Wolters Kluwer N.V. · EURONEXT:WKL
Wolters Kluwer — Shareholder Meeting (April 2014)
28 slides from Wolters Kluwer's shareholder meeting presentation, Apr 23, 2014
Slide 1: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders April 23, 2014 | Amsterdam
Slide 2: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders April 23, 2014 | Amsterdam Nancy McKinstry CEO and Chairman of the Executive Board
Slide 3: 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 4: Agenda
Agenda Introduction Strategic Priorities Highlights of 2013 Financial Performance 2014 Outlook and Summary Annual General Meeting of Shareholders 2014 4
Slide 5: Introduction
Introduction Our 2013 results were in line with the guidance we set at the start of the year — Organic revenue growth up 1% driven by 4% organic growth in digital and services subscription revenues — Leading, high growth positions up 7% organically (44% of total revenues) — Growth in North America
Slide 6: Agenda
Agenda Introduction Strategic Priorities Highlights of 2013 Financial Performance 2014 Outlook and Summary Annual General Meeting of Shareholders 2014 6
Slide 7: Progress on strategy
Progress on strategy Our strategy aims to accelerate profitable growth Expand Focus the majority of our investments on high growth segments where we have our leading, achieved market leadership high growth positions Invest in products and services to deliver the tailored solutions and insights o
Slide 8: 1. Expand our leading, high growth positions
1. Expand our leading, high growth positions Our leading, high growth positions in total grew 7% organically 44% of total 2013 organic growth revenues of units indicated % of division: Finance, Risk & +3% Financial & Compliance 54% Compliance and Audit1) Health 42% Clinical Solutions >10% Total orga
Slide 9: 2. Deliver solutions and insights
2. Deliver solutions and insights We launched several products that improve our customers’ productivity and outcomes Increasingly Mobile Drives Decisions and Outcomes Enhanced enterprise Cloud-based tax & accounting governance, risk and software for CPA firms compliance solution for banks Annual Gen
Slide 10: 3. Drive efficiencies
3. Drive efficiencies We are continuing to drive savings and creating global scale economies Sales Channel Process & Sourcing Technology Real Estate & Go to Market Organization Renegotiated Optimized hosting Consolidated Replaced Redesigned CLS’ paper, printing, and infrastructure office s
Slide 11: Portfolio transformation
Portfolio transformation Today, 77% of our revenues come from digital products and services Revenue by Media Format Revenue by Geography 26% 23% 34% 31% 29% 43% 44% 40% 39% 45% 16% 15% 16% 14% 15% 6% 7% 5% 5% 6% 56% 58% 61% 52% 54% 50% 52% 50% 54% 54% 2009 2010 2011 2012 2013 2009 2010 2011 2012 201
Slide 12: Sustainability
Sustainability Maximizing our contribution to society through innovation Included in the Dow Jones Sustainability Index for the seventh year in a row Awarded the Bronze Class Sustainability Award 2014 from RobecoSAM, as a part of The Sustainability Yearbook 2014 Recognized as one of the Global
Slide 13: Sustainability in Action
Sustainability in Action Building social cohesion Boosting access to Efficient use of resources through knowledge information in China Partnering with leading law firms Cooperation with People’s Secure Dox facilitates secure, and the government of Madrid to Medical Publishing House to auditabl
Slide 14: Our Brand
Our Brand Supporting the business strategy Reinforces customer- Significant progress towards focused growth ambition a stronger, unified brand Supports the business Shared value proposition strategy with a stronger, adopted across markets and simplified company story customers worldwide Elevat
Slide 15: Wolters Kluwer as Employer
Wolters Kluwer as Employer Strong Employer Value Proposition supporting business needs Make it better. – We are fixers. When we see inefficiencies, flaws, and opportunities for improvement, it inspires us. We take something with potential—a product, a process, a business, a market—and make it bett
Slide 16: Investing in Talent
Investing in Talent Attracting and retaining skilled employees Leadership summit – Building the talent pipeline – Foster collaboration and share best practices – Supports closer interaction between leaders Global innovation award – Reward employees who have developed inspiring and successful sol
Slide 17: Agenda
Agenda Introduction Strategic Priorities Highlights of 2013 Financial Performance 2014 Outlook and Summary Annual General Meeting of Shareholders 2014 17
Slide 18: 2013 performance
2013 performance FY2013 results in line with guidance Continuing operations 2013 Guidance 2013 Actual Achieved Ordinary EBITA Margin 21.5 – 22.0% 21.5% Ordinary Free Cash Flow1) ≥ €475 million €525 million Return on Invested Capital (after tax)1) ≥ 8% 8.7% Diluted Ordinary EPS1) Low single dig
Slide 19: Revenues by division
Revenues by division Strong organic growth at Health; challenges faced by F&CS (€ million) 2013 2012 ∆ ∆ CC ∆ OG Legal & Regulatory 1,447 1,485 -3% -1% -1% Tax & Accounting 965 981 -2% +1% +1% Health 775 745 +4% +8% +6% Financial & Compliance Services 378 386 -2% +1% -4% Total Revenues 3,565 3,597 -
Slide 20: Revenues by type
Revenues by type Faster growth in recurring revenue offset by transactional trends (€ million) 2013 2012 ∆ ∆ CC ∆ OG Digital & service subscription 1,951 1,885 +4% +6% +4% Print subscription 399 443 -10% -8% -7% Other non-cyclical 338 342 -1% +2% +2% Recurring revenues 2,688 2,670 +1% +3% +2% Books
Slide 21: Ordinary EBITA by division
Ordinary EBITA by division Margin increase in Health and T&A offsets decline in L&R and F&CS Margin Margin (€ million) 2013 2012 ∆ ∆ CC ∆ OG 2013 2012 Legal & Regulatory 313 327 -4% -1% -2% 21.6% 22.0% Tax & Accounting 259 259 0% +3% +4% 26.8% 26.4% Health 175 163 +7% +11% +7% 22.6% 21.9% Financial
Slide 22: Returns to shareholders
Returns to shareholders Proposed dividend increase to €0.70 for 2013 to be paid in cash Progressive dividend policy: eighth consecutive year of increase Anti-dilution policy: share buy-back of up to €25 million in 2014 Dividend per share (€)1) Share buy-backs (€ million) 645 0.70 0.69 0.68 0.67
Slide 23: Leverage
Leverage Net-debt-to-EBITDA ratio improved to 2.2x Net-Debt-to-EBITDA (Ratio) 3.1x 2.9x 2.7x Target: 2.5x 2.4x 2.2x 2009 2010 2011 2012 2013 2012 restated for IAS 19R and IFRS 11 Annual General Meeting of Shareholders 2014 23
Slide 24: Agenda
Agenda Introduction Strategic Priorities Highlights of 2013 Financial Performance 2014 Outlook and Summary Annual General Meeting of Shareholders 2014 24
Slide 25: Guidance 2014
Guidance 2014 Performance indicators FY2014 Guidance Ordinary EBITA Margin 20.5%–21.5% Ordinary free cash flow ≥ €475 million Return on invested capital ≥ 8% Diluted ordinary EPS Low single-digit growth Guidance for ordinary free cash flow and diluted ordinary EPS is in constant currencies (EUR/USD
Slide 26: Summary
Summary Progress on strategic goals: – We invested in our leading, high growth positions which achieved 7% organic revenue growth – We are continuing to drive efficiencies Highlights FY2013 Results: – Overall in line with guidance set at the start of the year – Health performed better than expec
Slide 27: Q&A
Q&A Nancy McKinstry CEO and Chairman of the Executive Board
Slide 28: Thank you
Thank you Nancy McKinstry CEO and Chairman of the Executive Board