Wolters Kluwer N.V. · EURONEXT:WKL
Wolters Kluwer — Shareholder Meeting (April 2010)
26 slides from Wolters Kluwer's shareholder meeting presentation, Apr 21, 2010
Slide 1: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders Nancy McKinstry CEO and Chairman of the Executive Board April 21, 2010 - 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 2009 Financial Performance 2010 Outlook & Summary Annual General Meeting of Shareholders 2010 April 21, 2010 - Amsterdam 3
Slide 4: Our Vision: The Professional's First Choice
Our Vision The Professional’s First Choice Provide information, tools, and solutions to help professionals deliver quality results more efficiently Annual General Meeting of Shareholders 2010 April 21, 2010 - Amsterdam 4
Slide 5: 2009 Full-Year: Delivered on all Key Performance Indicators
2009 Full-Year: Delivered on all Key Performance Indicators Revenue growth of 2% to €3,425 million; 6% growth in recurring revenues Electronic revenues grew 8%; now 52% of total revenues Springboard cost savings program exceeding expectations Ordinary EBITA margin maintained at 20% Free ca
Slide 6: 2009 Accomplishments: Portfolio Transformation and Innovation Continues
2009 Accomplishments: Portfolio Transformation and Innovation Continues 3% organic growth in electronic and service subscriptions Next-generation platforms launched — IntelliConnect™, new global online research platform in U.S. and Asia — ProSystem fx Suite with Software as a Service (SaaS) offe
Slide 7: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2009 Financial Performance 2010 Outlook & Summary Annual General Meeting of Shareholders 2010 April 21, 2010 - Amsterdam 7
Slide 8: Maximizing Value for Customers Strategy 2010-2012
Maximizing Value for Customers 2010-2012 Strategy Expand Solutions Across Processes, Customers, Raise Deliver and Networks Innovation Value at the and Effectiveness Point-of-Use Through Global Capabilities Annual General Meeting of Shareholders 2010 April 21, 2010 - Amsterdam 8
Slide 9: Strategy is Market Driven
Strategy is Market Driven More complex information Superior information and compliance + Focus on efficiency and Efficient process productivity management + Importance of workflow Intelligent solutions context and connectivity Delivering Better results for our customers Annual General Meeting of Sha
Slide 10: Strategic Focus: Produce Results for Customers
Strategic Focus: Produce Results for Customers Through Superior Information and Intelligent Solutions High-Quality, Proprietary Information Annual General Meeting of Shareholders 2010 April 21, 2010 - Amsterdam 10
Slide 11: Deliver Value at the Point-of-Use
Deliver Value at the Point-of-Use Focuses on delivering a successful outcome (passing an exam) rather than delivering data Provides answers at point of need (whenever I need to study) Provides mobility and increases availability driving usage and value (on “the” device I take everywhere) Int
Slide 12: Expand Solutions Across Customers, Processes, and Networks
Expand Solutions Across Customers, Processes, and Networks Mortgage Transaction Lifecycle Pre-closing Closing – Fraud and Servicing- Customer Mortgage Asset Investor Processing – document E-close and Compliance E-folder Assessment Application Verification Delivery -analysis generation E-signature
Slide 13: Raise Effectiveness Through Global Back Office Efficiencies
Raise Effectiveness Through Global Back Office Efficiencies Services Delivery Network (SDN) Global Shared Account Rationalized local support functions into global Services Management back office Application Development Application Support Infrastructure Finance & Accounting QA/Other Infrastructu
Slide 14: Strategy Generates Greater Value for Customers and Shareholders
Strategy Generates Greater Value for Customers and Shareholders Leverages our resilient portfolio and strong global leadership positions — Portfolio transformation continues with strong growth in online and software — Global platforms, products and organization provide scale efficiency — Increases
Slide 15: Strategy Will Deliver Greater Value
Strategy Will Deliver Greater Value Key Performance Indicators Medium-Term Outlook Double-digit online & software growth Revenue growth/ Portfolio composition Online, software & services revenue 75% of total revenues Ordinary EBITA Continuous improvement Free cash flow1 ≥ €400 million per an
Slide 16: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2009 Financial Performance 2010 Outlook & Summary Annual General Meeting of Shareholders 2010 April 21, 2010 - Amsterdam 16
Slide 17: Revenues: Full-Year 2009
CFS Revenues: Full-Year 2009 transactions 5% Books Advertising 10% 3% Pharma Resilient performance for promomotion subscription portfolio despite Subscription & 3% cautious new sales environment other recurring Training/ 71% Consulting Overall 8% growth in electronic 4% revenues with 3% organic
Slide 18: 2009 Division Highlights
2009 Division Highlights 2009 Full-Year Revenue 2009 Full-Year Ordinary EBITA €3,425 million €682 million Legal, Tax Health Legal, Tax Health & 22% & 16% Regulatory Regulatory Corporate Europe Corporate Europe & Financial 38% & Financial 35% Services Tax, Services 17% Tax, Accounting 14% Accounting
Slide 19: Springboard: Exceeding Expectations
Springboard: Exceeding Expectations Multi Generational 2009 Results Technology Plan — Program ahead of expectations — Total cost savings increased by €68 million to €84 million Content (2008: €16 million) Re-engineering — Exceptional costs incurred total €70 million (2008: €45 million) Supplier
Slide 20: Free Cash Flow
Free Cash Flow Cash Flow from Operating Activities Capital Expenditures (€ millions) (€ millions) 140 521 125 123 512 510 485 93 79 382 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Autonomous Movement in Working Capital Reported Free Cash Flow (€ millions) (€ millions) 424 399 405 395 27 19 311
Slide 21: Solid Financial Position
Solid Financial Position Net-Debt/EBITDA Debt Maturity Profile 1,155 3.2 3.2 3.0 2.9 2.4 € millions 697 542 426 4981 26 11 2 Cash 2010 2011 2012 2013 2014 Due 2005 2006 2007 2008 2009 & After Derivatives 2014 12010: Outstanding part of redemption on credit facility maturing in July 2011 Annual Gener
Slide 22: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2009 Financial Performance 2010 Outlook & Summary Annual General Meeting of Shareholders 2010 April 21, 2010 - Amsterdam 22
Slide 23: 2010 Outlook
2010 Outlook Beginning to see market conditions stabilize Slow but steady economic recovery through 2010 North American business units expected to recover ahead of European Recurring revenues: resilient retention rates partially offset by weaker 2009 new sales Cyclical revenues: expected t
Slide 24: 2010 Outlook
2010 Outlook Key Performance Indicators 2010 Guidance Ordinary EBITA margin 20-21% Free cash flow1 ≥ €400 million Return on invested capital ≥ 8% Diluted ordinary EPS1 €1.41 to €1.452 ¹ In constant currencies 2 2009 diluted ordinary EPS in 2008 constant currency (€1.41) has been restated to
Slide 25: Strong Performance, Positive Outlook
Strong Performance, Positive Outlook Resilient 2009 financial performance Growing online and software solutions portfolio Solid profitability and cash flow Positive outlook for 2010 and beyond Clear strategic focus underpins medium-term growth Continued investment to ensure long-term suc
Slide 26: Thank You
Annual General Meeting of Shareholders 2010 Thank You Annual General Meeting of Shareholders 2010 April 21, 2010 - Amsterdam 26