Wolters Kluwer N.v. · EURONEXT:WKL
Wolters Kluwer — Investor Day (November 2023)
37 slides from Wolters Kluwer's investor day presentation, Nov 30, 2023
Slide 1: Financial & Corporate Compliance and DXG Investor Teach-In
Wolters Wolters Kluwer Kluwer Tax & Teach-In Investor Accounting Investor Financial & Corporate Teach-In Compliance and DXG ◼ December 2022 November 30, 2023 Financial & Corporate Compliance and DXG Investor Teach-In – November 2023 1
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: Today's speakers
Today’s speakers Nancy McKinstry Steven Meirink Vikram Savkar Suzanne Konstance Alex Tyrrell Chair & CEO CEO EVP & General VP, SVP, Wolters Kluwer Wolters Kluwer Manager, Lien Solutions Wolters Kluwer Financial & Compliance Digital eXperience Corporate Solutions Group Compliance Financial & Corporat
Slide 4: Agenda
Agenda • Introduction – Nancy McKinstry • FCC division overview and strategy – Steven Meirink • Digital lending workflow – Vikram Savkar • Innovating around Lien Solutions – Suzanne Konstance • CT Corporation and summary – Steven Meirink • Update on DXG and Generative AI – Alex Tyrrell • Q&A Financi
Slide 5: Financial & Corporate Compliance (FCC)
Financial & Corporate Compliance (FCC) Financial & Corporate Compliance represented 19% of group revenues and 26% of group adjusted operating profit in 2022 Wolters Kluwer Wolters Kluwer FY 2022 Revenues Pro Forma FY 2022 Adjusted Operating Profit Pro Forma Corporate Performance & ESG 5% Corporate P
Slide 6: Megatrends
Megatrends As with all of Wolters Kluwer, FCC is exposed to four key megatrends • Increasing volumes and complexity of information, data, and regulations • Digitization of professional workflows to improve outcomes and drive efficiencies • Increasing adoption of cloud-based, integrated solution suit
Slide 7: Origins of FCC
Origins of FCC Over 120 years of experience in legal services and 70 years in lending compliance Key Milestones and Acquisitions Legal Services Corporation CT Corp first Trust to support Company of CT Corp Business Filings NRAI Vcorp LicenseLogix incorporation New Jersey (registered Incorporated (re
Slide 8: Agenda
Agenda • Introduction – Nancy McKinstry • FCC division overview and strategy – Steven Meirink • Digital lending workflow – Vikram Savkar • Innovating around Lien Solutions – Suzanne Konstance • CT Corporation and Summary – Steven Meirink • Update on DXG and Generative AI – Alex Tyrrell • Q&A Financi
Slide 9: Financial & Corporate Compliance
Financial & Corporate Compliance Serving the lifeblood of the U.S. economy Wolters Kluwer Financial & Corporate Compliance 3,100+ FTEs 1 99% of revenues in U.S. 50 U.S. states, D.C., and thousands of local jurisdictions 300,000+ customers, including corporations, businesses, law firms, banks, and fi
Slide 10: Division overview
Division overview Compliance solutions for U.S. financial institutions and companies Financial Services Legal Services Workflow Loan Compliance Regulatory Compliance Legal Entity Management and Corporate Services Description Document preparation, Regulatory content, Services and solutions to support
Slide 11: Competitive position
Competitive position Strong market positions in the segments we serve Financial Services Legal Services Total Addressable Market 2023 Total Addressable Market 2023 $2 billion $2 billion Wolters Kluwer Wolters Kluwer Others Others ICE Mortgage Technology CSC Finastra Capitol Services First American D
Slide 12: Revenue profile
Revenue profile A software and services business with approximately two thirds of revenues from recurring revenue streams and one third from transactional fees Financial & Corporate Compliance Nine-Months 2023 Revenues Segment Type Media Format Other non- Financial Svcs recurring transactional 2% 12
Slide 13: Transactional revenues
Transactional revenues Transactional revenues mainly reflect interest rate and M&A cycles Financial & Corporate Compliance – Historical Pro Forma Organic Growth Total organic growth Non-recurring organic growth 15% Paycheck Protection Program 10% (PPP) 5% - 2016 2011 2012 2013 2018 2019 2010 2014 20
Slide 14: Recurring revenues
Recurring revenues Over the longer term, FCC recurring revenues have seen accelerated growth and have increased in importance Financial & Corporate Compliance (Historical Pro Forma) Revenue Split by Type Organic Growth in Recurring Revenues (%) Recurring Non-recurring 8% Global Financial Crisis COVI
Slide 15: Market trends
Market trends FCC benefits from several important market drivers Increasing regulatory complexity for banks and corporations Rising emphasis on compliance expertise and capabilities Accelerating digital adoption trends across banking and legal workflows Growing appetite for cloud-based, integrated s
Slide 16: Strategy
Strategy Focused on digitization, innovation, and the customer experience • Accelerate innovation and commercialization • Drive digital adoption in the lending markets • Enhance technology capabilities for the corporate services market • Continue pursuing acquisitions and partnerships • Deliver capa
Slide 17: Agenda
Agenda • Introduction – Nancy McKinstry • FCC division overview and strategy – Steven Meirink • Digital lending workflow – Vikram Savkar • Innovating around Lien Solutions – Suzanne Konstance • CT Corporation and summary – Steven Meirink • Update on DXG and Generative AI – Alex Tyrrell • Q&A Financi
Slide 18: Financial Services
Financial Services Focused on lending and regulatory compliance solutions U.S. Financial Services Market Segments Consumer Commercial Investment Investment Other Banking Banking Banking Services Personal Treasury Asset Underwriting Payments Banking Management Management Wealth Mortgage Trade Finance
Slide 19: Digital adoption
Digital adoption Still nascent but growing rapidly eNotes as a percentage of Purchase Wolters Kluwer Digital Transformation Index Mortgage Deliveries to Fannie Mae (increase in Digital Adoption Rate since 2020) Mortgage eNotes Auto Finance Equipment Finance 7.5% ↑120% ↑31% rate of digital rate of di
Slide 20: eOriginal
eOriginal Leader in digital lending technology eOriginal® Solution eOriginal® helps accelerate the digital journey by providing participants across the industry with technology to create, store, and transfer digital loans in compliance with governing laws and regulations eNote/ eClose eVault Authori
Slide 21: Loan compliance workflow
Loan compliance workflow Wolters Kluwer offers end-to-end capabilities across the lending workflow Wolters Kluwer Loan Compliance Solutions Document Preparation Digital Closing Compliance Analytics Lien Solutions Loan document packages Solutions enabling Solutions enabling lenders Loan and lease-rel
Slide 22: Competitive landscape
Competitive landscape Broadest and deepest portfolio in loan compliance Loan Compliance Competitors First Loan compliance Wolters ICE Mortgage American CSC Other competitors workflow steps Kluwer Technology Docutech Document Preparation ● ◐ ◐ - Finastra, DocMagic Digital Closing (and eVault) ● ◐
Slide 23: Agenda
Agenda • Introduction – Nancy McKinstry • FCC division overview and strategy – Steven Meirink • Digital lending workflow – Vikram Savkar • Innovating around Lien Solutions – Suzanne Konstance • CT Corporation and summary – Steven Meirink • Update on DXG and Generative AI – Alex Tyrrell • Q&A Financi
Slide 24: Lien Solutions
Lien Solutions Providing mission critical services in lien filing and management Wolters Kluwer Lien Solutions Search File Manage Release Search for pre- Lien filing to secure Lien management to Terminate lien after existing claims and claim ensure ongoing loan is paid off to ensure accuracy protect
Slide 25: Innovation
Innovation iLien Manage: ground-breaking innovation to address a customer need iLien Manage Monitoring Analytics & Reporting Proactively tracks borrower Interactive dashboard to track changes that could impact portfolio health for risk and lien perfection quality and lender’s priority position Auto-
Slide 26: Advanced technology
Advanced technology Leveraging AI to drive dramatic quality and efficiency improvement Illustrative State Titling Form iLien Motor Vehicle “Digital Twin” Capability Checks for vehicle document package completeness using content classification and image recognition models Checks for data completeness
Slide 27: Agenda
Agenda • Introduction – Nancy McKinstry • FCC division overview and strategy – Steven Meirink • Digital lending workflow – Vikram Savkar • Innovating around Lien Solutions – Suzanne Konstance • CT Corporation and summary – Steven Meirink • Update on DXG and Generative AI – Alex Tyrrell • Q&A Financi
Slide 28: Legal Services
Legal Services Leadership in legal entity management and corporate services CT Corporation Offerings CT Corporation Strategic Focus Formation Maintenance Dissolution • Maintain industry-leading customer experience • Incorporation • Registered agent • Dissolution services • Registered agent • Withdra
Slide 29: Summary
Summary A U.S. market leader, well-aligned to market opportunities • Strong market positions in Financial Services and Legal Services • Deep expertise in compliance embedded in the business • Perfectly aligned to key market drivers • Driving digital adoption across all the markets we serve • Embraci
Slide 30: Agenda
Agenda • Introduction – Nancy McKinstry • FCC division overview and strategy – Steven Meirink • Digital lending workflow – Vikram Savkar • Innovating around Lien Solutions – Suzanne Konstance • CT Corporation and summary – Steven Meirink • Update on DXG and Generative AI – Alex Tyrrell • Q&A Financi
Slide 31: Digital eXperience Group
Digital eXperience Group Centralized product development organization supports all divisions in driving faster and more efficient innovation Wolters Kluwer Divisions Health Tax & Accounting Financial & Legal & Corporate Corporate Regulatory Performance & Compliance ESG Digital eXperience Group (*/dx
Slide 32: Artificial Intelligence
Artificial Intelligence Over 10 years experience in deploying AI. Around 50% of digital revenue from products leveraging AI. Actively experimenting with generative LLMs Products/services using traditional AI ML NLP BOT DL Use cases for generative AI • UpToDate • CT Registered Agent Services • Conver
Slide 33: DXG lean process supports responsible AI development
DXG lean process supports responsible AI development User-focused, iterative and responsible software design and development DXG Lean Product Design & Development Process Business Model Canvas Invention Disclosure Security & Privacy by Design Nascent Discover Design Develop Deploy Innovation Portfol
Slide 34: AI Labs powered by UpToDate
AI Labs powered by UpToDate® Responsible generative AI for clinical decision support Financial & Corporate Compliance and DXG Investor Teach-In – November 2023 34
Slide 35: Health AI Labs powered by UpToDate
Health AI Labs powered by UpToDate® GenAI synthesizes a direct answer from UpToDate content Financial & Corporate Compliance and DXG Investor Teach-In – November 2023 35
Slide 36: Generative AI for internal process transformation
Generative AI for internal process transformation We are evaluating use cases for GenAI across several internal processes Marketing & Sales Customer Support Improve engagement, Virtual assistants, chatbots personalization and optimize and intelligent agents ROI, faster and more improve customer prod
Slide 37: Q&A
Q&A Financial & Corporate Compliance and DXG Investor Teach-In – November 2023 37