EX-99.2 3 exhibit99_2.htm PRESENTATION MATERIALS DATED JUNE 15, 2022.
June 15, 2022 Fourth Quarter and Fiscal 2022 Earnings Review Brian Napack, President and CEO Christina Van Tassell, EVP and CFO

SAFE HARBOR STATEMENT This 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 2023 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 MEASURES In 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; and Results 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 2023 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.

3 $2.08B Revenue 83% Digital & Services $433M Adjusted EBITDA 58% Recurring Revenue* $223M Free Cash Flow 28 Years Dividend Increases *Recurring revenue is revenue that is contractually obligated or set to recur with a high degree of certainty

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 Leader in Scientific Research & Career-Connected Education

Fiscal 2022 Review Metric (Millions, ex-EPS) FY22 Outlook FY22 Reported FY22 Growth* FY20-FY22 CAGR* Revenue $2,070 to $2,100 $2,083 +7% +7% Adj. EBITDA $415 to $435 $433 +3% +10% Adj. EPS** $4.00 to $4.25 $4.16 +4% +12% Free Cash Flow** $200 to $220 $223 -13%# +14% Delivered on outlook even with post-COVID, market-related challenges in higher education (US enrollment declines) Materially improved our organic revenue growth profile, driven by Research and Talent Development Earnings growth muted by planned strategic and operational investments and challenges in higher education Drove solid Fiscal 2020-2022 performance across all metrics Surpassed $2B in revenue for the first time ever *As reported (including currency impact and acquisitions) **GAAP EPS of $2.62 vs. $2.63 in Fiscal 2021 and Cash From Operations of $339M vs. $360M in Fiscal 2021 #FY22 Free Cash Flow change due to prior year one-time favorable items, including cash tax refund and timing of higher incentive comp ^

Fiscal 2022: Leading Transition to Open Research FY22 Commitment Outcomes Publish more research to meet global demand 7% growth in output. Down 3% organically vs. COVID surge; 2-year CAGR +6%; 19% growth in pure OA output (excluding Hindawi); pricing power strong Drive Hindawi integration and revenue synergies Integration complete; 36% growth in Hindawi publishing output; strong double-digit growth in revenue and exceptional profitability Scale offerings for societiesand corporations Platforms +8%; Corporate +16%; Solutions expanded via multiple acquisitions; 36 new Solutions partners; 16% now subscribe to more than one Wiley service Expand publishing capacity and drive automation 50% of rejected articles now offered a Wiley referral, up from 33% in FY21; Material improvement in publishing cycle time

FY22 Commitment Outcomes Expand online degree programs and drive online enrollment 5 universities signed, 3 not renewed; 81 online degree programs added Online enrollment growth (+1%) slowed due to strong labor market Expand student acquisition capabilities Acquired XYZ Media to drive enrollment and reduce student acquisition costs Generates approximately 140K qualified student leads per year universities Scale digital content and courseware Digital content revenue +6%; zyBooks courseware +15% zyBooks now in 903 institutions, up from 855 Expand corporate services pipeline and relationships 19 corporate clients signed; new industry verticals and upskill programs IT placements with existing clients up 112%; revenue growth 70%+ Fiscal 2022: Connecting Education to Career Outcomes

Fiscal 2022: Driving Impact and ESG Progress America’s Most Trusted Companies; Most Trusted Company in Media Rated Low Risk; ESG Regional Top Rated Driving real-world impact across multiple SDGs, including Climate Action, Reducing Inequalities, and Quality Education Drive real-world impact in line with UN Global Compact √ Drive CarbonNeutral® certification across our Global Operations; 100% renewable energy through green tariffs and energy attribute certificates; progress toward science-based targets √ Drive DEI initiatives and disclose diversity metrics √ Drive strong ESG ratings from third party assessors √

Performance Financial Position Outlook

Fourth Quarter 2022 Summary Revenue* +4% $546M GAAP EPS +4% $0.76 Adj. EPS -6% $1.08 Adj. EBITDA Flat $111M All variances at constant currency except GAAP EPS *Q4 organic revenue at CC +2% Q4 Summary Strong continued momentum in open research, research partner solutions, corporate talent development, and corporate training offsetting market-related challenges in University Services, Education Publishing and trade publishing Earnings performance due to revenue performance and second half investments in Research and Talent Development growth initiatives

Research Publishing & Platforms (millions) Q4 2022 Change Change CC Research Publishing $282 4% 6% Research Platforms $16 43% 44% TOTAL REVENUE $298 5% 8% ADJUSTED EBITDA $101 12% ADJ. EBITDA MARGIN 34% FY 2022 Change Change CC $1,057 9% 8% $54 27% 27% $1,111 9% 9% $390 10% 35% Full Year Summary Strong performance driven by open access, platforms, and corporate solutions Continued momentum for transformational, multi-year ‘read and publish’ agreements, with 27 signed across regions; 35% of traditional subscription business now successfully migrated to new multi-year model Research Solutions buildout accelerated by multiple acquisitions; strong momentum in signing up new partners and upselling existing partners Profit growth driven by higher revenue; 35% Adj. EBITDA margin even with prior year 53% Share of Total Wiley Revenue 35% Adj. EBITDA Margin Revenue at constant currency and excluding acquisitions +5% FY22 and +6% Q4

Academic & Professional Learning (millions) Q4 2022 Change Change CC Education Publishing $89 (8%) (7%) Professional Learning $71 (5%) (3%) TOTAL REVENUE $160 (7%) (5%) ADJUSTED EBITDA $44 (3%) ADJ. EBITDA MARGIN 27% FY 2022 Change Change CC $350 (3%) (4%) $297 6% 6% $647 1% 1% $181 10% 28% 31% Share of Total Wiley Revenue 28% Adj. EBITDA Margin Full Year Summary Education Publishing decline mainly from lower US enrollment and an unfavorable comparison to prior year digital surge; digital content +6%; zyBooks courseware +15%; print –9% Professional Learning growth due to continued strong performance in corporate training (back to pre-COVID levels) and growth in trade publishing Adjusted EBITDA growth driven by revenue growth and lower employee costs; Adjusted EBITDA margin of 28%, up from prior year margin of 26%

Education Services (millions) Q4 2022 Change Change CC University Services $58 (9%) (9%) Talent Development $29 73% 78% TOTAL REVENUE $87 8% 9% ADJUSTED EBITDA $11 (29%) ADJ. EBITDA MARGIN 12% FY 2022 Change Change CC $226 (1%) (1%) $99 74% 72% $325 14% 14% $37 (26%) 12% 16% Share of Total Wiley Revenue 12% Adj. EBITDA Margin Full Year Summary Signed 19 new corporate clients across industry verticals (5 signed in Q4) and grew IT talent placements by 112%. Mthree rebranded to Wiley Edge. Margin decline from investments to drive placement growth and expand corporate client relationships; Adjusted EBITDA margin of 12% down from 18% in the prior year University Services decline reflects market-wide enrollment challenges (+1% for FY22 vs. +14% in prior year) and easing of pandemic tailwinds Signed 5 new university partners (4 in Q4) and added 81 new programs (23 in Q4); 68 total partners at year end, up from 66 Revenue at constant currency and excluding acquisitions +12% FY22 and +6% Q4

Strong Cash Flow and Balance Sheet Free Cash Flow millions Net Debt to EBITDA $173 $257* $223 1.6 1.7 1.6 *elevated by $21M tax refund and lower capex spend due to COVID

Capital Allocation Item FY22 Highlights FY20 FY21 FY22 Capex Research: Automation and Platform development Education: Courseware development Corporate: Backoffice systems $115 $103 $116 Acquisitions J&J Editorial (Research) Knowledge Unlatched (Research) eJournal Press (Research) XYZ Media (Education) $230 $300 $76 Dividends 28th consecutive annual raise; 2.6% current yield; 30% payout ratio $76.7 $76.9 $77.2 Repurchases $197M remaining in current program $47 $16 $30 Fiscal 2023 Capex projected to be $115-$125M focused on development of new products and digital commerce platform Targeted M&A strategy focused on expanding journal portfolio, research solutions offerings, and corporate talent development capabilities Annual dividend review in late June 2022

Operational Excellence Update Restructuring Targeted reduction to generate an approximate $19-$21M charge in Q1, to also include real estate optimization Expected to yield approximately $30-$35M in run rate savings ($20-$25M in Fiscal 23, already reflected in current outlook) Real Estate Optimization Wiley benefitting from hybrid workforce model globally Existing office footprint reduced by 18% since spring 2020, including four offices this quarter Operational Effectiveness and Simplification Process re-engineering, standardization and automation ongoing Additional cost savings opportunities to be identified throughout the year

Fiscal 2023: Outlook Metric (Millions, except EPS) Fiscal 2022* Fiscal 2023 Outlook* At Constant Currency FX Impact** Fiscal 2023 Outlook^ At Spot Rates Revenue $2,083 $2,175 to $2,215 ($75) $2,100 to $2,140 Adjusted EBITDA $433 $425 to $450 ($25) $400 to $425 Adjusted EPS $4.16 $3.70 to $4.05 ($0.30) $3.40 to $3.75 Free Cash Flow $223 $210 to $235 ($25) $185 to $210 At constant currency Revenue: mid-single digit growth mainly driven by Research and Education Services EBITDA: higher revenue partially offset by higher employee costs and targeted growth investments EPS: impacted by higher interest expense, higher tax expense, and lower pension income (combined -$0.35) FCF: positive cash earnings and lower incentive payouts offset by higher cash taxes, interest and capex *Based on Fiscal 2022 average rates of 1.15 euro and 1.36 British pound **Variance between Fiscal 2022 average rates and spot rates as of June 10: 1.06 euro and 1.24 British pound ^Fiscal 2023 outlook at spot rates as of June 10

Fiscal 2023: Driving Growth and Optimization 18 Driving solid organic revenue growth through consistent strategies aligned with market trends Prioritizing reinvestment in Research Publishing & Solutions, and Corporate Talent Development Accelerating operational excellence initiatives and focusing on margin expansion beyond Fiscal 2023 Balancing capital allocation for profitable growth investments and return to shareholders Company to share long range financial targets at Fiscal 23 Investor Day

Fiscal 2023: Key Priorities Education Drive publishing growth to meet global demand Extend transformational agreements globally Drive growth and go-to-market in Research Solutions Continue to streamline publishing operations Expand corporate client base for talent development Drive university partnerships and programs Drive differentiated courseware offerings Drive efficiency gains across Ed Services and APL Research

Key Takeaways Delivered on Fiscal 2022 outlook for revenue, earnings and cash flow Driving solid organic revenue growth from positive market dynamics in key areas Favorable long-term growth trends continuing in scientific research and career-connected education Accelerating operational excellence initiatives and focusing on margin expansion beyond Fiscal 2023 Strong balance sheet and cash flow enabling balanced capital allocation, including driving profitable growth and rewarding long term shareholders

Thank you for joining us Investor website at https://investors.wiley.com/ Q1 2023 Earnings Call – September 2022 Contact us for follow-up at: 201.748.6874 or brian.campbell@wiley.com

Appendix – Reconciliation of US GAAP to Non-GAAP EPS See accompanying notes on following page

Appendix – Reconciliation of US GAAP to Non-GAAP EPS

Appendix – Reconciliation of Net Income to Adjusted EBITDA