Wolters Kluwer Focuses on the Future; Strategy Update: Maximizing
Value for Customers
(Thomson Reuters ONE) - Alphen aan den Rijn (November 4, 2009) - Wolters Kluwer, amarket-leading global information services and publishing companyfocused on professionals, today outlined its three-year strategy forMaximizing Value for Customers. With a focus on the future, the2010-2012 strategic path builds on the successful transformation ofWolters Kluwer and leverages the company's global leading marketpositions to drive value for customers and shareholders.Nancy McKinstry, CEO and Chairman of the Executive Board, commented:"I am confident that our strategy for 2010-2012, Maximizing Value forCustomers, will drive greater value for our customers andshareholders. We are well positioned for the future based on thesuccessful transformation of our business. Our strong foundationincludes global leading market positions, a resilient subscriptionportfolio, world-class electronic and software capabilities, and asolid financial position. These strengths enable us to createinformation-enabled solutions and networks that help our customersdeliver tangible results. In the context of macro trends that lead toincreased regulation, more compliance complexity, and greater focuson productivity by customers, Wolters Kluwer has the assets andexpertise to deliver intelligent solutions that reduce complexity anddrive efficiencies for our customers."The globalization of our organization, integrated product lines, andcoordinated back office functions reflect the needs of our customersand is the logical next step in the evolution of Wolters Kluwer. Wewill make full use of the value of our global footprint to focus oninnovation to drive better connectivity between our customers andtheir clients, and to continue investing in our strong market-leadingpositions."Our portfolio transformation has enhanced the company's competitiveposition. Today, Wolters Kluwer has significant global scale in eachof its key markets. Wolters Kluwer holds the number one position inthe global tax and accounting market and has strong leading positionsin the global legal and regulatory and health markets. These robustmarket positions provide a significant foundation for deliveringresults by increasing the pace of innovation across geographies andby leveraging economies of scale in product development andtechnology."Strategy for 2010-2012: Maximizing Value for CustomersThe vision to be The Professional's First Choice remains core to thecompany's strategy. The strategy for Maximizing Value for Customerscenters on being the preferred global provider of information-enabledsolutions to enable professionals to manage processes and driveresults effectively. The company will achieve this objective bydelivering against three strategic priorities: * Deliver Value at the Point-of-Use by helping customers manage complex transactions to produce tangible results. Wolters Kluwer's value begins with high quality, proprietary information embedded in tools and solutions. This value is extended by helping professionals automate processes and manage complex decisions and transactions with intelligent solutions and networks. * Expand Solutions Across Processes, Customers, and Networks by following the transaction flow of the professional customers and delivering solutions across key activities. Wolters Kluwer will move towards providing intelligent solutions and collaborative networks to help its customers produce results efficiently by connecting them with clients, governments, and other stakeholders critical to their work. * Raise Innovation and Effectiveness Through Global Footprint by aligning Wolters Kluwer businesses and operations along its strong global market positions, with the creation of four global divisions: Legal & Regulatory, Tax & Accounting, Health & Pharma Solutions, and Financial & Compliance Services. This change will support innovation and efficiencies by sharing technology platforms, global products, and common business models.Maximizing Value for Customers Builds on the Company's Success as theProfessional's First ChoiceWolters Kluwer has established itself as the Professional's FirstChoice for information, software and services which helpprofessionals improve their decision making and productivity. Thecompany's 2006-2009 strategic plan to drive profitable growth hassuccessfully extended value to customers by producing high-qualitysolutions that drive productivity by combining proprietary contentwith software applications to automate key tasks for theprofessional. The company has successfully achieved the goals set outunder its current 2006-2009 strategic plan for profitable growth,including: * Enhanced its portfolio by shifting to higher value added products and stronger growth markets * Continued investments of 8-10% of revenues in new products and platforms to support growth * Expanded electronic revenues to more than 50% of the portfolio * Extended subscription and other non-cyclical revenues to more than 70% of the portfolio * Achieved operating efficiencies and improved operating margins * Strengthened its solid financial position and improved financial flexibility * Delivered substantial EPS growthSpringboard ExpansionThe Springboard operational excellence program is designed to furtherbusiness optimization initiatives resulting in sustainable margingrowth. Savings are expected to result largely from standardizedtechnology platforms and consolidated IT infrastructure, streamlinedcontent manufacturing processes, expanded global sourcing programs,offshore service centers for software development and testing, andcontent production and back office support functions.Execution to date has exceeded expectations giving the companyfurther confidence in achieving its full-year 2009 ordinary EBITAmargin guidance. As a result, the full program run rate savingsestimates have been increased and the program has been expanded. Theexpansion and acceleration of supply management initiatives in Europewill contribute positively to the program results. Additionally,further business optimization initiatives in France, the Netherlands,the United Kingdom, and Law & Business will contribute to additionalsavings. Furthermore, annualized run rate savings estimates for thefull program have been increased to ?140-160 million by 2011, anincrease over the previous estimate of ?120 million. Relatedexceptional expenses are expected to increase to approximately?220-240 million for the full program by 2011.+-------------------------------------------------------------------+| Savings and Cost Estimates (? millions pre | Previous | Increased || tax) | Guidance | Guidance ||--------------------------------------------+----------+-----------|| 2011 Run Rate Cost Savings | 120 | 140-160 ||--------------------------------------------+----------+-----------|| Exceptional Program Costs | 180 | 220-240 |+-------------------------------------------------------------------+Global OrganizationTo drive the strategy for Maximizing Value for Customers, WoltersKluwer will transition to a global organization. Beginning in 2010,the organization of the company will be aligned along four globaloperating divisions: Legal & Regulatory (CEO Donatella Treu), Tax &Accounting (CEO Kevin Robert), Health & Pharma Solutions (CEO BobBecker), and Financial & Compliance Services (CEO Brian Longe). Thefour divisions will report into Nancy McKinstry, CEO and Chairman ofthe Executive Board. With the expansion of the Springboard program,Chris Cartwright, the CEO of the current Corporate & FinancialServices division, will move to a role supporting the successfulexecution of this important initiative, reporting to Jack Lynch,Member of the Executive Board.As part of this transition to a global and integrated organization,the company previously announced the creation of Global SharedServices, headed by Tom Lesica, and a regional management structurefor its Legal, Tax & Regulatory units in Europe.Guidance 2010-2012The Wolters Kluwer strategy is focused on maximizing value forcustomers and shareholders, reflected in Key Performance Indicators.+-------------------------------------------------------------------+| Key Performance Indicators | Medium-Term Guidance 2010-2012 ||----------------------------+--------------------------------------|| | * Double-digit growth in online || | and software revenues || | * Online, software & services || | revenue >= 75% of total revenues || Portfolio composition | * Subscription and other || | non-cyclical revenue >= 75% of || | total revenues || | * Print revenue <= 25% of total || | revenues ||----------------------------+--------------------------------------|| | * Broadly in line with recent || | levels under current economic || Ordinary EBITA margin | conditions || | * Consistent improvement || | thereafter ||----------------------------+--------------------------------------|| Diluted ordinary earnings | * Improvement beyond current || per share | economic conditions in constant || | currencies ||----------------------------+--------------------------------------|| | * >= ?400 million per annum over || Free cash flow | the medium term in constant || | currencies ||----------------------------+--------------------------------------|| Return on invested capital | * >= 8% over the medium term || (after tax) | |+-------------------------------------------------------------------+Solid Financial Position Underpins Strategy for Maximizing Value forCustomersThe company's solid financial position underpins its 2010-2012guidance. Management reiterates the net-debt-to-EBITDA target of 2.5times. Priorities for the uses of free cash flow will includerewarding our shareholders through a progressive dividend policy,improving our financial leverage, and investments in the business.Management reiterates its commitment to invest between 8-10% ofrevenues in new products and platforms to drive profitable growthover the medium term.Benchmark FiguresWherever used in this press release, the term "ordinary" refers tofigures adjusted for exceptional items and, where applicable,amortization of publishing rights and impairment of goodwill andpublishing rights. Exceptional items consist of qualifyingrestructuring expenses. "Ordinary" figures are non-IFRS compliantfinancial figures, but are internally regarded as key performanceindicators to measure the underlying performance of the basebusiness. These figures are presented as additional information anddo not replace the information in the income statement and in thecash flow statement. The term "ordinary" is not a defined term underInternational GAAP.About Wolters KluwerWolters Kluwer is a leading global information services andpublishing company. The company provides products and services forprofessionals in the health, tax, accounting, corporate, financialservices, legal, and regulatory sectors. Wolters Kluwer had 2008annual revenues of ?3.4 billion, employs approximately 20,000 peopleworldwide, and maintains operations in over 35 countries acrossEurope, North America, Asia Pacific, and Latin America. WoltersKluwer is headquartered in Alphen aan den Rijn, the Netherlands. Itsshares are quoted on Euronext Amsterdam (WKL) and are included in theAEX and Euronext 100 indices. Visit www.wolterskluwer.com forinformation about our market positions, customers, brands, andorganization.Should you wish to change how you receive information from WoltersKluwer, please click here.Forward-looking StatementsThis press release contains forward-looking statements. Thesestatements may be identified by words such as "expect," "should,""could," "shall," and similar expressions. Wolters Kluwer cautionsthat such forward-looking statements are qualified by certain risksand uncertainties that could cause actual results and events todiffer materially from what is contemplated by the forward-lookingstatements. Factors which could cause actual results to differ fromthese forward-looking statements may include, without limitation,general economic conditions; conditions in the markets in whichWolters Kluwer is engaged; behavior of customers, suppliers, andcompetitors; technological developments; the implementation andexecution of new ICT systems or outsourcing; and legal, tax, andregulatory rules affecting Wolters Kluwer's businesses, as well asrisks related to mergers, acquisitions, and divestments. In addition,financial risks such as currency movements, interest ratefluctuations, liquidity, and credit risks could influence futureresults. The foregoing list of factors should not be construed asexhaustive. Wolters Kluwer disclaims any intention or obligation topublicly update or revise any forward-looking statements, whether asa result of new information, future events, or otherwise.Calendar2009 Full-Year Results February 24, 2010Publication of 2009 Annual Report March 18, 2010Annual General Meeting of Shareholders, April 21, 2010AmsterdamFull overview available at www.wolterskluwer.com.Media Investors/AnalystsCaroline Wouters Kevin EntrickenVice President, Corporate Vice President, InvestorCommunications Relationst + 31 (0)172 641 459 t + 31 (0)172 641 407press(at)wolterskluwer.com ir(at)wolterskluwer.comPresentations by Senior Management on November 4, 2009 - Hilton HotelAmsterdamStrategy Update: Maximizing Value for CustomersInvestor/Analyst Meeting: 10:00 AM CETPresentation will be webcast on the corporate websitewww.wolterskluwer.comhttp://hugin.info/130682/R/1352444/327196.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 04.11.2009 - 08:00 Uhr
Sprache: Deutsch
News-ID 7874
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