John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Investor Day (January 2024)
45 slides from John Wiley & Sons's investor day presentation, Jan 25, 2024
Slide 1: Investor Update
Investor Update January 25, 2024
Slide 2: Welcome
Welcome Brian Campbell VP, Investor Relations
Slide 3: Safe Harbor Statement; Non-GAAP Measures
SAFE HARBOR STATEMENT NON-GAAP MEASURES This presentation contains certain forward-looking statements concerning the In this presentation, management may provide the following non-GAAP Company's operations, performance, and financial condition. Reliance should performance measures: not be placed on
Slide 4: Today's Agenda
Today’s Agenda 10:00 am Welcome & Opening Remarks Brian Campbell | VP, Investor Relations 10:05 am FOCUS+OPTIMIZE: Our Strategy for Success Matthew Kissner | Interim President & CEO 10:15 am FOCUS+OPTIMIZE: Driving Research Performance Jay Flynn | EVP & GM, Research & Learning 10:40 am FOCUS+OPTIMIZ
Slide 5: FOCUS+OPTIMIZE: Our Strategy for Success
FOCUS+OPTIMIZE Our Strategy for Success Matthew Kissner Interim President & Chief Executive Officer
Slide 6: The Knowledge Company
The Knowledge Company Wiley enables the creation and curation of knowledge, and its application in science, learning, and innovation
Slide 7: Wiley today: A global leader in Research & Learning
Wiley today: A global leader in Research & Learning Top 3 10,000+ 12M+ Global Research Researchers research institutions served publisher served annually #1 4.6B #1 Research Annual reader Chemistry & distribution sessions on materials science platform Literatum publisher 45M 2,000+ #1 12M Research a
Slide 8: Strong foundation for long term success
Strong foundation for long term success $1.6B FY23 Adjusted Revenue 23% FY23 Adjusted EBITDA Margin $173M FY23 Free Cash Flow 48% Recurring Revenue 82% Digital+Services Revenue 47% Non-US Revenue 1.5x Net Debt-to- EBITDA Ratio 30Yrs Of Consecutive Dividend Increases Adjusted results excluding Held f
Slide 9: Driving impact in what we do and how we operate
Driving impact in what we do and how we operate Advancing Sustainability Forward to Help the World Wiley has committed to being carbon net zero by 2040 in line with climate science, and validated by the Science Based Targets initiative Wiley has committed to advancing three UN SDGs: quality educ
Slide 10: Publishing and Knowledge Solutions for Researchers, Innovators, Leaders, and Learners
Publishing and Knowledge Solutions for Researchers, Innovators, Leaders, and Learners FY23 adjusted revenue: $1,627M FY23 adj. EBITDA: $379M1 Research Learning FY23 adj. revenue: $1,080M (66% of total) FY23 adj. revenue: $547M (34% of total) FY23 adj. EBITDA: $377M (35% margin) FY23 adj. EBITDA: $15
Slide 11: Observations – first 90 days
Observations – first 90 days 1 Strong and resilient businesses founded on long-standing customer and partner relationships 2 Clear competitive advantage in Research, built upon strong brands and franchises 3 Healthy long-term growth trends for new knowledge in our markets 4 Renowned global brand tha
Slide 12: Executing Value Creation Plan (VCP) in FY24
Executing Value Creation Plan (VCP) in FY24 Reorganized from three disparate segments into one market-facing Research & Focus on strong, Learning team under one leader profitable core Consolidating product, sales, and marketing functions to better leverage collective strengths and customer relat
Slide 13: FOCUS+OPTIMIZE: FY25-26 objectives to drive Wiley forward
FOCUS+OPTIMIZE: FY25-26 objectives to drive Wiley forward Go-forward Wiley Focusing on our strongest and most profitable businesses Reinvesting where we have competitive moats and operating leverage – must have brands, content, and partnerships Driving evolution and innovation in our product a
Slide 14: FOCUS+OPTIMIZE: Executing on six key initiatives
FOCUS+OPTIMIZE: Executing on six key initiatives FOCUS OPTIMIZE Grow Research Publishing market share Innovate business models Drive publishing growth to meet global demand, Innovate business models to deliver differentiated leveraging our high-quality brands, author author value, enhanced custo
Slide 15: FOCUS+OPTIMIZE: Driving Research Performance
FOCUS+OPTIMIZE Driving Research Performance Jay Flynn EVP & GM, Research & Learning
Slide 16: Helping customers to create, share, and use knowledge
Helping customers to create, share, and use knowledge to solve the world’s most important challenges Key Wiley Knowledge Domains Business & Chemistry Materials Oncology Engineering Technology Agriculture Finance Rising energy demand Clean energy & storage Governments Researchers Vehicle emissions Mo
Slide 17: Learning businesses built on a foundation of quality content
Learning businesses built on a foundation of quality content in the most important disciplines FY23 adj. revenue: $547M Learning FY23 adj. EBITDA: $158M Courseware Advanced Content Trade Publishing Assessments Advanced STEM and STEM learning platforms Business, finance, and Team profiling and Busine
Slide 18: FOCUS+OPTIMIZE in Learning delivers steady revenue with strong margins
FOCUS+OPTIMIZE in Learning delivers steady revenue with strong margins FOCUS OPTIMIZE Leverage Research’s GTM and Focus on growing in strongest disciplines channel partnerships Increase publishing output in computer science, engineering, business, and team effectiveness Increase cross-sell and e
Slide 19: Research businesses underpin Wiley's financial core
Research businesses underpin Wiley’s financial core FY23 adj. revenue: $1,080M Research FY23 adj. EBITDA: $377M Research Publishing Publishing Solutions Audience Solutions Scholarly journal publishing in Journal publishing technology Databases, advertising and Business scientific, technical and and
Slide 20: FOCUS+OPTIMIZE in Research provides a clear roadmap
FOCUS+OPTIMIZE in Research provides a clear roadmap to unlocking growth and value FOCUS OPTIMIZE Grow Research Publishing market share Optimize Research business models Invest in society partnerships, fast growing disciplines, Maintain leadership position as the #1 partner for Open and key geogr
Slide 21: Driving strong submissions growth to position Wiley for FY25 and beyond
Growing Market Driving strong submissions growth to position Share Wiley for success in FY25 and beyond Fiscal 2024 YTD Articles Submitted1 +11% ~600K Deployed new marketing toolkit with ~535K ~100K proprietary profiling and analytics to ~75K improve submission campaigns Reorganized publishing f
Slide 22: Research business models supporting the transition to Open Access
Optimizing Business Research business models supporting the Models transition to Open Access and delivering growth Research Publishing Models 1 ~$750M ~$700M Driving growth through high-quality OA Gold OA brands, best-in-class authoring tools, and global footprint Institutional Funded OA Positio
Slide 23: AI and machine learning enable incremental growth and profitability
Innovating AI and machine learning enable incremental Products growth and profitability opportunities In market today Active development Utilizing AI Using Wiley’s GenAI-powered AI-enhanced algorithms, our authoritative article editing tools article matching new spectroscopy content to augment to en
Slide 24: Accelerating investments in Research infrastructure
Optimizing Publishing Accelerating investments in Research infrastructure to Process enhance the customer experience and reduce costs A flagship submission & peer-review …with targets that are experience that costs less… aggressive but achievable Integrated demand gen Submission Faster submissio
Slide 25: Research: strongly positioned for long-term success
Research: strongly positioned for long-term success Maintaining leadership in the disciplines that matter, supported by strong 1 brands, society partnerships, and global market presence Focusing investments on driving sustainable publishing output, including 2 improved author demand-gen, growing jou
Slide 26: FOCUS+OPTIMIZE: Financial Overview and Outlook
FOCUS+OPTIMIZE Financial Overview and Outlook Christina Van Tassell EVP & Chief Financial Officer
Slide 27: Driving material performance and profit improvement
Driving material performance and profit improvement Wiley Evolution1 5% Transformation underway to unlock value FY26 Simplifying business and structure YoY Revenue Growth Focusing on strongest markets and most profitable business lines Divesting non-core assets Driving permanent savings thro
Slide 28: Targeting low-to-mid single digit revenue growth in FY26
Targeting low-to-mid single digit revenue growth in FY26 Adjusted Revenue Growth Bridge1 Low-to-mid single digit FY26 Revenue drivers Low-single growth $1,580 to $1,630M digit growth Research output growth Research output Strong OA growth Research output growth growth Publishing Solutions and
Slide 29: On track to achieve $130M savings through FY26
On track to achieve $130M savings through FY26, delivering expanded margins and reinvesting for long-term success Value Creation Plan Savings 1. Corporate right-sizing and organizational optimization aligned to go- forward Wiley $130M run-rate savings through FY26 2. Business operations optimization
Slide 30: Targeting material margin improvement in FY25-26
Targeting material margin improvement in FY25-26 Adjusted EBITDA Margin (%)1 +500-600 bps FY26 margin drivers Focusing on highly profitable and Reinvestment competitively advantaged core Cost Savings Right-sizing to reflect smaller revenue Improved base margin mix Driving operating efficiency
Slide 31: Strong FCF generation through improved earnings and capital efficiency
Strong FCF generation through improved earnings and capital efficiency supports continuous value creation Free Cash Flow ($M)1 Approx. $200M FY26 FCF drivers Cash earnings improvement Approx. $125M Capex returning to prior levels Improved cash (~$100M) Improved cash earnings, lower Approx. $100M
Slide 32: Clean and solid balance sheet
Clean and solid balance sheet Capital Summary & Financial Highlights ($M, as of April 30, 2023) Net Debt to EBITDA Cash & Cash Equivalents $107 1.6x Total Assets $3,109 1.5x <1.4x1 Debt $748 Total Stockholders’ Equity $1,045 Net Debt to Equity 0.61x Total Syndicated Credit Facility $1,500 FY22 FY23
Slide 33: Disciplined capital allocation focused on organic investment and returning cash
Disciplined capital allocation focused on organic investment and returning cash to shareholders Historic Allocations ~$500M Deployed FY22-FY231 Future Priorities CAPEX Research Publishing & Solutions growth investments CapEx 42% Product development and back-office modernization DIVIDENDS AND SHA
Slide 34: FY24-26 financial targets
FY24-26 financial targets FY24 Outlook FY25 Target FY26 Target Metric Adjusted Low-single Low-to-mid single $1,580 to $1,630 Revenue digit growth digit growth Adjusted EBITDA margin 19-20% 23-24% 24-25% Free Cash Flow Approx. $100M Approx. $125M Approx. $200M Note: FY24 Outlook, FY25 & FY26 targets
Slide 35: FOCUS+OPTIMIZE: Positioned for Success
FOCUS+OPTIMIZE Positioned for Success Matthew Kissner Interim President & Chief Executive Officer
Slide 36: Wiley is well-positioned for success
Wiley is well-positioned for success Focusing on our core businesses, aligning resources and capital to our 1 strongest and most profitable opportunities Taking action to drive Research market share, driving submission growth, 2 and strengthening our brands and partnerships while maintaining quality
Slide 37: Q&A
Q&A 37
Slide 38: Appendix
Appendix 38
Slide 39: Passionate, world-class team driving change
Passionate, world-class team driving change and relentlessly focused on execution Today’s Presenters and Q&A Panelists Matthew Kissner Christina Van Tassell Jay Flynn Interim President & CEO EVP & CFO EVP & GM, Research & Learning Joined: 2003 2021 2010 Broader Executive Leadership Team Josh Jarrett
Slide 40: Seasoned board of directors with skills aligned to our long-term vision
Seasoned board of directors with skills aligned to our long-term vision Jesse Wiley Mari Baker George Bell Beth Birnbaum David Dobson Chair of the Board, Former CEO, Senior Partner, Former COO, CEO, John Wiley & Sons, Inc. PlayFirst, Inc. Archer Venture Capital PlayFab Epiq Global 2012 2011 2014 201
Slide 41: Today's Presenters: Matthew Kissner, Interim President & CEO
Today’s Presenters: Matthew Kissner, Interim President & CEO Matt was named Interim President and CEO of Wiley in October of 2023. He is a former Wiley Group Executive and Board Chair. He also served previously as Interim CEO in 2017 and has since been a consultant for Wiley. He has been with Wiley
Slide 42: Today's Presenters: Jay Flynn, EVP & GM, Research & Learning
Today’s Presenters: Jay Flynn, EVP & GM, Research & Learning Jay is EVP and General Manager for Research & Learning, Wiley’s go-to- market team responsible for delivering content and solutions that empower the world’s researchers, learners, and professionals to succeed. His 25 years of experience in
Slide 43: Today's Presenters: Christina Van Tassell, EVP & CFO
Today’s Presenters: Christina Van Tassell, EVP & Chief Financial Officer Christina is a strategic business partner driving excellence in execution to ensure Wiley is positioned for financial success. She oversees the company's corporate and financial functions, including financial planning and analy
Slide 44: Consistent track record of returning capital to shareholders
Consistent track record of returning capital to shareholders Dividend and Share Repurchases ($M) $60 30 $62 $70 $47 Consecutive years $50 $40 $35 $63 $30 of dividend growth $16 $59 $68 $70 $72 $74 $76 $77 $77 $77 $77 ~50% FCF Payout Ratio (Dividends + Repurchases) FY14 FY15 FY16 FY17 FY18 FY19 FY20
Slide 45: Investor Relations / Media contacts
ENABLING DISCOVERY | POWERING EDUCATIO N | SHAPING WORKFORCES Investor Relations: Media: Brian Campbell Andrea Sherman Brian.Campbell@wiley.com ASherman@wiley.com