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PresentationGood day, and thank you for standing by. Welcome to the Wolters Kluwer Investor Teaching Webcast and Conference Call. My name is Brika, and I will be your coordinator for today's event. [Operator Instructions]. Please be advised that today's call is being recorded. I will now hand you over to your host, Meg Geldens, Vice President, Investor Relations, to begin today's call.Margaret Helene Geldens Thank you, Brika. Hello, everyone. I'm Meg Geldens, Head of Investor Relations at Wolters Kluwer. Th ...

Core Insights - Wolters Kluwer reported a 6% organic growth for the first nine months of 2025, with significant momentum in the third quarter across various sectors including Health, Tax & Accounting, and Corporate Performance & ESG [4][10]. Financial Performance - Nine-month revenues increased by 5% in reporting currency, with a 2% negative impact from currency translation due to the U.S. dollar's depreciation against the Euro. In constant currencies, revenues rose by 7% [5]. - Recurring revenues, which account for 84% of total revenues, maintained a 7% organic growth, while non-recurring revenues declined by 2% [6]. - Adjusted operating profit for the nine months increased by 15% in constant currencies, with an improved profit margin driven by sectors such as Health and Tax & Accounting [8][10]. - Nine-month adjusted free cash flow rose by 17% in constant currencies, benefiting from favorable working capital movements [10][17]. Segment Performance - Health segment revenues grew by 4% in constant currencies, with organic growth at 5%. Clinical Solutions saw a 7% organic growth [9][11]. - Tax & Accounting revenues increased by 9% in constant currencies, with organic growth at 7% [11][14]. - Financial & Corporate Compliance revenues rose by 7% in constant currencies, with organic growth at 4% [12]. - Legal & Regulatory revenues grew by 7% in constant currencies, with organic growth at 6% [13]. - Corporate Performance & ESG revenues increased by 8% in constant currencies, with organic growth also at 8% [14]. Cash Flow and Debt Management - Total acquisition spending for the first nine months was €839 million, primarily for the acquisitions of RASI and Brightflag [18]. - As of September 30, 2025, net debt stood at €4,404 million, reflecting cash flow allocated to dividends, share repurchases, and acquisitions [19]. Shareholder Returns - A share buyback program of up to €1 billion was completed on November 3, 2025, with a new mandate signed for an additional €200 million repurchase from November 6, 2025, to February 23, 2026 [10][24]. Sustainability Initiatives - The company achieved a 7% organic reduction in office space in the first nine months of 2025, contributing to efforts to reduce greenhouse gas emissions [21].

Core Insights - Wolters Kluwer Tax & Accounting has launched an AI-driven tool, CCH Axcess Client Collaboration, to improve interactions between tax professionals and clients [1][5] - The tool automates various processes, aiming to enhance workflow efficiency and reduce manual steps in tax-related tasks [2][4] Group 1: Tool Features and Functionality - CCH Axcess Client Collaboration automates document intake, classification, and secure messaging, streamlining the exchange of information [1][2] - Features include customizable questionnaires, deadline tracking, and automatic summarization to keep clients informed and engaged [3] - The tool is designed to operate within a secure, cloud-native environment, prioritizing privacy and expert-curated content [3] Group 2: Strategic Implications - The introduction of this tool is part of Wolters Kluwer's broader AI strategy, which spans multiple industries including healthcare, legal, and financial compliance [3] - Future plans include extending the tool's capabilities to auditing, accounting, and business returns, indicating a long-term vision for enhanced service delivery [4] - The launch is seen as a significant advancement in client engagement, with the potential to transform workflows across the CCH Axcess platform [5]

Core Insights - Wolters Kluwer reported a 5% organic growth in the first half of 2025, driven by a 7% organic growth in recurring revenue streams, while non-recurring revenues declined due to macroeconomic uncertainty [4][6][54] - The company made significant advancements in integrating generative AI capabilities into its platforms, enhancing customer productivity and outcomes [4][18][19] Financial Performance - Total revenues for the first half of 2025 reached €3,052 million, a 6% increase compared to €2,891 million in 2024 [4][35] - Adjusted operating profit rose to €865 million, reflecting a 13% increase, with an adjusted operating profit margin of 28.4%, up from 26.5% in the previous year [4][36] - Adjusted net profit increased by 11% to €631 million, with diluted adjusted EPS rising to €2.70, a 14% increase [4][39] Revenue Breakdown - Recurring revenues accounted for 84% of total revenues, growing 7% organically, while non-recurring revenues declined 4% [6][54] - The Health division reported revenues of €788 million, up 2%, while Tax & Accounting revenues increased by 8% to €837 million [52][62] - Financial & Corporate Compliance revenues grew 6% to €635 million, and Legal & Regulatory revenues increased by 6% to €487 million [70][77] Strategic Initiatives - The company is focused on scaling expert solutions and advancing cloud-based software as a service (SaaS) revenue models [14][20] - Investments in generative and agentic AI are being prioritized to enhance customer workflows and decision-making processes [19][23] - Wolters Kluwer plans to divest its Finance, Risk & Regulatory Reporting unit for approximately €450 million, which is expected to complete in Q4 2025 [76] Shareholder Returns - An interim dividend of €0.93 per share has been declared, representing 40% of the prior year's total dividend [25] - The company is on track to complete a share buyback program of up to €1 billion, having repurchased €637 million worth of shares by July 29, 2025 [27][29] Outlook for 2025 - The company expects full-year 2025 organic growth to be in line with the previous year, with adjusted operating profit margin anticipated to be near the top end of the range [7][8] - Guidance for diluted adjusted EPS growth is projected to be in the mid- to high-single digits in constant currencies [7][8]