Wolters Kluwer N.V. · EURONEXT:WKL
Wolters Kluwer — Shareholder Meeting (April 2015)
25 slides from Wolters Kluwer's shareholder meeting presentation, Apr 22, 2015
Slide 1: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders April 22, 2015 | Amsterdam
Slide 2: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders April 22, 2015 | Amsterdam Nancy McKinstry CEO and Chairman of the Executive Board
Slide 3: HIMSS15
HIMSS15 “When you have to be right” Annual General Meeting of Shareholders 2015 3
Slide 4: 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 5: Agenda
Agenda Introduction Strategic Priorities Highlights of 2014 Financial Performance Outlook and Summary Annual General Meeting of Shareholders 2015 5
Slide 6: Introduction
Introduction Results in line with guidance; organic growth improved to 2% 2014 results in line with guidance set at the start of the year – Adjusted operating profit margin 21.0%, within guidance range – Diluted adjusted EPS up +3% at constant currencies, in line with guidance – Adjusted free cash
Slide 7: Agenda
Agenda Introduction Strategic Priorities Highlights of 2014 Financial Performance Outlook and Summary Annual General Meeting of Shareholders 2015 7
Slide 8: Progress on strategic goals
Progress on strategic goals Key achievements 2014 ▪ Delivered 7% organic growth in our leading, high growth positions; Double-digit growth in Expand faster-growing economies our leading, ▪ Expanded Corporate Legal Services with high growth acquisition of Datacert positions ▪ Implemented several smal
Slide 9: 1. Expand our leading, high growth positions
1. Expand our leading, high growth positions Leading, high growth positions sustained 7% organic growth Wolters Kluwer Revenue 2014 Leading, high growth units within divisions (48% of total revenues) Divisions: % of division: Organic Growth: Financial & Compliance Finance, Risk & >10% 58% Services C
Slide 10: 2. Deliver solutions and insights
2. Deliver solutions and insights Investing in products that improve our customers’ productivity and outcomes Tailored to Increases mobility and Driving improved customer needs productivity outcomes Kleos UpToDate Anywhere Lippincott’s Nursing Advisor Next Generation cloud product Expanded global re
Slide 11: 3. Drive efficiencies
3. Drive efficiencies Creating global scale and savings in our operations Sales Channel Process & Sourcing Technology Real Estate & Go to Market Organization Legal & Regulatory and Tax & Accounting Outsourcing print, automating editorial & production and consolidating real estate Streamlined edi
Slide 12: Sustainability
Sustainability Innovation drives sustainability at Wolters Kluwer External recognition 2014 Included in Dow Jones Sustainability Index Awarded RobecoSAM Bronze Class Sustainability medal Included in FTSE4Good Index Ranked among Global 100 Most Sustainable Corporations by Corporate Knights In
Slide 13: Wolters Kluwer as employer
Wolters Kluwer as employer Proud to be part of “One Wolters Kluwer” Employer of choice — Selected as Top Employer in Netherlands and Belgium Diversity — Strong diversity among our staff and leadership — 50% of executive management are female Employee survey — First global Employee Survey provi
Slide 14: Agenda
Agenda Introduction Strategic Priorities Highlights of 2014 Financial Performance Outlook and Summary Annual General Meeting of Shareholders 2015 14
Slide 15: 2014 performance
2014 performance 2014 results in line with guidance Performance indicators 2014 Guidance 2014 Actual Achieved Adjusted operating profit margin 20.5%–21.5% 21.0% Adjusted free cash flow* ≥ €475 million €513 million Return on invested capital ≥ 8% 8.5% Diluted adjusted EPS* Low single-digit grow
Slide 16: Revenues by division
Revenues by division Tax & Accounting, Health and Financial & Compliance Services support organic growth (€ million) 2014 2013 ∆ ∆ CC ∆ OG Legal & Regulatory 1,497 1,447 +3% +4% -1% Tax & Accounting 946 965 -2% -1% +3% Health 816 775 +5% +5% +5% Financial & Compliance Services 401 378 +6% +6% +4% To
Slide 17: Revenues by region
Revenues by region Organic growth driven by North America and Asia Pacific & ROW (€ million) 2014 2013 ∆ ∆ CC ∆ OG North America 1,999 1,924 +4% +5% +3% Europe 1,373 1,387 -1% -1% 0% AsiaPac & ROW 288 254 +13% +12% +7% Total revenues 3,660 3,565 +3% +3% +2% ∆: % Change; ∆ CC: % Change constant curre
Slide 18: Revenues by media format
Revenues by media format Digital revenues up 6% organically, growing in all divisions (€ million) 2014 2013 ∆ ∆ CC ∆ OG Digital 2,472 2,286 +8% +8% +6% Services 453 454 0% 0% 0% Print 735 825 -11% -10% -9% Total revenues 3,660 3,565 +3% +3% +2% ∆: % Change; ∆ CC: % Change constant currencies (EUR/US
Slide 19: Adjusted operating profit
Adjusted operating profit Margin decline due to increased restructuring Margin Margin (€ million) 2014 2013 ∆ ∆ CC ∆ OG 2014 2013 Legal & Regulatory 305 313 -3% -3% -6% 20.3% 21.6% Tax & Accounting 250 259 -3% -3% -3% 26.4% 26.8% Health 197 175 +13% +11% +11% 24.1% 22.6% Financial & Compliance Servi
Slide 20: Leverage
Leverage Net-debt-to-EBITDA ratio improved to 2.1x Net-Debt-to-EBITDA (Ratio) 3.1x 2.9x Target: 2.7x 2.5x 2.4x 2.2x 2.1x 2009 2010 2011 2012 2013 2014 Annual General Meeting of Shareholders 2015 20
Slide 21: Returns to shareholders
Returns to shareholders Increasing cash returns Progressive dividend policy: ninth consecutive year of increase Share buy-back of up to €140 million in 2015 Dividend per share (€)1) Share buy-backs (€ million) 0.71 645 0.70 0.69 0.68 0.67 0.66 0.65 135 140 0.64 100 0.58 0.55 19 20 25 2005 2006 2
Slide 22: Agenda
Agenda Introduction Strategic Priorities Highlights of 2014 Financial Performance Outlook and Summary Annual General Meeting of Shareholders 2015 22
Slide 23: 2015 Guidance
2015 Guidance Performance indicators 2015 Guidance Adjusted operating profit margin 21.0%–21.5% Adjusted free cash flow €500-€525 million Return on invested capital ≥ 8% Diluted adjusted EPS Mid-single-digit growth Guidance for adjusted free cash flow and diluted adjusted EPS is in constant currenci
Slide 24: Summary
Summary Progress on strategic goals: ― Expanding our leading, high growth positions with 7% organic growth and targeted acquisitions ― Completed small asset disposals; reviewing Transport Services in 2015 ― Sustained investment in new and enhanced products ― Implemented significant restructuring
Slide 25: Thank you
Thank you Nancy McKinstry CEO and Chairman of the Executive Board