Wolters Kluwer N.v. · EURONEXT:WKL
Wolters Kluwer — Shareholder Meeting (April 2012)
25 slides from Wolters Kluwer's shareholder meeting presentation, Apr 25, 2012
Slide 1: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders Nancy McKinstry CEO and Chairman of the Executive Board April 25, 2012
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 2011 Financial Performance 2012 Outlook and Summary Annual General Meeting of Shareholders 2012 3
Slide 4: 2011 Highlights
2011 Highlights Improved operating performance despite macro economic uncertainty Revenues up 4% (1% organic) fueled by 8% growth in electronic revenues Ordinary EBITA up 4% (2% organic) Diluted ordinary EPS up 3% to €1.47 Ordinary free cash flow remains strong up 1% to €443 million Revenues
Slide 5: Portfolio Transformation Continues
Portfolio Transformation Continues Digital migration creates opportunity Data Analytics High disruptive potential Internal & external Online, Software value & Services WK Info Customer workflow Assets Value to Customers Tremendous upside potential Print Publishing Transaction / Legacy busi
Slide 6: Long-Term Market Trends Support Growth
Long-Term Market Trends Support Growth Wolters Kluwer is well positioned to capitalize on global market dynamics Global Dynamic Wolters Kluwer Advantage Increasing Offering best-in-class Workloads & productivity solutions… Complexity Mobile Over 170 mobile apps Revolution and counting… Emerging Mark
Slide 7: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2011 Financial Performance 2012 Outlook and Summary Annual General Meeting of Shareholders 2012 7
Slide 8: Strategic Priorities
Strategic Priorities 2011 highlights progress on strategic objectives to drive long term growth Active portfolio management improves quality of business – Acquisitions reinforce leading positions: Clinical Solutions, Corporate Portfolio Legal Services, Tax Software – Announced Divestment of Pharma b
Slide 9: Capital Allocation
Capital Allocation Capital is consistently focused towards higher growth markets Business Investment Allocation: 22% of Revenues High Growth (>5%) 28% 52% 82% Moderate Growth (2-5%) 41% 30% Stable/Low Growth (<2%) 31% 18% Revenues By Investment Growth Bracket Allocation Investments include CAPEX, Pr
Slide 10: Organic Investment
Organic Investment Continued focus on organic investment supports innovation 2011 Investment in Product Development Investment in product development 9% of Revenues (Capex 4%, Opex 5%) and EBITA margin trend € million 21.6% 21.7% 350 20.8% 21.1% 22% 20.2% Legal & Regulatory Kleos, Jurion 300 16.5% 1
Slide 11: Key Acquisitions in 2011
Key Acquisitions in 2011 Acquisitions strengthen global market positions Extends leading position in the Legal & Regulatory corporate legal services market SAAS accounting & ERP software Tax & Accounting Global tax software Tax software based on SAAS Clinical decision support (mobile applications) D
Slide 12: Acquisitions
Acquisitions Discipline: Acquisitions meet or exceed financial criteria EPS accretive in Year ROIC exceeds Year Acquisitions, Including: Year 1 WACC2 DeAgostini, Nolis, Osra, Eon, Best Case, Tripoint, 2005 Entyre, Amerisearch, Boucher 3 Heymanns, ProVation, Sage, ATX Kleinrock, UTS 20061 TaxWise
Slide 13: Sustainability Practices
Sustainability Practices • Data on environmental impact from paper • Invest 8-10% of Revenues in developing energy and water use, and waste innovation-driven solutions • Executive Board’s remuneration includes • Portfolio consists of high-quality sustainability criteria (% electronic rev) electronic
Slide 14: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2011 Financial Performance 2012 Outlook and Summary Annual General Meeting of Shareholders 2012 14
Slide 15: Financial Highlights
Financial Highlights Resilient performance from continued operations Organic Growth Electronic & Services Revenues 71% 1.1% +290 bp +50 bp 0.6% 68% 2010 2011 2010 2011 Ordinary EBITA Margin Ordinary Free Cash Flow (€ million) +10 bp 21.7% +1% 455 449 -1% 21.6% 446 443 2010 2011 2010 2011 constant cu
Slide 16: Revenues by Media
Revenues by Media Continued growth in electronic and service subscriptions Revenue Composition Electronic revenues remain the driver of organic growth Subscription 74% recurring revenues support & other Books 10% recurring ongoing stability in results 74% Cyclical 16% Year-end December 31 (€ mil
Slide 17: Revenues by Division
Revenues by Division Growth in 3 of 4 divisions; challenges remain in Europe Revenues €3,354 million Health 19% F&CS L&R 10% 43% T&A 28% (€ million, continuing operations) 2011 2010 ∆ ∆ CC ∆ OG Legal & Regulatory 1,451 1,471 (1%) 0% (1%) Tax & Accounting 931 922 1% 2% 2% Health 639 608 5% 10% 4% Fin
Slide 18: Springboard Operational Excellence
Springboard Operational Excellence Full savings to be realized in 2012 Program completed in 2011 Total run rate savings of €191 million; €104 million investment in 2011 Run rate savings of €205-210 million per year to be realized in 2012 Program savings and costs Target € million (pre-tax) 200
Slide 19: Shareholder Returns
Shareholder Returns Solid cash flow supports shareholder returns Proposed dividend of €0.68 per share (increase of 1.5%) Announcing new share buy-back program in 2012 of up to €100 million Dividend per share (€), by year paid out Total share buy-backs (€ million) 645 0.68 0.67 0.66 0.65 0.64 100
Slide 20: 2011 Performance
2011 Performance Market guidance achieved Continuing operations 2011 Guidance 2011 Actual Achieved Ordinary EBITA Margin 21.5 – 22% 21.7% Ordinary Free Cash Flow1) approx €412 million €455 million Return on Invested Capital (after tax)1) ≥ 8% 8.9% Diluted Ordinary EPS1) €1.46 – €1.51 €1.51 1
Slide 21: Agenda
Agenda Opening Remarks Strategic Priorities Highlights of 2011 Financial Performance 2012 Outlook and Summary Annual General Meeting of Shareholders 2012 21
Slide 22: Outlook
Outlook Continued resilience in challenging economic climate Expect 2012 to mirror U.S. and Asia driving growth trends in HY2 2011 Europe remains challenged Improving operating performance Portfolio characteristics Recurring revenues: 74% of total and growing remain resilient Shift towards
Slide 23: Guidance
Guidance 2012 Guidance Ordinary EBITA Margin 21.5 – 22.5% Ordinary Free Cash Flow1) ≥ €425 million Return on Invested Capital (after tax)1) ≥ 8% Diluted Ordinary EPS1,2) Low single-digit growth Net financing result Approximately €125 million Benchmark tax rate Approximately 27.5% 1) At constant curr
Slide 24: Summary
Summary Improved operating performance in 2011 Resilient portfolio; growing online and software solutions Continued investment in innovation and globalization Solid profitability and cash flow Well positioned for the future Annual General Meeting of Shareholders 2012 24
Slide 25: Thank You
Thank You 2) Wolters Kluwer =