Wolters Kluwer N.v. · EURONEXT:WKL
Wolters Kluwer — Investor Day (December 2024)
30 slides from Wolters Kluwer's investor day presentation, Dec 10, 2024
Slide 1: Investor Teach-In: Legal & Regulatory
Wolters Wolters Kluwer Kluwer Tax & Teach-In Investor Accounting Investor Legal & Regulatory Teach-In ◼ December 2022 December 10, 2024 Investor Teach-In: Legal & Regulatory – December 2024 1
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: Today's speakers
Today’s speakers Nancy McKinstry Martin O’Malley Rimco Spanjer Raja Sengupta Chair & CEO CEO VP & General Manager EVP & General Manager Wolters Kluwer Wolters Kluwer Legal & Regulatory ELM Solutions Legal & Regulatory Information Solutions Benelux Investor Teach-In: Legal & Regulatory – December 202
Slide 4: Agenda
Agenda • Introduction – Nancy McKinstry • Legal & Regulatory Division – Martin O’Malley • Legal & Regulatory Information Solutions Benelux – Rimco Spanjer • ELM Solutions – Raja Sengupta • Summary – Martin O’Malley • Q&A Investor Teach-In: Legal & Regulatory – December 2024 4
Slide 5: Legal & Regulatory
Legal & Regulatory Legal & Regulatory contributed 16% of group revenues and 9% of group adjusted operating profit in 2023 Wolters Kluwer Revenues Wolters Kluwer Adjusted Operating Profit (€ million) (€ million) 5,584 1,476 16% 9% Legal & Regulatory 3,565 28% 765 18% 2013 2023 2013 2023 Health Tax &
Slide 6: Portfolio actions
Portfolio actions Proactive M&A program has focused the division on its strongest assets Legal & Regulatory Acquisitions and Divestitures Della AI (AI-enabled Acquisitions contract review) LexisNexis LexisNexis Effacts Legisway Level MFAS Deutschland Poland (legal mgmt. (contract Programs (tax conte
Slide 7: Agenda
Agenda • Introduction – Nancy McKinstry • Legal & Regulatory Division – Martin O’Malley • Legal & Regulatory Information Solutions Benelux – Rimco Spanjer • ELM Solutions – Raja Sengupta • Summary – Martin O’Malley • Q&A Investor Teach-In: Legal & Regulatory – December 2024 7
Slide 8: Legal & Regulatory overview
Legal & Regulatory overview Today, we serve legal professionals with information solutions and software Legal & Regulatory FY 2023 Revenues by Segment €875 million Legal & Regulatory Information Legal & Regulatory Software (23%) Solutions (77%) • Revenues: €205 million • Revenues: €670 million • 100
Slide 9: Legal & Regulatory – revenues
Legal & Regulatory – revenues Strategic transformation has created a smaller but faster-growing division Legal & Regulatory Legal & Regulatory Revenues (€ million) Organic Growth (%) Information Solutions (€m) Software (€m) 6% 5% 1,200 4% 2% 1,000 6% 15% 8% 10% 14% 18% 21% 23% 3% 800 2% 600 1% 0% 40
Slide 10: Legal & Regulatory – revenues
Legal & Regulatory – revenues Today, division revenues are 84% digital and 78% recurring Legal & Regulatory Legal & Regulatory Revenues by Media Format Revenue by Type 1% 11% 6% 12% 15% 15% 17% 28% 14% 10% 5% 41% FY 2023 FY 2023 84% 84% digital 74% 75% 78% 78% recurring 66% +7% organic +5% organic g
Slide 11: Legal & Regulatory – margin
Legal & Regulatory – margin Positive organic growth, improved business mix and efficiency initiatives have driven margin increase in recent years Legal & Regulatory Adjusted Operating Margin 20% 15% 10% 5% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Note: Division adjusted operating profit mar
Slide 12: DXG
DXG The division works closely with DXG, our centralized product development team, helping to standardize technology and accelerate innovation Digital eXperience Group (DXG) One organization (~5,000 FTEs) with teams dedicated to each of the five divisions Health Tax & Accounting Financial & Legal &
Slide 13: Market trends
Market trends Legal & Regulatory benefits from several important market drivers Continuous change and complexity of laws, regulations, and compliance requirements Increased demand for productivity Accelerated adoption of technology, partly driven by GenAI AI depends on reliable information, increasi
Slide 14: Artificial intelligence
Artificial intelligence Legal & Regulatory has been embedding AI into its solutions since 2017, leveraging our proprietary legal content to enhance customer workflows Legal & Regulatory AI-Enabled Customer Solutions Solution Traditional AI Launch Generative AI Launch Software: ELM Solutions (U.S.) L
Slide 15: Strategic priorities
Strategic priorities Focused on transforming digital solutions, scaling software, and driving operational excellence • Transform information solutions into expert solutions • Continue investing in GenAI and other advanced technologies • Scale our software businesses • Focus on strongest market posit
Slide 16: Agenda
Agenda • Introduction – Nancy McKinstry • Legal & Regulatory Division – Martin O’Malley • Legal & Regulatory Information Solutions Benelux – Rimco Spanjer • ELM Solutions – Raja Sengupta • Summary – Martin O’Malley • Q&A Investor Teach-In: Legal & Regulatory – December 2024 16
Slide 17: Information Solutions Benelux – overview
Information Solutions Benelux – overview Digital information provider in the Netherlands and Belgium with a high percentage of recurring revenues Legal & Regulatory Information Solutions Benelux FY 2023 Revenues by Media Format FY 2023 Revenues by Type Services 2% Non-Recurring Our customers Our aut
Slide 18: Competitive position
Competitive position Market leader in the Benelux with comprehensive content and state-of-the-art technology Benelux Legal & Regulatory Competitors Company Market Position Market Position % Main digital GenAI Netherlands Belgium Digital products InView Jura ✓ Beta Wolters Kluwer ~80% Monkey (InView
Slide 19: Law firm workflow
Law firm workflow Wolters Kluwer Benelux supports information needs across the law firm workflow Law Firm Workflow Keep up to date Business development Execution Support Monitor regulatory Manage time and Win new clients Onboard customers developments billing Manage client Conduct legal research Eng
Slide 20: InView
InView Next generation product provides lawyers access to reliable legal content and generates relevant insights InView Up to date legal content Keyword search for specific JB documents or topics XY Law Firm Filtering options AI-enabled conversational search Get an answer with references AI-enabled
Slide 21: Unified technology platform
Unified technology platform We will be migrating our Benelux customers to a single AI-enabled platform under a unified brand Future state: Wolters Kluwer InView GenAI-enabled modules AI-enabled platform under a Proprietary content unified brand Criminal law Banking law Tax law etc. Family law Labor
Slide 22: Business priorities
Business priorities We are focused on four key priorities 1 Sustain product superiority 2 Integrate GenAI tools Focus on rolling out new technology Continue investing in GenAI capabilities platform in the Benelux and other productivity solutions 3 Pursue strategic adjacencies 4 Drive operational exc
Slide 23: Agenda
Agenda • Introduction – Nancy McKinstry • Legal & Regulatory Division – Martin O’Malley • Legal & Regulatory Information Solutions Benelux – Rimco Spanjer • ELM Solutions – Raja Sengupta • Summary – Martin O’Malley • Q&A Investor Teach-In: Legal & Regulatory – December 2024 23
Slide 24: Overview and key products
Overview and key products Legal workflow software solutions that support corporate legal departments to increase efficiency, reduce costs, and partner with outside legal counsel ELM Solutions Products Spend management (e-Billing) Corporate Legal Workflow Software Matter management TyMetrix® 360° Pa
Slide 25: Our clients
Our clients Our offerings help streamline the “business of law” ELM Solutions Customers & Users Corporate Legal Departments (Primary Buyer) Law Firms Example Clients • 200+ enterprise customers, • Over 15,000 global law firms, including 100+ of the Fortune including 100% of the AmLaw Global 500 200
Slide 26: Competitive landscape
Competitive landscape Market leader in legal spend and matter management Competitive Landscape Worldwide Enterprise Legal Management Software Cloud/ Typical IDC MarketScape, 2023 Ownership on-premise customer size Wolters Kluwer ▤ Public Large Ontario Mitratech ▤ Large/Medium Teachers Onit K1 Large
Slide 27: ELM business model
ELM business model Flexible business model accommodates corporate legal department budgets with mix of recurring client subscription and transactional invoice-linked fee to law firms ELM Solutions Revenue Split Revenue model Recurring Non-recurring • ~60% of revenue consists of processing fees link
Slide 28: Business priorities
Business priorities Executing strategy to deliver market-leading customer experience, offerings, and growth 1 Sustain product superiority 2 Grow rapidly in Legal Bill Review Continue to invest in innovation and Provide clients and prospects with AI- enhancements, including AI-enabled enabled service
Slide 29: Agenda
Agenda • Introduction – Nancy McKinstry • Legal & Regulatory Division – Martin O’Malley • Legal & Regulatory Information Solutions Benelux – Rimco Spanjer • ELM Solutions – Raja Sengupta • Summary – Martin O’Malley • Q&A Investor Teach-In: Legal & Regulatory – December 2024 29
Slide 30: Summary
Summary Well-positioned for the future • Deep domain expertise and proprietary content • Transformed into a growing digital business with strong competitive positions • Embedding GenAI and other advanced technologies to enhance customer value • Driving operational excellence Investor Teach-In: Legal