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2014 Full-Year Results

This presentation summarizes Wolters Kluwer's 2014 full-year results. It discusses the financial performance including revenues growing 2% organically with leading positions growing 7% and digital/services revenues up 5%. Adjusted operating profit was €768 million with a margin decline due to increased restructuring costs. Diluted adjusted EPS grew 3% in constant currencies to €1.57. Adjusted free cash flow was €516 million. The presentation reviews strategic progress in key business areas and provides an outlook for 2015 with further restructuring and investment in growth initiatives planned.

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2014 Full-Year Results Nancy McKinstry Chief Executive Officer and Chairman Kevin Entricken Chief Financial Officer February 18, 2015 | Amsterdam
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 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, 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. Unless otherwise stated, this presentation is based on continuing operations. Comparative information is presented accordingly. Growth rates are cited in constant currencies unless otherwise noted. Forward-looking Statements 22014 Full-Year Results
 Introduction  Financial Review  Strategic and Operating Review  Outlook 2015  Appendix Agenda 32014 Full-Year Results
Introduction Guidance met, organic growth improved, returning cash 42014 Full-Year Results  2014 results in line with guidance set at the start of the year – Adjusted operating margin 21.0%, within guidance range – Adjusted EPS up +3% at constant currencies, in line with guidance – Adjusted free cash flow €516 million, better than expected  Organic revenue growth improves to +2% – Leading high growth positions sustain +7% organic growth – Digital and services revenues grow +5% organically  In 2015, we expect further progress – Continued restructuring, mainly in Europe – Stepped up organic investment in sales and marketing and new products – Reviewing strategic options for Transport Services – Up to €140 million cash return to shareholders
Strategic progress Key achievements 2014 52014 Full-Year Results ▪ Delivered 7% organic growth in our leading, high growth positions; Double-digit growth in faster-growing economies ▪ Expanded CLS with acquisition of Datacert ▪ Implemented several small disposals ▪ Digital and services revenues grew +5% ▪ Sustained investment in new and enhanced products at 8-10% of revenues ▪ Advancing cloud-based and mobile offering ▪ Completed major restructuring ▪ Optimizing print products to drive value ▪ Leveraged technology investments across borders Expand our leading, high growth positions Deliver solutions and insights Drive efficiencies
 Introduction  Financial Review  Strategic and Operating Review  Outlook 2015  Appendix Agenda 62014 Full-Year Results
Full-year 2014 results Results in line with guidance; organic growth improves to 2% (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Revenues 3,660 3,565 +3% +3% +2% Adjusted operating profit 768 765 0% 0% -1% Adjusted operating profit margin 21.0% 21.5% Diluted adjusted EPS €1.57 €1.56 +1% +3% Adjusted free cash flow 516 503 +3% +1% Net-debt-to-EBITDA ratio 2.1x 2.2x Return on Invested Capital 8.5% 8.7% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth 72014 Full-Year Results
(€ million) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Legal & Regulatory 1,497 1,447 +3% +4% -1% Tax & Accounting 946 965 -2% -1% +3% Health 816 775 +5% +5% +5% Financial & Compliance Services 401 378 +6% +6% +4% Total revenues 3,660 3,565 +3% +3% +2% FY 2014 Revenues Revenues by division Tax & Accounting, Health and Financial & Compliance Services support organic growth 82014 Full-Year Results Legal & Regulatory 41% Tax & Accounting 26% Health 22% F&CS 11% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth. Legal & Regulatory and Tax & Accounting include the net effect of the transfer of certain assets in Europe from Tax & Accounting to the Legal & Regulatory division in 2014
Revenues by region Organic growth driven by North America and Asia Pacific & ROW North America 55% Europe 37% AsiaPac & ROW 8% FY 2014 Revenues 92014 Full-Year Results ∆ OG: +3% (+2%) (€ million) FY 2014 FY 2013 ∆ ∆ CC ∆ OG North America 1,999 1,924 +4% +5% +3% Europe 1,373 1,387 -1% -1% 0% AsiaPac & ROW 288 254 +13% +12% +7% Total revenues 3,660 3,565 +3% +3% +2% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth Legend: ∆ OG - % Organic Growth FY 2014 (FY 2013) ∆ OG: 0% (-2%) ∆ OG: +7% (+5%)
Digital 68% Services 12% Print 20% Revenues by media format Digital revenues up 6% organically, growing in all divisions (€ million) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Digital 2,472 2,286 +8% +8% +6% Services 453 454 0% 0% 0% Print 735 825 -11% -10% -9% Total revenues 3,660 3,565 +3% +3% +2% FY 2014 Revenues 102014 Full-Year Results ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth. Breakdown by media format reflects updated product classifications introduced in 2014
(€ million) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Margin FY 2014 Margin FY 2013 Legal & Regulatory 305 313 -3% -3% -6% 20.3% 21.6% Tax & Accounting 250 259 -3% -3% -3% 26.4% 26.8% Health 197 175 +13% +11% +11% 24.1% 22.6% Financial & Compliance Services 65 64 +1% 0% -2% 16.3% 17.1% Corporate (49) (46) +6% +6% +6% Adjusted operating profit 768 765 0% 0% -1% 21.0% 21.5% FY 2014 Adjusted Operating Profit Adjusted operating profit Margin decline due to increased restructuring 112014 Full-Year Results Legal & Regulatory 37% Tax & Accounting 31% Health 24% F&CS 8% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth. Legal & Regulatory and Tax & Accounting include the net effect of the transfer of certain assets in Europe from Tax & Accounting to the Legal & Regulatory division in 2014 * Excluding corporate
Restructuring costs Excluding restructuring, margin up 10 basis points 122014 Full-Year Results (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Adjusted operating profit before restructuring 804 780 +3% +3% +1% Adjusted operating profit margin before restructuring 22.0% 21.9% Restructuring costs (36) (15) Total adjusted operating profit 768 765 0% 0% -1% Adjusted operating profit margin 21.0% 21.5% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth  Restructuring is included in adjusted operating profit  Restructuring costs increased to €36 million in 2014  Majority of restructuring costs were in Legal & Regulatory and Tax & Accounting
Adjusted net profit and EPS Diluted adjusted EPS up +3% in constant currencies (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ ∆ CC Revenues 3,660 3,565 +3% +3% Adjusted operating profit 768 765 0% 0% Adjusted operating profit margin 21.0% 21.5% Adjusted net financing costs (113) (117) Equity-accounted investees, net of tax (1) (1) Adjusted profit before tax 654 647 +1% +3% Tax on adjusted profit (182) (178) Effective benchmark tax rate 27.6% 27.6% Non-controlling interests (2) (2) Adjusted net profit 470 467 +1% +3% Diluted weighted average shares (million) 299.9 299.5 Diluted adjusted EPS €1.57 €1.56 +1% +3% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth 132014 Full-Year Results
IFRS profit and diluted EPS Non-recurring gains and tax benefits drive IFRS net profit up +37% (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ Adjusted operating profit 768 765 0% Amortization of acquired intangibles (192) (185) Results on divestments of operations 10 47 Acquisition integration costs and other non-benchmark items (17) (8) Operating profit 569 619 -8% Financing results1) (56) (128) Share of profit of equity-accounted investees, net of tax (1) (1) Profit before tax 512 490 +5% Income tax expense (38) (137) Effective tax rate 7.4% 28.0% Profit after tax 474 353 +35% Loss on discontinued operations, net of tax - (7) Profit for the year 474 346 +37% Non-controlling interests (1) (1) Profit for the year to the owners of the Company 473 345 +37% Diluted EPS €1.58 €1.15 +37% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33) 1) Financing results include employee benefits financing costs of €5 million (2013: €5 million), a €14 million loss on divestment of investments available-for-sale (2013: write-down of €18 million) and a €76 million revaluation gain on our minority interest in Datacert (2013: disposal gain of €12 million) 142014 Full-Year Results
Adjusted free cash flow Cash conversion better than expected (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ ∆ CC Adjusted operating profit 768 765 0% 0% Depreciation and amortization of other intangibles 140 132 Adjusted EBITDA 908 897 +1% +1% Capital expenditure (148) (148) Autonomous movements in working capital 4 (22) Adjusted operating cash flow 764 727 +5% +3% Cash conversion ratio 100% 95% Paid financing costs (135) (115) Paid corporate income tax, adjusted for Springboard (119) (103) Net change in restructuring provision1) (9) (11) Other2) 15 5 Adjusted free cash flow 516 503 +3% +1% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33) 1) Excludes Springboard appropriation, additions to acquisition integration and additions after divestments (2013) 2) Other includes share-based payments, dividends received, and other 152014 Full-Year Results
Movement in net debt Net debt reduced (€ million, unless otherwise stated) FY 2014 FY 2013 Net debt at January 1 (1,988) (2,086) Adjusted free cash flow 516 503 Dividends paid (209) (204) Springboard restructuring, net of tax (4) (10) Free cash flow after dividends and Springboard 303 289 Other sources and uses of cash flow: Acquisition spending, net of cash acquired, including costs (189) (198) Divestiture cash proceeds, including costs, net of tax 27 60 Share repurchases (25) (27) Discontinued operations, net of cash disposed of - (13) Change in the fair value of derivatives (18) (16) Foreign exchange and other (7) 3 Movement in net debt 91 98 Net debt at December 31 (1,897) (1,988) Net-debt-to-EBITDA ratio 2.1x 2.2x 162014 Full-Year Results
Leverage Net-debt-to-EBITDA below target level 2.9x 2.7x 3.1x 2.4x 2.2x 2.1x 2009 2010 2011 2012 2013 2014 Net-Debt-to-EBITDA (Ratio) 172014 Full-Year Results Target: 2.5x
Debt maturity profile Next major debt maturity not until in 2018 182014 Full-Year Results 535 148 14 748 247 696 395 204 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 >2025 Debt Maturity Profile (€ million) Cash & cash equivalents + €20 million collateral posted  May 2014: Issued new 10-year €400 million Eurobond with 2.5% coupon  July 2014: Renewed €600 million multi-currency credit facility year-end 20
Returns to shareholders Increasing cash returns 192014 Full-Year Results Dividend per share (€)1)  Progressive dividend policy: ninth consecutive year of increase  Share buy-back of up to €140 million in 2015 proposed 0.55 0.58 0.64 0.65 0.66 0.67 0.68 0.69 0.70 0.71 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 19 645 100 135 20 25 140 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Share buy-backs (€ million) intended 1) Dividend declared for the year indicated
 Revenues up +2% organically ― Leading, high growth positions +7% ― Digital & services revenues +5%  Adjusted operating profit of €768 million; margin reflects increased restructuring  Diluted adjusted EPS €1.57, up +3% in constant currencies  Adjusted free cash flow of €516 million, up +1% in constant currencies  Net-debt-to-EBITDA ratio of 2.1x, better than target Summary 202014 Full-Year Results
 Introduction  Financial Review  Strategic and Operating Review  Outlook 2015  Appendix Agenda 212014 Full-Year Results
222014 Full-Year Results Corporate Legal Services  Revenue +5% organically, buoyed by Q4 transactional revenues  Transactional revenue +7%, benefitting from one time customer projects in Q4  Strong renewal rates for legal representation services  Integration of Datacert and TyMetrix (ELM Solutions) on track; both achieve strong revenue growth Legal & Regulatory Solutions  Organic revenue decline -3%, in line with prior year  Digital revenues grow +3% organically  Printed loose leafs and books see continued decline  Restructuring initiatives expanded Legal & Regulatory Continued print decline; margin impacted by restructuring Corporate Legal Services 33%Legal & Regulatory Solutions 67% North America 43% Europe 56% AsiaPac & ROW 1% FY 2014 revenues by geographic market L&R Segments Revenues by Geography € million FY 2014 FY 2013 Δ Δ CC Δ OG Revenues 1,497 1,447 +3% +4% -1% Adjusted operating profit 305 313 -3% -3% -6% Margin 20.3% 21.6% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
Tax & Accounting software 69% Digital: other 16% Services 7% Print 8% Tax & Accounting Software grows 5% globally; margins reflect increased restructuring 232014 Full-Year Results North America  Software revenues up +5%, with both on-premise and cloud solutions performing well  Print formats and bank product fees remain under pressure  Restructured editorial and production Europe  Improved organic growth led by Germany, Spain and Scandinavia  Investing in cloud-based and collaborative solutions Asia Pacific & ROW  Positive organic growth, enhanced by one-time sales in Q4  Restructuring to create software development centers of excellence  Brazil sees double-digit growth. China expanded with Dingxin Chuangzhi North America 56% Europe 33% AsiaPac & ROW 11% Revenues by Media Revenues by Geography FY 2014 revenues by geographic market € million FY 2014 FY 2013 Δ Δ CC Δ OG Revenues 946 965 -2% -1% +3% Adjusted operating profit 250 259 -3% -3% -3% Margin 26.4% 26.8% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
Health Organic growth +5%; margin up 150 basis points 242014 Full-Year Results Clinical Solutions  Double-digit organic growth, with strong performances across most product areas and in all regions globally  UpToDate completed global launch of its mobile access platform and introduced 22nd specialty  Sustained investment in new product development Medical Research, Professional & Education  Combined revenues broadly flat on organic basis, with digital growth offset by print decline  Ovid and online journals saw good growth; P&E e-learning and other digital solutions grew 50%+ organically  Printed journals and books decline Clinical Solutions 45% Medical Research 37% Profess'l & Education 18% North America 71% Europe 11% AsiaPac & ROW 18% Health Segments Revenues by Geography FY 2014 revenues by geographic market € million FY 2014 FY 2013 Δ Δ CC Δ OG Revenues 816 775 +5% +5% +5% Adjusted operating profit 197 175 +13% +11% +11% Margin 24.1% 22.6% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
Financial & Compliance Services Organic growth +4%; margin reflects lower transaction volumes, investment and restructuring 252014 Full-Year Results Finance, Risk & Compliance  Organic growth in double-digits, driven by strong software license and professional services sales in Q4 Audit  Robust organic growth  New customer wins for TeamMate globally more than absorb effect of product rationalization Originations  Revenue and margins impacted by downturn in U.S. mortgage refinancing market  FS Transactional revenue down -6%, including one-off regulatory driven transaction sales in Q4 Transport Services (Europe)  Revenue decline; transition to subscription model nearly complete Originations 32% Finance, Risk & Compliance 47% Audit 11% Transport Svcs 10% North America 61% Europe 31% AsiaPac & ROW 8% F&CS Segments Revenues by Geography FY 2014 revenues by geographic market € million FY 2014 FY 2013 Δ Δ CC Δ OG Revenues 401 378 +6% +6% +4% Adjusted operating profit 65 64 +1% 0% -2% Margin 16.3% 17.1% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
Progress on strategic goals Our strategy aims to accelerate profitable growth 262014 Full-Year Results Expand our leading, high growth positions Deliver solutions and insights Drive efficiencies  Find more ways to drive efficiencies in areas such as sourcing, technology, real estate, organizational processes, and distribution channels  Invest in products and services to deliver the tailored solutions and insights our professional customers need to make critical decisions and increase their productivity  Focus the majority of our investments on high growth segments where we have achieved market leadership
1. Expand our leading, high growth positions Our leading, high growth positions in total grew 7% organically Health Tax & Accounting Legal & Regulatory Financial & Compliance Services 33% 69% 45% 58% Finance, Risk & Compliance and Audit1) +5% >10% >10% +5% Clinical Solutions Tax & Accounting Software Corporate Legal Services 1) Includes the Finance, Risk & Compliance and Audit units within the F&CS division 272014 Full-Year Results Total organic growth: +7% Wolters Kluwer Revenue FY 2014 Leading, high growth units within divisions (48% of total revenues) Divisions: Organic Growth:% of division:
Improved organic growth Revenue KPIs showing progress 282014 Full-Year Results Both years reflect new product classification introduced in 2014 Organic Growth 4% 5% 2013 2014 2.7% 3.0% 2013 2014 Digital & Services Revenue (80% of total revenues) Recurring Revenue (76% of total revenues) Non-recurring Revenue excluding print books (16% of total revenues) -4% 4% 2013 2014
2. Deliver solutions and insights Improve our customers’ productivity and outcomes Tailored to customer needs Increases mobility and productivity Driving improved outcomes 292014 Full-Year Results Lippincott’s Nursing Advisor Clinical decision support system for nurses and the rest of the interdisciplinary care Kleos Next Generation cloud product supporting both practice and business of law UpToDate Anywhere Expanded global reach of UpToDate to provide clinicians with access anywhere, anytime and through any device
3. Drive efficiencies Creating global scale and savings in our operations 302014 Full-Year Results Sourcing Technology Real Estate Sales Channel & Go to Market Process & Organization Legal & Regulatory and Tax and Accounting  Outsourcing print, automating editorial & production and consolidating real estate  Streamlined editorial & production and creating centers of excellence in software development Financial & Compliance:  Transport Services adjusted cost base to align with declined revenue
 Introduction  Financial Review  Strategic and Operating Review  Outlook 2015  Appendix Agenda 312014 Full-Year Results
Divisional Outlook 2015 322014 Full-Year Results Legal & Regulatory  Corporate Legal Services to see organic growth, albeit at a more moderate pace in the second half  Division, including Legal & Regulatory Solutions, to see organic revenue decline and modest margin contraction Tax & Accounting  Revenue momentum similar to 2014, with growth in software solutions more than offsetting decline in print and bank products  First half growth to be more muted due to normal seasonal patterns  Margin expected to improve modestly Health  Steady revenue growth, driven by robust growth in Clinical Solutions  Medical Research, Professional & Education likely to see growth in digital offset by continued decline in print  Margin improvement despite product investment and restructuring Financial & Compliance Services  Finance, Risk & Compliance and Audit to see moderate organic growth, following double-digit growth in 2014  Market conditions for Originations are mixed, with refinancing volumes still weak but new regulations offering opportunities
Guidance 2015 Performance indicators FY 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 reported currency 332014 Full-Year Results Additional information:  Expect adjusted net financing costs of approximately €100 million, excluding the impact of exchange rate movements  Expect benchmark effective tax rate to be between 27% and 28%  Expect cash conversion ratio to be in line with our historic average of 95% and capital expenditure between 4% and 5% of revenue
Q&A Nancy McKinstry Chief Executive Officer and Chairman Kevin Entricken Chief Financial Officer
Appendix Nancy McKinstry Chief Executive Officer and Chairman Kevin Entricken Chief Financial Officer
Legal & Regulatory 41% Tax & Accounting 26% Health 22% F&CS 11% Revenue and operating profit breakdown FY 2014 Revenues by division 1) Excluding corporate FY 2014 Adjusted operating profit1) FY 2014 Revenues by type Digital 68% Services 12% Print 20% FY 2014 Revenues by media format Legal & Regulatory 37% Tax & Accounting 31% Health 24% F&CS 8% 362014 Full-Year Results Recurring 76% Print books 8% Other non- recurring 16%
Recurring 76% Print books 8% Other non- recurring 16% Revenues by type (€ million) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Digital and services subscriptions 2,155 2,016 +7% +7% +5% Print subscriptions 341 387 -12% -10% -8% Other recurring 281 274 +2% +2% +1% Recurring revenues 2,777 2,677 +4% +4% +3% Print books 289 322 -11% -11% -10% CLS transactional 215 191 +13% +13% +7% FS transactional 37 39 -5% -5% -6% Other non-recurring 342 336 +2% +2% +3% Total revenues 3,660 3,565 +3% +3% +2% FY 2014 Revenues 372014 Full-Year Results ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth. Breakdown by revenue type reflects updated product classifications introduced in 2014
Reconciliation: Adjusted net financing costs to financing results 382014 Full-Year Results (€ million) FY 2014 FY 2013 Adjusted net financing costs (113) (117) Divestment related results on AccessData - 12 Loss on investment available-for-sale (14) - Employee benefits financing component (5) (5) Revaluation gain on minority interest in Datacert 76 - Write-down of investments available-for-sale - (18) Financing results (56) (128)
(€ million, unless otherwise stated) Dec. 31, 2014 Dec. 31, 2013 Goodwill and intangible assets 5,172 4,592 Equity-accounted investees and financial assets 32 58 Other non-current assets 216 212 Non-current assets 5,420 4,862 Cash and cash equivalents 535 755 Other current assets 1,412 1,247 Deferred income (1,375) (1,214) Short-term borrowings and bank overdrafts (125) (817) Other current liabilities (924) (883) Working capital (477) (912) Capital employed 4,943 3,950 Total equity 2,121 1,584 Long-term debt 2,304 1,909 Other non-current liabilities 518 457 Total financing 4,943 3,950 Closing rate EUR/USD 1.21 1.38 Balance Sheet 392014 Full-Year Results
Currency 402014 Full-Year Results Average rates Impact revenue Impact adjusted operating profit 1 Euro FY 2014 FY 2013 FY 2014 FY 2014 U.S. Dollar 1.33 1.33 6 6 British Pound 0.81 0.85 (6) 0 Canadian Dollar 1.47 1.37 (4) 0 Australian Dollar 1.47 1.38 (4) 0 Brazilian Real, Russian Ruble and other (2) (3) Total impact (€ million) (10) 3 By division: Legal & Regulatory (6) 0 Tax & Accounting (7) 0 Health 1 2 Financial & Compliance Services 2 1 Total (10) 3
Sensitivity to U.S. Dollar 412014 Full-Year Results Impact of a 1% weakening of the U.S. Dollar against the Euro (€ million) 2014 Revenues (21) Adjusted operating profit (6) Adjusted net profit (3) Adjusted FCF (4) Diluted adjusted EPS (Euro) (0.01) Does not include the impact of other currency exposures. Does not include the impact of exchange rate movements on year-end valuation of intercompany balances.

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2014 Full-Year Results

  • 1.
    2014 Full-Year Results Nancy McKinstry ChiefExecutive Officer and Chairman Kevin Entricken Chief Financial Officer February 18, 2015 | Amsterdam
  • 2.
    This presentation containsforward-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, 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. Unless otherwise stated, this presentation is based on continuing operations. Comparative information is presented accordingly. Growth rates are cited in constant currencies unless otherwise noted. Forward-looking Statements 22014 Full-Year Results
  • 3.
     Introduction  FinancialReview  Strategic and Operating Review  Outlook 2015  Appendix Agenda 32014 Full-Year Results
  • 4.
    Introduction Guidance met, organicgrowth improved, returning cash 42014 Full-Year Results  2014 results in line with guidance set at the start of the year – Adjusted operating margin 21.0%, within guidance range – Adjusted EPS up +3% at constant currencies, in line with guidance – Adjusted free cash flow €516 million, better than expected  Organic revenue growth improves to +2% – Leading high growth positions sustain +7% organic growth – Digital and services revenues grow +5% organically  In 2015, we expect further progress – Continued restructuring, mainly in Europe – Stepped up organic investment in sales and marketing and new products – Reviewing strategic options for Transport Services – Up to €140 million cash return to shareholders
  • 5.
    Strategic progress Key achievements2014 52014 Full-Year Results ▪ Delivered 7% organic growth in our leading, high growth positions; Double-digit growth in faster-growing economies ▪ Expanded CLS with acquisition of Datacert ▪ Implemented several small disposals ▪ Digital and services revenues grew +5% ▪ Sustained investment in new and enhanced products at 8-10% of revenues ▪ Advancing cloud-based and mobile offering ▪ Completed major restructuring ▪ Optimizing print products to drive value ▪ Leveraged technology investments across borders Expand our leading, high growth positions Deliver solutions and insights Drive efficiencies
  • 6.
     Introduction  FinancialReview  Strategic and Operating Review  Outlook 2015  Appendix Agenda 62014 Full-Year Results
  • 7.
    Full-year 2014 results Resultsin line with guidance; organic growth improves to 2% (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Revenues 3,660 3,565 +3% +3% +2% Adjusted operating profit 768 765 0% 0% -1% Adjusted operating profit margin 21.0% 21.5% Diluted adjusted EPS €1.57 €1.56 +1% +3% Adjusted free cash flow 516 503 +3% +1% Net-debt-to-EBITDA ratio 2.1x 2.2x Return on Invested Capital 8.5% 8.7% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth 72014 Full-Year Results
  • 8.
    (€ million) FY2014 FY 2013 ∆ ∆ CC ∆ OG Legal & Regulatory 1,497 1,447 +3% +4% -1% Tax & Accounting 946 965 -2% -1% +3% Health 816 775 +5% +5% +5% Financial & Compliance Services 401 378 +6% +6% +4% Total revenues 3,660 3,565 +3% +3% +2% FY 2014 Revenues Revenues by division Tax & Accounting, Health and Financial & Compliance Services support organic growth 82014 Full-Year Results Legal & Regulatory 41% Tax & Accounting 26% Health 22% F&CS 11% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth. Legal & Regulatory and Tax & Accounting include the net effect of the transfer of certain assets in Europe from Tax & Accounting to the Legal & Regulatory division in 2014
  • 9.
    Revenues by region Organicgrowth driven by North America and Asia Pacific & ROW North America 55% Europe 37% AsiaPac & ROW 8% FY 2014 Revenues 92014 Full-Year Results ∆ OG: +3% (+2%) (€ million) FY 2014 FY 2013 ∆ ∆ CC ∆ OG North America 1,999 1,924 +4% +5% +3% Europe 1,373 1,387 -1% -1% 0% AsiaPac & ROW 288 254 +13% +12% +7% Total revenues 3,660 3,565 +3% +3% +2% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth Legend: ∆ OG - % Organic Growth FY 2014 (FY 2013) ∆ OG: 0% (-2%) ∆ OG: +7% (+5%)
  • 10.
    Digital 68% Services 12% Print 20% Revenues by mediaformat Digital revenues up 6% organically, growing in all divisions (€ million) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Digital 2,472 2,286 +8% +8% +6% Services 453 454 0% 0% 0% Print 735 825 -11% -10% -9% Total revenues 3,660 3,565 +3% +3% +2% FY 2014 Revenues 102014 Full-Year Results ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth. Breakdown by media format reflects updated product classifications introduced in 2014
  • 11.
    (€ million) FY2014 FY 2013 ∆ ∆ CC ∆ OG Margin FY 2014 Margin FY 2013 Legal & Regulatory 305 313 -3% -3% -6% 20.3% 21.6% Tax & Accounting 250 259 -3% -3% -3% 26.4% 26.8% Health 197 175 +13% +11% +11% 24.1% 22.6% Financial & Compliance Services 65 64 +1% 0% -2% 16.3% 17.1% Corporate (49) (46) +6% +6% +6% Adjusted operating profit 768 765 0% 0% -1% 21.0% 21.5% FY 2014 Adjusted Operating Profit Adjusted operating profit Margin decline due to increased restructuring 112014 Full-Year Results Legal & Regulatory 37% Tax & Accounting 31% Health 24% F&CS 8% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth. Legal & Regulatory and Tax & Accounting include the net effect of the transfer of certain assets in Europe from Tax & Accounting to the Legal & Regulatory division in 2014 * Excluding corporate
  • 12.
    Restructuring costs Excluding restructuring,margin up 10 basis points 122014 Full-Year Results (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Adjusted operating profit before restructuring 804 780 +3% +3% +1% Adjusted operating profit margin before restructuring 22.0% 21.9% Restructuring costs (36) (15) Total adjusted operating profit 768 765 0% 0% -1% Adjusted operating profit margin 21.0% 21.5% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth  Restructuring is included in adjusted operating profit  Restructuring costs increased to €36 million in 2014  Majority of restructuring costs were in Legal & Regulatory and Tax & Accounting
  • 13.
    Adjusted net profitand EPS Diluted adjusted EPS up +3% in constant currencies (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ ∆ CC Revenues 3,660 3,565 +3% +3% Adjusted operating profit 768 765 0% 0% Adjusted operating profit margin 21.0% 21.5% Adjusted net financing costs (113) (117) Equity-accounted investees, net of tax (1) (1) Adjusted profit before tax 654 647 +1% +3% Tax on adjusted profit (182) (178) Effective benchmark tax rate 27.6% 27.6% Non-controlling interests (2) (2) Adjusted net profit 470 467 +1% +3% Diluted weighted average shares (million) 299.9 299.5 Diluted adjusted EPS €1.57 €1.56 +1% +3% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33); ∆ OG: % Organic growth 132014 Full-Year Results
  • 14.
    IFRS profit anddiluted EPS Non-recurring gains and tax benefits drive IFRS net profit up +37% (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ Adjusted operating profit 768 765 0% Amortization of acquired intangibles (192) (185) Results on divestments of operations 10 47 Acquisition integration costs and other non-benchmark items (17) (8) Operating profit 569 619 -8% Financing results1) (56) (128) Share of profit of equity-accounted investees, net of tax (1) (1) Profit before tax 512 490 +5% Income tax expense (38) (137) Effective tax rate 7.4% 28.0% Profit after tax 474 353 +35% Loss on discontinued operations, net of tax - (7) Profit for the year 474 346 +37% Non-controlling interests (1) (1) Profit for the year to the owners of the Company 473 345 +37% Diluted EPS €1.58 €1.15 +37% ∆: % Change; ∆ CC: % Change constant currencies (EUR/USD 1.33) 1) Financing results include employee benefits financing costs of €5 million (2013: €5 million), a €14 million loss on divestment of investments available-for-sale (2013: write-down of €18 million) and a €76 million revaluation gain on our minority interest in Datacert (2013: disposal gain of €12 million) 142014 Full-Year Results
  • 15.
    Adjusted free cashflow Cash conversion better than expected (€ million, unless otherwise stated) FY 2014 FY 2013 ∆ ∆ CC Adjusted operating profit 768 765 0% 0% Depreciation and amortization of other intangibles 140 132 Adjusted EBITDA 908 897 +1% +1% Capital expenditure (148) (148) Autonomous movements in working capital 4 (22) Adjusted operating cash flow 764 727 +5% +3% Cash conversion ratio 100% 95% Paid financing costs (135) (115) Paid corporate income tax, adjusted for Springboard (119) (103) Net change in restructuring provision1) (9) (11) Other2) 15 5 Adjusted free cash flow 516 503 +3% +1% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33) 1) Excludes Springboard appropriation, additions to acquisition integration and additions after divestments (2013) 2) Other includes share-based payments, dividends received, and other 152014 Full-Year Results
  • 16.
    Movement in netdebt Net debt reduced (€ million, unless otherwise stated) FY 2014 FY 2013 Net debt at January 1 (1,988) (2,086) Adjusted free cash flow 516 503 Dividends paid (209) (204) Springboard restructuring, net of tax (4) (10) Free cash flow after dividends and Springboard 303 289 Other sources and uses of cash flow: Acquisition spending, net of cash acquired, including costs (189) (198) Divestiture cash proceeds, including costs, net of tax 27 60 Share repurchases (25) (27) Discontinued operations, net of cash disposed of - (13) Change in the fair value of derivatives (18) (16) Foreign exchange and other (7) 3 Movement in net debt 91 98 Net debt at December 31 (1,897) (1,988) Net-debt-to-EBITDA ratio 2.1x 2.2x 162014 Full-Year Results
  • 17.
    Leverage Net-debt-to-EBITDA below targetlevel 2.9x 2.7x 3.1x 2.4x 2.2x 2.1x 2009 2010 2011 2012 2013 2014 Net-Debt-to-EBITDA (Ratio) 172014 Full-Year Results Target: 2.5x
  • 18.
    Debt maturity profile Nextmajor debt maturity not until in 2018 182014 Full-Year Results 535 148 14 748 247 696 395 204 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 >2025 Debt Maturity Profile (€ million) Cash & cash equivalents + €20 million collateral posted  May 2014: Issued new 10-year €400 million Eurobond with 2.5% coupon  July 2014: Renewed €600 million multi-currency credit facility year-end 20
  • 19.
    Returns to shareholders Increasingcash returns 192014 Full-Year Results Dividend per share (€)1)  Progressive dividend policy: ninth consecutive year of increase  Share buy-back of up to €140 million in 2015 proposed 0.55 0.58 0.64 0.65 0.66 0.67 0.68 0.69 0.70 0.71 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 19 645 100 135 20 25 140 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Share buy-backs (€ million) intended 1) Dividend declared for the year indicated
  • 20.
     Revenues up+2% organically ― Leading, high growth positions +7% ― Digital & services revenues +5%  Adjusted operating profit of €768 million; margin reflects increased restructuring  Diluted adjusted EPS €1.57, up +3% in constant currencies  Adjusted free cash flow of €516 million, up +1% in constant currencies  Net-debt-to-EBITDA ratio of 2.1x, better than target Summary 202014 Full-Year Results
  • 21.
     Introduction  FinancialReview  Strategic and Operating Review  Outlook 2015  Appendix Agenda 212014 Full-Year Results
  • 22.
    222014 Full-Year Results CorporateLegal Services  Revenue +5% organically, buoyed by Q4 transactional revenues  Transactional revenue +7%, benefitting from one time customer projects in Q4  Strong renewal rates for legal representation services  Integration of Datacert and TyMetrix (ELM Solutions) on track; both achieve strong revenue growth Legal & Regulatory Solutions  Organic revenue decline -3%, in line with prior year  Digital revenues grow +3% organically  Printed loose leafs and books see continued decline  Restructuring initiatives expanded Legal & Regulatory Continued print decline; margin impacted by restructuring Corporate Legal Services 33%Legal & Regulatory Solutions 67% North America 43% Europe 56% AsiaPac & ROW 1% FY 2014 revenues by geographic market L&R Segments Revenues by Geography € million FY 2014 FY 2013 Δ Δ CC Δ OG Revenues 1,497 1,447 +3% +4% -1% Adjusted operating profit 305 313 -3% -3% -6% Margin 20.3% 21.6% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
  • 23.
    Tax & Accounting software 69% Digital: other 16% Services 7% Print 8% Tax &Accounting Software grows 5% globally; margins reflect increased restructuring 232014 Full-Year Results North America  Software revenues up +5%, with both on-premise and cloud solutions performing well  Print formats and bank product fees remain under pressure  Restructured editorial and production Europe  Improved organic growth led by Germany, Spain and Scandinavia  Investing in cloud-based and collaborative solutions Asia Pacific & ROW  Positive organic growth, enhanced by one-time sales in Q4  Restructuring to create software development centers of excellence  Brazil sees double-digit growth. China expanded with Dingxin Chuangzhi North America 56% Europe 33% AsiaPac & ROW 11% Revenues by Media Revenues by Geography FY 2014 revenues by geographic market € million FY 2014 FY 2013 Δ Δ CC Δ OG Revenues 946 965 -2% -1% +3% Adjusted operating profit 250 259 -3% -3% -3% Margin 26.4% 26.8% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
  • 24.
    Health Organic growth +5%;margin up 150 basis points 242014 Full-Year Results Clinical Solutions  Double-digit organic growth, with strong performances across most product areas and in all regions globally  UpToDate completed global launch of its mobile access platform and introduced 22nd specialty  Sustained investment in new product development Medical Research, Professional & Education  Combined revenues broadly flat on organic basis, with digital growth offset by print decline  Ovid and online journals saw good growth; P&E e-learning and other digital solutions grew 50%+ organically  Printed journals and books decline Clinical Solutions 45% Medical Research 37% Profess'l & Education 18% North America 71% Europe 11% AsiaPac & ROW 18% Health Segments Revenues by Geography FY 2014 revenues by geographic market € million FY 2014 FY 2013 Δ Δ CC Δ OG Revenues 816 775 +5% +5% +5% Adjusted operating profit 197 175 +13% +11% +11% Margin 24.1% 22.6% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
  • 25.
    Financial & ComplianceServices Organic growth +4%; margin reflects lower transaction volumes, investment and restructuring 252014 Full-Year Results Finance, Risk & Compliance  Organic growth in double-digits, driven by strong software license and professional services sales in Q4 Audit  Robust organic growth  New customer wins for TeamMate globally more than absorb effect of product rationalization Originations  Revenue and margins impacted by downturn in U.S. mortgage refinancing market  FS Transactional revenue down -6%, including one-off regulatory driven transaction sales in Q4 Transport Services (Europe)  Revenue decline; transition to subscription model nearly complete Originations 32% Finance, Risk & Compliance 47% Audit 11% Transport Svcs 10% North America 61% Europe 31% AsiaPac & ROW 8% F&CS Segments Revenues by Geography FY 2014 revenues by geographic market € million FY 2014 FY 2013 Δ Δ CC Δ OG Revenues 401 378 +6% +6% +4% Adjusted operating profit 65 64 +1% 0% -2% Margin 16.3% 17.1% ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
  • 26.
    Progress on strategicgoals Our strategy aims to accelerate profitable growth 262014 Full-Year Results Expand our leading, high growth positions Deliver solutions and insights Drive efficiencies  Find more ways to drive efficiencies in areas such as sourcing, technology, real estate, organizational processes, and distribution channels  Invest in products and services to deliver the tailored solutions and insights our professional customers need to make critical decisions and increase their productivity  Focus the majority of our investments on high growth segments where we have achieved market leadership
  • 27.
    1. Expand ourleading, high growth positions Our leading, high growth positions in total grew 7% organically Health Tax & Accounting Legal & Regulatory Financial & Compliance Services 33% 69% 45% 58% Finance, Risk & Compliance and Audit1) +5% >10% >10% +5% Clinical Solutions Tax & Accounting Software Corporate Legal Services 1) Includes the Finance, Risk & Compliance and Audit units within the F&CS division 272014 Full-Year Results Total organic growth: +7% Wolters Kluwer Revenue FY 2014 Leading, high growth units within divisions (48% of total revenues) Divisions: Organic Growth:% of division:
  • 28.
    Improved organic growth RevenueKPIs showing progress 282014 Full-Year Results Both years reflect new product classification introduced in 2014 Organic Growth 4% 5% 2013 2014 2.7% 3.0% 2013 2014 Digital & Services Revenue (80% of total revenues) Recurring Revenue (76% of total revenues) Non-recurring Revenue excluding print books (16% of total revenues) -4% 4% 2013 2014
  • 29.
    2. Deliver solutionsand insights Improve our customers’ productivity and outcomes Tailored to customer needs Increases mobility and productivity Driving improved outcomes 292014 Full-Year Results Lippincott’s Nursing Advisor Clinical decision support system for nurses and the rest of the interdisciplinary care Kleos Next Generation cloud product supporting both practice and business of law UpToDate Anywhere Expanded global reach of UpToDate to provide clinicians with access anywhere, anytime and through any device
  • 30.
    3. Drive efficiencies Creatingglobal scale and savings in our operations 302014 Full-Year Results Sourcing Technology Real Estate Sales Channel & Go to Market Process & Organization Legal & Regulatory and Tax and Accounting  Outsourcing print, automating editorial & production and consolidating real estate  Streamlined editorial & production and creating centers of excellence in software development Financial & Compliance:  Transport Services adjusted cost base to align with declined revenue
  • 31.
     Introduction  FinancialReview  Strategic and Operating Review  Outlook 2015  Appendix Agenda 312014 Full-Year Results
  • 32.
    Divisional Outlook 2015 322014Full-Year Results Legal & Regulatory  Corporate Legal Services to see organic growth, albeit at a more moderate pace in the second half  Division, including Legal & Regulatory Solutions, to see organic revenue decline and modest margin contraction Tax & Accounting  Revenue momentum similar to 2014, with growth in software solutions more than offsetting decline in print and bank products  First half growth to be more muted due to normal seasonal patterns  Margin expected to improve modestly Health  Steady revenue growth, driven by robust growth in Clinical Solutions  Medical Research, Professional & Education likely to see growth in digital offset by continued decline in print  Margin improvement despite product investment and restructuring Financial & Compliance Services  Finance, Risk & Compliance and Audit to see moderate organic growth, following double-digit growth in 2014  Market conditions for Originations are mixed, with refinancing volumes still weak but new regulations offering opportunities
  • 33.
    Guidance 2015 Performance indicatorsFY 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 reported currency 332014 Full-Year Results Additional information:  Expect adjusted net financing costs of approximately €100 million, excluding the impact of exchange rate movements  Expect benchmark effective tax rate to be between 27% and 28%  Expect cash conversion ratio to be in line with our historic average of 95% and capital expenditure between 4% and 5% of revenue
  • 34.
    Q&A Nancy McKinstry Chief ExecutiveOfficer and Chairman Kevin Entricken Chief Financial Officer
  • 35.
    Appendix Nancy McKinstry Chief ExecutiveOfficer and Chairman Kevin Entricken Chief Financial Officer
  • 36.
    Legal & Regulatory 41% Tax & Accounting 26% Health 22% F&CS 11% Revenueand operating profit breakdown FY 2014 Revenues by division 1) Excluding corporate FY 2014 Adjusted operating profit1) FY 2014 Revenues by type Digital 68% Services 12% Print 20% FY 2014 Revenues by media format Legal & Regulatory 37% Tax & Accounting 31% Health 24% F&CS 8% 362014 Full-Year Results Recurring 76% Print books 8% Other non- recurring 16%
  • 37.
    Recurring 76% Print books 8% Other non- recurring 16% Revenues bytype (€ million) FY 2014 FY 2013 ∆ ∆ CC ∆ OG Digital and services subscriptions 2,155 2,016 +7% +7% +5% Print subscriptions 341 387 -12% -10% -8% Other recurring 281 274 +2% +2% +1% Recurring revenues 2,777 2,677 +4% +4% +3% Print books 289 322 -11% -11% -10% CLS transactional 215 191 +13% +13% +7% FS transactional 37 39 -5% -5% -6% Other non-recurring 342 336 +2% +2% +3% Total revenues 3,660 3,565 +3% +3% +2% FY 2014 Revenues 372014 Full-Year Results ∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth. Breakdown by revenue type reflects updated product classifications introduced in 2014
  • 38.
    Reconciliation: Adjusted netfinancing costs to financing results 382014 Full-Year Results (€ million) FY 2014 FY 2013 Adjusted net financing costs (113) (117) Divestment related results on AccessData - 12 Loss on investment available-for-sale (14) - Employee benefits financing component (5) (5) Revaluation gain on minority interest in Datacert 76 - Write-down of investments available-for-sale - (18) Financing results (56) (128)
  • 39.
    (€ million, unlessotherwise stated) Dec. 31, 2014 Dec. 31, 2013 Goodwill and intangible assets 5,172 4,592 Equity-accounted investees and financial assets 32 58 Other non-current assets 216 212 Non-current assets 5,420 4,862 Cash and cash equivalents 535 755 Other current assets 1,412 1,247 Deferred income (1,375) (1,214) Short-term borrowings and bank overdrafts (125) (817) Other current liabilities (924) (883) Working capital (477) (912) Capital employed 4,943 3,950 Total equity 2,121 1,584 Long-term debt 2,304 1,909 Other non-current liabilities 518 457 Total financing 4,943 3,950 Closing rate EUR/USD 1.21 1.38 Balance Sheet 392014 Full-Year Results
  • 40.
    Currency 402014 Full-Year Results Averagerates Impact revenue Impact adjusted operating profit 1 Euro FY 2014 FY 2013 FY 2014 FY 2014 U.S. Dollar 1.33 1.33 6 6 British Pound 0.81 0.85 (6) 0 Canadian Dollar 1.47 1.37 (4) 0 Australian Dollar 1.47 1.38 (4) 0 Brazilian Real, Russian Ruble and other (2) (3) Total impact (€ million) (10) 3 By division: Legal & Regulatory (6) 0 Tax & Accounting (7) 0 Health 1 2 Financial & Compliance Services 2 1 Total (10) 3
  • 41.
    Sensitivity to U.S.Dollar 412014 Full-Year Results Impact of a 1% weakening of the U.S. Dollar against the Euro (€ million) 2014 Revenues (21) Adjusted operating profit (6) Adjusted net profit (3) Adjusted FCF (4) Diluted adjusted EPS (Euro) (0.01) Does not include the impact of other currency exposures. Does not include the impact of exchange rate movements on year-end valuation of intercompany balances.