Wolters Kluwer N.V. · EURONEXT:WKL
Wolters Kluwer — Shareholder Meeting (April 2017)
25 slides from Wolters Kluwer's shareholder meeting presentation, Apr 20, 2017
Slide 1: 2017 Annual General Meeting of Shareholders
Wolters Kluwer 2017 Annual General Meeting of Shareholders April 20, 2017 2017 Annual General Meeting of Shareholders 1
Slide 2: Nancy McKinstry, CEO and Chairman of the Executive Board
Nancy McKinstry CEO and Chairman of the Executive Board 2017 Annual General Meeting of Shareholders 2
Slide 3: 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 4: Agenda
Agenda 2016 Financial Performance Progress on Strategic Priorities Outlook and Summary 2017 Annual General Meeting of Shareholders 4
Slide 5: Highlights 2016
Highlights 2016 In 2016, we sustained growth, improved profitability and made strategic progress Sustained Total organic growth +3% organic Digital and services organic growth +5% growth Adjusted operating profit up +6% Increased Adjusted FCF up +9% profitability Diluted adjusted EPS up +6
Slide 6: Financial performance
Financial performance We have seen steady improvement across several key financial metrics Organic Revenue Growth Adjusted Operating Profit Margin 23.0% +4% +3% +3% 22.1% +3% 22.0% +2% +2% +1% +1% +1% 21.0% +1% 0% 20.0% 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Diluted Adjusted EPS
Slide 7: Performance vs. guidance
Performance vs. guidance And, we met or exceeded our 2016 guidance Performance indicators 2016 Guidance 2016 Actual Achieved Adjusted operating profit margin 21.5%–22.0% 22.1% Exceeded €708 million2) Adjusted free cash flow €650-€675 million1) +9%1) Exceeded Return on invested capital > 9% 9.8% Di
Slide 8: Revenues by division
Revenues by division Accelerated growth in Health and Tax & Accounting offset slower growth in GRC (€ million) FY 2016 FY 2015 ∆ ∆ CC ∆ OG Health 1,106 1,022 +8% +8% +6% Tax & Accounting 1,173 1,132 +4% +4% +4% Governance, Risk & Compliance 1,091 1,065 +2% +3% +3% Legal & Regulatory 927 989 -6% -6%
Slide 9: Adjusted operating profit
Adjusted operating profit Increased margins in Health, GRC, and Legal & Regulatory more than offset lower margin in Tax & Accounting Margin Margin (€ million) FY 2016 FY 2015 ∆ ∆ CC ∆ OG FY 2016 FY 2015 Health 271 247 +10% +9% +8% 24.5% 24.1% Tax & Accounting 315 311 +1% +2% +1% 26.9% 27.5% Governan
Slide 10: Digital transformation
Digital transformation Digital products and services are driving our transformation: in 2016, they grew +5% organically and reached 85% of total revenues 2016 Organic Revenues by Media Format (%) Growth: 20% 15% Print -8% 31% 26% 36% 12% Services +3% 44% 52% 12% 16% 15% 15% 13% 13% Digital +5% 68% 7
Slide 11: Dividend
Dividend For over 25 years, Wolters Kluwer has maintained or increased its dividend per share. Today we are proposing full-year total dividend of €0.79 per share, up +5% Dividend per Share (€)1) 0.79 0.75 0.69 0.70 0.71 0.66 0.67 0.68 0.64 0.65 Proposed 0.58 final 0.55 dividend €0.60 Interim dividen
Slide 12: Share buybacks
Share buybacks We’ve been executing on our Share Buyback Program 2016-18: completing €200 million in 2016 and, as of April 19, €80 million in 2017 Share Buybacks (€ million) Share Buyback Program 2016-2018 (up to €600 million over 3 years) 200 135 140 100 80 20 25 2011 2012 2013 2014 2015 2016 YTD 2
Slide 13: Share price performance
Share price performance Wolters Kluwer share price has significantly outperformed the AEX and Media sector Wolters Kluwer Share Price vs AEX and STOXX Europe 600 Media Market Rebased to 100; 5 years Capitalization: €4.0 billion €11.9 billion 300 Wolters Kluwer +197% 250 EURO STOXX 600 200 Media +75%
Slide 14: Agenda
Agenda 2016 Financial Performance Progress on Strategic Priorities Outlook and Summary 2017 Annual General Meeting of Shareholders 14
Slide 15: Strategic priorities 2016-2018
Strategic priorities 2016-2018 Our strategy aims to improve our organic growth, margins and returns ▪ Allocate capital to leading growth units and digital products ▪ Extend into adjacencies and new geographies Expand ▪ Broaden sales and marketing coverage Market Coverage ▪ Supplement organic growth
Slide 16: Expand market coverage
Expand market coverage Building on our strengths with organic investment and selected acquisitions Increased investment in sales and marketing for global products: — Added sales and marketing FTE’s in Clinical Solutions — Prepared launch of TeamMate+ cloud solution — Increased investment to suppor
Slide 17: Deliver expert solutions
Deliver expert solutions Investing in digital products with increasing focus on expert solutions that deliver improved outcomes and greater productivity: Lien Solutions TeamMate Search Manage File U.S. market leader in lien services, Global market leader in internal audit serving banks and other
Slide 18: Drive efficiency and engagement
Drive efficiency and engagement Efficiency savings are helping to fund investment and margin increases Efficiencies Created sales and marketing centers of excellence Delivered savings in editorial and production Leveraged technology platforms and components Consolidated real estate; rational
Slide 19: Sustainable value creation
Sustainable value creation We aim to create value for all stakeholders with a long-term sustainable business model driven by innovation 2017 Annual General Meeting of Shareholders 19
Slide 20: Sustainability ratings
Sustainability ratings Inclusion in several sustainability indices provides external confirmation of our efforts Sustainability Index Index Provider 2014 2015 2016 Dow Jones Sustainability Index CDP Investor FTSE4Good Index RobecoSAM Bronze Bronze Bronze EURO STOXX Sustainability I
Slide 21: Agenda
Agenda 2016 Financial Performance Strategic Progress Outlook and Summary 2017 Annual General Meeting of Shareholders 21
Slide 22: Guidance 2017
Guidance 2017 In February 2017, we set out our financial guidance for the year Performance indicators FY 2017 Guidance Adjusted operating profit margin 22.5%–23.0% Adjusted free cash flow €675-€725 million Return on invested capital > 9% Diluted adjusted EPS Mid-single-digit growth Guidance for adju
Slide 23: Summary
Summary We are focused on achieving our 2017 goals 2016 results – Sustained 3% organic growth – Significant improvement in margins, free cash flow and adjusted EPS – Increased returns to shareholders Executing on our strategic plan – Expanding our market coverage with organic investment and sele
Slide 24: 2017 Charity: Princess Máxima Center
2017 Charity: Princess Máxima Center New Dutch healthcare initiative for children, care and research against cancer The Princess Máxima Center for Pediatric Oncology is a new national initiative to improve the quality of oncology treatment and care for children The Center, to be opened in 2018 i
Slide 25: Thank you
Thank you 2017 Annual General Meeting of Shareholders 25