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    Patrick Wellington

    Research Analyst at Morgan Stanley

    Patrick Wellington's questions to WOLTERS KLUWER N V /FI (WTKWY) leadership

    Patrick Wellington's questions to WOLTERS KLUWER N V /FI (WTKWY) leadership • Q2 2017

    Question

    Patrick Wellington from Morgan Stanley questioned the expected phasing of organic growth in the second half given quarterly comparables, the visibility on software revenues, and the strategic rationale for spending €750 million on three recent acquisitions (Tagetik, Enablon, Emmi).

    Answer

    CFO Kevin Entricken expressed confidence in the second-half outlook based on a close analysis of sales pipelines, but did not provide specific quarterly guidance, reiterating that growth would be slightly second-half weighted. CEO Nancy McKinstry detailed the strategy behind the acquisitions, explaining that each one (Emmi, Tagetik, Enablon) represents an investment in a high-growth market segment that is a natural extension of an existing, leading company position.

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    Patrick Wellington's questions to WOLTERS KLUWER N V /FI (WTKWY) leadership • Q4 2016

    Question

    Patrick Wellington of Morgan Stanley questioned the significant revenue miss at Enablon, asking if it signaled issues with due diligence. He also asked about the timing of easier comparables in 2017 and the potential impact of U.S. healthcare reform on the business.

    Answer

    CEO Nancy McKinstry defended the Enablon acquisition, attributing the revenue variance to a positive long-term shift to cloud and the natural lumpiness of large software deals. CFO Kevin Entricken noted that comps ease in H2 2017. On healthcare, McKinstry expressed confidence, stating their products' value proposition of improving outcomes at lower costs is durable, and they have seen no changes in hospital buying behavior.

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