Wolters Kluwer N.v. · EURONEXT:WKL
Wolters Kluwer — H1 2025 Earnings Presentation
46 slides from Wolters Kluwer's earnings presentation, Jul 30, 2025
Slide 1: Wolters Kluwer 2025 Half-Year Results
Wolters Kluwer 2025 Half-Year Results Nancy McKinstry, CEO Kevin Entricken, CFO July 30, 2025 2025 Half-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 2025 Half-Year Results 3
Slide 4: Introduction
Introduction Organic growth 5%; strong start on profitability; progress on strategic priorities Financial Results Strategic and ESG Progress Accelerate Organic growth +5% Expert solutions up +6% Expert organically, 59% of revenues Solutions Adjusted operating profit margin 28.4%, up 190bps Recurring
Slide 5: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2025 Half-Year Results 5
Slide 6: First-half 2025 results
First-half 2025 results Organic growth 5%; margin up 190 basis points; diluted adjusted EPS up 14% and adjusted free cash flow up 13% in constant currencies; ROIC increased (€ million, unless otherwise stated) HY 2025 HY 2024 Δ Δ CC Δ OG Revenues 3,052 2,891 +6% +6% +5% Adjusted operating profit 865
Slide 7: Revenues by division
Revenues by division Organic growth 5%, with all divisions delivering positive organic growth (€ million) HY 2025 HY 2024 Δ Δ CC Δ OG Health 788 771 +2% +3% +4% Tax & Accounting 837 775 +8% +9% +6% Financial & Corporate Compliance* 635 600 +6% +6% +4% Legal & Regulatory 487 458 +6% +6% +6% Corporate
Slide 8: Revenues by type
Revenues by type Digital and services subscriptions up 7% organically; non-recurring revenues turned down Organic Growth (%) Organic Growth (%) Recurring Revenue Types (84% of total) Non-recurring Revenue Types (16% of total) 15% 77% of total 15% revenue 10% 8% 8% 8% 8% 8% 10% 7% 7% 5% 5% 0% 0% -5%
Slide 9: Adjusted operating profit by division
Adjusted operating profit by division Margin increased 190 basis points, driven by mix shift towards expert solutions and initiatives to manage discretionary expenses and drive long term efficiencies Margin (€ million) HY 2025 HY 2024 Δ Δ CC Δ OG HY 2025 HY 2024 Health 260 223 +17% +17% +15% 33.0% 2
Slide 10: Adjusted net profit and EPS
Adjusted net profit and EPS Adjusted EPS up 14% in constant currencies. Increase in net financing costs and tax rate offset by 3% reduction in diluted weighted average shares (€ million, unless otherwise stated) HY 2025 HY 2024 ∆ ∆ CC Revenues 3,052 2,891 +6% +6% Adjusted operating profit 865 765 +1
Slide 11: Adjusted free cash flow
Adjusted free cash flow Adjusted free cash flow up 13% in constant currencies, mainly reflecting increase in adjusted operating profit and higher cash conversion (€ million, unless otherwise stated) HY 2025 HY 2024 ∆ ∆ CC Adjusted operating profit 865 765 +13% +14% Depreciation, amortization, and im
Slide 12: Movement in net debt
Movement in net debt Increased acquisition spending; Net-debt-to-EBITDA remains within our target range 1.5x-2.5x (€ million, unless otherwise stated) HY 2025 FY 2024 HY 2024 Net debt at start of period (3,134) (2,612) (2,612) Adjusted free cash flow 505 1,276 445 Dividends paid (297) (521) (276) Ac
Slide 13: Dividends and share buybacks
Dividends and share buybacks 2025 interim dividend €0.93; over 60% of intended up to €1 billion share buyback already completed as of July 30 Dividend per Share (€) Share Buybacks (€ million) Total 2.33 dividend Completed Intended 2.08 1,000 1,000 1,000 1,000 1.81 1.57 1.36 637 410 350 Interim 0.83
Slide 14: Results summary
Results summary Organic growth in line with expectations, driven by recurring revenues; strong margin expansion; solid balance sheet Organic growth Adjusted operating Diluted adjusted EPS +5% profit margin up +14% in constant 28.4% up 190bps currencies ROIC increased to 18.5% Adjusted FCF Solid bala
Slide 15: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2025 Half-Year Results 15
Slide 16: Health
Health Organic growth +4%, led by Clinical Solutions +6%. Margin reflects ongoing mix shift, expense management, and efficiency programs € million HY 2025 HY 2024 Δ Δ CC Δ OG Clinical Solutions • Organic growth +6% Revenues 788 771 +2% +3% +4% • Slowdown due to timing of renewals, leap year Adjusted
Slide 17: Tax & Accounting
Tax & Accounting Organic growth +6%, with recurring revenues up +7%. Margin reflects expense management, partly offset by increased investment € million HY 2025 HY 2024 Δ Δ CC Δ OG Tax & Accounting North America • Organic growth +6%, led by double-digit Revenues 837 775 +8% +9% +6% organic growth in
Slide 18: Financial & Corporate Compliance
Financial & Corporate Compliance Organic growth +4%, supported by 6% growth in recurring revenues. Margin reflects increased investment, partly offset by expense management € million HY 2025 HY 2024 Δ Δ CC Δ OG Legal Services (LS) • Organic growth +6%, driven by +8% growth in Revenues 635 600 +6% +6
Slide 19: Legal & Regulatory
Legal & Regulatory Organic growth +6%, with digital information solutions up +7%. Margin reflects mix shift, expense management, and efficiency programs Legal & Regulatory Information Solutions € million HY 2025 HY 2024 Δ Δ CC Δ OG • Organic growth +6%, driven by digital Revenues 487 458 +6% +6% +6%
Slide 20: Corporate Performance & ESG
Corporate Performance & ESG Organic growth +7%, driven by recurring cloud software up +17%. Margin reflects sustained investment in product development, sales, and marketing € million HY 2025 HY 2024 Δ Δ CC Δ OG EHS & ESG3 • Organic growth +10%, with recurring cloud Revenues 305 287 +6% +7% +7% soft
Slide 21: Strategic priorities 2025-2027
Strategic priorities 2025-2027 Expert solutions strategy aims to deliver good organic growth with improvement in margins and returns Accelerate innovation with • Drive penetration of cloud-based expert solutions product development spend of Scale around 11% of revenues1 • Empower customer workflows
Slide 22: Major product suites now offer GenAI features
Major product suites now offer GenAI features Majority of our digital revenues – expert solutions and information products – are AI-enabled HY 2025 Total Revenues Selected GenAI-Enabled Examples • UpToDate Enterprise • CCH Tagetik Intelligent Platform Services & Print • Ovid Guidelines AI • CCH Tage
Slide 23: Agentic AI
Agentic AI Investing in agentic AI, with several agentic solutions currently in development or customer testing – underpinned by our proprietary AI-Enablement Platform Agentic AI Developments DL Wolters Kluwer CP & ESG Wolters Kluwer Tax & Accounting CCH Tagetik Intelligent Platform CCH Axcess – age
Slide 24: Portfolio changes
Portfolio changes RASi and Brightflag expand our positions in the higher growth mid-size corporate segment. FRR divestment gives FCC greater focus Financial & Corporate Compliance Legal & Regulatory Financial & Corporate Compliance Finance, Risk & Regulatory Reporting (FRR) • Completed March 13, 202
Slide 25: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2025 Half-Year Results 25
Slide 26: Full-year 2025 outlook
Full-year 2025 outlook Improved outlook for margin in reporting currency and EPS growth in constant currency; ROIC now expected to be around 18% in reporting currency Performance indicators 2025 Guidance Previous Guidance 2024 Actual Adjusted operating profit margin* 27.1%-27.5% 27.1%-27.5% 27.1% Ad
Slide 27: Divisional outlook 2025
Divisional outlook 2025 Margin increase to be supported by most divisions Division FY 2025 Organic Growth Outlook Organic growth to be in line with or slightly below prior year Health (FY 2024: 6%) Tax & Accounting Organic growth to be in line with prior year (FY 2024: 7%) Organic growth to be below
Slide 28: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2025 Half-Year Results 28
Slide 29: Revenues by type
Revenues by type (€ million) HY 2025 HY 2024 ∆ ∆ CC ∆ OG Digital and services subscriptions 2,346 2,177 +8% +8% +7% Print subscriptions 61 61 0% 0% 0% Other recurring 149 143 +4% +4% +7% Recurring revenues 2,556 2,381 +7% +8% +7% Print books 49 56 -11% -11% -11% FCC transactional1 176 168 +5% +6% +1
Slide 30: Revenues by media format
Revenues by media format (€ million) HY 2025 HY 2024 ∆ ∆ CC ∆ OG Software 1,413 1,318 +7% +8% +6% Other digital1 1,195 1,145 +4% +5% +5% Total Digital 2,608 2,463 +6% +6% +5% Services 305 281 +8% +9% +6% Print 139 147 -5% -5% -5% Total revenues 3,052 2,891 +6% +6% +5% ∆: % Change; ∆ CC: % Change in
Slide 31: Software revenues
Software revenues HY 2025 Revenues HY 2025 Software Organic growth HY 2025 (HY 2024): €3.1 billion Revenues €1.4 billion Total software: +6% (+7%) Split by Media Format Cloud software: +15% (+16%) Top software products Cloud CCH Axcess/ TAA ▤ software 45% ProSystem fx ServicesPrint revenues 2 eOrigi
Slide 32: Reconciliation: adjusted net financing costs to financing results
Reconciliation: adjusted net financing costs to financing results (€ million) HY 2025 HY 2024 Adjusted net financing costs (38) (25) Employee benefits financing component (1) (1) Change in fair value of financial assets - - Result on divestment of financial assets - - Divestment related results on e
Slide 33: IFRS profit and diluted EPS
IFRS profit and diluted EPS (€ million, unless otherwise stated) HY 2025 HY 2024 ∆ Adjusted operating profit 865 765 +13% Amortization & impairment of acquired intangibles and impairment of goodwill (81) (74) Results on divestments of operations (1) 0 Other non-benchmark items1 (18) (1) Operating pr
Slide 34: Balance sheet
Balance sheet (€ million, unless otherwise stated) June 30, 2025 Dec. 31, 2024 June 30, 2024 Goodwill and intangible assets 6,766 6,445 5,992 Property, plant and equipment 70 79 78 Right-of-use assets 186 214 227 Deferred tax and other non-current assets 96 103 102 Total non-current assets 7,118 6,8
Slide 35: Debt maturity profile
Debt maturity profile Debt Maturity Profile – June 30, 2025 (€ million) Net debt breakdown: € million Gross financial debt 5,038 Lease liabilities 209 Total gross debt 5,247 Less: derivatives 31 Less: Cash & cash equivalents 942 Net debt 4,274 1,010 942 707 618 577 578 562 543 503 141 7 1 1 Cash & c
Slide 36: Currency impact
Currency impact HY 2025 Revenues by Currency British pound 3% Other 7% Euro 23% U.S. dollar 67% Impact in € million on Adjusted operating Average rates Revenues profit 1 Euro HY 2025 HY 2024 HY 2025 HY 2025 U.S. dollar 1.09 1.08 (12) (4) British pound 0.84 0.86 1 0 Canadian dollar 1.54 1.47 (2) (1)
Slide 37: Growth rates
Growth rates ∆ ∆ CC ∆ OG % % Change % Net Effect % % Currency in Constant Acquisitions Organic HY 2025 HY 2024 Change Impact Currencies & Disposals Growth Revenues Health 788 771 +2% -1% +3% -1% +4% Tax & Accounting 837 775 +8% -1% +9% +3% +6% Financial & Corporate Compliance* 635 600 +6% 0% +6% +2%
Slide 38: Agenda
Agenda • Introduction • Financial Review • Operating and Strategic Review • Outlook 2025 • Appendix: Financial Supplement • Appendix: Sustainability and ESG Metrics 2025 Half-Year Results 38
Slide 39: Sustainability and ESG Metrics
Sustainability and ESG Metrics • ESG Ratings • Environmental • Social: employee culture • Social: diversity • Governance • Governance: board skills 2025 Half-Year Results 39
Slide 40: ESG Ratings
ESG Ratings MSCI ESG Rating Sustainalytics ESG Risk Rating AAA 40 AA A BBB 18.0 18.0 20 14.4 11.4 12.2 BB 9.5 B CCC 0 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 MSCI: AAA is the highest quality score. Sustainalytics risk rating: scale ranges from 0-50. A score of 0 denotes the least
Slide 41: Environmental
Environmental HY 2025 Progress Total Scope 1 & 2 Emissions1 • SBTi validated net-zero targets to reduce absolute scope 1, 2 & key 3 emissions 90% by 2050, from a 20 20 2019 base year 15 Thousands • Office footprint (m2) reduced by 5% organically -11% compared to December 2024 10 12 12 11 10 • Launch
Slide 42: Environmental: scope emissions
Environmental: scope 3 emissions Total Scope 3 Emissions1 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 43: Social: employees
Social: employees 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 work a
Slide 44: Social: diversity
Social: diversity Supervisory Board Members: % Female Executive Board Members: % Female 80% 80% 67% HY 2025: 57% HY 2025: 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%
Slide 45: 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* HY 2025: 11% Framework 100 Indexed 2020 8% = 100.0 90 6% 2019 2020 2021 2022 2023 2024 2019 2020 2021
Slide 46: Governance: Supervisory Board
Governance: Supervisory Board Member Ann Ziegler Jack de Kreij Anjana Harve Heleen Kersten David Sides Sophie Vandebroek Chris Vogelzang Chair Vice-Chair Committees S&RC Co-Chair Audit Cttee Chair S&RC Member S&RC Co-Chair S&RC, & AC Member Audit Cttee Member Audit Cttee Member Nationality American