Wolters Kluwer N.v. · EURONEXT:WKL
Wolters Kluwer — Shareholder Meeting (April 2019)
21 slides from Wolters Kluwer's shareholder meeting presentation, Apr 18, 2019
Slide 1: Wolters Kluwer Annual General Meeting 2019
Wolters Kluwer Annual General Meeting 2019 Amsterdam April 18, 2019 2019 Annual General Meeting of Shareholders 1
Slide 2: Nancy McKinstry, CEO and Chairman of the Executive Board
Nancy McKinstry CEO and Chairman of the Executive Board 2019 Annual General Meeting of Shareholders 2
Slide 3: 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 4: Agenda
Agenda ◼ 2018 Financial Performance ◼ Strategic Priorities 2019-2021 ◼ Outlook 2019 and Summary 2019 Annual General Meeting of Shareholders 4
Slide 5: Highlights 2018
Highlights 2018 We achieved good organic growth and an improvement in margin and ROIC Good organic Improved ▪ Total organic growth +4% growth adjusted ▪ Digital and services organic growth +6% operating margin ▪ Adjusted operating margin 23.0%, +30bps excluding one-time benefits ▪ Adjusted free cash
Slide 6: Performance versus guidance
Performance versus guidance Our 2018 results met or exceeded guidance Performance indicators 2018 Guidance 2018 Actual Achieved Adjusted operating profit margin 22.5%-23.0% 23.0% ✓ €762 million2) Adjusted free cash flow €725-750 million1) +6%2) ✓+ Return on invested capital 10.0%-10.5% 10.9% ✓+ Dilu
Slide 7: Improved financial KPI's
Improved financial KPI’s Strategy has delivered improved organic growth, margins, and ROIC Organic Growth (%) Adjusted Operating ROIC (%) Profit Margin (%) 5% 24% 12% 4% 11% 23% 3% 10% 22% 2% 9% 21% 8% 1% 0% 20% 7% 2013 2014 2015 2016 2017 2018 2016 2013 2014 2015 2017 2018 2013 2014 2015 2016 2017
Slide 8: Progress on ESG metrics
Progress on ESG metrics We also made progress on certain non-financial indicators Employee Engagement Score General Compliance Training Energy and Water Consumption High Performing Norm % of Employees Completed Tons CO2 Emissions/FTE Wolters Kluwer 99% 97% 97% 99% m3 Water Consumption/FTE 100% 100%
Slide 9: Dividend
Dividend We are proposing a 15% increase in the full-year dividend to €0.98 per share Dividend per Share (€) Proposed 0.98 0.85 0.79 0.75 Final 0.68 0.69 0.70 0.71 0.64 0.65 0.66 0.67 0.64 dividend 0.55 0.58 Interim 0.34 dividend 0.18 0.19 0.20 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 10: Share buybacks
Share buybacks On February 20th, we announced a share buyback program of up to €250 million for 2019 Share Buybacks (€ million) as of 18 April, 2019 3-Yr Program Intended Completed 550 300 250 200 135 140 100 20 25 32 2011 2012 2013 2014 2015 2016 2017 2018 2019 The 2016-2018 share buyback program i
Slide 11: Share price
Share price Wolters Kluwer shares beat the AEX and EuroStoxx 600 Media again in 2018 Wolters Kluwer vs AEX and STOXX Media Wolters Prices Rebased to 100 Kluwer Closing Price April 17, 2019 Wolters Kluwer €62.36 Market Cap €17.4 bn AEX Euro Stoxx Media One Year 2018: Wolters Kluwer +19% │ AEX -10% │
Slide 12: Agenda
Agenda ◼ 2018 Financial Performance ◼ Strategic Priorities 2019-2021 ◼ Outlook 2019 and Summary 2019 Annual General Meeting of Shareholders 12
Slide 13: Value creation
Value creation We are balancing the long-term interests of all of our key stakeholders Wolters Kluwer Value Creation Model Input Output Resources Talent Long-term value Management for all stakeholders Human Talent Enriching & Customers Sustainability Fostering Strong Brand Financial Capital Drive Gr
Slide 14: Strategic priorities 2019-2021
Strategic priorities 2019-2021 Our plan aims to deliver good organic growth and further incremental improvement in adjusted operating profit margin and ROIC Sustain organic product development at 8-10% of Grow ▪ Drive scale by extending the offerings and broadening revenues (CAPEX + OPEX) distributi
Slide 15: Grow expert solutions
Grow expert solutions CCH Axcess: deep domain expertise combined with advanced technology to improve outcomes and productivity for our professional tax customers Our Customers: CCH Axcess Ecosystem Their Clients: Tax Professionals Individuals & Businesses Workstream Financial Prep CCH Tax profession
Slide 16: Drive operational agility
Drive operational agility In 2019-21, we will upgrade our HR systems with leading Saas-based technology, creating a competitive, modern user experience while delivering efficiencies Global Integrated HR Technology Suite MyHR: PeopleDoc Workday ADP Global SaaS HR service & Global SaaS system of Globa
Slide 17: Society
Society We contribute directly to three important United Nations Sustainable Development Goals (SDGs) which support a better society Our products help ▪ Our solutions improve patient outcomes and reduce error rates protect and ▪ Our well-being programs encourage employees to make positive enhance pe
Slide 18: Agenda
Agenda ◼ 2018 Financial Performance ◼ Strategic Priorities 2019-2021 ◼ Outlook 2019 and Summary 2019 Annual General Meeting of Shareholders 18
Slide 19: Guidance 2019
Guidance 2019 In February 2019, we set out our financial guidance for the year Performance indicators 2019 Guidance 2018 (Under IFRS 16) Adjusted operating profit margin 23.0%-23.5% 23.1% Adjusted free cash flow €750-775 million €762 million Return on invested capital 10.5%-11.5% 10.6% Diluted adjus
Slide 20: Summary
Summary Well-positioned for 2019 ◼ Strong performance in 2018 – Delivered good organic growth and improved margins, cash flow, and ROIC – Met or exceeded 2018 guidance – Made progress on ESG metrics – Increased returns for shareholders ◼ Strategy: increasing our focus on expert solutions – Balancing
Slide 21: Questions
Questions 2019 Annual General Meeting of Shareholders 21