Slide 1: Second Quarter Fiscal 2014 Earnings
WILEY Second Quarter Fiscal 2014 Earnings December 10, 2013
Slide 2: Background
Background About Wiley Wiley is a global provider of knowledge and knowledge-enabled services that improve outcomes in areas of research, professional practice and education. Through its Research segment, the Company provides digital and print scientific, technical, medical, and scholarly journals,
Slide 3: Second Quarter 2014 Highlights
Second Quarter 2014 Highlights Strong revenue growth (+8% adjusted) * Continued growth in research journal subscription revenue * Strong solutions revenue growth in Professional Development and Education, including Online Assessment and Training, Online Program Management and WileyPLUS * Digital boo
Slide 4: Adjusted Performance
Adjusted Performance (millions) Q2 FY14 Q2 FY13 Change aan Revenue $449.2 $417.7 8% 8% Operating Income $70.3 $67.1 5% 5% EPS $0.84 $0.75 12% 11% Adjusted performance for the quarter excludes: (1) operational results fromthe divested consumer publishing program; second quarter 2014 restructuring cha
Slide 5: Research Performance
Research Performance QUARTER YEAR-TO-DATE (millions) Q2 2014 Q22013 Grange mee % of Revenue Journal Subscriptions $164.1 $162.2 2% 3% 65% Print Books $31.1 $34.7 (10%) (8%) 12% Digital Books $9.4 $6.4 45% 36% 4% Open Access $3.9 $1.8 117% 200% 1% Other (reprints, backtes, rights, advertising) $44.4
Slide 6: Professional Performance
Professional Performance QUARTER YEAR-TO-DATE (millions) Q22014 Q22013 ; % of Revenue Print Books $61.6 $62.1 67% Digital Books $12.6 $9.8 13% Online Training & Assessment $9.8 $6.8 10% Other (rights, translations, advertising) $8.5 $8.5 10% Adjusted Revenue $92.5 $87.2 7% 0% 100% Divested Consumer
Slide 7: Education Performance
Education Performance QUARTER YEAR-TO-DATE (millions) Q22014 22013 ene % of Revenue Print Textbooks $45.2 $49.1 (6%) (10%) 47% Binder & Custom Product $14.8 $10.6 40% 16% 17% Online Program Management $16.5 0) 17% Digital Books $9.4 $6.2 55% 35% 1% WileyPLUS $15.9 $12.8 26% 26% 9% Other $1.9 $1.9 0%
Slide 8: Adjusted Shared Services Costs
Adjusted Shared Services Costs Q2 YTD (millions spent) Q2 2014 Q2 2013 Change Change Ex-foreignexchange _Ex-foreign exchange Distribution $24.5 $25.8 (4%) (4%) Technology $45.2 $36.2 25% 25% Finance $11.0 $10.6 5% 3% Other Administration $23.7 $22.3 7% 6% Total $104.3 $94.9 11% 10% ‘Adjusted Shared
Slide 9: Balance Sheet
Balance Sheet * Net debt at $498M vs. $609M at prior year — Net Debt to EBITDA at 1.2 at end of October (ttm) * Deferred Revenue increased nearly 29% to $138M, driven by growth in billings and collections including: — Journal subscription billings — Inscape Online Training and Assessment — WileyPLUS
Slide 10: Cash Flow and Usage
Cash Flow and Usage (millions) 1H2014 1H2013 Cash Used for Operations ($66.5) ($91.6) Capex Composition ($19.3) ($23.1) Technology, etc. ($26.2) ($28.3) Total Capex ($45.5) ($51.4) Free Cash Flow ($112.0) ($143.0) Free Cash Flow year-over-year improvement due to $30M German tax appeal deposit in 1H
Slide 11: Restructuring Update
Restructuring Update ° Action plans approved through Q2 are expected to achieve approximately $70M of the $80M in run-rate savings starting in fiscal 2015 — More than 50% expected to fall to bottom line; the rest reinvested — YTD restructuring savings of $10M and other savings of S4M * Total restruc
Slide 12: Summary and Outlook
Summary and Outlook Strong revenue growth (+8% adjusted) * Continued growth in research journal subscription revenue * Strong solutions revenue growth in Professional Developmentand Education * Digital book revenue up 40% across Wiley Double-digit EPS growth (+11% adjusted) * Driven by revenue growt