Wolters Kluwer 2015 Half-Year Report
(Thomson Reuters ONE) -
July 29, 2015 - Wolters Kluwer, a global leader in professional information
services, today released its 2015 half-year results.
Highlights
* Full-year outlook reiterated.
* First-half revenues up 3% in constant currencies and up 2% organically.
* Leading, growing positions grew 7% organically (52% of total revenues).
* Digital & services revenues grew 5% organically (84% of total).
* Growth in North America and Asia Pacific outweighed decline in Europe.
* First-half adjusted operating profit ?391 million, up 5% in constant
currencies.
* First-half diluted adjusted EPS ?0.79, up 5% in constant currencies.
* Adjusted free cash flow ?170 million, broadly stable in constant currencies.
* Leverage ratio net-debt-to-EBITDA 2.1x.
* ?140 million share buyback completed on July 1.
* Announcing intent to pay interim dividends, starting with ?0.18 in October
2015.
* Corporate Legal Services and Financial & Compliance Services to be combined,
enabling us to pursue opportunities in governance, risk & compliance
markets.
Interim Report of the Executive Board
Nancy McKinstry, CEO and Chairman of the Executive Board, commented:
"Our first half performance is encouraging. Organic growth improved to 2%,
supported by our leading, high growth businesses and reinforced by strong
transactional revenues in North America. The ongoing shift in business mix and
our efficiency programs drove underlying margin increase. We have stepped up
investment in product development and sales and marketing to build future
growth, and we remain confident we will meet our guidance for 2015."
Key Figures 2015 Half-Year:
Six months ended June 30
(in millions of euros, unless
otherwise stated) 2015 2014 D D CC D OG
Business performance - benchmark
figures
Revenues 2,015 1,716 +17% +3% +2%
Adjusted operating profit 391 313 +25% +5% +4%
Adjusted operating margin 19.4% 18.2%
Adjusted net profit 235 190 +24% +5%
Diluted adjusted EPS (?) 0.79 0.63 +24% +5%
Adjusted free cash flow 170 136 +25% -1%
Net debt 2,069 2,227 -7%
IFRS results
Revenues 2,015 1,716 +17%
Operating profit 281 214 +31%
Profit for the period 162 200 -19%
Diluted EPS (?) 0.55 0.67 -19%
Net cash from operating
activities 245 188 +30%
D: % Change; D CC: % Change constant currencies (EUR/USD 1.33); D OG: %
Organic growth. Benchmark (adjusted) figures are performance measures used by
management. See Note 5 for a reconciliation from IFRS to benchmark figures.
IFRS: International Financial Reporting Standards as adopted by the European
Union.
Full-Year 2015 Outlook
Our guidance for the full year is unchanged. We note that comparables become
more challenging in the second half, particularly for Corporate Legal Services
and Financial & Compliance Services, and investments will be second-half
weighted. As indicated in February, this year we intend to further sharpen our
portfolio towards our leading, high growth businesses, to step up organic
investment in digital products, and to continue to drive efficiencies. We expect
the adjusted operating profit margin to increase in 2015. We currently expect
restructuring costs to be approximately ?35 million for the full year (2014: ?36
million) and to occur mainly in Legal & Regulatory Solutions. The table below
provides our guidance for the full-year.
2015 Outlook
Performance indicators 2015 guidance
Adjusted operating profit margin 21.0%-21.5%
Adjusted free cash flow ?500-?525 million
Return on invested capital >= 8%
Diluted adjusted EPS Mid-single-digit growth
Guidance for adjusted free cash flow and diluted adjusted EPS is in constant
currencies (EUR/USD 1.33). Guidance for EPS growth reflects the announced
share repurchases. Adjusted operating profit margin and ROIC are in reporting
currencies.
Our guidance is based on constant exchange rates. Wolters Kluwer generates more
than half of its revenues and adjusted operating profit in North America. As a
rule of thumb, based on our 2014 currency profile, a 1 U.S. Dollar cent move in
the average EUR/USD exchange rate for the year causes an opposite 1 euro-cent
change in diluted adjusted EPS. Currency is expected to have a more significant
influence on results in 2015 than in recent years.
For the full-year, we expect adjusted net financing costs of approximately ?100
million excluding the impact of exchange rate movements on currency hedging and
intercompany balances. Including the effect of currency and assuming June
period-end exchange rates (including a EUR/USD rate of 1.12) prevail until year-
end, we estimate adjusted net financing costs of around ?125 million. We expect
the benchmark effective tax rate to be between 27% and 28% in 2015. We expect
our cash conversion ratio to return towards historic average of 95%, and capital
expenditure between 4% and 5% of revenue. Our guidance assumes no significant
change in the scope of operations. We may make further disposals which could be
dilutive to margins and earnings in the near term.
About Wolters Kluwer
Wolters Kluwer is a global leader in professional information services.
Professionals in the areas of legal, business, tax, accounting, finance, audit,
risk, compliance and healthcare rely on Wolters Kluwer's market leading
information-enabled tools and software solutions to manage their business
efficiently, deliver results to their clients, and succeed in an ever more
dynamic world. Wolters Kluwer reported 2014 annual revenues of ?3.7 billion. The
group serves customers in over 170 countries, and employs over 19,000 people
worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in
the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1
American Depositary Receipt program. The ADRs are traded on the over-the-counter
market in the U.S. (WTKWY). For more information about our products and
organization, visit www.wolterskluwer.com, follow (at)Wolters_Kluwer on Twitter, or
search for Wolters Kluwer videos on YouTube.
Financial Calendar
September 22, 2015 Declaration of interim dividend
September 24, 2015 Ex-dividend date: 2015 interim dividend
September 25, 2015 Record date: 2015 interim dividend
October 12, 2015 Payment date: 2015 interim dividend ordinary shares
October 19, 2015 Payment date: 2015 interim dividend ADRs
November 4, 2015 Third-Quarter 2015 Trading Update
February 24, 2016 Full-Year 2015 Results
Media Investors/Analysts
Annemarije Pikaar Meg Geldens
Corporate Communications Investor Relations
t + 31 (0)172 641 470 t + 31 (0)172 641 407
press(at)wolterskluwer.com ir(at)wolterskluwer.com
Forward-looking Statements
This report 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 uncertainties that could cause actual results and
events to differ materially from what is contemplated by the forward-looking
statements. Factors which could cause actual results to differ from these
forward-looking statements may include, without limitation, general economic
conditions; conditions in the markets in which Wolters Kluwer is engaged;
behavior of customers, suppliers, and competitors; technological developments;
the implementation and execution of new ICT systems or outsourcing; and legal,
tax, and regulatory rules affecting Wolters Kluwer's businesses, as well as
risks related to mergers, acquisitions, and divestments. In addition, financial
risks such as currency movements, interest rate fluctuations, liquidity, and
credit risks could influence future results. The foregoing list of factors
should not be construed as exhaustive. Wolters Kluwer disclaims any intention or
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
The full press release is available here:
Wolters Kluwer 2015 Half-Year Report (PDF):
http://hugin.info/130682/R/1941918/702144.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Wolters Kluwer NV via GlobeNewswire
[HUG#1941918]
Unternehmensinformation / Kurzprofil:
Datum: 29.07.2015 - 08:01 Uhr
Sprache: Deutsch
News-ID 409883
Anzahl Zeichen: 10334
contact information:
Town:
Alphen aan den Rijn
Kategorie:
Business News
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