John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Wiley John & Sons — Q4 FY2015 Earnings Presentation
19 slides from John Wiley & Sons's earnings presentation, Jun 16, 2015
Slide 1: Fourth Quarter and Fiscal Year 2015 Earnings Report
WILEY Fourth Quarter and Fiscal Year 2015 Earnings Report June 16, 2015 eo =
Slide 2: About Wiley
About Wiley Wiley is a global provider of knowledge and knowledge-enabled services that improve outcomes in areas of research, profes: practice and education. Through its Research segment, the Company provides digital and print scientific, technical, medical, and scholarly journals, reference works,
Slide 3: Fiscal Year Highlights
» Fiscal Year Highlights Revenue and Adjusted EPS guidance achieved — A%revenue growth on constant currency basis — EPS of $3.26, up $0.21 (+10%) including adverse FX impact of $0.11 * Strong revenue growth for journals (Research Communication +4%) — steady subscription growth along with strong fund
Slide 4: Fiscal Year Performance Summary
D Fiscal Year Performance Summary (millions) FY 2015 FY 2014 Change Change (ex-FX) Revenue $1,822.4 | $1,775.2 3% 4% Adjusted Operating Income* $266.5 $254.2 15% 9% Operating Margin 14.6% 14.3% Adjusted EPS* $3.26 $3.05 10% 10% * Revenue growth in Research journals (+4%) and Education and Profession
Slide 5: Fourth Quarter Performance Summary
Fourth Quarter Performance Summary (millions) FY 2015 FY 2014 Change Change (ex-FX) Revenue $441.6 $457.1 (3%) 2% Adjusted Operating Income* $63.0 $62.9 22% 11% Operating Margin 14.3% 13.8% Adjusted EPS* $0.81 $0.77 32% 17% * Revenue growth in Education and Professional Development solutions and Oth
Slide 6: Research
) Research ( 5) FY 2015 FY2014 %ofRevenue Change(e: Journal Subscriptions $664.5 $667.3 64% Funded Access $22.4 $17.7 2% 29% Other Journal Revenue $126.9 $113.9 12% 15% Total Research Communication $813.8 $798.9 78% 4% Print Books $101.9 $114.1 10% (9%) Digital Books $45.6 $47.7 4% (2%) Total Books
Slide 7: Professional Development
Professional Development (millions) FY2015 FY2014 + %ofRevenue Change (ex-FX) Print Books $209.5 $232.0 51% (9%) Digital Books $49.8 $53.8 12% (7%) Online Test Preparation and Certification $18.6 $15.2 5% 22% Other Knowledge Services $30.4 $29.9 1% 2% Total Knowledge Services $308.2 $330.8 76% (6%)
Slide 8: Education
) Education (millions) FY 2015 FY 2014 ofRevenue Change (ex-FX) Print Textbooks $144.4 $163.2 39% (9%) Digital Books $34.0 $30.1 9% 15% Total Books $178.5 $193.3 48% (6%) Custom Products $50.6 $43.6 14% 16% Course Workflow Solutions (WileyPLUS) $54.2 $49.5 14% 11% Education Services (Deltak) $81.6 $
Slide 9: Adjusted Shared Services Costs
Adjusted Shared Services Costs (millions spent) FY 2015* 'Y 2014* Change (ex-FX) Distribution and Operation Services $88.2 $99.4 (10%) Technology and Content Management $246.3 $241.3 2% Finance $53.0 $54.5 (1%) Other Administration $106.3 $101.5 6% Total $493.8 $496.7 0% * Distribution and Operation
Slide 10: Balance Sheet
) Balance Sheet Balance Sheet (millions) | As of 4/30/15 As of 4/30/14 Cash and Cash Equivalents $457.4 ! $486.4 | Short Term Debt $100.0 so Long Term Debt $650.1 $700.1 Net Debt $292.7 $213.7 Net Debt to EBITDA (ttm) 0.7x 0.5x * Significant leverage capacity to add strategic acquisitions * Areas of
Slide 11: Cash Flow
} Cash Flow Cash Flow (millions) Net Income Cash From Operations Composition Spending Capex (Technology) Free Cash Flow Free Cash Flow Yield* Selected Uses of Cash: Acquisitions Dividends Share Repurchases * Based on June 12ciosing price FY 2015 $176.9 $355.1 $39.4 $69.1 $246.6 7% $172.2 $68.5 $62.0
Slide 12: Outlook
Outlook WILEY
Slide 13: FY16 Outlook
B FY16 Outlook * Wiley’s mission is to deliver the skills and knowledge researchers, professionals and students need to be successful — High-growth market for education-to-employment solutions — Acquisitions important to accelerate growth and scale — Content and capabilities to create lasting compet
Slide 14: FY16 Revenue Outlook
} FY16 Revenue Outlook * Low-single digit revenue growth expected excluding unfavorable impacts from: — Foreign exchange movement — Previously announced timing shift in journals * Steady, low-single digit growth in journals excluding timing shift ($35M from FY16 into FY17) * Solutions growing at dou
Slide 15: FY16 Earnings Outlook
} FY16 Earnings Outlook ¢ Flat EPS expected excluding foreign exchange and timing shift in journals ($0.35/share into FY17). Anticipated earnings improvement from revenue growth and cost savings offset by incremental investment in ERP and related systems (more than $0.15/share) Continued revenue and
Slide 16: FY16 Cash Flow
B FY16 Cash Flow Cash from Operations expected to be in line with FY15 * Steady business performance to continue, including modest journal revenue and profit growth * Nocash impact from time-based journal revenue and earnings shift Free Cash Flow lower than FY15 due to near-term investments (capex a
Slide 17: Beyond FY16
) Beyond FY16 * Revenue, EPS and operating margin growth expected to accelerate beyond FY16 « Achievement of specific FY17 goals delayed Book performance more unfavorable than expected No new solutions acquisitions made since May 2014 Significant investment in ERP and related systems * High confiden
Slide 18: Summary
} Summary FY15 Results * Earnings guidance achieved despite significant currency headwind ($0.11/share) Solid growth in consolidated revenue (+4%) and EPS (+10%) Journals and solutions businesses performed well * Book revenue more unfavorable than expected FY16 Outlook * Revenue guidance for low-sin
Slide 19: Fourth Quarter and Fiscal Year 2015 Earnings Report
WILEY Fourth Quarter and Fiscal Year 2015 Earnings Report June 16, 2015