February 19, 2014 - Wolters Kluwer, a global leader in professional information services, today released its 2013 full-year results.
Highlights
- Revenues up 2% in constant currencies and up 1% organically.
- Leading, high growth positions up 7% organically (44% of total revenues).
- Digital and services subscription revenues up 4% organically (55% of total).
- Growth in North America and Asia Pacific more than offset decline in Europe.
- Ordinary EBITA €765 million; Ordinary EBITA margin 21.5%, within guidance range.
- Ordinary diluted EPS €1.56, up 3% in constant currencies, in line with guidance.
- Ordinary free cash flow €503 million, up 3% in constant currencies, better than expected.
- Net-debt-to-EBITDA improved to 2.2 at year-end (2012: 2.4), better than target.
- Proposed 2013 dividend increase to €0.70 per share to be paid in cash.
- 2014 to see further focus on leading, high growth positions and increased restructuring.
Nancy McKinstry, CEO and Chairman of the Executive Board, commented:
"Our leading, high growth positions and our digital products again drove positive organic growth for the group, more than offsetting the challenges posed by the still uncertain macro environment in Europe and weak print markets globally. Our large and growing subscription base helped us mitigate the less favorable trends we saw last year in transactional revenues. We plan further action in 2014 to increase the focus on our growth businesses and drive efficiencies in Europe and North America. I am very encouraged by the new products we are bringing to market and look forward to 2014 with confidence."
Key Figures 2013 Full-Year
| Year ended December 31 (in millions of euros, unless otherwise stated) | 2013 | 2012* | D | D CC | D OG |
| Business performance - benchmark figures | |||||
| Revenues | 3,565 | 3,597 | -1% | +2% | +1% |
| Ordinary EBITA | 765 | 774 | -1% | +2% | +1% |
| Ordinary EBITA margin | 21.5% | 21.5% | |||
| Ordinary net income | 467 | 469 | -1% | +2% | |
| Diluted ordinary EPS | €1.56 | €1.56 | 0% | +3% | |
| Ordinary free cash flow | 503 | 507 | -1% | +3% | |
| Net debt | 1,988 | 2,086 | -5% | ||
| IFRS results[1] | |||||
| Revenues | 3,565 | 3,597 | -1% | ||
| Operating profit | 619 | 568 | +9% | ||
| Profit for the year[2] | 346 | 311 | +11% | ||
| Diluted EPS[2] | €1.15 | €1.04 | +11% | ||
| Net cash from operating activities | 630 | 618 | +2% | ||
| D - % Change; D CC - % Change constant currencies (EUR/USD 1.29); D OG - % Organic growth. Benchmark and IFRS figures are for continuing operations unless otherwise noted. Benchmark (ordinary) figures are performance measures used by management. See Note 5 for a reconciliation from IFRS to benchmark figures. *Throughout this report, 2012 has been restated for IAS 19R 'Employee benefits' and early adoption of IFRS 11 'Joint arrangements'. [1] International Financial Reporting Standards as adopted by the European Union. [2] Includes discontinued operations. | |||||
Full-Year 2014 Outlook
In 2014, Wolters Kluwer plans further action to sharpen our focus on our leading, high growth positions, deliver product innovation, and drive efficiencies across the group. We plan to undertake additional restructuring to improve the cost base, particularly in Europe, while continuing to invest in our leading positions to support organic growth. These actions are expected to reduce the ordinary EBITA margin to within a range of 20.5% to 21.5% in 2014, including total restructuring costs of approximately €25-30 million. We expect low single digit growth in diluted ordinary EPS in constant currencies. The table below provides our 2014 guidance in constant currencies.
| Performance indicators | 2014 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 1.33). | |
Our guidance is based on constant exchange rates. Wolters Kluwer generates more than half of its ordinary EBITA in North America. As a rule of thumb, based on our 2013 currency profile, a 1 U.S. cent move in the average EUR/USD exchange rate for the year causes an opposite 1.0 euro-cent change in diluted ordinary EPS. Our guidance assumes no significant change in the scope of operations. We may make further disposals in 2014 which could be dilutive to margins and earnings in the near term. Additional information on our guidance is provided in the table below.
| Additional information | |
| Ordinary net financing costs[1] | Approximately €100 million |
| Benchmark effective tax rate | 27.5%-28.0% |
| Cash conversion ratio[1] | Approximately 95% |
| [1] In constant currencies (EUR/USD 1.33). | |
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 2013 annual revenues of €3.6 billion. The group serves customers in over 150 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 NYSE 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 @Wolters_Kluwer on Twitter, or search for Wolters Kluwer videos on YouTube.
Calendar
| 12 March, 2014 | Publication of 2013 Annual Report |
| 23 April, 2014 | Annual General Meeting of Shareholders |
| 25 April, 2014 | Ex-dividend date |
| 29 April, 2014 | Dividend record date |
| 7 May, 2014 | First-Quarter 2014 Trading Update |
| 13 May, 2014 | Dividend payment date |
| 20 May, 2014 | ADR Dividend payment date |
| 30 July, 2014 | Half-Year 2014 Results |
| 5 November, 2014 | Third-Quarter 2014 Trading Update |
| Media | Investors/Analysts |
| Caroline Wouters | Meg Geldens |
| Corporate Communications | Investor Relations |
| t + 31 (0)172 641 459 | t + 31 (0)172 641 407 |
| press@wolterskluwer.com | ir@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:
