Guidance

Full-Year 2021 Outlook

With our markets recovering from the effects of the pandemic, we now expect all divisions to see a year-on-year improvement in organic growth. Health, Tax & Accounting, and Legal & Regulatory divisions benefitted from timing in the first half, which we expect will reverse in second half. We expect underlying operating costs to rise in the second half as we step up investment and accelerate hiring to support growth and as we partly restore travel, promotion, and other costs that were curtailed during the crisis. We continue to plan for a gradual return to our offices, when and where circumstances allow, with currently some 5%-10% of employees back in office. Our revised guidance for 2021 adjusted operating profit margin, adjusted free cash flow, return on invested capital (ROIC), and diluted adjusted EPS is provided below.

 

Full-Year 2021 Outlook

Performance Indicators 2021 Guidance 2020
Adjusted operating profit margin Around 25.0% 24.4%
Adjusted free cash flow €925-€975million €907 million
ROIC Around 12.5% 12.3%
Diluted adjusted EPS High-single-digit growth €3.13

Note: Guidance for adjusted operating profit margin and ROIC are in reported currencies and assume a 2021 average U.S. dollar rate of approximately €/$ 1.21. Guidance for adjusted free cash flow and earnings per share are in constant currencies (€/$ 1.14). Guidance for adjusted EPS includes the estimated effect of the announced share repurchases for up to €350 million in 2021.