Entire Wolter Kluwers 2012 Annual Report
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THE SEER Julie Peck General Manager, TyMetrix, Wolters Kluwer Corporate Legal Services THE VISIONARY Ian Rhind CEO of Wolters Kluwer Audit, Risk & Compliance THE GO-TO PERSON Robinson deJesus Latin America Director, Wolters Kluwer Audit, Risk & Compliance THE SIMPLIFIER Brian Levy Chief Medical Officer at Health Language THE SEER Julie Peck General Manager, TyMetrix, Wolters Kluwer THE ANALYst Corporate Legal Services Craig Raeburn Managing Director, TyMetrix Legal Analytics THE COUNSELOR Claudine Weyn Business Unit Director, Wolters Kluwer provides Kluwer, Belgium professionals the essen- tial information, soft- THE VISIONARY ware, and services they need to make decisions Ian Rhind with confidence. We CEO of Wolters Kluwer Audit, constantly evaluate and Risk & Compliance adapt how we deliver and apply our expertise through new service models, new technolo- gies, and new workflow THE MAstERMIND solutions. We pride our- Arvind Subramanian selves in working as a President and CEO, team of professionals Wolters Kluwer Health, with deep experience in the industries we serve. Clinical Solutions THE INITIATOR Robert Lemmond Vice President, Legal THE GO-TO PERSON Markets Group, Wolters Robinson DeJesus Kluwer Law & Business Latin America Director, Wolters Kluwer Audit, Risk & Compliance THE SIMPLIFIER Brian Levy Chief Medical Officer at Health Language THE AUGMENTER Shasha Chang CEO of Wolters Kluwer China THE FAMILY DOCTOR Linda Peitzman Chief Medical Officer, Wolters Kluwer Health CONTENT OVERVIEW SUPPORTING DECISIONS 42 44 48 50 Editorial Supporting Supporting Supporting Work Insight Anytime Technological change affects how profession- als make decisions. They can tap into massive volumes of data As businesses become more The real value of data analytics is Five years ago, a big shift took that, combined with the global, their operations become in uncovering relationships place that put pressure on more distributed, both domesti- between every facet of the data lawyers to compete with their right decision support cally and internationally. Tax and understanding the context in confreres not only in court but software, can help them professionals find themselves which it was created – then also in the marketplace for legal work more effectively. working with disparate turning it all into actionable advice. accounting systems. insights. UNDERSTANDING COMPLIANCE 58 60 64 66 Editorial Understanding Understanding Understanding Globalization the Storm Design We’ve moved from an era of trust to a time when institutions must prove lawful behavior. Technology can address Ten years ago very few We’ve seen a rising tide of In order to be productive, the challenges and costs companies worried about regulation, starting with the 1997 professionals need to absorb and managing risks in a holistic way. Foreign Corrupt Practices Act act on large amounts of brought about by the Now it is a top agenda item in through Basel I, Basel II, and information. An innovation complexities of many boardrooms. Basel III in 2010. doesn’t always have to be a compliance. new idea. 2 103499_FrontSection-TOC-P002tm003.indd 2 07-03-13 10:21 HL7 WOLTERS KLUWER 2012 ANNUAL REPORT RxNorm ICD-9-CM LOINC HCPCS ICD-10 SNOMED CT CPT-4 IMPROVING HEALTHCARE 74 76 80 86 Editorial Improving Improving Improving Outcomes Access Efficiency The seven billion people on the planet need improved access to healthcare. Yet medical professionals are forced A unified solution to an urgent Dr. Wu Wenpin practices The practice of medicine has to do more with less. clinical problem incorporates medicine in Shou’an Town in become a lot more complex. The changes to healthcare system Chengdu. Together with his Language Engine translates and Now is the time for governance and workflow pharmacist wife they provide integrates different medical solutions that improve necessary to effectively monitor healthcare to a population of terminologies to keep healthcare health outcomes. sepsis. 15,000 farmers. professionals on the same page. WORKING AT WOLTERS 5 Message from the CEO Supervisory Other KLUWER Board and Information Remuneration 38 178 Corporate Governance The Colleagues 92 Report of the Supervisory 183 Risk Management Building careers at Board 190 Statements by the Wolters Kluwer 96 Remuneration Report Executive Board Company 191 Report of the Wolters 54 Kluwer Preference Shares Information Foundation The Ambitions 2012 Financial 192 Facts for Investors Our dreams and ambitions are 8 Company Profile Statements 196 Extended Management an important part of what 18 Financial Overview Profile makes us who we are 20 Management Profile 102 Consolidated Statements 198 5-Year Key Figures 70 107 Notes to the Consolidated Financial Statements 2012 The Opportunities Report of the 166 Financial Statements of Annual Report Wolters Kluwer has customers Wolters Kluwer nv Online + App in over 150 countries. Executive Board 167 Notes to the Financial Emerging markets are Statements of Wolters 22 Review of the Year becoming more important. Kluwer nv 26 2012 Financial 174 Other Information on Developments 88 the Financial Statements The Future Paving the way for future Special interactive elements innovation at the 2012 and videos are available Technology Conference in the app & online. 3 103499_FrontSection-TOC-P002tm003.indd 3 07-03-13 10:21 MESSAGE FROM THE CEO 4 103499_AR12-FrontSection-040313_p001tm025.indd 4 07-03-13 10:10 WOLTERS KLUWER 2012 ANNUAL REPORT NANCY MCKINSTRY, CEO AND CHAIRMAN OF THE EXECUTIVE BOARD WHEN YOU HAVE TO BE RIGHT The professionals that we serve make critical decisions every day, affecting the lives of millions of people. Wolters Kluwer under- stands what is at stake. That is why we have made it our mission to empower our customers with the essential information and tools they need to make decisions with confidence. 5 103499_AR12-FrontSection-040313_p001tm025.indd 5 07-03-13 10:10 MESSAGE FROM THE CEO Over the last ten years, our company services. Our portfolio was further has transformed from a variety of strengthened by the divestment of mainly print-centric businesses to a businesses which no longer meet digital business with four customer- our longer term strategy for growth, focused divisions, each with global including Pharma related assets and positions of strength. This trans- several legacy print product lines. formation has resulted in positive financial performance and has created Our increased cash flow enabled us to opportunities to accelerate growth return over €220 million to sharehold- as market conditions improve. ers while at the same time improving our net-debt-to-EBITDA ratio to PERFORMANCE IN 2012 2.4 times. We abolished the stock In 2012, Wolters Kluwer increased dividend in order to eliminate the revenues by 2% at constant curren- resulting dilution in the most efficient cies and by 1% organically, despite manner. The strength of our portfolio the economic challenges in Europe. and our improved balance sheet pro- Importantly, our online, software, vide a solid foundation to support our and services revenue grew 4% organi- strategy for accelerating growth. cally, as investments in new products, sales and marketing, and globaliza- REALIZING OUR tion continued to gain traction. As GROWTH POTENTIAL a result, we now have 74% of total We are positioning Wolters Kluwer revenue coming from these product for the next stage of growth and value lines. Our North American busi- creation for our shareholders, custom- ness delivered 4% organic revenue ers, and employees. Our competitive growth, and, in combination with advantage is that we offer our cus- 8% organic revenue growth in Asia, tomers a powerful bundle of expert offset declines in Europe. Profitability knowledge, specialized software, and improved in 2012, driven by the shift services. This is how we differentiate towards higher-margin electronic our products from competitors as products, the contribution from customers no longer want informa- acquisitions, and cost savings. tion but answers, insights, and productivity tools. We continued to invest in high- growth areas through organic Market trends remain attractive, product development and selective especially for solutions that drive pro- acquisitions of digital businesses. ductivity. Our professional customers In 2012, the two main acquisitions face increased pressure to improve were Acclipse, which offers online efficiency and productivity, and need accounting software to customers in tools to help manage the growing vol- Asia Pacific, and FinArch, a global ume and complexity of information provider of integrated finance and and regulations. This trend, as well as risk solutions. Both companies extend the growth of connectivity and use of our positions in the high growth mobile devices by professionals world- segments of tax and accounting soft- wide, offer growth opportunities for ware and financial and compliance the business. 6 103499_AR12-FrontSection-040313_p001tm025.indd 6 07-03-13 10:10 WOLTERS KLUWER 2012 ANNUAL REPORT Our strategy for the coming years and operational experience as well as builds on the foundation laid by the extensive knowledge of our business. transformation we have achieved to His proposed appointment as member date. Our priority is to expand our of the Executive Board will be submit- leading, high-growth positions, to ted to the Annual General Meeting of deliver solutions and insights, and to Shareholders on April 24, 2013. drive efficiencies across the company. We will continue to direct investment WE UNDERSTAND towards