Wolters Kluwer N.v. · EURONEXT:WKL
Wolters Kluwer — FY2024 Earnings Presentation
47 slides from Wolters Kluwer's earnings presentation, Feb 26, 2025
Slide 1: Wolters Kluwer 2024 Full-Year Results
Wolters Kluwer 2024 Full-Year Results Nancy McKinstry, CEO Kevin Entricken, CFO February 26, 2025 2024 Full-Year Results 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: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2024 Full-Year Results 3
Slide 4: Introduction
Introduction Delivered +6% organic growth and operating profit margin increase; sustained investment in innovation Financial Results Strategic and ESG Progress Accelerate Expert Organic growth +6% Expert solutions, 59% of revenues, +7% organically Solutions Adjusted operating profit margin 27.1%, up
Slide 5: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2024 Full-Year Results 5
Slide 6: Full-year 2024 results
Full-year 2024 results Organic growth +6%; margin increase; adjusted free cashflow up +9% in constant currencies; ROIC up +130 bps (€ million, unless otherwise stated) FY 2024 FY 2023 Δ Δ CC Δ OG Revenues 5,916 5,584 +6% +6% +6% Adjusted operating profit 1,600 1,476 +8% +8% +8% Adjusted operating pr
Slide 7: Revenues by division
Revenues by division Organic growth +6%, led by Tax & Accounting (€ million) FY 2024 FY 2023 Δ Δ CC Δ OG Health 1,584 1,508 +5% +5% +6% Tax & Accounting 1,561 1,466 +6% +7% +7% Financial & Corporate Compliance 1,105 1,052 +5% +5% +5% Legal & Regulatory 946 875 +8% +8% +5% Corporate Performance & ESG
Slide 8: Revenues by type
Revenues by type Digital and services subscriptions sustained +8% organic growth; non-recurring revenues saw mixed trends Organic Growth (%) Organic Growth (%) Recurring Revenue Types (82% of total) Non-recurring Revenue Types (18% of total) 75% of total FCC Transactional: 15% 15% 6% of total revenu
Slide 9: Adjusted operating profit by division
Adjusted operating profit by division Adjusted operating profit includes one-time pension gain offset by increased restructuring costs and write-offs Margin (€ million) FY 2024 FY 2023 Δ Δ CC Δ OG FY 2024 FY 2023 Health 480 454 +6% +6% +6% 30.3% 30.1% Tax & Accounting 519 479 +8% +9% +10% 33.2% 32.7
Slide 10: Adjusted net profit and EPS
Adjusted net profit and EPS Net financing costs reflect lower interest income, higher coupon and forex loss; diluted adjusted EPS reflects increase in adjusted net profit and lower share count (€ million, unless otherwise stated) FY 2024 FY 2023 ∆ ∆ CC Revenues 5,916 5,584 +6% +6% Adjusted operating
Slide 11: Adjusted free cash flow
Adjusted free cash flow Full-year cash conversion higher than anticipated (€ million, unless otherwise stated) FY 2024 FY 2023 ∆ ∆ CC Adjusted operating profit 1,600 1,476 +8% +8% Depreciation, amortization, impairment of other intangibles 270 232 Depreciation of right-of-use assets 60 67 Adjusted E
Slide 12: Movement in net debt
Movement in net debt Modest rise in leverage reflects increased acquisition spend and dividends paid (€ million, unless otherwise stated) FY 2024 FY 2023 Net debt at start of period (2,612) (2,253) Adjusted free cash flow 1,276 1,164 Dividends paid (521) (467) Acquisition spending, net of cash acqui
Slide 13: Dividends and share buybacks
Dividends and share buybacks Proposing total dividend of €2.33 (+12%); announcing intention to repurchase up to €1 billion in shares in 2025 Dividend per Share (€) Share Buybacks (€ million) 2.33 Total Completed Intended dividend 2.08 1,000 1,000 1,000 1,000 1.81 1.57 1.36 410 350 Interim 0.72 0.83
Slide 14: Results summary
Results summary Organic growth +6%, driven by recurring revenues; improved operating profit margin and ROIC; increased free cash flow; strong balance sheet Organic growth +6% Adjusted operating Diluted adjusted EPS profit margin 27.1%, +11% Recurring revenues up 70bps in constant currencies +7% orga
Slide 15: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2024 Full-Year Results 15
Slide 16: Health
Health Organic growth +6%, led by Clinical Solutions +7%; margin reflects operational gearing and mix shift, partly offset by write-offs € million FY 2024 FY 2023 Δ Δ CC Δ OG Clinical Solutions • Organic growth +7% Revenues 1,584 1,508 +5% +5% +6% • Good renewal rates in clinical decision Adjusted o
Slide 17: Tax & Accounting
Tax & Accounting Organic growth +7%, including cloud software up +19%; margin increase reflects operational gearing and cost efficiencies € million FY 2024 FY 2023 Δ Δ CC Δ OG Tax & Accounting North America • Organic growth +8% Revenues 1,561 1,466 +6% +7% +7% • Cloud software up +20% organically, d
Slide 18: Financial & Corporate Compliance
Financial & Corporate Compliance Organic growth +5%; margin increase reflects operational gearing and cost efficiencies € million FY 2024 FY 2023 Δ Δ CC Δ OG Legal Services (LS) • Organic growth +7%, with strong recurring Revenues 1,105 1,052 +5% +5% +5% revenue growth of +7% Adjusted operating • Tr
Slide 19: Legal & Regulatory
Legal & Regulatory Organic growth +5%, led by digital information solutions +7%; margin increase reflects operational gearing, mix shift, efficiencies, and one-time pension gain Legal & Regulatory Information Solutions € million FY 2024 FY 2023 Δ Δ CC Δ OG • Organic growth +5%, driven by digital Rev
Slide 20: Corporate Performance & ESG
Corporate Performance & ESG Organic growth +5%, driven by recurring cloud software +20%; margin decline reflects lower software licenses and increased investment EHS & ESG3 € million FY 2024 FY 2023 Δ Δ CC Δ OG • Organic growth +15%, with +21% growth in Revenues 720 683 +5% +5% +5% recurring cloud s
Slide 21: Strategic priorities 2025-2027
Strategic priorities 2025-2027 We aim to deliver good organic growth and improving margins and ROIC Accelerate innovation with product • Drive penetration of cloud-based expert solutions development spend of around 11% Scale of revenues1 • Empower customer workflows with responsible AI Expert Soluti
Slide 22: Cloud software 2024
Cloud software 2024 Cloud software revenues, growing at CAGR +18% in constant currencies, overtook on-premise software revenues in 2024 Total Software Revenues € million *CAGR 2021-2024 in €2.7 bn €2.7 bn1 Health constant currencies CAGR* Legal & Regulatory Software Revenues1: +6% • Tax & Accounting
Slide 23: Innovation highlights 2024
Innovation highlights 2024 Sustained investment in product development (11% of revenues) AI-Enabled Innovations 2024 DL UpToDate Enterprise CCH AnswerConnect Natural Language Search • Launched March 2024 and further enhanced in October • GenAI-enabled feature in CCH AnswerConnect tax 2024 research s
Slide 24: Agreement to acquire RASi
Agreement to acquire RASi RASi acquisition would expand FCC’s presence with small and mid-size businesses • On February 7, 2025, we announced an agreement to acquire Registered Agent Solutions, Inc. (RASi), for $415 million • Transaction is subject to regulatory approval • Founded 2002; 180 FTEs and
Slide 25: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2024 Full-Year Results 25
Slide 26: Guidance 2025
Guidance 2025 Expect organic growth in line with prior year and a further modest increase in the adjusted operating profit margin Performance indicators 2025 Guidance 2024 Actual Adjusted operating profit margin* 27.1%-27.5% 27.1% Adjusted free cash flow** €1,250-1,300 million €1,276 million ROIC* 1
Slide 27: Divisional outlook 2025
Divisional outlook 2025 Expect adjusted operating profit margin to see improvement in 2025, led by Health and Corporate Performance & ESG Division Outlook full-year 2025 Organic growth to be in line with or slightly below prior year Health (FY 2024: 6%) with the first half facing a challenging compa
Slide 28: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2024 Full-Year Results 28
Slide 29: Revenues by type
Revenues by type (€ million) FY 2024 FY 2023 ∆ ∆ CC ∆ OG Digital and services subscriptions 4,458 4,134 +8% +8% +8% Print subscriptions 125 136 -8% -8% -8% Other recurring 285 273 +5% +5% +7% Recurring revenues 4,868 4,543 +7% +7% +7% Print books 120 120 0% 0% 0% FCC transactional1 336 320 +5% +5% +
Slide 30: Revenues by media format
Revenues by media format (€ million) FY 2024 FY 2023 ∆ ∆ CC ∆ OG Software 2,690 2,515 +7% +7% +7% Digital information solutions1 2,345 2,208 +6% +6% +6% Digital 5,035 4,723 +7% +7% +6% Services 569 534 +7% +7% +7% Print 312 327 -5% -5% -5% Total revenues 5,916 5,584 +6% +6% +6% ∆: % Change; ∆ CC: %
Slide 31: Reconciliation: adjusted net financing costs to financing results
Reconciliation: adjusted net financing costs to financing results (€ million) FY 2024 FY 2023 Adjusted net financing costs (62) (27) Employee benefits financing component (3) (3) Change in fair value of financial assets 0 0 Result on divestment of financial assets - - Divestment related results on e
Slide 32: IFRS profit and diluted EPS
IFRS profit and diluted EPS (€ million, unless otherwise stated) FY 2024 FY 2023 ∆ Adjusted operating profit 1,600 1,476 +8% Amortization and impairment of acquired intangibles and impairment of goodwill (149) (146) Results on divestments of operations (3) 4 Other non-benchmark items1 (7) (11) Opera
Slide 33: Balance sheet
Balance sheet (€ million, unless otherwise stated) Dec. 31, 2024 Dec. 31, 2023 Goodwill and intangible assets 6,445 5,920 Property, plant and equipment 79 79 Right-of-use assets 214 241 Deferred tax and other non-current assets 103 100 Total non-current assets 6,841 6,340 Cash and cash equivalents 9
Slide 34: Debt maturity profile
Debt maturity profile Debt Maturity Profile – December 31, 2024 (€ million) Net debt breakdown: € million Gross financial debt 3,848 Lease liabilities 242 Total gross debt 4,090 Less: Collateral 2 954 Less: Cash & cash equivalents 954 Net debt 3,134 707 619 557 547 565 512 427 140 8 8 1 0 1 2025 202
Slide 35: Currency impact
Currency impact FY 2024 Revenues by Currency British pound 3% Other 8% Euro 22% U.S. dollar 67% Impact in € million on: Adjusted operating Average rates Revenues profit 1 Euro FY 2024 FY 2023 FY 2024 FY 2024 U.S. dollar 1.08 1.08 (5) (2) British pound 0.85 0.87 4 1 Canadian dollar 1.48 1.46 (1) (1)
Slide 36: Growth rates
Growth rates ∆ ∆ CC ∆ OG % % % Change % Net Effect % Currency in Constant Acquisitions Organic (€ million, unless otherwise stated) FY 2024 FY 2023 Change Impact Currencies & Disposals Growth Revenues Health 1,584 1,508 +5% 0% +5% -1% +6% Tax & Accounting 1,561 1,466 +6% -1% +7% 0% +7% Financial & C
Slide 37: Pro forma revenues by division
Pro forma revenues by division Reflects the transfer of Finance, Risk & Reporting (FRR) from Corporate Performance & ESG to Financial & Corporate Compliance as of January 1, 2025. (€ million) FY 2024 FY 2023 Δ Δ CC Δ OG Health 1,584 1,508 +5% +5% +6% Tax & Accounting 1,561 1,466 +6% +7% +7% Financia
Slide 38: Pro forma adjusted operating profit by division
Pro forma adjusted operating profit by division Reflects the transfer of Finance, Risk & Reporting (FRR) from Corporate Performance & ESG to Financial & Corporate Compliance as of January 1, 2025. Margin (€ million) FY 2024 FY 2023 Δ Δ CC Δ OG FY 2024 FY 2023 Health 480 454 +6% +6% +6% 30.3% 30.1% T
Slide 39: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2024 Full-Year Results 39
Slide 40: Sustainability and ESG Metrics
Sustainability and ESG Metrics • ESG Ratings • Environmental • Social: employee culture • Social: diversity • Governance • Governance: board skills 2024 Full-Year Results 40
Slide 41: ESG Ratings
ESG Ratings MSCI ESG Rating Sustainalytics ESG Risk Rating AAA 40 AA A BBB 18.0 18.0 20 14.4 BB 9.6 9.5 11.4 B CCC 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 MSCI: AAA is the highest quality score. Sustainalytics risk rating: scale ranges from 0-50. A score of 0 denotes the least
Slide 42: Environmental: scope & emissions
Environmental: scope 1 & 2 emissions Scope 1 & 2 ambition raised; Total Scope 1 & 2 Emissions1 long-term net zero targets submitted 20 • Submitted long-term net zero GHG emissions 20 15 Thousands reduction target to SBTi, aiming to reduce -11% absolute Scope 1, 2 & 3 GHG emissions 90% by 10 12 12 11
Slide 43: Environmental: scope emissions
Environmental: scope 3 emissions Total Scope 3 Emissions Scope 3.1 Purchased Goods & Services 300 -1% 250 -2% Thousands 291 Thousands 276 274 256 254 200 222 200 216 211 218 150 100 100 50 0 N/A 0 2019 Baseline 2021 2022 2023 2024 2019 Baseline 2021 2022 2023 2024 Scope 3.6 Business Travel2 Scope 3.
Slide 44: Social: employee culture
Social: employee culture Employee Engagement Score1,2 Employee Belonging Score2 Wolters Kluwer High-Performing Norm Wolters Kluwer Glint Top 25% Glint Top 25% 100 100 84 Belonging measures the 77 extent to which 74 employees believe they 75 75 77 78 78 can bring their authentic 76 73 75 75 selves to
Slide 45: Social: diversity
Social: diversity Supervisory Board Members: % Female Executive Board Members: % Female 80% 80% 67% 57% 57% 50% 50% 50% 50% 50% 50% 43% 43% 43% 40% 40% 0% 0% 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Managers: % Female Total Workforce: % Female 80% 80% 47% 47% 46% 46% 46% 46% 39% 3
Slide 46: Governance
Governance Product Development Spend Cybersecurity Maturity Score (includes operating expenses and capital expenditures) Indexed (2020 = 100.0) % of Total Revenues 120 12% 110 10% Based on NIST-CSF* FY 2024: 11% Framework 100 Indexed 2020 8% = 100.0 90 6% 2019 2020 2021 2022 2023 2024 2019 2020 2021
Slide 47: Governance: board skills
Governance: board skills Ann Ziegler Jack de Kreij Anjana Harve Heleen Kersten David Sides Sophie Vandebroek Chris Vogelzang • American, 1958 • Dutch, 1959 • American, 1972 • Dutch, 1965 • American, 1970 • American, 1962 • Dutch, 1962 • Chair, • Vice-Chair, • Appointed in • Co-Chair, • Member, • Mem