bouwwereld+8% Elsevier+7% LogistiekKrant+9% Medisch Contact+8% Based on % gain in share of ad pages January - December 2002; excludes yield effects RBI UK Caterer & Hotelkeeper+4% Estates Gazette+4% Farmers Weekly+8% Personnel Today+4% Business: Market Share Gains

43. Business: Online Revenue Growth $m 1999200020012002 57 95 115 22

44. Business: Growth Momentum Constant product improvement Constant product improvement New online services New online services Superior products Disciplined customer feedback programmes Disciplined customer feedback programmes Market segmentation and yield management Market segmentation and yield management Enhanced sales force effectiveness Enhanced sales force effectiveness Powerful sales & marketing Further supply chain savings Further supply chain savings US margin improvement programme US margin improvement programme Cost efficiency Global expansion Leverage global markets Leverage global markets Geocloning of titles and shows Geocloning of titles and shows Selective acquisitions Selective acquisitions

45. Strategic Higher quality overall portfolio; excellent fit Higher quality overall portfolio; excellent fit Significant boost for Science publishing Significant boost for Science publishing Global leadership in Medical, with strong growth potential Global leadership in Medical, with strong growth potential Major position in long term growth US education market Major position in long term growth US education marketFinancial Acceleration of revenue and profit growth Acceleration of revenue and profit growth Achieve annual return over WACC within 5 years Achieve annual return over WACC within 5 years Earnings accretion Earnings accretion Add to shareholder value (NPV basis) Add to shareholder value (NPV basis) The Harcourt Acquisition Delivering on Criteria

46. Reed Elsevier: Internet Revenues £m/m 1999200020012002 436/715 750/1208 1008/1603 120/182

47. Reed Elsevier: Investment and Cost Savings Continuing investment driving momentum Continuing investment driving momentum Relentless focus on operational efficiency Relentless focus on operational efficiency £/1999200020012002 Investment £ 80270260290 122440419461 122440419461 Cost Savings £-143215 over 350 -235346 over 550 -235346 over 550

48. Reed Elsevier: Key Objectives For 2003 Maximise above market organic growth from four core businesses Maximise above market organic growth from four core businesses Execute and deliver on all strategic milestones Execute and deliver on all strategic milestones Improve operating margin further through increased efficiency Improve operating margin further through increased efficiency Deliver double digit earnings growth Deliver double digit earnings growth Product superiority Global expansion Cost efficiency Powerful sales and marketing

49. Strong business fundamentals and financial position Conclusions Strong organic growth across all businesses compared to market On track to deliver 2003 goals of above-market revenue and double-digit profit growth Harcourt acquisition has accelerated revenue and profit growth Reed Elsevier strategy proving effective

51. Appendices

52. Turnover: Reconciliation %change m%change£m +9%7,982+10%5,020 2002 Turnover -4%(316)-3%(134) Currency translation effect -3%(243)-3%(151)Disposals +1%64+1%40 Other acquisitions +1%118+1%73 Base businesses (including Harcourt proforma) 7,3424,560 2001 Turnover Harcourt (2001 full year adj.) 632+14%1,017+14% 12 months to 31 December

53. Average rates: per £120012002 US Dollar1.441.50 Euro 1.611.59 Euro 30% Other 5% UK Sterling 21% US Dollar 44% Average rates: per 120012002 US Dollar0.890.94 Sterling 0.620.63 Currency Profile: Adjusted Profit Before Tax

54. 0.130.13 0.180.18 Reed Elsevier NV EPS 4.8p7.0p Reed Elsevier PLC EPS 202288126181 Reported profit attributable 1318911 Exceptional items (816)(814)(507)(512) Amortisation of goodwill and intangible assets 1,0051,084624682 Adjusted profit attributable 2001 m2002 m2001£m2002£m 12 months to 31 December Reported Profit Attributable

55. Balance Sheet 1,4161,183863773 Net debt 5,2964,1803,2292,732 Other net liabilities/minorities 4,7844,0682,9172,659 Shareholders funds 11,4969,4317,0096,164 395214241140Investments 802741489484 Tangible fixed assets 11,0268,8956,7235,814 Goodwill/intangible assets 2001 m2002 m2001£m2002£m (727)(419)(444)(274) Working Capital 11,4969,4317,0096,164 At 31 December

56. Dividend Equalisation Reed Elsevier PLC (p) 20022001 % Change Interim 20022001 Final 3.203.108.007.408% UK tax credit rate Reed Elsevier PLC (gross)(p) Equalisation ratio Exchange rate (:£) Reed Elsevier NV () 10%10% 3.563.44 1.538 1.59 0.09 1.538 1.63 0.090% 3% 10% 8.89 1.538 1.51 0.21 10% 8.22 1.538 1.63 0.210%

57. This presentation contains forward-looking statements within the meaning of Section 27A of the US Securities Act 1933, as amended, and Section 21E of the US Securities Exchange Act 1934, as amended. These statements are subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such forward looking statements. The terms expect, should be, will be, and similar expressions identify forward looking statements. Factors which may cause future outcomes to differ from those foreseen in forward looking statements include, but are not limited to: general economic conditions and business conditions in Reed Elseviers markets; exchange rate fluctuations; customers acceptance of its products and services; the actions of competitors; legislative, fiscal and regulatory developments; changes in law and legal interpretation affecting Reed Elseviers intellectual property rights, and the impact of technological change.