Tom Singlehurst's questions to WOLTERS KLUWER N V /FI (WTKWY) leadership • Q2 2023
Question
Tom Singlehurst from Citi questioned the phasing of the expected margin improvement, noting that Q4 of last year also saw strong margins, and asked about the moving parts behind the forecast for cash flow to more than double in the second half of the year.
Answer
CFO Kevin Entricken reiterated that the second-half margin improvement, particularly in Q4, is driven by year-over-year comparables as the company was more fully staffed in late 2022. Regarding cash flow, he expressed confidence in achieving the full-year guidance of approximately 100% cash conversion, citing the company's cash-generative nature and strong visibility on collections.