John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Wiley John & Sons — Q3 FY2013 Earnings Presentation
17 slides from John Wiley & Sons's earnings presentation, Mar 7, 2013
Slide 1: Q3 Fiscal 2013 Earnings Presentation
WILEY Q3 Fiscal 2013 Earnings Presentation March 7, 2013
Slide 2: Agenda
Agenda t= Quarterly Summary & Performance ;— Restructuring Update -— Business Outlook 2 WILEY
Slide 3: Current State & Response
Current State & Response e Accelerate e Initiated $80 million development/ acquire restructuring program high growth businesses ¢ Divested low performing and capabilities businesses © Diversify product mix to e Accelerate move to mitigate funding digital through constraints divestment and acquisitio
Slide 4: Adjusted Quarterly Performance
Adjusted Quarterly Performance (mititons) Q3FY13 Q3FY12 ~ B/(W) ve oll Revenue $460.8 $433.6 6% 6% Operating Income $81.7 $75.6 8% 7% EPS $0.93 $0.88 6% 6% Adjusted numbers exclude operational results of divested consumer assets and a one-time tax benefit in the prior year e Revenue performance due
Slide 5: Adjusted Year-to-Date Performance
Adjusted Year-to-Date Performance (millions) YTDFY13. YTDFY12 —_—B/(W) es ey Revenue $1,280.9 $1,280.9 0% 1% Operating Income $193.9 $204.2 (5%) (4%) EPS $2.21 $2.35 (6%) (5%) Adjusted numbers exclude operational results of divested consumer assets, gain on sale of travel program, impairment and res
Slide 6: Adjusted STMS Performance
Adjusted STMS Performance* (millions) Q3 FY13 B(W) Revenue $240.9 (3%) $726.7 (2%) Contribution to Profit $66.5 (1%) $199.5 (5%) Q3 Revenue Growth, excluding FX we 243% ae “gg Journal print Books’ | pigtatBooks | AAVERME! | prvctesetece | Funded Subscriptions Reprints Access % of Revenue 60% 15% 5%
Slide 7: STMS Indicators
STMS Indicators Licensed Subscriptions Society Journals (First 9 mos) Digital Transition * Calendar year 2013 renewal * 25 new contracts worth $27 Percent of book revenue value up 3-4% with 85% of million from digital books was business closed as of end of 23% this quarter vs. 19% February 62 renewa
Slide 8: Adj. Professional Development Performance
Adj. Professional Development Performance* (millions) Q3 FY13 B(W) Revenue $101.5 14% $282.3 6% Contribution to Profit $9.9 120% $15.8 61% y Q3 Revenue Growth, excluding FX Print Books eBooks Online Assessment & Training’ % of Revenue 73% 11% 7% “Excludes foreign exchange and operational performance
Slide 9: Adj. Global Education Performance
Adj. Global Education Performance* (millions) Q3 FY13 B(W) Revenue $118.4 18% $271.9 3% Contribution to Profit $34.8 10% $59.7 (12%) Binder/ eBooks/ WileyPLUS Online Program Custom Print | Digital Content | Learning Solution | Mgmt (Deltak) Print Textbooks % of Revenue 53% 11% 7% 13% 14% “Excludes f
Slide 10: Shared Services Costs
Shared Services Costs (mitions) Q3FY13 Q3FY12 B(W) ee Distribution $25.9 $27.1 4% 6% Technology $41.7 $34.9 (20%) (19%) Finance $11.0 $11.1 1% 2% Other Admin $17.3 $17.5 1% 2% Total $95.9 $90.6 (6%) (5%) * Distribution expense reduction due to lower print volume and efficiency improvements * Technol
Slide 11: Free Cash Flow Variance
Free Cash Flow Variance Nine Months Nine Months 2013 2012 (millions) Free Cash Flow $85.0 Key Pieces Net Income $136.3 $164.5 Change in deferred revenue* ($52.3) ($10.6) Income tax deposit** ($29.7) - * Change in deferred revenue due to delayed cash receipts, which are expected to be resolved by yea
Slide 12: Free Cash Flow Use
Free Cash Flow Use oe Nine Months Nine Months (millions) 2013 2012 Acquisitions, Net of Cash $258.7 $6.4 Share Repurchases $45.2 $60.6 Dividends $43.3 $36.3 Capex (Technology) $41.6 $47.9 * Acquisitions include Deltak ($220m) and ELS ($24m) * Q3 share repurchases = 887,651 @ $38.94/share ° YTD Repur
Slide 13: Agenda
Agenda -— Quarterly Summary & Performance tm _ Restructuring Update -— Business Outlook se WILEY
Slide 14: Restructuring Program
Restructuring Program January 2013 - AlixPartners begins evaluation lL \ og ; | p ° April 30, 2014 — Approx. $80 million run rate savings 4 WILEY
Slide 15: Agenda
Agenda -— Quarterly Summary & Performance ;— Restructuring Update [= _ Business Outlook so WILEY
Slide 16: Outlook
Outlook e Full year guidance unchanged on an operating basis: — Low-single-digit revenue growth’ excluding foreign exchange impact and including $37 million of additional revenue from the Deltak and ELS acquisitions and forgone revenue from the divested consumer assets. — Our previous GAAP EPS guida
Slide 17: Next Earnings Call (June 2013)
Next Earnings Call (June 2013) rc Report full year numbers and metrics % "~ >) Provide restructuring progress report with timeline and anticipated benefits and charges JN X Pa Provide revenue and EPS guidance for FY14 FX X r Provide longer term revenue and EPS trends v7 WILEY