Wolters Kluwer N.V. · EURONEXT:WKL
Wolters Kluwer — Shareholder Meeting (April 2018)
23 slides from Wolters Kluwer's shareholder meeting presentation, Apr 19, 2018
Slide 1: Annual General Meeting 2018
Wolters Kluwer Annual General Meeting 2018 Amsterdam April 19, 2018 2018 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 2018 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 2017 Financial Performance Progress on Strategic Priorities Outlook and Summary 2018 Annual General Meeting of Shareholders 4
Slide 5: Highlights 2017
Highlights 2017 In 2017, we delivered strong financial results and made progress on strategic goals Solid Total organic growth +3% organic Digital and services organic growth +5% growth Adjusted operating margin 22.8%, +60bps Increased Adjusted free cash flow +7% profitability Diluted adju
Slide 6: Performance versus guidance
Performance versus guidance A strong fourth quarter led us to exceed several 2017 guidance metrics Performance indicators 2017 Guidance 2017 Actual Achieved Adjusted operating profit margin 22.5%–23.0% 22.8% . €746 million2) Adjusted free cash flow €675-€725 million1) +7%1) + Return on invested ca
Slide 7: Financial performance
Financial performance A track record of improving financial metrics Organic Revenue Growth Adjusted Operating Profit Margin 24.0% +4% 3% 22.8% +3% 3% 3% 23.0% 2% 22.0% +2% 1% +1% 1% 1% 21.0% 0% 20.0% 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 Diluted Adjusted EPS Growth Re
Slide 8: Divisional performance
Divisional performance Three divisions delivered good organic growth and margins; Legal & Regulatory improved Revenues Adjusted Operating Profit € million € million Organic Growth 2017 Group: 4,422 +3% Margin 2017 4,286 Legal & 917 927 -1% 1,009 22.8% ↑ Regulatory 950 110 12.0% - 111 Governance, 1,0
Slide 9: Dividend
Dividend Today, we propose a full-year total dividend of €0.85 per share, up +8% Dividend per Share (€) Proposed 0.85 0.79 0.75 0.69 0.70 0.71 0.66 0.67 0.68 0.64 0.65 0.58 0.55 Final 0.65 dividend Interim dividend 0.18 0.19 0.20 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 10: Share buybacks
Share buybacks Our buyback program has been expanded with proceeds from non-core disposals Share Buybacks (€ million) as of April 18, 2018 Share Buyback Program 2016-2018 Intended Completed 400 300 200 135 140 100 162 20 25 2011 2012 2013 2014 2015 2016 2017 2018 ProVation disposal proceeds (€150 mi
Slide 11: Share price
Share price Wolters Kluwer shares continued to outperform AEX and European Media sector Wolters Kluwer Wolters Kluwer vs AEX and STOXX Media Closing Price April 18 Prices Rebased to 100 €44.19 Wolters Kluwer Market Cap: €4.7bn €12.8bn One Year 2017: Wolters Kluwer +26% │ AEX +13% │ Euro Stoxx Media
Slide 12: Agenda
Agenda 2017 Financial Performance Progress on Strategic Priorities Outlook and Summary 2018 Annual General Meeting of Shareholders 12
Slide 13: Strategic priorities 2016-2018
Strategic priorities 2016-2018 Our strategy aims to sustain and improve organic growth, margins and returns ▪ Allocate capital to leading growth units and digital products ▪ Extend into adjacencies and new geographies Expand ▪ Broaden sales and marketing coverage Market Coverage ▪ Supplement organic
Slide 14: Expand market coverage
Expand market coverage Expanding our global products and reshaping our portfolio Invested in global products — Health: invested to grow UpToDate and drug information outside the U.S. — Tax & Accounting: launched TeamMate+; extended CCH iKnow and CCH iFirm into new geographies — GRC: invested to en
Slide 15: Deliver expert solutions
Deliver expert solutions Two leading expert solutions that drove double-digit organic growth in 2017 Tax & Accounting Governance, Risk & Compliance CCH Axcess OneSumX Finance, Risk & Reporting Integrated cloud solution for U.S. Leading global solution for integrated risk- professional tax and ac
Slide 16: Drive efficiencies
Drive efficiencies Driving front and back office savings; increasing technology standardization $ Driving operational excellence in front and back office — Launched collaborative sales and digital marketing initiatives — Consolidated data centers and advanced migration to the cloud — Rationalized
Slide 17: Value creation model
Value creation model Our strategy aims to add value for customers, employees, investors, and society 2018 Annual General Meeting of Shareholders 17
Slide 18: Non-financial indicators
Non-financial indicators We strive to improve on a range of non-financial measures each year Employee Engagement Female Supervisory Board Members % Favorable % Female 75% 75% 76% 43% 17% 29% 2015 2016 2017 2015 2016 2017 Compliance Training Energy Consumption % Completed Tons CO2 Emissions/FTE 99% 9
Slide 19: Sustainable development goals
Sustainable development goals We are contributing directly to key Sustainable Development Goals 2018 Annual General Meeting of Shareholders 19
Slide 20: Agenda
Agenda 2017 Financial Performance Strategic Progress Outlook and Summary 2018 Annual General Meeting of Shareholders 20
Slide 21: Guidance 2018
Guidance 2018 In February 2018, we set out our financial guidance for the year Performance indicators 2018 Guidance 2017 (Under IFRS 15) Adjusted operating profit margin 22.5% - 23.0% 22.2% Adjusted free cash flow €725 - €750 million €746 million Return on invested capital 10.0% - 10.5% 9.8% Diluted
Slide 22: Summary
Summary We are focused on executing on our plans and objectives for 2018 2017 results – Solid +3% organic growth – Further improvement in profitability and cash flow – Increased cash returns to shareholders Significant progress on our 2016-2018 strategic plan – Extended our market coverage – Inc
Slide 23: Thank you
Thank you 2018 Annual General Meeting of Shareholders 23