Wolters Kluwer N.v. · EURONEXT:WKL
Wolters Kluwer — Shareholder Meeting (April 2006)
24 slides from Wolters Kluwer's shareholder meeting presentation, Apr 26, 2006
Slide 1: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders Nancy McKinstry Chairman Executive Board/CEO April 26, 2006 - Amsterdam
Slide 2: Agenda
Agenda Highlights Financial Performance Divisional Operating Performance 2006 Outlook Annual General Meeting of Shareholders April 26, 2006 - Amsterdam 2
Slide 3: 3-Year Plan To Deliver Improved Value To Shareholders
3-Year Plan To Deliver Improved Value To Shareholders Invest in growth around leading market position Reduce costs through structural improvements Reorganize the business to support growth Establish clear and transparent key performance indicators (KPI’s) which are tied to shareholder value
Slide 4: Accomplishments 2005
Accomplishments 2005 Delivered or exceeded all KPI targets, notably organic growth & cash flow Achieved cost savings ahead of schedule Produced double digit online and software revenue growth Launched new brand and corporate identity program Made selective acquisitions to expand leading position in
Slide 5: Highlights 2005
Highlights 2005 Key Financials — Full year organic revenue growth of more than 2% versus 1% prior year — Ordinary EBITA margin of 16%, equal to 2004 level due to increased cost savings offset by increased product development spend, investments in sales & marketing, continued investments in restruc
Slide 6: All 2005 KPI's Achieved or Exceeded
All 2005 KPI’s Achieved or Exceeded Key Operational Measures 2003 2004 Target 2005 Actual 2005 Organic revenue growth -2% 1% 1-2% √ 2% Ordinary EBITA margin 18% 16% 15-16% √ 16% Cash conversion 109% 126% 95-105% √ 106% Key Financial Measures Free Cash Flow €393mln €456mln ± €300mln √ €351mln ROIC %*
Slide 7: Electronic Sales Growth Accelerating
Electronic Sales Growth Accelerating 3-yr CAGR 14% 45 39 35 31 20 30 27 20 22 20 18 17 18 17 16 25 16 19 13 13 15 10 6 2 1999 2000 2001 2002 2003 2004 2005 2006E Online Revenues Other Electronic Revenues Annual General Meeting of Shareholders April 26, 2006 - Amsterdam 7
Slide 8: Financial Performance
Financial Performance 2005 April 26, 2006 - Amsterdam
Slide 9: Key Financials
Key Financials Actual Constant Organic Currencies Currencies Growth EUR Million 2005 2004 % % % Revenues 3,374 3,261 3 3 2 Ordinary EBITA 533 516 3 3 (1) Ordinary EBITA margin % 16 16 EBITA margin % 15 14 Ordinary Net Income 327 307 7 7 Ordinary diluted EPS €1.06 €1.02 4 4 Free cash flow 351 456 Ann
Slide 10: Profit & Loss
Profit & Loss EUR Million 2005 2004 Revenue 3,374 3,261 2005 2005 Ordinary Ordinary EBITA 533 516 EUR Millions Revenues EBITA Ordinary EBITA margin % 16 16 Health 656 104 Exceptional items (20) (44) CFS 496 100 EBITA 513 472 TAL 621 122 LTRE 1,292 193 EBITA margin % 15 14 Education 309 59 Amortizati
Slide 11: Continued Strong Cash Flow
Continued Strong Cash Flow 456 386 400 393 € million 363 351 328 1999 2000 2001 2002 2003 2004 2005 Annual General Meeting of Shareholders April 26, 2006 - Amsterdam 11
Slide 12: 2005 Acquisitions
2005 Acquisitions Health (±€12 million) Boucher September 8, 2005 PCi January 31, 2005 Entyre October 4, 2005 CFS (±€25 million) Tripoint October 6, 2005 AmeriSearch July 6, 2005 TAL (±€4 million) Best Case Solutions December 30, 2005 DeAgostini Professionale / UTET May 25, 2005 Noli
Slide 13: Divisional Operating Performance
Divisional Operating Performance April 26, 2006 - Amsterdam
Slide 14: Health Results
Health Results Pharma Solutions Professional & 18% Organic growth 4.4% for FY Education 32% All customer units contributing to Clinical Solutions 7% revenue growth, driven by: — New product introductions — Strong online revenue growth (22%) — Good customer adoption of electronic drug information
Slide 15: Corporate & Financial Services Results
Corporate & Financial Services Results Organic growth 5.5% for FY Good performance at CLS Financial Services — Volume growth in core services 36% — UCC services, Corsearch and Tymetrix delivering double digit growth Development of next generation software Corporate Legal in both CLS and FS con
Slide 16: Tax, Accounting & Legal Results
Tax, Accounting & Legal Results Organic growth 4.1% for FY 2005 Strong growth and innovation within TAA: Legal 33% — Strong customer demand for software (Engagement) and integrated online libraries — Expanded global software suite in Canada — Improved retention Tax & Legal restored organic gro
Slide 17: Legal, Tax & Regulatory Europe Results
Legal, Tax & Regulatory Europe Results Organic growth -0.6% including €15 SC million of product pruning UK 3% FR 17% 12% Growth momentum in Spain, France, BEL Central Europe and Italy continued 9% Restructuring progressing well in the Netherlands, UK and Belgium IT/SP 21% Continued strong on
Slide 18: Education Results
Education Results Germany / Aus Other Organic growth was flat at 0.4% 13% 10% Good performance in the Netherlands and Belgium, but difficult market UK 15% conditions in the UK and Sweden Partnership with The Assessment and Qualifications Alliance (AQA) Netherlands 40% Launch of online testin
Slide 19: Corporate Initiatives
Corporate Initiatives In 2005 we continued to focus on implementing initiatives which enhance our culture, management team and community involvement Three areas of focus are: — Core Values: Customer Focus, Innovation, Accountability, Integrity, and Value Creation — Talent Management: Launched hi
Slide 20: Outlook
Outlook April 26, 2006 - Amsterdam
Slide 21: 2006 Outlook
2006 Outlook Continued investments in products and platforms Launch more new products Deliver stronger growth Strengthen customer relationships and industry partnerships Complete LTRE restructuring Continue build out of Shared services; Global Execute restructuring Platform, SAP, Off-shori
Slide 22: Outlook for 2006 & Beyond
Outlook for 2006 & Beyond Key Operational Measures 2007 2003 2004 2005 2006E* Onwards* Organic Revenue growth -2% 1% 2% 2-3% 4% Ordinary EBITA margin 18% 16% 16% 16.5%-17.0% 19-20% Cash conversion 109% 126% 106% 95-105% 95-105% Key Financial Measures Free cash flow €393 €456 mln €351 mln ±€350 mln ≥
Slide 23: Summary
Summary Three year strategy yielding results on all fronts Momentum to deliver stronger and sustained growth Customer adoption of online and integrated tools and solutions affirms core WK strategy Restructuring progressing well with higher cost savings Fulfilling the Promise to Be… Annual General Me
Slide 24: The Professional's First Choice
The Professional’s First Choice Provide information, tools, and solutions to help professionals make their most critical decisions effectively and improve their productivity Annual General Meeting of Shareholders April 26, 2006 - Amsterdam 24