Wolters Kluwer N.V. · EURONEXT:WKL
Wolters Kluwer — UBS Annual Media Week Conference 2005
25 slides from Wolters Kluwer's conference presentation, Dec 8, 2005
Slide 1: Delivering Value
Wolters Kluwer Delivering Value Nancy McKinstry Chairman Executive Board/CEO December 8, 2005 - New York 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
Slide 2: Wolters Kluwer / Vision
Wolters Kluwer Leading multinational publisher and information services company Markets: Health, Corporate Services, Finance, Tax, Accounting, Law, Regulation and Education Operations: Europe, North America and Asia Pacific Headquarters: Amsterdam, the Netherlands €3.3 billion in revenues
Slide 3: Strategy: Product Value Progression
Strategy: Product Value Progression Providing smart tools and integrated solutions offering higher retention and margin potential Integrated Solutions Integrated Software End-to-end workflow system Smart Tools Compliance Retention Rate Workflow Tools Integrated Libraries Dynamic Content
Slide 4: Five Significant Businesses with Powerful Brands
Five Significant Businesses with Powerful Brands Corporate & Financial Tax, Accounting Legal, Tax & Health Education Services & Legal Regulatory Europe $775 million €309 million $544 million $742 million €1,296 million Pharmacists Banking Tax advisors HR managers Teachers Nurses Insura
Slide 5: 3-year plan to deliver value from leading positions
3-year plan to deliver value from leading positions Pre-2003 WK 2003-2005 WK Strategic Plan Growth Growth by by investing investing in in leading leading Acquisitions Acquisitions cornerstone cornerstone market market positions, positions, guided guided by by of of strategy strategy ROIC ROIC Integr
Slide 6: 2005 Outlook & Beyond
2005 Outlook & Beyond Key Operational Measures Guidance 2007 2003 2004 9M05 2005* Onwards* Organic Revenue growth -2% 1% 2% 1-2% 4% Ordinary EBITA margin 18% 16% 16% 15-16% 19-20% Cash conversion 109% 126% 79% 95-105% ± 100% Key Financial Measures Ordinary free cash flow €393mln €456mln €143mln ± €3
Slide 7: Health - Unique portfolio in growing market
Health - Unique portfolio in growing market 2004 revenues: Leading global online medical €623 million; $775 million platform (Ovid) Markets Served include: Largest repository of full text and Hospitals and Libraries, Research bibliographic medical content Organizations, Medical Professional
Slide 8: Corporate & Financial Services (CFS)
Corporate & Financial Services (CFS) UBS Annual Media Week Conference December 8, 2005 - New York 15 CFS - Best in class workflow tools 2004 Revenues: Financial Services; compliance products for €437 million; $544 million financial institutions Corporate Legal Services; representation in Key
Slide 9: CFS Results
CFS Results 2004 organic growth of 4.7% Financial Services 35% 9M05 organic growth of 4.8% Good performance at Corporate Legal Services and Financial services despite strong comparables Corporate Legal Services Recent additions of Summation and 65% PCI performing well On track to achieve f
Slide 10: TAL Results
TAL Results 2004 saw flat organic growth due to Legal deliberate pruning of Legal ($23m) 38% 9M05 organic growth of 3.9%, with both units showing strong growth Tax & T&A enjoyed especially robust growth Accounting 62% driven by growth from core & new products. Improved retention was driven by
Slide 11: Legal, Tax & Regulatory Europe (LTRE)
Legal, Tax & Regulatory Europe (LTRE) UBS Annual Media Week Conference December 8, 2005 - New York 21 LTRE - Significant provider in Europe 2004 Revenues: €1,296 million Leading provider of information, software tools and services LTRE operates in 15 countries throughout Europe Deeply rooted
Slide 12: LTRE Results
LTRE Results SC FR 2004 showed improved organic growth of - UK 3% 14% 13% 1.6% BEL 9M05 growth of -0.5% (incl.€9mln pruning) 7% shows a significant improvement from last year in the same period (-2%) IT/SP 22% Restructuring progressing as expected in NL the Netherlands, UK and Belgium 19% Co
Slide 13: Education - Unparalleled market positions
Education - Unparalleled market positions 2004 Revenues: €309 million Stable, traditional text book business Operations in the Netherlands, Belgium, Evolving electronic solutions UK, Sweden, Germany, Hungary and Austria Products for primary, secondary schools, as well as vocational and dis
Slide 14: Accomplishments: 2005
Accomplishments: 2005 On track to meet 2005 Key Performance Indicators Revitalized top-line growth in our businesses Restructuring mostly behind us New wave of operational efficiency under way - trickier than prior initiatives — Fix and Transform — Shared Services — Operational Excellence
Slide 15: Restructuring On-Track / Outlook: Growth Momentum Continues
Restructuring On-Track Business unit UK, Belgium and the Netherlands progressing well restructuring Global content First release in August 2005 Platform Increased bandwidth with utilization of offshore IT and Off-shoring editorial resources Expansion of production and editorial center in Kua
Slide 16: Use of Cash / 2005 Outlook & Beyond
Use of Cash Invest in growth Reduce Debt Cash Flow Dividend UBS Annual Media Week Conference December 8, 2005 - New York 31 2005 Outlook & Beyond Key Operational Measures Guidance 2007 2003 2004 9M05 2005* Onwards* Organic Revenue growth -2% 1% 2% 1-2% 4% Ordinary EBITA margin 18% 16% 16% 15-16% 19-
Slide 17: Summary
Summary Momentum to deliver strong growth New strategy yielding results on all fronts Strong cost savings Strong financial position Mid-term outlook: 4% organic growth and 19-20% margins Fulfilling the Promise to be… UBS Annual Media Week Conference December 8, 2005 - New York 33 The Professional’s
Slide 18: Working Capital Management
Appendix December 8, 2005 - New York Working Capital Management Operational Working Capital Development, A2003-A2005 (in EUR constant currencies) 0 Fe M Ju Au O N Ap M Ju Se D ct ov ar ec ay n l b g r p -100 -200 A2003 -300 A2004 A2005 -400 -500 -600 UBS Annual Media Week Conference December 8, 2005
Slide 19: Divisional Outlook 2005
On Target to Achieve 45% Electronic Revenues 45 35 30 31 25 27 17 22 18 17 18 17 16 16 18 20 13 13 10 6 2 1999 2000 2001 2002 2003 2004 2006E Internet Rev enues Other Electronic Rev enues UBS Annual Media Week Conference December 8, 2005 - New York 37 Divisional Outlook 2005 Division Organic Revenue
Slide 20: IM Acquisition: Transaction Summary
IM Acquisition Presentation December 8, 2005 - New York Transaction Summary $382 million purchase price for the Information Management (“IM”) Offer to subsidiary of NDCHealth (“NDC”) NDCHealth - 100% cash transaction Per-Se Technologies, Inc. will purchase the remainder of NDC NDC shareholders
Slide 21: IM Meets All WK Acquisition Criteria
IM Meets All WK Acquisition Criteria Strategy Integration 9 Attractive Market 9 Bolt-on In Adjacent Segment 9 Strengthen Leading Positions 9 Short Term Viability 9 Leverage/Enhance Scale 9 More Rapid Integration 9 Platform For Future Growth in 9 Market/Product & Organizational Fit Emerging Markets 9
Slide 22: Information Management Overview / Market Overview
Information Management Overview Unique Value Added Information Solutions IM provides pharmaceutical, biotech and medical device companies with unique solutions to: — Target and measure marketing & sales effectiveness — Track and compensate sales force — Gain insight into effectiveness of rebate pr
Slide 23: NDC/IM Fit With Wolters Kluwer Health
NDC/IM Fit With Wolters Kluwer Health WKHealth Current Revenues WKHealth Pro-Forma Revenues Pharma Solutions 18% Pharma Solutions Medical Research 32% 35% Clinical Tools Medical Research 7% 43% Clinical Tools 6% Professional Education Professional 32% Education 27% Leading position in pre and post
Slide 24: Information Management Financials
Positioned To Capitalize on Shift in Pharma Data Market Strategy For Growth — Sell unique targeting, compensation & payer analytics — Increase revenue from newly launched longitudinal data solutions and integration of ArcLight data IM Segment Revenue — Grow revenue as new drugs are approved by the
Slide 25: IM Key Strengths
IM Key Strengths Leading Position in Physician-Level Data Leading Developer of Granular Longitudinal Data Solutions Unique Access to Longitudinal Data Exclusive ArcLight Relationship Long Term Relationships with Key Clients Attractive Financials UBS Annual Media Week Conference December 8, 2005 - Ne
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