EX-99.2 3 exhibit99_2.htm PRESENTATION MATERIALS DATED MARCH 8, 2022
March 8, 2022 Third Quarter Fiscal 2022 Earnings Review

SAFE HARBOR STATEMENTThis presentation contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements. Any such forward-looking statements are based upon many assumptions and estimates that are inherently subject to uncertainties and contingencies, many of which are beyond the control of the Company and are subject to change based on many important factors. Such factors include, but are not limited to: (i) the level of investment in new technologies and products; (ii) subscriber renewal rates for the Company's journals; (iii) the financial stability and liquidity of journal subscription agents; (iv) the consolidation of book wholesalers and retail accounts; (v) the market position and financial stability of key retailers; (vi) the seasonal nature of the Company's educational business and the impact of the used book market; (vii) worldwide economic and political conditions; (viii) the Company's ability to protect its copyrights and other intellectual property worldwide (ix) the ability of the Company to successfully integrate acquired operations and realize expected opportunities; (x) the Company’s ability to realize operating savings over time and in fiscal year 2022 in connection with our multi-year Business Optimization Program; (xi) the impact of COVID-19 on our operations, performance, and financial condition; and (xii) other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any such forward-looking statements to reflect subsequent events or circumstances. NON-GAAP MEASURESIn this presentation, management provides the following non-GAAP performance measures:Adjusted Earnings Per Share (“Adjusted EPS”);Free Cash Flow less Product Development Spending;Adjusted Contribution to Profit (“Adjusted CTP”) and margin;Adjusted EBITDA and margin;Organic revenue; andResults on a constant currency (“CC”) basis.Management believes non-GAAP financial measures, which exclude the impact of restructuring charges and credits and other items, provide supplementary information to support analyzing operating results and earnings and are commonly used by shareholders to measure our performance. Free Cash Flow less Product Development Spending helps assess our ability over the long term to create value for our shareholders. Results on a constant currency basis removes distortion from the effects of foreign currency movements to provide better comparability of our business trends from period to period applying the same foreign currency exchange rates for the current and equivalent prior period. We have not provided our 2022 outlook for the most directly comparable U.S. GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain items, including restructuring charges and credits, gains and losses on foreign currency, and other gains and losses. These items are uncertain, depend on various factors, and could be material to our consolidated results computed in accordance with U.S. GAAP.

Wiley unlocks human potential by powering discovery and learning

Research Publishing Research Solutions Education Products Education Services Cross the divide to lead the transition to open research Bridge the gap to connect education to career outcomes Consistent strategies aligned with seismic trends

Consistent strategies driving solid performance Revenue $ millions Adjusted EBITDA $ millions 6-7% CAGR 8-11% CAGR

Consistent strategies driving global impact Recent ESG Progress Growth Strategies that Drive Social Good Open research increases speed, accessibility, and impact of knowledgeCareer-connected education closes skill gaps and enables personal advancement Certified 2021 Carbon Neutral and 100% Renewable Energy; second consecutive year S&P CSA Score tripled in latest annual assessment, now well above industry average 100%Corporate Equality Score AESG Rating Top 4%Low ESG Risk Top 250Best Led Companies

Third Quarter 2022 Summary Revenue*+7%$516M GAAP EPS+62%$0.63 Adj. EPS-9%$0.95 Adj. EBITDA-5% $100M All variances at constant currency except GAAP EPS*Q3 organic revenue +4% Q3Summary Strong momentum in open research, research partner solutions, and corporate talent development driving solid revenue growthUniversity services decline due to lower US college enrollment and COVID-related year-to-year variabilityEarnings performance as expected due to second half investments in Research and Education Services growth initiatives; YTD tracking well to guidance ranges

Research Publishing & Platforms (millions) Q3 2022 Change Change CC Research Publishing $249 9% 9% Research Platforms $14 37% 37% TOTAL REVENUE* $263 10% 10% ADJUSTED EBITDA $86 5% 4% ADJ. EBITDA MARGIN 33% Q3Summary *Organic revenue +5% (excluding acquisition and currency impacts) Organic revenue growth driven by open access, platforms, and corporate solutionsSignificant momentum with transformative multi-year ‘read and publish’ agreements. New signings with consortia in the US, Denmark, Israel, Rep of Korea, and SloveniaAcquired eJournal Press to complete end-to-end research solutions offeringProfit performance driven by higher revenue partially offset by investments to publish more and scale partner solutions; Q3 Adjusted EBITDA margin of 33%

Academic & Professional Learning (millions) Q3 2022 Change Change CC Education Publishing $95 (2%) (2%) Professional Learning $75 (1%) 0% TOTAL REVENUE $171 (2%) (1%) ADJUSTED EBITDA $52 3% 4% ADJ. EBITDA MARGIN 30% Education Publishing decline mainly from US enrollment declines and the easing of pandemic-related tailwindsProfessional Learning even with prior year as continued recovery in corporate training was offset by modest declines in professional publishing Profit growth driven by business optimization; Q3 Adjusted EBITDA margin of 30% Q3Summary

Education Services Talent Development growth rapidly accelerating; signed five new corporate clients in different industry verticals and grew IT talent placements by 140% University Services performance reflects counter-cyclical challenges and easing of pandemic tailwinds Signed top 25 US institution; renewed two partners; added 22 new degree programsAcquired XYZ Media to meet universities’ biggest need: driving student enrollmentProfit performance as expected due to investment in Talent Development growth initiatives; Q3 Adjusted EBITDA margin of 13% (millions) Q3 2022 Change Change CC University Services $55 (3%) (3%) Talent Development $27 111% 112% TOTAL REVENUE $82 18% 18% ADJUSTED EBITDA $11 (15%) (14%) ADJ. EBITDA MARGIN 13% Q3Summary

Financial Position and Outlook

Solid Performance Through Nine Months $1,405 $1,537 Revenue +8% Adjusted EPS +4% Adjusted EBITDA +4% $3.09 $2.86 $306 $322 Nine months revenue growth in line with expectations (+5% organic)Research +10% (+4% organic)Academic & Professional Learning +3%Education Services +16%YTD earnings increase reflects higher organic revenue partially offset by investments in growth initiatives All variances at constant currency. YTD, Wiley recorded favorable FX variances of $17 million in Revenue and favorable FX variances of $2 million in Adjusted EBITDA and $0.11 in Adjusted EPS.

Financial Position and Capital Allocation Cash Flow from Operations: $158M YTD vs. $155M prior year Free Cash Flow: $77M YTD vs. $80M prior year. Wiley FCF outlook for Fiscal 2022 is between $200M and $220M Leverage: Net Debt/EBITDA ratio of 1.9 TTM inclusive of acquisitions vs. 2.2 in the prior yearLiquidity: $669M including $109M cash on hand and $560M of undrawn debt facilities M&A: $71M on acquisitions in Research and Education Services Dividends: Yield at 2.8% (as of March 7, 2022) Share Repurchases: Acquired ~448K shares YTD for $25M at an average cost of $55.48/share $65M $83M Dividends and RepurchasesYTD Allocation

Fiscal 2022 Outlook Reaffirmed Metric (Millions, except EPS) Fiscal 2020 Fiscal 2021 Fiscal 2022 Outlook Revenue $1,831 $1,942 $2,070 to $2,100 Adjusted EBITDA $356 $419 $415 to $435 Adjusted EPS $3.30 $4.00 $4.00 to $4.25 Free Cash Flow $173 $257 $200 to $220

New Wiley Ticker Symbols Change expected on or around April 1 Current Tickers WLYWLYB New Tickers JW-AJW-B

Key Takeaways Well-established growth strategies and sharp execution driving solid YTD performance; Wiley on track to surpass $2B in annual revenue for first time ever Continued momentum in research publishing and solutions and corporate products and services offsetting counter-cyclical challenges in education content and university services The long-term positive trends defining our markets continue, and Wiley’s growth strategies are tightly aligned with these trends Strong balance sheet and cash flow generation enable robust capital allocation strategy to drive profitable growth and reward long-term shareholders

Thanks for joining us. IR website at https://investors.wiley.com/Q4 2022 Earnings Call – June 15, 2022Contact us for follow-up at: brian.campbell@wiley.com

Appendix – Reconciliation of US GAAP to Non-GAAP EPS (1)See Explanation of Usage of Non-GAAP Performance Measures included in this supplementary information for additional details on the reasons why management believes presentation of each non-GAAP performance measure provides useful information to investors. The supplementary information included in this press release for the three and nine months ended January 31, 2022 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. (2)All amounts are approximate due to rounding. (3)Reflects the amortization of intangible assets established on the opening balance sheet for an acquired business. This includes the amortization of intangible assets such as developed technology, customer relationships, tradenames, etc., which is reflected in the "Amortization of intangible assets" line in the Condensed Consolidated Statements of Net Income. It also includes the amortization of acquired product development assets, which is reflected in "Cost of sales" in the Condensed Consolidated Statements of Net Income. (4)The gain on sale of certain assets is due to the sale of our world languages product portfolio which was included in our Academic & Professional Learning segment, and resulted in a pretax gain of approximately $3.7 million during the nine months ended January 31, 2022.

Appendix – Reconciliation of Net Income to Adjusted EBITDA