Wolters Kluwer has defined four key performance measures to evaluate the effectiveness of the strategy. These measures are subdivided into Key Operational Measures and Key Financial Measures.
Key Operational Measure1
| |
Guidance2
2012 |
2011 |
2010 |
2009 |
2008 |
| 21.5%-22.5% |
21.7% |
21.6% |
19.9% |
20.1% |
Key Financial Measures1
Guidance2
2012 |
2011 |
2010 |
2009 |
2008 |
| ≥€425m |
€443m |
€446m |
€424m |
€395m |
| ≥8% |
9% |
9% |
8% |
8% |
| Low single digit growth4 |
€1.45 |
€1.42 |
€1.46 |
€1.50 |
1 2012, 2011 and 2010 reflect Continuing Operations. 2009 and 2008 include Discontinued Operations
2 Figures are stated at contant currencies EUR/ USD = 1.39
3 2011 EPS in 2011 constant currency (€1.51) has been restated to €1.45 using the 2012 constant currency rate of 1.39 (2011 constant currency rate: 1.33)
4 Assumptions: financing costs: €125 million; effective tax rate: 27.5% |
Definitions of Key Performance Indicators
Ordinary EBITA margin
Ordinary EBITA is defined as earnings before non-benchmark items, interest, tax, and amortization. Ordinary EBITA margin is defined as Ordinary EBITA by revenues.
Ordinary Free Cash Flow
Cash flow from operating activities less net capital expenditure, plus appropriation of Springboard costs (after taxation), plus dividends received from investments. Free cash flow is the cash flow available for payments of dividend to shareholders, acquisitions, down payments of debt, and repurchasing of shares.
ROIC (Return On Invested Capital)
Return on invested capital is calculated by dividing Net Operating Profit after Allocated Taxes (NOPAT) by average invested capital. The average of the previous year-end invested capital and the current year-end invested capital.
Diluted ordinary EPS
Ordinary net income corrected for interest benefit divided by the fully-diluted weighted-average number of shares.