Wolters Kluwer N.V. · EURONEXT:WKL
Wolters Kluwer — Morgan Stanley 9th Annual Technology, Media & Telecoms Conference 2009
120 slides from Wolters Kluwer's conference presentation, Nov 18, 2009
Slide 1: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Morgan Stanley 9th Annual Technology, Media & Telecoms Conference November 18, 2009 – Barcelona
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements. These statements may be identified by words such as "expect", "should", "could", "shall", and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncerta
Slide 3: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Introduction Kevin Entricken Maximizing Value for Customers Nancy McKinstry Enabling Infrastructure & Springboard Jack Lynch Leading Positions − Legal & Regulatory Donatella Treu − Tax & Accounting Kevin Robert − Health & Pharma Solutions Bob Becker −
Slide 4: Maximizing Value for Customers Builds on our Strong Foundation
Maximizing Value for Customers Builds on our Strong Foundation as the Professional’s First Choice Intelligent Solutions to Reduce Complexity and High Quality Solutions Drive Efficiencies that Drive Productivity Local Expertise, Brands, Scale Deliver value at the point-of- use Refocused portfolio Exp
Slide 5: Increased Investment
Increased Investment Increased product investments have supported growth, accelerating this transformation Increased Investment Significant New Products Health Average: 8-10% of Revenue Tax & Accounting ProSystem fx® Tax Complete, digital tax preparation. 14% Legal & Regulatory CAGR Financial Servic
Slide 6: Portfolio Evolution
Portfolio Evolution Our portfolio has shifted towards subscription products which provide greater value… 2004 Revenue: €3.0 billion 2008 Revenue: €3.4 billion Books Books Subscription 23% Subscription 11% & Other Non- & Other Non- Cyclical Cyclical Cyclical Cyclical 62% 71% 15% 18% Note: Cyclical pr
Slide 7: Portfolio Evolution
Portfolio Evolution … Reflecting the evolution to an information, software and service provider Software & Online Revenue as a % of Total Revenue 52% 49% 46% 47% 42% 38% 31% 9% CAGR 2003 2004 2005 2006 2007 2008 2009HY Morgan Stanley 9th Annual Technology, Media & Telecoms November 18, 2009 - Barcel
Slide 8: Indexed Revenue Growth
Portfolio Evolution This evolution positions the portfolio for improved revenue growth and profitability. Information Centric Information/Software Blend Software/Services < 10% Software 10-40% Software > 40% Software Margin 16-18% Margin 18-22% Margin 22-30% + Retention rate 80-85% Retention rate 85
Slide 9: Portfolio Evolution
Portfolio Evolution Key acquisitions in adjacent markets have strengthened our leading positions Health & Pharma Corporate & Return on Invested Capital Solutions Financial Services ProVation Medical Amerisearch UpToDate AppOne Healthcare Analytics 8.5% 8.3% 7.6% 7.3% 7.4% Tax, Accounting & Legal, Ta
Slide 10: Competitive Scale
Competitive Scale Today, Wolters Kluwer has global competitive scale in the Tax & Accounting, Legal & Regulatory and Health markets 2008 Relative Global Market Positions (revenue € billions) #1 Position #2 Position #2 Position Wolters Kluwer €0.9 Thomson Reuters €2.4 Reed Elsevier €1.1 Thomson Reute
Slide 11: Delivering Value
Delivering Value Our strong market positions and portfolio transformation have delivered increased value Revenue (€ millions) Ordinary EBITA Margin 20.1% 3,413 19.5% 3,377 3,374 16.5% 3,065 15.7% 15.5% 2,952 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 Morgan Stanley 9th Annual Technology, Medi
Slide 12: Our Vision
Our Vision Our vision remains centered on professionals with a sharper focus on helping them deliver results more efficiently The Professional’s First Choice Provide information, tools, and solutions to help professionals deliver quality results more efficiently Morgan Stanley 9th Annual Technology,
Slide 13: Mega Trends and Implications
Mega Trends and Implications Mega trends encourage our shift to information-enabled solutions which deliver results Mega Trend Implication Proliferation of information Information quality and knowledge of regulatory and increased compliance changes are key points of differentiation Customer business
Slide 14: Our Customer Promise
Our Customer Promise To be the preferred global provider of information-enabled solutions to help professionals manage processes and drive results effectively Customers Growing Wolters Kluwer is increasingly commonality of well positioned to compensated for processes, driven deliver results rather t
Slide 15: Our Customer Promise
Our Customer Promise We will help customers produce tangible results through information- enabled intelligent solutions and efficient process management Maximizing Value for Customers: High Quality, Proprietary Information Morgan Stanley 9th Annual Technology, Media & Telecoms November 18, 2009 - Ba
Slide 16: Maximizing Value for Customers: Three Strategic Priorities
Maximizing Value for Customers: Three Strategic Priorities 2010-2012 Strategy Deliver Value Expand at the Solutions Across Processes, Customers Raise Deliver Point-of-Use and Networks Innovation Value at the and Effectiveness Point-of-Use Through Global Capabilities Morgan Stanley 9th Annual Technol
Slide 17: Value at the Point-of-Use
Value at the Point-of-Use Increasingly, customers expect value to be provided at the point- of-need/use Shift From: Shift To: Static and discrete information content; Connected solutions that interact with stand alone applications with customers customers, processes and networks to driving integrati
Slide 18: Value at the Point-of-Use
Value at the Point-of-Use Information delivered within the context of customers’ needs and with “open” interfaces to other applications/sources Comments Product cuts across content sources Intelligent tool organizes Customer answers information, forms questions and process steps around the specific
Slide 19: Maximizing Value for Customers: Three Strategic Priorities
Maximizing Value for Customers: Three Strategic Priorities 2010-2012 Strategy Expand Solutions Across Expand Solutions Across Deliver Processes, Processes, Customers Raise and Networks Innovation Value Customers at the and Networks and Effectiveness Point-of-Use Through Global Capabilities Morgan St
Slide 20: Path for Expansion
Path for Expansion Integrating outwards from core transactions provides a clear path for expansion and provide a higher value proposition for customers Mortgage Transaction Lifecycle Pre-closing Closing – Fraud and Servicing- Customer Mortgage Asset Investor Processing – document E-close and Complia
Slide 21: Market Focus
Market Focus Focus on markets where we can create a “hub” to provide collaboration & connectivity across a customer’s process workflow “Hub” Position Financial Services Origination Example Lein Verification Flood Verification Mobile Online transactions transactions Collateral Verification Compliant
Slide 22: Solutions for the full Lifecycle
Solutions for the full “Lifecycle” Ultimately, our goal is to deliver management solutions for the full “lifecycle” of an activity Point to Lifecycle Point Integrated Workflow Solutions Lifecycle Solutions Solutions Name Search Lien UCC Filing Screen Search UCC Search Watch/ iLien Screen Search File
Slide 23: Maximizing Value for Customers: Three Strategic Priorities
Maximizing Value for Customers: Three Strategic Priorities 2010-2012 Strategy Raise Innovation and Expand Solutions Across Effectiveness Processes, Customers Raise Deliver and Networks Through Value at the Global Capabilities Innovation and Effectiveness Point-of-Use Through Global Capabilities Morg
Slide 24: Global Market Positions
Global Market Positions Our organization will focus on the strength of our global market positions Wolters Kluwer Legal & Regulatory Tax & Accounting Health & Pharma Financial & €1.5 billion €0.9 billion Solutions Compliance Services €0.7 billion €0.3 billion Legal & Regulatory Tax & Accounting Heal
Slide 25: Innovation and Efficiency
Innovation and Efficiency These globally-aligned strategies support innovation and efficiency Open standards and a common Technology Platforms architecture enabling world-class solutions cost effectively Best practices and proven approaches Common business models and to product development, pricing
Slide 26: Strategy Update: Maximize Value for Customers
Strategy Update: Maximize Value for Customers The strategy will drive value creation in the medium term Driver Today Tomorrow Online & Software High single-digit Double-digit growth Revenue Growth growth Subscription & Other 70% ≥ 75% Non-Cyclical Revenue of total revenues of total revenues Online,
Slide 27: Maximizing Value for Customers: Three Strategic Priorities
Maximizing Value for Customers: Three Strategic Priorities 2010-2012 Strategy Expand Solutions Across Processes, Customers Raise Deliver and Networks Innovation Value at the and Effectiveness Point-of-Use Through Global Capabilities Morgan Stanley 9th Annual Technology, Media & Telecoms November 18,
Slide 28: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Introduction Kevin Entricken Maximizing Value for Customers Nancy McKinstry Enabling Infrastructure & Springboard Jack Lynch Leading Positions − Legal & Regulatory Donatella Treu − Tax & Accounting Kevin Robert − Health & Pharma Solutions Bob Becker −
Slide 29: Technology and Shared Services Strategy
Technology and Shared Services Strategy 2010-2012 Strategy Smarter, context-aware Expand Solutions Across Processes, Customers Raise Deliver Value at the solutions and Networks Innovation and Effectiveness Point of Use Through Global Capabilities Smarter, context-aware Open architectures that Global
Slide 30: Value at Point-of-Use
Value at Point-of-Use Context-Aware Solutions Enabling information to be delivered intelligently to customers based on their context Filter, tailor, present according to end-user’s perspective Behavior of solution is affected by: — Rule-based domain logic supplied by Wolters Kluwer In the software w
Slide 31: Value at Point-of-Use: Clinical decision support
Value at Point-of-Use Clinical decision support Context Enriched Filters Electronic Medical Records Doctor Wolters Kluwer Gender Research Clinical Decision Support Nurse HL7 Messaging Analysis Age Patient Wolters Kluwer Diagnosis Point-of-Use Clinical Decision Support Pharmacist Lab results Student
Slide 32: Technology and Shared Services Strategy
Technology and Shared Services Strategy 2010-2012 Open Strategy architectures that Expand expandSolutionssolutions Across Processes, Customers Raise and Deliver embed greater levels and Networks Innovation Value at the and Effectiveness of intelligence in the Point-of-Use Through process Global Capa
Slide 33: Expanded Solutions
Expanded Solutions Supplies network within which disparate entities can communicate “Connecting Platform” Manages lifecycle of a transaction Business Process “Workflow Platform” Business Connectivity Platform Manages “Events” –automatic Rules notifications and requests for action and provides operat
Slide 34: Expanded Solutions
Expanded Solutions We will focus product innovation on open systems to allow Wolters Kluwer to deliver broader, information-enabled solutions Traditional Model Emerging Model Closed/Proprietary Open & Interoperable Automate activity Automate process Service Oriented “Black box”, monolithic Architect
Slide 35: On-Demand Transport Network
On-Demand Transport Network Freight Transport Slot Loading/ Shipment Carrier Performance Market Unloading Measurement Exchange Order Booking Unloading Tracking Payment Place Warehouse Sales Office Carriers Financial Institution Client Advertiser Third Party Receivers Terminals Plants Morgan Stanley
Slide 36: Technology and Shared Services Strategy
Technology and Shared Services Strategy 2010-2012 Global Strategy capabilities that: Transfer innovation across geographies Increase Expand Solutions Across the Customers Processes, effectivenessRaise Deliver and Networks of Value at the our operations by better Innovation and Effectiveness Point-of
Slide 37: Global Capabilities
Global Capabilities Global product platform will follow a “Build, Generalize, Scale” approach to shorten time to market for new products Commercial Release Today 100% 100s of sites % online revenue on Global Atlas 1 large site 2 sites Global Platform Leverage 0% IntelliConnect Build Release 1.1 R2 R
Slide 38: Springboard Savings Increased
Springboard Savings Increased Springboard will exceed its near-term and long-term financial and operational objectives: savings increased to €140-160 million Multi-Generational Program execution has exceed management Technology Plan expectations Content Savings targets increased through global back
Slide 39: Springboard Savings Increased
Springboard Savings Increased We will increase savings to €140-160 million (+€20-40 million) through global back office efficiencies Services Delivery Network (SDN) Global Shared Account Rationalized local support functions into global Services Management back office Application Development Applicat
Slide 40: Technology and Shared Services Strategy
Technology and Shared Services Strategy 2010-2012 Global Strategy capabilities that: Transfer innovation across geographies Increase Expand Solutions Across the Customers Processes, effectivenessRaise Deliver and Networks of Value at the our operations by better Innovation and Effectiveness Point-of
Slide 41: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Introduction Kevin Entricken Maximizing Value for Customers Nancy McKinstry Enabling Infrastructure & Springboard Jack Lynch Leading Positions − Legal & Regulatory Donatella Treu − Tax & Accounting Kevin Robert − Health & Pharma Solutions Bob Becker −
Slide 42: Legal & Regulatory
Legal & Regulatory Wolters Kluwer commands a #2 global position in the Legal & Regulatory market Global Market Share Wolters Kluwer Revenue €13.6 billion addressable market €1.5 billion (2008) (2008) Online 22% Thomson Reuters 18% 36% North America Sub- Wolters Kluwer 11% scription 71% Soft- 18% & o
Slide 43: Mega Trends
Mega Trends Market trends require a shift from pure information research to more complex process and practice management solutions Mega Trend Implication Pressure from corporations to reduce legal costs and Power shift to corporations shift to fixed fees Increasing pressures on law Productivity tool
Slide 44: Legal & Regulatory: True North
Legal & Regulatory: “True North” To support legal, regulatory and compliance specialists in executing and managing complex and repeatable processes #2 Legal & Shift towards Wolters Kluwer’s Regulatory player fixed legal fees global platforms provide extension Wolters Kluwer’s Tightening and opportun
Slide 45: Legal & Regulatory: True North
Legal & Regulatory: “True North” The “True North” for our Legal & Regulatory business will be focused on law firms, corporate legal offices, Academic and compliance professionals. Institutions Legal Professionals • Legal Firms • Corporate Legal Offices • Compliance Professionals Other Corporate Publ
Slide 46: Value at the Point-of-Use
Value at the Point-of-Use ComplyTrack helps to turn content into action and process management Business Compliance Example ComplyTrack ComplyTrack Auto-report of who acknowledged policy, took training and incidents in relation to policy Compliance Professional Chief Compliance Supervisor reviews/ Em
Slide 47: Extended Solutions: Solution in a Box
Extended Solutions: “Solution in a Box”… Primary Sources, Forms, Journals, Commentaries + News Basic Practice Management Software Tools Basic Time Sheet Calculation Sheet Books Customer Library Invoicing Itinera Iuris Morgan Stanley 9th Annual Technology, Media & Telecoms November 18, 2009 - Barcelo
Slide 48: Global Capabilities
Global Capabilities ELSA is a modularized product that supports a full range of practice management needs depending on the geography and law firm Matters ELSA is: Calculation Identities Tools A SaaS Solution Modular Accounting Calendars Adaptable to local needs Multilingual Billing Documents Fully i
Slide 49: Legal & Regulatory
Legal & Regulatory: Focus expansion on key geographies by extending information- enabled lifecycle management solutions Focus on law firms, corporate legal offices, and compliance professionals Deliver solutions for compliance professionals across multiple specialty Who areas Extend penetration in s
Slide 50: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Introduction Kevin Entricken Maximizing Value for Customers Nancy McKinstry Enabling Infrastructure & Springboard Jack Lynch Leading Positions − Legal & Regulatory Donatella Treu − Tax & Accounting Kevin Robert − Health & Pharma Solutions Bob Becker −
Slide 51: Tax & Accounting
Tax & Accounting Wolters Kluwer commands a #1 position globally in the multi- domestic tax and accounting market Global Market Share Wolters Kluwer Revenue €4.7 billion addressable market €0.9 billion (2008) (2008) 19% Online 24% Wolters Kluwer 48% Sub- Thomson Reuters 13% scription North America &
Slide 52: Mega Trends
Mega Trends: Drive evolution from information and point applications to connected solutions and actionable results Mega Trend Implication Commoditization of business Productivity tools are key to increase volume of work activities to maintain professional firm revenues Further drive need to increase
Slide 53: Tax & Accounting: True North
Tax & Accounting: “True North” To be the preferred global provider of solutions that effectively manage processes and drive results for tax and accounting professionals Wolters Kluwer’s Growing Wolters Kluwer is #1 worldwide commonality of well positioned to footprint serving processes, driven deliv
Slide 54: Tax & Accounting: True North
Tax & Accounting: “True North” The “True North” for TAA is focused on tax and accounting professionals and their key Governments collaboration partners. Tax and Accounting Tax Payers Professionals Corporations Professional Services Firm Morgan Stanley 9th Annual Technology, Media & Telecoms Strategy
Slide 55: Implementation
Value at the Point-of-Use Solutions will integrate deep local knowledge with global collaboration around products, platforms and processes Implementation Tax Software Publishing Content Local Local Audit Content solutions Go-To-Market Approach IntelliConnect/Global Atlas Products and Complete Workfl
Slide 56: ProSystem fx Demo
Expand Solutions Welcome to the next generation of the ProSystem fx® Suite ProSystem fx® Demo Morgan Stanley 9th Annual Technology, Media & Telecoms November 18, 2009 - Barcelona 56 Conference
Slide 57: Global Capabilities
Global Capabilities IntelliConnect, a global content delivery platform, launched April ‘09 Morgan Stanley 9th Annual Technology, Media & Telecoms November 18, 2009 - Barcelona 57 Conference
Slide 58: Global Capabilities
Global Capabilities Performance of CCH Canada demonstrates the potential of global product extensions and collaboration Tax & Accounting: Impact of Globalization CCH Canada now sells 7 products from our US business These products lifted performance, generating CCH Canadian offer pre-TAA 30% of 2005
Slide 59: Tax & Accounting: Maximizing Value for Customers
Tax & Accounting: Maximizing Value for Customers Focus on tax and accounting professionals in firms and corporations #1 global provider for solutions to professional firms with growing Who presence in corporations Exploit the connection between professional firms and corporate clients Deliver soluti
Slide 60: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Introduction Kevin Entricken Maximizing Value for Customers Nancy McKinstry Enabling Infrastructure & Springboard Jack Lynch Leading Positions − Legal & Regulatory Donatella Treu − Tax & Accounting Kevin Robert − Health & Pharma Solutions Bob Becker −
Slide 61: Health & Pharma Solutions
Health & Pharma Solutions Wolters Kluwer commands a #2 position globally across the medical information markets Medical Information Wolters Kluwer Revenue Global Market Share €0.7 billion (2008) €5.0 billion addressable market (2008) Sub- 42% 20% Online Reed Elsevier scription 62% North 67% & other
Slide 62: Mega Trends
Mega Trends: Increasing focus on quality, access and costs play to our strengths in the provision of information-enabled solutions Mega Trend Implication Market is large, dynamic and Strong base to support Wolters Kluwer growth growing Search for improved quality, Increased need for products deliver
Slide 63: Health & Pharma Solutions: True North
Health & Pharma Solutions: “True North” To deliver information and solutions to providers and payers to improve clinical practice, raising access, quality and effectiveness of healthcare Market-leading Trends toward Offer solutions for brands including quality of care drive multiple usage Lippincott
Slide 64: Health & Pharma Solutions: True North
Health & Pharma Solutions: “True North” The “True North” of the business is focused on clinicians, with opportunities to extend to serve hospitals, payers Institutions and patients. Clinicians Physicians Nurses Allied Health Pharmacists Pharma/ Patients Payers Morgan Stanley 9th Annual Technology, M
Slide 65: Value at the Point-of-Use
Value at the Point-of-Use ProVation Medical streamlines medical procedure documentation and coding Capture/Create Review Process Correct Review Dictation Dictation/ ProVation Clarify Codes Without Dictate & Wait Manual Data Manual Coding Entry Hand-write File Brief Note inPaperChart Find Paper Captu
Slide 66: Tomorrow: Expanded Integration
Expand Solutions: Our superior point solutions in the market today will continue to expand and offer deeper integration into the workflow Superior Point Clinical Solutions Today: Workflow Decision Research Learning Services Tools Support Tools Tools (“CDS”) Tomorrow: Expanded Offerings and Deeper In
Slide 67: OvidSP 2.0 Demo
Global Capabilities: OvidSP 2.0 Platform OvidSP 2.0 Demo Morgan Stanley 9th Annual Technology, Media & Telecoms November 18, 2009 - Barcelona 67 Conference
Slide 68: Global Capabilities: OvidSP 2.0 Platform
Global Capabilities: OvidSP 2.0 Platform Launching January 2010 Morgan Stanley 9th Annual Technology, Media & Telecoms November 18, 2009 - Barcelona 68 Conference
Slide 69: Maximizing Value for Customers
Maximizing Value for Customers: Growth investments focused on workflow and point-of-care solutions while supporting core healthcare content assets Focus on our core markets Clinicians throughout their lifecycle Who Further expansion into hospitals, payers and patients Deliver solutions that improve
Slide 70: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Introduction Kevin Entricken Maximizing Value for Customers Nancy McKinstry Enabling Infrastructure & Springboard Jack Lynch Leading Positions − Legal & Regulatory Donatella Treu − Tax & Accounting Kevin Robert − Health & Pharma Solutions Bob Becker −
Slide 71: Financial Services Introduction
Financial Services Financial Services Introduction Morgan Stanley 9th Annual Technology, Media & Telecoms November 18, 2009 - Barcelona 71 Conference
Slide 72: Financial Services
Financial Services Wolters Kluwer’s financial services business consists predominantly of subscriptions and software U.S. Market Share Wolters Kluwer Revenue €2.0 billion (2008) €0.2 billion (2008) Wolters Kluwer Online 19% 9% Sub- scription Harland 5% & other 72% non- Soft- 49% 99% cyclical ware U.
Slide 73: Mega Trends
Mega Trends: Increase in rules, enforcement, and global financial activity drive the need for more tools in financial transaction compliance Mega Trend Implication Increase in regulatory oversight Major regulatory changes and controls are underway and harmonization globally with convergence of stand
Slide 74: Financial Services: True North
Financial Services: “True North” To provide intelligent origination and compliance financial services solutions Unique combination of Strong assets and Three different entry products capabilities points into Broad regulatory customers: Automated and efficient origination content coverage Regulation
Slide 75: Financial Services: True North
Financial Services: “True North” Focus is on banks with opportunities to extend to securities firms, indirect lenders (e.g., automotive dealers) and insurers. Securities Banks Compliance officers Operations executives Risk managers Indirect Insurers Lenders Morgan Stanley 9th Annual Technology, Medi
Slide 76: Value at the Point-of-Use
Value at the Point-of-Use Origination systems combine compliance rules and workflow delivering intelligence automatically at the point-of-loan origination Compliance Rules and Contextual Decision Enterprise and Regulations Trees Individual Workflow + + Client Banker Compliant Documentation at Point-
Slide 77: Indirect Lending Marketplace
Indirect Lending Marketplace Expand solutions across customers, processes and networks our participation will include connectivity with partners Before Lenders AppOne: local, limited credit relationships Dealers ? Credit Credit Application Decision With AppOne: Consumer Dealer national, broadened Ap
Slide 78: Global platforms Meet Global Needs
Global platforms Meet Global Needs As markets continue to converge, product lines for detection, fraud and regulatory information are increasingly globally relevant Product Group International Demand Regulatory Information & Multinational activity Increasing regulatory burden Tools U.S. customers de
Slide 79: Maximizing Value for Customers
Maximizing Value for Customers: Drive developments in geographies with regulatory complexity Focus on compliance and operations roles in financial services firms Compliance officers needing up-to-date regulations, commentaries and Who tools Financial services business, operations and fraud teams who
Slide 80: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Introduction Kevin Entricken Maximizing Value for Customers Nancy McKinstry Enabling Infrastructure & Springboard Jack Lynch Leading Positions − Legal & Regulatory Donatella Treu − Tax & Accounting Kevin Robert − Health & Pharma Solutions Bob Becker −
Slide 81: Governance, Risk & Compliance (GRC)
Governance, Risk & Compliance (GRC) Risks … Processes … People All organizations are exposed to many different risks, including compliance risk. Most corporations have a defined set of processes to manage all those risks. Most corporations employ lines of defense to carry out these processes. Morgan
Slide 82: Governance, Risk & Compliance
Governance, Risk & Compliance The GRC software market is fragmented and only beginning to address total spend in the area Global Software Market Share Wolters Kluwer GRC €0.9 billion addressable market 2008 Revenue (2008) Open Pages 4% Wolters Kluwer 3% Soft- North 78% ware Thomson Paisley 3% Americ
Slide 83: GRC: Mega Trends
GRC: Mega Trends Global demand is increasing for unified technology and compliance solutions to address growing risk and management complexity Mega Trend Implication Increased need for corporations to use regulatory Greater regulatory control compliance systems Need for enterprise-wide view across m
Slide 84: GRC: True North
GRC: “True North” To provide the premiere Enterprise Risk Management platform and associated governance solutions that reach across geographies and leverage deep domain expertise Significant gap Growing global Ability to leverage between regulatory demand for global Wolters Kluwer news/awareness com
Slide 85: GRC: True North
GRC “True North” Our GRC effort will combine common needs amongst global audit and risk professionals with deep Financial vertical and geographic Services specificity. Audit, Risk and Consumer Compliance Healthcare Goods Professionals & Pharma Manufacturing & Utilities Morgan Stanley 9th Annual Tech
Slide 86: Value at the Point-of-Use
Value at the Point-of-Use Wolters Kluwer’s actionable content clearly articulates what needs to be done & how, while GRC toolsets automate ARC tasks ComplyTrack/ Axentis/ IntelliConnect Axentis ComplyTrack New or changed law Compliance Compliance Counsel/compliance notified and selects survey survey
Slide 87: Extended Solutions
Extended Solutions GRC links granular actionable issues with enterprise-wide dashboard to provide a risk solution across multiple processes Content Risk RCA Productivity Libraries Libraries Tools Question Surveys Libraries Reporting Issues & Actions TeamMate Indicator Audit Governance Tools Axentis
Slide 88: Global Capabilities
Global Capabilities Existing products are deeply embedded in customers’ workflows and provide a robust global GRC platform CCH MediRegs/ComplyTrack CCH TeamMate Compliance System Audit Management System Compliance and content nce Productivity platform management platform plia Actionable content m Ac
Slide 89: GRC Offers Global Reach & Deep Vertical Market Expertise
GRC Offers Global Reach & Deep Vertical Market Expertise Focus on senior management and risk and compliance professionals Support risk, compliance and audit management professionals Who Provide senior management with a linkage between strategic risk overview and actionable granular compliance tracki
Slide 90: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Introduction Kevin Entricken Maximizing Value for Customers Nancy McKinstry Enabling Infrastructure & Springboard Jack Lynch Leading Positions − Legal & Regulatory Donatella Treu − Tax & Accounting Kevin Robert − Health & Pharma Solutions Bob Becker −
Slide 91: 2009 Third-quarter Trading Update
2009 Third-quarter Trading Update Market conditions continue to be challenging as anticipated Subscription and other non-cyclical revenues (over 70% of total revenues) continues to deliver resilient results 9% growth in electronic revenues year-to-date New sales and transactional revenues remain und
Slide 92: 2009 Third-quarter Trading Update
2009 Third-quarter Trading Update Springboard cost savings program ahead of expectations, total program savings increased to €140-160 million by 2011 Annual impairment analysis resulted in a non-cash impairment charge of €197 million with no impact on diluted ordinary EPS Solid financial position re
Slide 93: 2009 Outlook Reiterated
2009 Outlook Reiterated Key Performance Indicators 2009 Guidance Ordinary EBITA Margin Broadly In line with 2008 Free Cash Flow1 ± €350 million Return on Invested Capital (after tax) ≥ 8% Diluted ordinary EPS1 €1.41 to €1.46 ¹ At constant currencies (EUR/USD = 1.47) Realistic Expectations Confident
Slide 94: Delivering Value for Shareholders
Delivering Value for Shareholders Our strong market positions and portfolio transformation have delivered increased value for shareholders Diluted Ordinary Earnings per Share Diluted Free Cash Flow per Share € 1.47 € 1.38 € 1.33 € 1.37 € 1.27 € 1.10 € 0.93 € 1.01 11% CAGR 16% CAGR 2005 2006 2007 200
Slide 95: Free Cash Flow
Free Cash Flow Consistent cash flow from operating activities supports investments for future growth Cash Flow from Operating Activities Capital Expenditures (€ millions) (€ millions) 140 521 125 512 485 93 79 382 11% CAGR 21% CAGR 2005 2006 2007 2008 2005 2006 2007 2008 Reported Free Cash Flow Free
Slide 96: Investments
Investments Investments in new products and selective acquisitions and divestitures have supported our growth and transformation Investments in product development Acquisitions EPS1 ROIC2 and EBITA margin trend DeAgostini, Nolis, Osra, 350 19.5% 20.1% 22% Eon, Best Case, 2005 2 20% Tripoint, Entyre,
Slide 97: Functional Costs
Functional Costs Reduced cost of revenues and general & administrative costs Maintained marketing & sales and publishing & editorial costs Cost of Revenues General & Administrative (as a % of revenue) (as a % of revenue) 37.2% 22.6% 36.2% 21.4% 35.7% 20.9% 2006 2007 2008 2006 2007 2008 Marketing & S
Slide 98: Solid Financial Position
Solid Financial Position Net debt/EBITDA Free Cash Flow (€ millions) 3.2 3.2 3.1 399 405 395 3.0 350 2.4 311 ± 2005 2006 2007 2008 2009HY 2005 2006 2007 2008 2009 Restated to reflect Education division as discontinued operations 2009 Guidance at constant currencies EUR/USD 1.47 Guidance 1,850 Autono
Slide 99: Transition to Global New Reporting Structure
Transition to Global New Reporting Structure New reporting structure adopted in 2010 Revenue Splits under Exisiting Revenue Splits under New Financial Reporting Structure Financial Reporting Structure (Through 2009) (Beginning 2010) Financial & Compliance Health & Services Pharma 9% Legal, Tax Solut
Slide 100: 2010-2012 Medium-Term Guidance
2010-2012 Medium-Term Guidance Key Performance 2010-2012 Medium-Term Guidance Indicators Double-digit online & software growth Online, software & services revenue ≥75% of total revenues Portfolio Composition Subscription and other non-cyclical revenues revenue ≥75% of total revenues Print revenue ≤2
Slide 101: 2010-2012 Other Financial Metrics
2010-2012 Other Financial Metrics Other financial metrics will support medium term guidance Other Financial Metrics 2010-2012 Medium-Term Guidance Progressive dividend Uses of free cash flow Improving financial leverage Investment in the business Net debt/EBITDA 2.5x target Dividend policy Progressi
Slide 102: Continued Improvement in Capital Efficiency
Continued Improvement in Capital Efficiency Strong and increasing free cash flow Solid profitability Improving return on invested capital Commitment to strong balance sheet and financial flexibility Increasing returns to shareholders by progressive dividend policy Morgan Stanley 9th Annual Technolog
Slide 103: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Introduction Kevin Entricken Maximizing Value for Customers Nancy McKinstry Enabling Infrastructure & Springboard Jack Lynch Leading Positions − Legal & Regulatory Donatella Treu − Tax & Accounting Kevin Robert − Health & Pharma Solutions Bob Becker −
Slide 104: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Maximizing value for customer builds on our strong foundation as The Professional’s First Choice Intelligent Solutions to Reduce Complexity and High Quality Solutions Drive Efficiencies that Drive Productivity Local Expertise, Brands, Scale Proprietary
Slide 105: Strategy Update: Maximize Value for Customers
Strategy Update: Maximize Value for Customers The strategy will drive value creation for customers and shareholders Customer and Shareholder Value Progression Intelligent Organic growth/margin improvement Solutions and Automated Networks Process Integrated Management Shareholder Value Solutions and
Slide 106: Strategy Update: Maximizing Value for Customers
Strategy Update: Maximizing Value for Customers Builds on our strong foundation as The Professional’s First Choice Focus on customer productivity through precise, context sensitive results at the point of use Shift to information-enabled, intelligent solutions which provide value through precision,
Slide 107: Q&A
Q&A Morgan Stanley 9th Annual Technology, Media & Telecoms Conference November 18, 2009 – Barcelona
Slide 108: Appendix: Half-Year Highlights
Appendix: Half-Year Highlights Morgan Stanley 9th Annual Technology, Media & Telecoms Conference November 18, 2009 – Barcelona
Slide 109: Half-Year Highlights
Half-Year Highlights Resilient earnings growth, profit margins, and free cash performance despite weak market conditions Ordinary EBITA Margin 1 Diluted ordinary EPS 18.6% € 0.64 +70 bps 17.9% +€0.01 € 0.63 HY 2008 HY 2009 HY 2008 HY 2009 1 2 Free Cash Flow Net Debt/ EBITDA Ratio € millions €134 3.2
Slide 110: Revenue Growth
Revenue Growth Key strategic acquisitions contributed to growth while underlying revenue were impacted by economic conditions and challenges in transactional and cyclical product lines Revenue: Half-Year 2009 €1,720 million Revenue: Six Months Ended June 30 Legal, Tax Health € millions 2009 2008 ∆ ∆
Slide 111: Consolidated Revenue
Consolidated Revenue CFS transactions Sound performance in underlying 5% subscription and other non-cyclical Books 9% Advertising revenues, materially in line with the 3% prior year Pharma Subscription & promomotion Books showed good growth due to Other Non- 2% strong advanced ordering for the fall
Slide 112: Ordinary EBITA
Ordinary EBITA Improvement driven by performance of higher margin, online and software products, the contribution of prior year acquisitions and operational excellence programs, including project Springboard Ordinary EBITA: Half-Year 2009 €320 million Ordinary EBITA %: Six Months Ended June 30 2009
Slide 113: Health Highlights
Health Highlights Significant progress in the division’s performance was achieved in the first-half Clinical Books showed good growth due to strong advanced ordering for the Solutions Pharma fall semester selling season 18% Solutions 27% Medical Research posted strong growth driven by renewal sales
Slide 114: Health Revenue
Health Revenue Stable subscription and other non-cyclical Revenues: Six months ended June 30th results driven by good renewal rates, offset by (€ millions) 2009 2008 ∆ ∆ CC ∆ OG weaker new product sales Subscription & Book products restored to growth with stronger other non-cyclical 233 183 27% 16%
Slide 115: CFS Highlights
CFS Highlights The division leveraged its brands, strong customer loyalty, and market positions to increase its market share penetration by offering leading full service compliance solutions to its customers Corporate & Legal Services results were impacted by lower Financial corporate formation and
Slide 116: CFS Revenue
CFS Revenue Stable subscription and other non-cyclical Revenues: Six months ended June 30th revenue driven by performance of (€ millions) 2009 2008 ∆ ∆ CC ∆ OG representation, banking, securities and insurance products Subscription & other non-cyclical 160 140 15% 0% 0% Corporate & Legal Services un
Slide 117: TAL Highlights
TAL Highlights The division continued to strengthen its core leadership position by increasing penetration of its next-generation platforms for information and software including the launch of IntelliConnectTM Tax and Accounting: Good subscription growth in the U.S. and Law & Canada offset by weaker
Slide 118: TAL Revenue
TAL Revenue Subscription revenues were in line with prior Revenues: Six months ended June 30th year while other non-cyclical revenues, which (€ millions) 2009 2008 ∆ ∆ CC ∆ OG includes bank product transactions and tax form click product lines, were below prior year Subscription & due to adverse eco
Slide 119: LTRE Highlights
LTRE Highlights Revenue results were impacted by cyclical declines in advertising, training and consulting as well as weaker new sales across the Scandinavia business due to economic conditions 3% Belgium 9% France Online and software sales continued to perform well as customers 16% migrated from pr
Slide 120: LTRE Revenue
LTRE Revenue Subscription revenues in line with the prior Revenues: Six months ended June 30th year, stable retention sales while other non- (€ millions) 2009 2008 ∆ ∆ CC ∆ OG cyclical products were weaker due to recessionary market conditions Subscription & other non-cyclical 490 484 1% 3% (2%) Boo
Wolters Kluwer — Morgan Stanley 9th Annual Technology, Media & Telecoms Conference 2009 on 6ix