Slide 1: First Quarter Fiscal 2024 Earnings Review
First Quarter Fiscal 2024 Earnings Review September 7, 2023
Slide 2: Safe Harbor Statement and Non-GAAP Measures
SAFE HARBOR STATEMENT NON-GAAP MEASURES This presentation contains certain forward-looking statements concerning the In this presentation, management provides the following non-GAAP Company's operations, performance, and financial condition. Reliance should performance measures: not be placed on for
Slide 3: The Knowledge Company
The Knowledge Company Wiley enables the creation of new knowledge and its application in science, learning, and innovation
Slide 4: First Quarter Overview
Overview First Quarter Overview Q1 performance as expected due to the Hindawi publishing pause; underlying strength and momentum returning in Research with increasing article volume, favorable journal rankings, and new partner signings Reorganized Wiley from three separate teams to one market-facing
Slide 5: First Quarter Performance
First Quarter Performance GAAP Revenue Adj. Revenue* GAAP EPS Adj. EPS* Adj. EBITDA* ▼7% ▼8% ▼$1.35 ▼37% ▼10% $451M $367M ($1.67) $0.27 $60M *Adjusted Revenue, Adjusted EPS, and Adjusted EBITDA performance excludes businesses held for sale or sold. Collectively, these businesses generated $84 millio
Slide 6: Research Publishing: Solid fundamentals with momentum growing
Research Publishing: Solid fundamentals with momentum growing ▪ Demand to publish improving with core article submissions +4%* and output +2%.* All subject areas and regions showing improvement ▪ Increasing momentum in Gold Open Access, with strong double-digit revenue growth ▪ Leading indicators of
Slide 7: Reorganizing to reflect a more focused strategy
Reorganizing to reflect a more focused strategy Full Year 2023* Research Learning Businesses Publishing and Solutions Publishing and Solutions Reporting Lines Research Publishing and Solutions Academic and Professional Key Verticals Science, Technical, Medical, Scholarly Business, Technology, Scienc
Slide 8: Experienced Leadership Team Focused on execution
Experienced Leadership Team Focused on execution Brian Napack Christina Van Tassell Jay Flynn Matt Leavy Deirdre Silver President & CEO EVP & CFO EVP, Research & Learning EVP, Operations EVP & General Counsel Joined: 2017 2021 2010 2018 2002 Shari Hofer Josh Jarrett Aref Matin Danielle McMahan Todd
Slide 9: Actions underway to deliver performance and margin gains
Actions underway to deliver performance and margin gains Focus on publishing and solutions in Focusing on must-have content, platforms, and solutions in vertical markets where we have Research and strong competitive advantage, scale, and opportunity Learning Divest non-core Divesting University Serv
Slide 10: Segment Performance / Financial Position
Segment Performance Financial Position Learning
Slide 11: Research
Research (millions) Q1 2024 Change Change CC Research Publishing $223 (7%) (8%) Research Solutions $35 (2%) (2%) Total Revenue $258 (6%) (7%) Adjusted EBITDA $77 (18%) Adjusted EBITDA Margin 29.8% ▪ Research Publishing decline mainly due to the Hindawi publishing disruption (-$19M); excluding Hindaw
Slide 12: Learning
Learning (millions) Q1 2024 Change Change CC Academic $48 (18%) (18%) Professional $61 0% 0% Total Revenue $109 (9%) (9%) Adjusted EBITDA $21 19% Adjusted EBITDA Margin 19.4% ▪ Academic decline due to lower print sales and order timing in our key retail accounts, offsetting growth in digital coursew
Slide 13: Financial Position and Capital Allocation
Financial Position and Capital Allocation Free Cash Flow: Use of $106M vs. $114M in prior year. Variance due to lower incentive compensation payments. $29M $29M Capex: $24M in Q1, even with prior year M&A: No acquisitions in Q1. Wiley focusing on divesting non-core assets Dividends: 30 Years of cons
Slide 14: Optimization and Cost Savings
Optimization and Cost Savings Multi-year business optimization program underway • Driving toward a leaner and more agile workforce • Improving operating efficiency and modernizing infrastructure • Deploying capital more effectively Multi-year program expected to yield $100M in cost savings. Key buck
Slide 15: Fiscal 2024 Outlook Reaffirmed
Fiscal 2024 Outlook Reaffirmed Fiscal 2023 Fiscal 2024 Outlook Metric (Millions, except EPS) ex-divestitures^ ex-divestitures Total Adjusted Revenue* $1,627 $1,580 to $1,630 Research $1,080 Flat (+3% ex-Hindawi) Learning $547 Down low single digits Total Adjusted EBITDA* $379 $305 to $330 Total Adju
Slide 16: Key Highlights: Creating a stronger, more profitable Wiley
Key Highlights: Creating a stronger, more profitable Wiley Q1 performance as expected; Research leading indicators and 1 momentum improving Reorganized Wiley from three separate teams to one market-facing 2 team to leverage collective strength and drive operating leverage Moving expeditiously on div
Slide 17: October 12 Investor Day
October 12 Investor Day New Wiley Profile Focus and Extend Strategy Research and Learning — Target market — Products and business models — Competitive advantages and synergies — Growth and margin drivers Business Optimization Financial Overview and Fiscal 2026 Targets 17 Q124 Earnings Presentation.p
Slide 18: Thank you for joining us
Thank you for joining us IR website at https://investors.wiley.com/ Contact us for follow-up at: brian.campbell@wiley.com Direct +1 (201) 748-6874 18 Q124 Earnings Presentation.pptx
Slide 19: Appendix – US GAAP to Non-GAAP EPS Reconciliation
Appendix – US GAAP to Non-GAAP EPS Reconciliation Reconciliation of US GAAP EPS to Non-GAAP Adjusted EPS Three Months Ended July 31, 2023 2022 US GAAP Loss Per Share - Diluted $ (1.67) $ (0.32) Adjustments: Impairment of goodwill 0.43 - Restructuring and related charges 0.16 0.30 Foreign exchange (g
Slide 20: Appendix – US GAAP to Non-GAAP EPS Notes
Appendix – US GAAP to Non-GAAP EPS Notes (1) See Explanation of Usage of Non-GAAP Performance Measures included in this supplementary information for additional details on the reasons why management believes presentation of each non-GAAP performance measure provides useful information to investors.
Slide 21: Appendix – Net Income to Adjusted EBITDA
Appendix – Net Income to Adjusted EBITDA JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF US GAAP NET LOSS TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended July 31, 2023 2022 Net Loss $ (92,264) $ (17,835) Interest expense 11,334 6,332 Benefit for income t