Wolters Kluwer N.v. · EURONEXT:WKL
Wolters Kluwer — Shareholder Meeting (April 2009)
31 slides from Wolters Kluwer's shareholder meeting presentation, Apr 21, 2009
Slide 1: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders Nancy McKinstry CEO and Chairman of the Executive Board April 21, 2009 - Amsterdam
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 Opening Remarks Strategic Priorities Highlights of 2008 Financial Performance Divisional Performance 2009 Outlook & Summary Annual General Meeting of Shareholders 2009 April 21, 2009 - Amsterdam 3
Slide 4: The Professional's First Choice
Wolters Kluwer’s Vision Global information services company focused on professionals The Professional’s First Choice Provide information, tools, and solutions to help professionals make their most critical decisions effectively and improve their productivity Annual General Meeting of Shareholders 20
Slide 5: Our Strategy for Achieving Profitable Growth
Our Strategy for Achieving Profitable Growth Grow Our Capture Leading Key Adjacent Positions Markets Institutionalize Exploit Operational Global Scale Excellence and Scope Enhanced value for customers, shareholders, and employees Annual General Meeting of Shareholders 2009 April 21, 2009 - Amsterdam
Slide 6: 2008 Accomplishments
2008 Accomplishments Delivered new and enhanced online and software products supporting organic growth in subscription and other non-cyclical products of 3% Launched next-generation delivery platforms Acquired key strategic assets: MYOB, Addison, IntelliTax and UpToDate Expanded footprint globally w
Slide 7: Consolidated Revenue
Consolidated Revenue Revenue growth of 3% driven by acquisitions and 9% growth in online Product Type and software solutions Solid organic growth in subscription CFS Cyclical Books and other non-cyclical products driven 6% 11% by improving retention rates Advertising Revenue balanced geographi
Slide 8: Revenue Growth
Revenue Growth Good growth in core subscription and other non-cyclical products lines driven by higher margin electronic products. Economic pressures impacted divisions with higher components of cyclical revenue streams Revenue: Full-Year 2008 €3,374 million Revenue: Full-Year 2008 € millions 2008 2
Slide 9: Innovative Information, Software and Services
Innovative Information, Software and Services Continued growth in higher margin electronic products now comprising 49% of total revenue Electronic Revenue as a % 2008 Revenue €3,374 million of Total 49% 47% 46% Online 42% Print 29% 36% 38% Software Services 20% 15% 2004 2005 2006 2007 2008 Annual Ge
Slide 10: Ordinary EBITA
Ordinary EBITA 5% growth in constant currencies driven by higher margin electronic products, improving retention rates, and operating efficiencies Ordinary EBITA: Full-Year 2008 €678 million Health Ordinary EBITA %: Full-Year 2008 € 86 2008 2007 ∆ CC Legal, Tax & Corporate Health 12.5% 14.7% (24%) R
Slide 11: Solid Financial Position
Solid Financial Position Working Capital (€ million) Free Cash Flow (€ million) 130 407 399 405 395 311 27 19 18- 19- 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 Net Debt (€ million) Debt Maturity Profile (€ million) 1.860 2.254 2.050 1.793 1.527 1.637 667 361 58 11 642* 11 8 2008 2009 2010 20
Slide 12: Expanded Corporate Social Responsibility Activities
Expanded Corporate Social Responsibility Activities Focus of 2008 sustainable entrepreneurship efforts — Completed the roll out of common performance criteria, based on the values — Expanded the Leadership forums — Developed sustainability-related products to tackle issues and opportunities — Cont
Slide 13: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2008 Financial Performance Divisional Performance 2009 Outlook & Summary Annual General Meeting of Shareholders 2009 April 21, 2009 - Amsterdam 13
Slide 14: 2008: Growing Our Leading Positions
2008: Growing Our Leading Positions 1 Delivered new and enhanced online and software products — Electronic products now represent 50% of total revenue, supporting improved margins and retention rates — LTRE grew online and software revenues by 9% organically Launched enhanced electronic platform
Slide 15: 2008: Capturing Key Adjacent Markets
2008: Capturing Key Adjacent Markets 2 Acquired key strategic assets in high growth adjacent markets Global tax and accounting strengthened with strong software acquisitions: — Addison for Wolters Kluwer Germany — MYOB in the U.K. — IntelliTax in the U.S. In Health, UpToDate, the leader in evi
Slide 16: 2008: Exploiting Global Scale and Scope
2008: Exploiting Global Scale and Scope 3 Strong growth and expansion in Asia with organic growth of almost 40% in India and 80% in China Expansion of the global risk segment continued globally: — TeamMate contributed to double-digit organic growth in the corporate market — The business expanded
Slide 17: 2008: Institutionalizing Operational Excellence with Springboard
2008: Institutionalizing Operational Excellence with Springboard 4 Rationalize non standard and fragment IT Infrastructure, saving 8-12% of MGTP current IT spend + ERP: TAL, Germany, France. Order Management: Health Revised Content Re-engineer and standardize content manufacturing process to sup
Slide 18: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2008 Financial Performance Divisional Performance 2009 Outlook & Summary Annual General Meeting of Shareholders 2009 April 21, 2009 - Amsterdam 18
Slide 19: Key Performance Indicators
Key Performance Indicators Good earnings growth, profit margins, and strong free cash performance despite weaker market conditions Target 2008 2008 2007 Organic Revenue Growth 0% Positive2 4% Ordinary EBITA Margin 20.1% 20% 19.5% €415 ±€400 €405 Free Cash Flow1 million million million ROIC (after ta
Slide 20: 2008 Acquisitions
2008 Acquisitions All acquisitions are accretive to ordinary EPS in year 1 and are expected to cover their cost of capital within 3-5 years Division 2008 Acquisitions Segment Health UpToDate ¨ Clinical data to physicians MYOB ¨ Accountancy software/ services in U.K. TAL IntelliTax ¨ Tax preparation
Slide 21: Refinance 2008 – Extended maturity profile
Refinance 2008 – Extended maturity profile Liquidity and headroom secured, and push out maturity profile at attractive cost of funds Debt Maturity Profile (€ Million) – Extending Duration Before Refinance 2008 After Refinance 2008 Perpetual bond 225 30y Private Loans: 2038 157 20y Eurobond: 2028 36
Slide 22: Springboard
Springboard Program ahead of expectations Program Savings and Costs 2008 2009 2010 2011 Total € million (pre tax) Actual Estimate Estimate Estimate Cost Savings 16 55 100 120 120 Exceptional Program Cost 45 55 45 35 180 Accelerating Springboard Improving Operations Driving Long Term Performance Inve
Slide 23: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2008 Financial Performance Divisional Performance 2009 Outlook & Summary Annual General Meeting of Shareholders 2009 April 21, 2009 - Amsterdam 23
Slide 24: Health Highlights
Health Highlights Clinical Solutions Organic revenue decline was driven by reduced 10% Pharma wholesaler orders as inventory levels were Solutions adjusted, downward pressure on advertising and 29% pharma promotional revenues due to the weakening economic environment and the loss of Professional &
Slide 25: CFS Highlights
CFS Highlights Division revenues declined 2% organically driven by Financial the impact of the cycle on transaction volumes, Services however margins proved resilient 35% Corporate Legal Services declined 3% as corporate Corporate formation transactions and UCC lien search volumes Legal Services
Slide 26: TAL Highlights
TAL Highlights Strong new sales and retention rates of tax and accounting software and workflow tools Law & Small Firm Services group contributed double-digit Business growth 40% Tax and Good growth in publishing businesses, particularly Accounting legal education, online integrated libraries
Slide 27: LTRE Highlights
LTRE Highlights Scandinavia 3% Belgium 9% France Growth was driven by online offerings gaining momentum, new workflow solutions and software 16% products as well as expansion of training and other Netherlands services 17% Italy/ Spain Italy, Spain, and Central and Eastern Europe 28% contributed
Slide 28: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2008 Financial Performance Divisional Performance 2009 Outlook & Summary Annual General Meeting of Shareholders 2009 April 21, 2009 - Amsterdam 28
Slide 29: 2009 Outlook
2009 Outlook Key Performance Indicators 2009 Guidance Ordinary EBITA Margin Broadly In-line with 2008 Free Cash Flow1 ± €350 million Return on Invested Capital (after tax) ≥ 8% Ordinary Diluted EPS1 €1.41 to €1.462 1 At constant currencies (EUR/USD = 1.47) 2 2008 EPS (€1.52 in 2007 constant currenci
Slide 30: Summary
Summary Accelerate Profitable Growth Enhance value for shareholders, customers, and employees Diversified and resilient portfolio Good progress against strategic goals Solid profitability and cash flow Strong financial position Well positioned for the future Annual General Meeting of Shareholders 20
Slide 31: Thank you
Thank you The Professional’s First Choice Provide information, tools, and solutions to help professionals make their most critical decisions effectively and improve their productivity Annual General Meeting of Shareholders 2009 April 21, 2009 - Amsterdam 31