Wolters Kluwer N.V. (WKL) Earnings Call Transcript & Summary

Good morning, and good afternoon, everyone, on this call. Welcome to Wolters Kluwer Teach-In: Health & Technology. I'm Meg Geldens, Head of Investor Relations at Wolters Kluwer, and I'll be moderating today's call. The IR team at Wolters Kluwer is delighted to be able to host this teach-in today. Our intention is to stage more of these short virtual events next year. The agenda for today is to set some context and then provide a deep dive into 2 of our largest products in Health, UpToDate and Ovid. And for the first time ever, I believe, we will be shining the spotlight on our central product development group, */dxg, and how they are supporting the health division. Before I introduce the speakers today, just a word on the plan for asking questions. Following the presentations, there will be a chance for you to ask questions. [Operator Instructions] Before we begin, I would like to ask you to read Slide 2 regarding forward-looking statements that we may make. Wolters Kluwer cautions as always, that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by these statements. We will not be making any updates on current trading today. Turning to Slide 3. I'd like to now introduce the speakers for today. We're very pleased to have our CEO, Nancy McKinstry, joining us today. She will set the stage for how the Health division has been remade over the years, and we'll be very happy to address questions at the end. Next, Stacey Caywood, who is CEO of the Health division. Stacey has been with Wolters Kluwer for over 25 years, including 10 years at the helm of the Legal & Regulatory division where she led the transformation of a declining print-centric and fragmented operation into a now growing innovative provider of digital solutions and software. Next, Peter Bonis, who is the Chief Medical Officer of Wolters Kluwer Health. Peter has been the CMO for our Clinical Effectiveness business unit and has recently taken on a broader division-wide role. Peter also conducts medical research and teaches at Tufts University School of Medicine. Next, Vikram Savkar, General Manager of Medicine markets within Wolters Kluwer Health Learning, Research and Practice. Vikram has been with Wolters Kluwer, I believe, for just over 9 years, leading businesses in Legal & Regulatory and Health and he has prior experience in scientific and educational publishing with a particular focus on innovation. And last but not least, Alex Tyrrell, Senior VP at */dxg, who heads up the Center of Excellence for Artificial Intelligence within that group and is currently dedicated to driving innovation in collaboration with Vikram's Group in Health, Learning, Research and Practice. Alex has a PhD in Computer Engineering and did his post doctoral degree at Mass General Hospital and Harvard Medical School. So without further ado, I would like to hand over to Nancy McKinstry to set the stage.

Great. Thank you, Meg, and good afternoon, good morning to everyone. I'm delighted to be here today to showcase a couple of our key healthcare products and most importantly, a few members of our leadership team within Health and */dxg, our product development group. Health has undergone a steady but significant transformation over the past 15 years. During the first 5 years of my tenure as CEO of Wolters Kluwer, Health was a print-centric and somewhat unpredictable business with variable performance on market share. At that time, we embarked on a phase of remaking the health portfolio. The acquisition of UpToDate, which was announced in 2007, was the catalyst to building what is now a global leading position in clinical solutions. We divested noncore assets over the years creating a greater focus on our stronger businesses. We also stepped up organic investment to drive the transformation of our leading medical and nursing content from print to digital. The financial performance has also been transformed. Importantly, in health today, our market positions are much stronger, our Net Promoter Scores are higher, employee engagement is high, our rate of innovation has accelerated and the technology supporting our digital products is now very robust and continuously being advanced. The past 2 years, as you might imagine, has been very busy for our health colleagues given that we support key providers of health care delivery around the world. The global pandemic has accelerated trends in health, most notably the move to digital delivery of medical care and online nursing education. While some of these trends are likely to abate over the next couple of years, we are focused on pursuing some of the new opportunities that are emerging. So without further ado, I'd like to hand the floor to Stacey Caywood, our CEO of Health.

Great. Thanks so much, Nancy. As Meg mentioned, I'm the CEO of the Health Division and transitioned into this role in June of 2020, just a few months into the global pandemic. I'm pleased to be here today to talk about Wolters Kluwer Health, a business with worldwide potential and uniquely positioned to improve health care outcomes. Before we dive into 2 of the largest products in the portfolio, UpToDate and Ovid, I would like to give you some context. So moving on to Page 7. The Health division accounts for just over 1/4 of Wolters Kluwer's total revenues and has been growing revenues by some 4% to 5% in constant currencies over the past 5 years. And this was largely driven by organic development. The Health division has also been contributing an increasing share of Wolters Kluwer's total adjusted operating profits, having produced steady improvements in adjusted operating margin over the past 5 years. Moving on to Slide 8. Our mission in health is to advance best care everywhere by bringing to bear our deep domain expertise with advanced technology to support clinicians from classroom to clinical setting. Our thousands of experts in health care education, training and evidence-based practice make us uniquely qualified to make possible the best care everywhere. And this supports safer, more equitable global health care that is also less costly and closely aligns us with our customers and partners' missions. During the pandemic, our team created and quickly made available the latest information and evidence related to COVID-19 and provided a lifeline to clinicians, students and patients. The health team also donated their time, expertise and resources to help healthcare systems around the world, many of which were overwhelmed. This past summer, for example, when India was facing a shape -- a sharp increase in COVID infections, we provided the country with free access to UpToDate for several weeks and more than 100 hospitals across India took advantage of that support. Turning to Slide 9. The COVID pandemic has placed great pressure on healthcare delivery in the past 2 years, which is accelerating the pace of change, creating new opportunities and challenges for our business. The 3 most important trends we are seeing are: first, an accelerated shift towards virtual and telemedicine; second, increased demand for technology and efficiency to alleviate the pressure on hospitals and their staff; and third, a trend towards consumerization of healthcare delivery as the level of competition for patients increases. Our position along the life cycle of a nurse or doctor places us in a unique position to have a positive impact on health care. And the quality and breadth of our solutions puts us in a strong position to pursue some of the emerging opportunities. Moving on to Slide 10. Across both our Learning, Research and Practice business and our Clinical Solutions group, we have global leading market positions fundamentally underpinned by our deep domain expertise and medical knowledge. Learning, Research and Practice is a leading player in medical and nursing education with traditional textbooks and a growing suite of digital learning solutions for students and their professors. It is one of the world's largest publishers of peer-reviewed medical journals under the Lippincott brand. The largest, single product in learning research and practice is Ovid, a world-leading specialized medical research platform, which you will hear about more from Vikram coming up. Clinical Solutions serves professionals in the clinical setting, providing them with expert solutions at the point of care. Over 2 million physicians use UpToDate around the world to diagnose and treat patients. Our market-leading clinical drug resources are used in thousands of hospitals and pharmacies, mainly in the U.S., but with a growing position outside of the U.S. Clinical Solutions is also an important provider of patient engagement tools and clinical surveillance in data normalization software. Turning to Slide 11. Over the past 5 years, the health division has evolved to become more digital and more recurring, as you can see from this chart. In 2020, nearly 90% of revenues were from digital products and over 90% of the revenues were recurring in nature. This evolution was driven by strong organic growth in Clinical Solutions and the transformation of Learning, Research and Practice from print to digital. Throughout this time, we have retained our very strong foothold in the U.S., which remains the world's largest market for healthcare information technology. But even as the U.S. business has grown, we have continued to extend our geographic reach. As you can see on Slide 12, our leading products are used around the world in over 190 countries. There are very few medical libraries in the world who do not subscribe to Ovid and UpToDate also has strong reach globally, today, serving customers in 180 countries from Argentina to Zimbabwe. Many of our customers [ buy across ] the health portfolio, subscribing to both our Learning, Research and Practice products as well as multiple Clinical Solutions tools, and we see opportunity to drive more cross-selling in international markets for key products. Turning to Slide 13. Health has delivered steady organic growth in recent years and proved to be very resilient during the worst of the pandemic, with 3% organic growth in 2020 compared to 2% for Wolters Kluwer overall. And excluding last year's accelerated print decline, digital revenues in Health grew 8% organically in 2020. In the first half of this year and through the 9 months period, organic growth has been above normal trend due in large part to a sharp rebound in print books, and we also benefited from the addition of a major new journal contract this year. We expect trends to start to normalize as we head into next year. Margins in health have been on a steady upward trajectory over many years, driven by the mix shift towards clinical solutions and operating efficiencies. In 2020 and in the first half of 2021, the health operating margin was also boosted by temporary savings, which will unwind as costs related to travel and promotion return and as hiring and wage inflation pick up. Looking ahead, our revenue drivers are to promote more cross-selling and upselling and integration across our product range to drive product innovation and to deepen our global reach. We have started to increase the pace of innovation with over 10 new product launches across health so far this year. And Peter and Vikram will mention a few examples. We will continue to build on our global reach in coming years. In 2021, we gained some major new customers internationally in Europe and elsewhere. The pandemic demonstrated how vital our products are to our customers around the world. We are confident in our future and aim to build on our strong market position to advance the best care everywhere. I'll now hand over to Peter Bonis, who will provide deeper insights into our clinical solution tool, UpToDate. Peter?

Thank you, Stacey. It's my pleasure to be here. I spent most of my career at UpToDate and Clinical Effectiveness and have now expanded my role to manage division-wide industry partnerships and to oversee research and development initiatives that support our collaborations with customers and partners. So today, I'll provide an overview of one of our largest healthcare solutions, UpToDate. Let's turn to Slide 15. For those of you who don't know, UpToDate, let me start with a brief overview. Its mission is to improve the quality of healthcare worldwide by providing evidence-based answers to clinical questions at the point of care. Next year, it will be 30 years old. It's grown to become the world's most widely used and the most comprehensive clinical decision support tool for health care professionals. Moving on to Slide 16. Its primary use is by busy clinicians who need immediate answers to key clinical questions. The volume of literature is too vast and complex for the average clinician to master. And even if they could read everything that they need to practice in their own specialties, the vast majority don't have the time or the skills to understand how to put the results of an individual study into the context of other studies that have been published and to apply them directly to patient care. Furthermore, research has shown that clinicians have 15 to 20 questions per day, 60% of which go unanswered when they don't have access to a resource such as UpToDate. Answering all those questions can change 5 to 8 management decisions per day and have a substantial impact on the choices made. UpToDate helps clinicians improve their decisions making with original, evidence-based content written specifically for UpToDate that's updated regularly, is granular enough to answer most of the detailed questions that arise in clinical care, is trusted, accessible and actionable. Slide 17, please. An UpToDate topic review is accessed about 1,200 times a minute worldwide. All this use translates into measurable benefits and more than 100 studies have examined various aspects of UpToDate's impact. These have shown that UpToDate is associated with improved decision-making, leading to important benefits such as enhanced patient safety, improved performance and quality measures, fewer diagnostic errors, reduced mortality, improvement in efficiencies such as hospital length of stay and substantial gains in medical education. Moving to Slide 18. And it's gratifying that the benefits of UpToDate are seen across varied health care settings, not just those in wealthy nations. UpToDate donates copies to individuals and institutions in low and middle-income countries through its partnership with Harvard Medical Schools Better Evidence program. Some examples of the feedback from users in these settings are noted in the slide, underscoring how access to information can directly save lives. Let's turn to Slide 19, please. UpToDate's core business model has remained unchanged since its inception. Its revenue is subscription-based with contracts links typically ranging from 1 to 5 years. We offer subscriptions to individual users, but most of our revenue comes from large, often multiyear enterprise customer contracts. While UpToDate is well established and highly penetrated in some markets, we continue to see opportunities for growth. So core growth areas include driving increased penetration in international markets, optimizing pricing and packaging globally, exploring additional distribution channels and markets, including digital use cases and [ EMEA ] partners, and extending product capabilities and added functionality. Moving to Slide 20. In addition, UpToDate continues to invest in innovation. The following provides some examples, but there are many more underway both internally and in partnership with other organizations. Thus, these 3 examples, UpToDate Advanced, Digital Health Architect and Integrated Solutions are not comprehensive. Turning to Slide 21. So on UpToDate Advance. In 2018, we launched a major enhancement to UpToDate called UpToDate Advanced. It provides clinicians with information of interpretation of laboratory values and dynamic algorithms, which we call pathways on various clinical areas that could be navigated easily at the point of care. Pathways help clinicians make decisions that are tailored optimally to individual patients. They are designed to guide users through complex decisions that are prone to misjudgment or error, such as the optimal choice of anticoagulants in patients with atrial fibrillation and they thereby reduce unwanted care variability. The algorithms contain links into UpToDate's core information and provide a log of how decisions were made, which can be memorialized in medical records. UpToDate Advanced has been adopted by over 1,200 enterprise customers and users note that it leads to better decisions, saves them time and decreases on necessary utilization. We are focusing our efforts now on integrating UpToDate Advanced into workflow through electronic medical record systems. On Slide 22, we have Digital Health Architect. Digital Health Architect is a platform that enables third parties such as digital health tech companies to consume our evidence-based information easily and integrate it in their platforms. One example is integration of UpToDate with Doximity, a leading platform, providing news and workflow solutions such as telemedicine to clinicians. Clinicians on the Doximity telemedicine platform have access to UpToDate patient information that can be viewed before, during, or after the visit. In addition, UpToDate itself can be accessed during the visit. Turning to Slide 23. Integrated Solutions. So UpToDate exists as part of a portfolio of products, including drug information assets such as Lexicomp and Medi-Span and a patient engagement platform, Emmi. We are focusing on ways to combine and extend them to help our customers solve core challenges in healthcare delivery. One example is harmonizing and enriching content across health care professionals such as doctors, nurses, physician assistants, pharmacists and patients so that everyone in the healthcare ecosystem can use the same evidence-based information. This foundational investment is distinct in the market and provides a content platform that can be used to help achieve consistent, high-quality care across the health care ecosystem. Moving to Slide 24. So in summary, after 30 years, UpToDate is established as the leading evidence-based knowledge resource trusted by healthcare professionals throughout the world. Its use is associated with improved care across diverse settings and it is widely heralded as being indispensable for the practice of contemporary medicine. It's wide adoption and unique trust by providers offers several opportunities to achieve even greater impact on healthcare delivery and to grow the business. I'll now hand over to Vikram, who will provide an overview of our medical research platform, Ovid.

Thank you, Peter. Let's turn to Slide 26. I'm Vikram Savkar, the General Manager of the Medicine business within the Learning, Research and Practice side of Wolters Kluwer Health. The Medicine business covers what we think of as the classroom to clinic life cycle of the medical world, spanning from medical schools into residency programs and deep into the needs of practicing clinicians, including continuing medical education, scholarly communication and medical research. The Medical Research segment is what I'm going to zoom in on today. Now our Medical Research business has 2 focal points. Our 300-plus market-leading, peer-reviewed Lippincott medical journals and Ovid, our iconic research platform for medical professionals. Ovid is really the crown jewel of our medicine portfolio and one of our most exciting drivers of future growth and global impact in Medicine, which is why today, I'm going to focus on Ovid. Now Ovid is used mainly in hospitals and in academic settings, as you can see from the chart, but also serves customers in the corporate and government arena. Briefly, although, I'll cover this in more detail later. Of its uniqueness is the combination of precision search tailored to medicine, combined with the fact that Ovid includes not just our own medical information but also aggregates across the vast and growing body of premium content from most of the other major medical publishers around the world. Let's move to Slide 27. Now before I explain Ovid's key advantages and growth potential to you, I'd like to spend a few moments level setting the world of medical research within which Ovid sits. Now all of us and our families engage with the healthcare system on a regular basis. But most of our interaction is with the doctors and nurses who operate at the point of care. And you've heard Peter speak eloquently about how UpToDate powers global excellence at that point of care. But behind the scenes sits an immense amount of activity that is generally invisible to us lay folks but is profoundly important to our lives because it is what drives consistent improvement in the techniques and tools that healthcare providers use to keep us healthy and to save our lives. That activity is medical research. The process begins with research conducted in labs or in people facing clinics, clinicians around the world conduct studies that are designed to lead to significant improvements in health care outcomes, whether through development of new drugs or therapies, changes to operational procedures or the creation of nutrition and wellness guidelines. When they conclude these studies, clinicians look to disseminate their findings so that today's new discoveries become tomorrow's standard therapy. This is how medical care continually advances. This is why today's approach to treating diabetes or lung cancer is more effective than 20 years ago. The main way that findings are communicated is through peer-reviewed journals, including our 300-plus Lippincott journals. There are roughly 3 million peer-reviewed science and medical articles -- medicine articles published every year globally, just to give you a sense of the scale of this activity. But that scale is also a challenge. Imagine being an oncologist faced with tens of thousands of new papers in oncology every year. How could you possibly navigate through this to find the research that is most credible, widely accepted and relevant to your particular patient population. Let's move to Slide 28. So this is where Ovid comes in and why it's such an essential and iconic tool in the medical research world. Ovid makes it possible for clinicians to find the research that they most need. It does this through a combination of 3 key assets, which you see outlined on the slide. The first is its library of medical content, which is arguably the most comprehensive body of current and past medical literature in one place in the industry. As I mentioned at the start, Ovid aggregates content from most of the major medical publishers in the world. As a result, Ovid contains the full text of more than 1,000 journals and tens of thousands of books, but also contains hundreds of databases, which themselves contain metadata and abstracts of tens of thousands of more journals. Even though Ovid focuses solely on medicine, it is still difficult to fully convey to you the scale of Ovid's breadth. It delves deep into every discipline of medicine from every corner of the world. There are millions of pieces of research content in Ovid, and the number expands every day as new research is published and aggregated by the Ovid content team. The second key asset is Ovid's Precision Search. Ovid's Expert Search which was initially created a few decades ago and has been continually updated ever since is the most precise and powerful search specifically for medical content in the world. To get a sense of its power, I'll mention that serious medical searches can stretch for many, many pages. This is not like searching for consumer goods in Google. A medical search involves hundreds of lines because it is a matter of life or death that it'd be hyper precise, clarifying which drugs and which indications, which patient populations and comorbidities, which treatment pathways and which medical devices you are looking for. Ovid makes hyperprecise searches of this kind, possible, fast and accurate. You can certainly search medical literature on Google, and you'll get decent results for general awareness. But if you want to define new clinical pathways that save people's lives, you will use Ovid. Every serious medical researcher does, and this is why Ovid is the iconic North Star for any serious participant in the medical research workflow. The third asset is Ovid's enabling tools, which include millions of auto alerts that help biopharma companies meet their pharmacovigilance obligations to the FDA, collaboration tools that allow globally distributed researchers to work as one team and much, much more. These assets together are why Ovid is used for more than 250 million searches and 50 million article downloads each year. There are only around 1 million clinicians in the United States. So relative to its global target audience, Ovid really is like the Google of medical research, except much, much more precise. Let's move to Slide 29. I mentioned at the start that Ovid is 1 of the most exciting drivers of future growth for the Medicine Group of Learning, Research and Practice. Because of its unique combination of assets, Ovid has been a steadily growing business with well more than 90% of its revenues from enterprise-level subscriptions. Ovid even grew during the pandemic despite serious budgetary challenges at our customers that led them to drop several competing services and content bases. We believe the market fundamentals and our own well-founded internal plans give us the potential to sustain or accelerate Ovid's growth trajectory in the coming years. Let me briefly touch on 3 dynamics that give us confidence in future growth. The first is the rising global adoption of what is called evidence-based practice, which you've heard both Peter and Stacey referred to. Evidence-based practice is a commitment to treating patients on the basis of published, peer-reviewed research findings supported by reproducible data sets. Now as rational data-oriented people, you may ask how else would one determine patient treatments? Well, in actuality, traditionally, medicine was largely based on experience and other such factors rather than on what clinicians read in journals. And so of the movement to evidence-based practice or EVP has been a conscious and structured effort to reposition medical treatment on a databased foundation. In developed countries, EVP has long since become essentially the only way that professional medicine is practiced. But much of the world is still only moving gradually towards EVP. This movement is accelerating, and that momentum surely is irreversible because the benefits of EVP are clear and immediate. We see increased adoption of EVP throughout the Asia Pacific region, in Latin America and elsewhere. And as this movement spreads, the global demand for tools that give clinicians and researchers access to medical literature is steadily building. We are well exposed to this macro trend due to our strong global footprint. The second growth driver we see is extending Ovid's reach deeper into the workflow of the core verticals that we already serve. Think back to my saying that a search in Ovid can stretch for several pages. While the results of that search could involve several hundreds of papers and these hundreds of papers may not agree with each other, so in fact, researchers after conducting searches in Ovid may then spend upwards of a year, analyzing this depth of research to determine which avenue is the most compelling to save the largest number of lives. The process of analyzing the research represents a major commitment by the global healthcare industry each year, involving hundreds of millions of dollars of expertise. There is a natural role for Ovid to play in driving efficiency and insight in this phase of the medical research world, building on Ovid's core strengths and leveraging artificial intelligence in a way that was not possible 10 years ago. we have been investing to be able to extend Ovid into this workflow adjacency of the clinical market. The third growth dynamic that we see is to expand our share of the healthcare enterprise budgets that we already tap into. With our combination of assets, we are uniquely positioned to identify and solve problems for customers in the clinical space. Our big competitors from a content aggregation perspective are ProQuest and EBSCO, but both focus very broadly across many academic disciplines well beyond medicine. Our competitors from a medical journals perspective are Elsevier, Wiley and Springer Nature, but none of those are content aggregators. And our competitors from a search perspective are Google scholar and PubMed. I've already spoken about how Ovid compares to Google. PubMed is focused on medicine and it is good, but is not a commercial enterprise and doesn't, therefore, have a deep incentive to spin off a consistent new product pipeline. So Ovid is essentially unique in terms of its breadth of medical content, exclusive focus on the medical space and strong commercial incentives. That gives us an opportunity of getting very close to clinical customers through techniques, including contextual inquiry to understand their pain points and develop purpose-built products that achieve very high affinity and enable Ovid to grow its wallet share. This is something that Ovid has done well for many years. It's something we are continuing to do today. To give you a recent example, in March of this year, we launched TelemedInsights, a proprietary tool specifically designed to help healthcare providers navigate their transition to telehealth. And following our recent investments in the cloud, we are now in a good position to channel R&D spending into rapid productive customer-based innovations. Of course, there are market headwinds as well but from a broad view, the external and internal fundamentals of Ovid are strong and promising, and we hope to deliver on that inherent potential in the years to come. Thanks very much for listening. And now I hand over to my colleague, Alex.

Thanks, Vikram. Slide 31, please. Hello. I'm Alex Tyrrell, and I currently serve as SVP of Advanced Technology and Product Engineering for Learning, Research and Practice. I will be discussing the digital experience group and our mission within Wolters Kluwer with a particular focus on the Health division. The Digital Experience Group, or */dxg was created over 10 years ago, when it was called the global platform organization. Over the past decade, */dxg has grown organically to meet the demand for skills and expertise. It has also integrated development teams that were part of a business unit or division. Today, */dxg is a cohesive virtual organization spanning the globe. The Digital eXperience Group is focused exclusively on customer innovation. We consist of around 2,000 people, including both full-time employees and flexible resources. Our org structure has 4 divisional leads, providing support across each division of Wolters Kluwer. Each lead has dedicated product teams as well as access to specialized talent from our Centers of Excellence. Within */dxg, we currently have three Centers of Excellence. The first two, Customer Experience and Artificial Intelligence are at the heart of our digital transformation strategy moving from information products to export solutions. Third, Advanced Platform Services provides scale and drives pace as we mature and expand our offerings across Wolters Kluwer. Slide 32, please. Thank you. We adopt a customer-driven lean product methodology to accelerate innovation. In short, our lean process is a formalized build, measure, learn approach. Hallmarks of the lean process are fast iterations, early MVPs and continued testing and validation with the customer. We start with the discover and design phases where we utilize a process called contextual inquiry to discover and then test problem solution with the customer. During the design phase, we rely on */dxg's deep expertise in advanced technology to foster and accelerate innovation. This stage is highly iterative. The goal is to move from validated design idea to product MVP within very short development cycles. We then move to deliver and deploy stages. Here, we seek to leverage existing platform capabilities. This allows us to focus on scale while accelerating pace and lowering the cost of innovation. We also extensively beta test with customers prior to this full-scale launch of a product. This customer-first lean approach helps lower risk and makes the innovation process faster and more predictable, ultimately providing more value to our customers. Slide 33, please. Within our technology portfolio, we supported a number of software capabilities, 2 major research platforms, Global Atlas and Ovid and more than 20 technology tools. These assets help us scale and accelerate delivery of product innovation. Importantly, */dxg effectively operates in 2 modes around the development and deployment of our assets. The first Asset Development enhances our global technology portfolio and identifies emerging trends and areas for innovation. This also enables leverage in horizontal reuse of capabilities across the enterprise. Next is Focused Deployment where */dxg shifts to a decentralized model with a vertical alignment to the divisions. Global assets drive scale and pace, while ring-fenced and embedded technology teams transform these assets into unique product experiences and new expert solutions. Slide 34, please. In fact, the primary focus of */dxg is to foster and promote the use of advanced technologies across Wolters Kluwer. This includes leveraging machine learning as a catalyst for innovation and to deliver expert solutions. We do this through our AI Center of Excellence. In our AI CoE, we have over 40 technologists operating globally across all 4 divisions. A majority have advanced degrees. A notable example of innovation as from our Clinical Surveillance Solutions product, Sentri7. The Sentri7 AI+ module uses machine learning to improve patient outcomes. This includes the ability to quickly identify risk of hospital acquired infections as well as providing opioid stewardship to reduce the risk of adverse events. Slide 35, please. */dxg has been supporting Wolters Kluwer's journey to the cloud for a number of years. In the Health division, certain up-to-date features are supported by */dxg tools, which are hosted and deployed in the public cloud. These tools are important catalysts for innovation. Within Learning Research and Practice, */dxg finished the complete migration of Ovid to the cloud earlier this year, a process which took 3 years. Now that Ovid is in the cloud, we can more rapidly design, deliver and deploy new features and innovation going forward. Within the Health division, */dxg delivers a number of unique and differentiated solutions. Let me give you two examples starting with UpToDate. Slide 36, please. As [indiscernible] mentioned earlier, in 2018, UpToDate rolled out a major innovation UpToDate Advanced module. With UpToDate Advanced clinicians can enter patient-specific information, for example, blood test result. The tool then allows them to diverse complex and varied pathways to make a more patient-specific decision at the point of care. In developing UpToDate Advanced, */dxg deployed our task flow technology to support the creation of complex clinical pathways. TaskFlow is our in-house developed visual and interactive tool for building expert solutions. It is a modern cloud-based application. TaskFlow features a serverless, no-code, cloud-native architecture design. TaskFlow has been maturing over the last 3 years and has made a big impact for our customers. It allows subject matter experts to develop many different types of workflow solutions. It does us this in a visual way that is intuitive and easy to use, all without writing code. This has provided an immense benefit to our clinical experts whose domain expertise is critical to ensuring improved patient outcomes. The customer benefits are notable as well. This includes improved UX by simplifying workflow and navigation through interactive pathways, along with enhanced support for tailored and unique patient care. As evidence changes, pathways could be quickly updated, along with documentation and patient support. Finally, as new content, applications and capabilities become available, they can be incorporated quickly to TaskFlow framework. This further improves patient outcomes, for example, through more tailored and personalized medicine. We have also deployed this asset to enhance the Emmi patient engagement solution with an interactive voice tool for patient followup. In keeping with the */dxg strategy, TaskFlow use cases are being identified and developed across other divisions as well. slide 37, please. The second example is our collaboration with Vikram and the medical research business. Specifically, now that Ovid is fully in the cloud, we have developed a number of modular and scalable platform services. These services are critical to supporting and enhancing this industry-leading medical research platform. This includes advanced technologies like our Graph Engine and Personalization Services as well as workflow enablers like single sign-on and improved access control. We have recently delivered a number of new capabilities as well as differentiated user experience from medical researches, pharma and other important customer segments. We have done this through a series of regular updates and releases in 2021. These releases have focused on the user experience and advanced search technology like query analysis and term finders to improve research workflows. In the future, we see increased potential for Ovid research platform APIs and services to drive value. One path would be as part of new products and expert solutions. Another option would be as core capabilities and new ecosystems and integrations and in either capacity, our goal is to innovate and address every evolving research use cases. With our current modular, scalable cloud-based design, we are well positioned to meet this need. Thank you very much. And at this point, I'll turn it back to Stacey for closing remarks.

Great. Thanks so much, Alex. If you could turn to the next slide, please. Hopefully, this session gave you a sense of the unique position Wolters Kluwer Health plays in the world of healthcare. And alongside UpToDate and Ovid, we have many other powerful solutions with international potential, for example, in drug information and data solutions. With our leading market positions, strong customer satisfaction and increasing adoption of our solutions along with significant investment in innovation and new product development, we will continue our steady organic growth overall and our growth of expert solutions. And now we're happy to take questions. So I'll hand it back to Meg to moderate.

Great. Thank you, Stacey, everyone, thank you for your presentations. So we'll now turn to Q&A. [Operator Instructions] So let's start with the first questions. I have a message here that Matti Littunen from Bernstein has raised his hands and has a couple of questions. So please go ahead, Matti.

Thank you, Meg, and thank you, everyone, for the presentation. My first question is for Stacey. You mentioned the main growth drivers for the division going forward, doing cross-selling, international expansion and product improvement. Now I just wanted to check if you had a view of the hierarchy of those growth drivers in terms of materiality. And then finally, whether the like-for-like price increases would also be an element of that growth going forward. And then a quick follow-up on the sort of cross-selling further that growth sort of picture. Could you give us some practical examples of the kind of cross-selling opportunities you see on a product level? And then the second set of questions for Vikram on the open access transition. So first, for Lippincott, do you see the sort of open access publishing revenues as sort of offsetting any potential declines on the readership side as we transition to open access for medical journals. And then related to that, for Ovid, in its aggregation role, do we see sort of any kind of pressure from more research being sort of freely accessible at the point of readership in terms of what the value proposition of Ovid is.

Okay, Matti, first, thanks for joining. I'll take the first question. So in terms of the growth drivers in the hierarchy, this may not be the exact hierarchy. But just so to start in the way I think about the build of our business. First, since our business is so recurring in nature, the first thing that we focus on is efforts to drive usage and adoption that leads to strong retention. And to your point about prices really as a driver for price increases, right? The more adoption we have, the strong usage, strong expansion that helps us to drive very strong price increases, which is one of our main focuses. And then sort of the category of cross-selling and upselling in new logos, obviously, very important metrics for us. In terms of cross-selling, our existing products, you saw on that global slide that I shared that we have many customers that buy across our portfolio, especially the large healthcare institutions, large academic institutions. We see, for example, and one of the things I hope you picked up from Peter's session was the buying within Clinical Solutions, for example, where we have customers of UpToDate, we've harmonized the content and the evidence-based information with Lexicomp. So there's a natural buy between UpToDate and Lexicomp, we also sell Emmi as a natural cross-sell as well as Medi-Span. So all important parts of our -- the way that we go to market now. And we do so with what we call a solution-selling approach, particularly across the Clinical Solutions group. So having that motion has been over the last several years has really shown some nice promise and helped with that cross selling. The other important thing for us is obviously new logos, particularly driving further penetration outside of the U.S. is a very important focus for right now and then innovation. I think we're really excited about the innovation. We tried to highlight examples within both HLRP, in Vikram's team also a lot of innovation happening in nursing as well as in clinical solutions. And Peter mentioned a few areas where we're focusing now to take advantage of the trends that we see. I mentioned a few earlier in the advancement and acceleration of telemedicine and virtual care. The solutions that we talked about, both in Vikram's Group and in Peter's UpToDate examples where we're really going after digital health vendors, very exciting for us to be able to be where our clinicians are, where their patients are in their workflow, which we think is a significant opportunity as we look at that with innovation bucket as a growth driver. Hope that answers the question, Matti, and then I can turn over to Vikram on open access.

Sure. Thanks, Stacey, and thanks for the question on open access. It's incredibly interesting dynamic in the space. We think about it a lot. And so happy to be able to speak to it. So the first thing I will say is that the dynamics for open access in medicine are quite different from the dynamics in basic science in the broader STM industry. And a lot of the dialogue that we hear in the market around open access comes from Springer Nature, Elsevier, Wiley. Those companies are broadly exposed to STM and heavily exposed to basic science. And so a lot of how they think about open access is contingent on the dynamics of open access in basic science. And in a nutshell, those dynamics are incredibly progressive and incredibly aggressive. The basic science community is very aggressive about moving to open access. Open access is growing but has come to medicine much, much later than to basic science and is progressing in a different way. And the key reason is that there's a difference in funding model, a lot of the global R&D spending through the NSF and so on goes to basic science. The funding model for medicine and clinical research is a little bit different. Now that said, open access is growing in medicine. But we've done substantial research. And at this point, it's clear to us that the total volume of papers published globally in medicine is growing every year. And within that, the subscription piece of papers continues to grow. What that means is that the growth of open access articles is not cannibalizing subscription articles and subscription readership, it's actually accretive to it. So open access is essentially expanding the total market for research papers. So with that context, I will say we're excited about open access for Lippincott journals. We are well exposed to it. We're growing well, certainly faster than our subscription Ovid business. We plan to put a lot of investment and focus on that area, and it will hopefully lift our growth rate relative to the subscription business and we don't right now see it as fundamentally cannibalizing. We see it as a nice balance and offset. Your second question was about how [ OA ] affects Ovid. That is a more interesting dynamic. Ovid traditionally has aggregated subscription content. The volume of OA papers changes that dynamic. I would say it's our ambition for Ovid to be the principal aggregator across all content, subscription and OA in the long run. And if we do that well and play our cards right, it should lift the value of Ovid over time because as the total volume of OA published research increases in the world, the need to sift through and discriminate between that volume of content for end users should go up and Ovid's value proposition as that sifter and precision search should increase if we play our cards right. So back to you, Meg.

Great. Thanks for those questions, Matti. There may be opportunities for you to ask some more later. But now I'd like to go to the next person who's raised their hand on Zoom, which is Sami Kassab from Exane.

it's Sami at BNP Paribas Exane. I have a few questions, please. The first one, could you perhaps provide some information on the revenue and possibly margin contribution of UpToDate and Ovid and perhaps on a combined basis, if you don't want to single them out. Secondly, you have referred to 1,200 customers as having adopted UpToDate Advanced. Shall I think that this is out of the 39,000 institutions that you have as clients? Or if not, then what is the penetration rate of Advanced within the UpToDate community. And lastly, can you comment on the latest trends in terms of technology jobs, salary inflation? There seemed to be an acceleration in U.S. tech job salary inflation. Do you see that as well? And perhaps comment on how that may impact next year's margin?

Okay. Sami, I'm going to hand your second question to Peter to talk about how far UpToDate Advanced has spread amongst our customer base. I'm going to hand the tech jobs to Nancy, who I know is focused quite a bit on recruiting talent and perhaps also to Alex, if he wants to add. On your first question, we're not going to give the revenue of individual products, but I think you know that UpToDate and Ovid are 2 large products. Ovid is probably the largest single product within HLRP and UpToDate, together with our drug databases and UpToDate Advanced are a very significant part of clinical solutions. So but we're not going to get too detailed on revenue. And I think you know the margin in Clinical Solutions is above the division average and has been a key driver as we've gone forward with the margin for the division. So perhaps, Peter, you could tell us a bit more about how -- to what extent the Advanced innovation has been rolled out across individual and perhaps enterprise customers.

Thanks, Meg. Thanks, Sami. So I'll be succinct. So the question was what percentage of our customers, if it's 39,000 enterprises that we mentioned actually have access to UpToDate. So we wouldn't consider all of those targets for UpToDate Advanced. So of the ones that we do consider targets that 1,200 represents we're having around 20% of the penetration that we can anticipate. There's another dimension to this is that we've included it with our individual subscribers. So UpToDate Advanced becomes part of the individual subscription. So that will be a global rollout during the renewal cycle.

Nancy, do you want to comment on recruiting?

Thank you, Meg. In terms of the labor market right now, I'm sure this will come as no surprise, Sami to you or others is that it's very, very robust and very tight. And so recruitment remains a focus for myself and the entire leadership team at Wolters Kluwer. In terms of inflation, around all jobs, I would say what we're finding is -- we typically, when we would hire someone new, try and bring them in sort of at the midpoint of whatever salary range is for the position, we're now having to go above that midpoint to attract the talent. And so I do think there is overall wage pressure, particularly in tech, but really across all functions. And so we're dealing with that, both in terms of how we're thinking about pricing, but also just in terms of managing the way that we always do our cost base to make sure that we can continue to show progression around our margin in a positive way, but also obviously retain and attract talent. So it is a -- primary focus right now for us is talent management and recruitment.

Given that the first question was partly answered for obvious reasons, may I please ask a follow-on question. And it's a little bit on the interplay between UpToDate and Ovid. I'm probably wrong with my understanding, but it feels to me that if all physicians and nurses had access to UpToDate, they would no longer need to do their own medical literature research, so we no longer need Ovid. Why is that wrong? Or is it not the case?

Interesting question. Who wants to take that. Peter, do you want to give it a go?

Yes. Thank you, Sami. Another very thoughtful question. So let me reflect back when UpToDate was first founded, and [ Bud Rose ] used to say that. The only thing that a clinician should ever need access to was UpToDate and at that point, it was Medline, the medical literature. And I think the spirit of what he meant by that still exists. So UpToDate contains highly synoptic original content that's written by 7,000 world authorities and heavily curated to provide discrete answers at the point of care. It's widely trusted. It's widely adopted and people take action on the information but it does not specifically address the needs of a research community or a community who is interested in sifting through the literature in order to create synoptic content, such as guidelines or in fact, go very deep into individual studies or groups of individual studies. So to practice contemporary medicine, you need access to both sets of tools.

Okay. Great. I see that Nick Dempsey has raised his hand on Zoom. So Nick Dempsey from Barclays. Do you want to go ahead and ask your questions?

Yes. Can you hear me?

Yes. we can see you and hear you.

Right. Right. I have got three questions, please. So yes, first one. I wonder if you can talk about the opportunities in a bit more detail to sell UpToDate outside of the U.S. So we saw you sell it to a cluster of U.K. hospitals recently. Can you talk about the complexity of selling into the health systems, I guess, the sort of cluster health systems in the U.K., France, Germany, and whether over time you think that you can surmount those challenges and make that an important part of UpToDate's revenues? And the second question is, for the most sophisticated customers, who took UpToDate Advanced first, what are they ask you for next? So when can you start developing a more sophisticated layer on top of that, that you can then roll out across your customer base. And if so, what areas are they asking for more? Where is there more analytics that they want, et cetera?

Great. Thanks, Nick. I think both of those are for you, Peter. So the European landscape and what comes after UpToDate Advanced for customers, what is it the next level?

Thoughtful questions again, and we could spend an entire session on just those questions. So the answer to your first question, which is how do we overcome the challenges in selling to varied global markets, and you mentioned specifically the European markets. I can say we've overcome them. So UpToDate has been adopted universally. It is trusted. It's used in almost every country, including in some of the most remote areas that have -- really don't have any access to sort of modern equipment and standards. So the issue that has become -- is deploying our sales and marketing efforts that are differential to the regions, and we've been effective in doing that. So in the European landscape, it's varied. In Netherlands, we sell to individual clinics and hospitals. And as you mentioned, in the U.K., we sell to NHS Trust and private clinics who are the buyers. So we've been effective. It's already a meaningful contribution to revenues, and we expect the international growth to continue for core UpToDate without even needing localization.

Okay. And what's next beyond the Advanced...?

So let me answer that with sort of 2 dimensions to it. So the road map for Advanced that's been asked for is integrated more deeply into workflow, which is what we're intending to do. And in fact, we are already doing that. So when we talk about workflow there, it's principally injecting UpToDate Advanced thoughtfully into EHR workflow, which using contemporary standards, such as CDS Hooks and SMART on FHIR. But the other dimension to it is where beyond that is we're focusing always on solving our customers' challenges directly and to have information services be part of solving these customer challenges, whether it's helping to advise doctors and other caregivers or patients directly. So creating content assets and information services that can be thoughtfully deployed to solve some of the major problems in healthcare delivery is core to what we do. We have a lot of capabilities there, and we're focusing on it.

Great. Thank you. I hope that answers your question, Nick. We've got a couple of questions that we've just received from an investor which I'd like to ask. The first one is for Alex, I think. And so this is about really kind of an ESG question. Among your team at */dxg and I think you mentioned you have around 2,000 and perhaps not all of those are internal, but what is the level of diversity like in terms of gender diversity in particular. And how do you foster greater diversity. And we've heard from Nancy about the challenges on the talent side, but how do you encourage? And do you set targets?

Great question. Yes. So as you're likely aware, Wolters Kluwer has a strong record in diversity equity inclusion. However, in contrast to Wolters Kluwer as a whole, particularly our gender diversity in */dxg is lower. So fortunately, we have access to resources and best practices that have worked well in other areas of the company. Hence, our recruiting outreach and visibility to diverse candidates continues to improve, yes. So in particular, we're taking additional actions like partnerships with Anita Borg Institute and participation in the Grace Hopper conferences, with particular focus on gender diversity. And then ultimately, our global technology footprint also provides us with an opportunity to organically improve in all areas of diversity as well.

Great. And this shareholder also has a question, another sort of ESG-oriented question of how do we handle essentially responsible artificial intelligence? Like do we have a framework? Do we conduct reviews to ensure that the systems we use are not biased? Do we test these things. Are people trained? I don't know, Nancy, do you want to tackle that? Or should we give that one to Alex, because I know he spends his days in AI.

I'll just briefly start and then hand off to Alex. I would say we certainly take the management of the data very seriously across Wolters Kluwer, not just in health we, of course, comply with all the rules around HIPAA for health data, GDPR, et cetera. As regards specifically to artificial intelligence, we do adopt what they call the artificial intelligence assurance framework, which really lays out some of the standards around how to use AI. And we, of course, apply that across, again, not just in health but across the enterprise. And I would say that we are very focused on applying AI to specific use cases and so we're deeply engaged with customers around that. And again, the concept of ethical kind of behavior, et cetera as it relates to AI is embedded in our processes. So with that, maybe, Alex, I don't know if you want to...?

Absolutely, yes. Thanks. So our artificial intelligence assurance framework, which Nancy mentioned, is regularly reviewed and updated and it has an extensive number of controls covering AI life cycle and principles. This framework covers the technical domains like feature engineering, model training, stability, data acquisition, things like that and several ethical AI principles, which are emerging a lot like fairness and nondiscrimination, risk of bias privacy and even emerging concepts like AI explainability which is something very interesting but a real challenge. So Wolters Kluwer conducts regular reviews and solutions to test that, that the solution satisfies its intended purpose and the documentation is adequate. Another thing we do in terms of our governance structure, in addition to obviously having oversight on all of our regulatory and statutory obligations. But we also work very closely with the business divisions like Health. And within Health, we have ring-fenced embedded data science engineering teams that have additional training, additional oversight and really are aligned to make sure that, that group, in particular, has all the additional training above security, above privacy to really fit the needs of the specific applications.

Great. Thank you for that comprehensive answer. So we have another person who's raised our hand, Rajesh Kumar from HSBC.

Just when you're thinking about the capital allocation in -- within this division, what are your priorities in order in a sense, where would you deploy more capital in terms of developing products, tools, AI and which are the more capital-intensive parts of the business, which are the less intensive parts of the business? Or is the capital allocation more around M&A in this case?

Okay. I think that's a combination for Nancy and Stacey, maybe Nancy, if you could go first.

Yes. No, I'll start. One of the focus is that we have right is on allocation of our product development and enhancement reinvestment. So broadly, across Wolters Kluwer, we reinvest 8% to 10% of our revenues back in enhancements and new products. Within the Health division, that's been around sort of the 9% to 10% level but it's very -- it's allocated across where we have the most opportunity. So if you think about sort of a Bell curve, the nascent products and the high-growth products are likely getting more like 12% to 15% reinvestment and then are more mature and even some of our declining products are going to have less. So that's kind of broadly how you think about it. Maybe Stacey, you can specifically talk about just, obviously, a lot of it's been around the digital transformation and some of the new innovations in clinical solutions. But happy to have you give some additional color.

Yes, absolutely, Nancy. And indeed, we do focus and really look at the portfolio to determine what are the areas that have the highest potential for growth, where are the areas that we really want to be making more investments. So many of the areas are where both Peter and Vikram talked about today in terms of the opportunities to really where we know there's a match between high demand for improved outcomes, insights and digital where we're really investing the most. So again, clearly are investing in areas first to make sure that our strong products continue to get reimagined and shaped so that we can make sure that we continue to build strong growth and then investments in innovation is exactly as Nancy said, where we have the higher opportunities for growth.

Just on disposal side, are there any assets which you would consider noncore within the portfolio or no?

Yes. No, I would say, in general, we have divested some things in the past. We constantly through our planning process every year, look at the portfolio, again across all of Wolters Kluwer. And as you can see, we will make some disposals of noncore businesses or businesses where we may not have a very strong market position and then alternatively, we do also make tuck-in and bolt-on acquisitions. So you should expect that to be a continuous process at all of Wolters Kluwer and Health as well.

Great. I've got a couple of questions that came through the webcast. I'm going to ask the first two -- two of them from Tom Singlehurst at Citi. I think the first one is for Peter to talk about. Can you describe or talk about the competitive landscape for UpToDate? Who are your competitors really for UpToDate and UpToDate Advanced? And the second one, I think, is for Vikram. You recently won a significant contract to publish the ASCO journals. How often do these contract opportunities come up of this kind of size. And are there any more big ones like that in the pipeline? So perhaps we can start, Peter, on competition for UpToDate.

Sure. Thanks, Tom, for that question. So let me divide that into 2 parts. So there's competition for core UpToDate, which is kind of the thing that's been around since the beginning and as a compendium of knowledge. So principally, that has been EBSCO with their product DynaMed. EBSCO is very aggressive in their marketing campaigns. We're often pit up against them during our sales processes but we tend -- even though we're a more expensive product to win most of those competitions. So that's been fortunate. And then there is Elsevier with ClinicalKey. But again, ClinicalKey serves a different purpose. And while they essentially came up in our sales cycles in past years, they've been sort of less noisy and less direct competition for us in recent years. So we still enjoy the privileged position of being the preferred resource in our global markets. But we're not sitting still because the other piece of it is where are we going to be competing in the future. And there it becomes more nuanced, and it's a series of workflow solutions and digital health tech, which are vying for the attention of caregivers. So that occurs both in our core markets and also in this new -- in this nascent digital health tech space and in retail healths in the United States. I think we're in a very good position there. But in some cases, we may be competing for budgets and not necessarily for the same services that we're delivering as customers try to solve their problems. So I think we're in an excellent position from the base that we have to continue to win our business and to compete in those arenas. But we're mindful that there are many, many companies of different sizes who are attempting to inject their services into the audience that we currently serve.

Great. And Vikram, could you talk about potential contract wins like ASCO?

Happy to. For those who don't know, ASCO is the American Society of Clinical Oncology. It was indeed a really significant win for us this past year and has lifted our results, given us a onetime lift to our results. The short answer is that contracts with that size are few and far between. We have 2 or 3 of that magnitude over the past 15 years. So I wouldn't expect a lot more on the market of that size in the coming years. And some of the ones that do come on stream are margin-challenged. So I think what you're going to see from us is being judicious about bringing on new society contracts. We will be looking for contracts that are sizable, but also that fill a strategic gap. We're going to be very focused on making sure that the content we bring into our organization fills gaps to enable us to better present ourselves to our enterprise customers as comprehensive medical partners. So perhaps in some years, but not any time soon.

Okay. Thank you, Vikram. So I think we're down to comment of our last couple of questions. I see Nick Dempsey of Barclays has his hand up. So please go ahead, Nick.

Yes. Just I had a question about ClinicalKey at Elsevier. So I think everyone can agree that UpToDate is kind of the market leader in this area. Has ClinicalKey added practice areas, added more sophistication to their products so that it becomes a better competitor to UpToDate in the last few years? Or maybe you could give us an update on the differences there. And just an add-on to that. When I look at ClinicalKey for Elsevier, they've got a dedicated product for nurses and for practitioners. Is that just a presentational thing? Is UpToDate regularly used by nurses? Or is there an opportunity for you to customize UpToDate more for the nursing profession?

Okay. Peter, I think that's one for you. ClinicalKey.

So Nick, thanks for that question. I won't claim to be an expert on ClinicalKey although I'm quite familiar with it. And certainly, Vikram can weigh in as well since it's been on Ovid's radar for many years. So there's a very critical distinction between generally what ClinicalKey has done mainly over the years, which is being an information aggregator. So many different resources, which are combined under a search engine or can be searched individually, whereas UpToDate is a synthesizer. So all original content and the intention for the way UpToDate has been architected is to allow clinicians to access the single point of information. They don't have to read multiple different topic reviews. We very efficiently direct them to a succinct answer to their specific question. So they don't have to decide between reading a journal article or a textbook or some other resource. Now I'd mention that the story over the many years of that product line is nuanced. They did introduce an attempt for a point-of-care product as well that would be directly competitive with UpToDate. But I think they've headed back in a direction of more of being an information aggregator. So for a point-of-care application, we want Synoptic evidence-based content. We still have a better approach, in my view, for delivering that service too, and that's what's needed mainly by frontline clinicians for it. On the second point around nurses, we -- I've been using the word clinicians who are using it. And principally, these are physicians, but we have many, many allied health professionals who are already using core UpToDate. So that includes physicians' assistants and nurse practitioners whose usage patterns are by and large very similar to primary care physicians within UpToDate. I think there's an interesting opportunity that you're alluding to more broadly since we have nursing assets, as you know, across the health portfolio, not specifically on UpToDate, whether or not we can serve more broadly nurses who are not nurse practitioners but maybe have other responsibilities. So it's a very interesting question that we've been thinking deeply about how to service them and to leverage the audiences that we're already selling into to be more effective in serving our customers' needs.

Right. Thank you. So I think we're going to kind of take two more questions. I've got one from a shareholder who has submitted a question and then Sami has his hand up. So from our shareholder, he would like to hear a bit more about Emmi. I think we all know it's not performed exactly to the original business plan, but I know it's been used across various initiative. So perhaps Stacey and Peter, do you want to comment on Emmi and how is evolved?

Sure. I'll start, then Peter, you can add some color commentary to that as well. So Emmi, I think, is in -- as Meg noted, has not reached our initial expectations. We do see a strong potential moving forward for Emmi. I mentioned during my earlier discussion that one of the areas for the trends we see is the consumerization of healthcare. The other trend that we're seeing is the move more into value-based care, and we think Emmi is a great opportunity to be able to help providers and payers to take advantage of those trends. Emmi is a series of solutions that address particular areas of focus, use cases that really allows engagement with patients to better serve their needs, to better take care of their personal situations and to improve outcomes overall. Peter, maybe you can talk about some of the newer capabilities and use cases that we've been addressing recently.

Sure. Thank you, Stacey. And so just to put a fine point on some of the things that Stacey already mentioned. Certainly, it's been bumpy with Emmi since the acquisition, but we've made tremendous progress. And I think some of that turbulence reflects, the turbulence that was seen more broadly in the patient engagement space, which, as many of you know, has been quite frothy and complex. And I think things are evolving and changing right now. Stacey already mentioned some of the evolving market dynamics, which are driving the need for a consumer-friendly set of services that drive down total cost of care and improve outcomes. So certainly, that's a trend that is accelerating in the United States and other regions of the world. So Emmi is well positioned from a market dynamics point of view to play into that evolving market dynamic. The other major competitive advantage that we have with Emmi compared to other engagement assets is this point of harmonization. And I do want to explain to people that how important that is and how distinctive it is. So we have spent many, many years and effort to make sure that the content that is -- appears in front of different stakeholders is the same. It's still a journey, so not complete, but it shouldn't be that if you go to an information resource design for a pharmacist or an information resource designed for a doctor or a patient that you get a different answer. And that has been the case and certainly exists outside in the industry. We've made an effort to make sure that, that same evidence-based content is represented across all of our assets, including in Emmi. So in an era of misinformation and an era in which we have increasing need for consumer engagement, both among payers and among our healthcare providers, Emmi is in a very good position to prosper. So we continue to be excited. We continue to work on new launches with Emmi. Some of you saw the launch of EmmiEducate this year, which is a new asset focusing on patient leaflets and some short-form videos. And there's a lot more that we can do with Emmi focusing on patient journeys and other things, which are aligned towards total cost of care and quality of care.

Great. Peter. And then the last question, please, Sami, I think you've got your hand raised. Sami again from BNP Paribas Exane.

Yes, excuse me for that. I have a question for Nancy, if I may. Nancy, when I first met you, the share price of Wolters Kluwer was at EUR 8. It has crossed the EUR 100 recently, and your capital allocation policy has been spot on and has all my admiration. So it's with a lot of humility that I would like to ask you the following question. Wolters Kluwer seems to be a top 20, top 25 player in the U.S. healthcare, IT and Tech segment. It is a top 20 or 30 player in banking IT. It is a larger player in legal and regulatory, and we've seen you sell out of legal assets today. My question is, why don't you think that perhaps being more aggressive with the scope of the group would not be a good way to grow from EUR 100 to EUR 200 per share. So why not sell one or two of the industries that you're in and refocus capital allocation to becoming a top 10 player in U.S. Healthcare, IT, for instance.

Yes, great question. So we are -- as you know, one of the things I think we, as a management team, are proud of is we did get rerated over the course of my tenure from a PE perspective, and that was largely due to the successful digital transformation. We're well over 90% now digital products and services. So as we think about the future, we really like the 4 market segments that we're in. We think there's plenty of organic opportunities as well as some bolt-on acquisitions we can make in those 4 spaces. So really to get the next kind of rerating as an organization, it's really focused on driving this expert solution strategy. And I know, Sami, you've heard me talk about this. Today, 54% of our revenues come from expert solutions. These are highly valued products by customers. UpToDate is a perfect example, high retention characteristics, high margin characteristics. So as we rotate the portfolio from, say, 54% to 65%, we will have inherently higher organic growth, again, because of the retention characteristics and better margins. And so we believe that, that is really the catalyst for the next kind of rerating more than doubling -- selling off parts and doubling down somewhere else. We see opportunities really across our entire portfolio. And it's really around these expert solutions. And more and more of those expert solutions are global in nature. So again, we have a broader kind of market that we're playing in. And so that's our strategy. You'll hear more about in February. As you know, we're coming out with the next sort of 3-year plan. But we're really excited about the future. Despite COVID, which, of course, has been a difficult period for everyone. It's been -- it's really sharpened the market trends around digital transformation around cloud, and we're really well positioned, not just in health but across the portfolio to take advantage of those opportunities. So I think despite COVID, the company has never been stronger in my opinion. So I think we're all excited about the future. And I think I want to just thank the health team. They've done remarkable work during this pandemic. I can't tell you the amount of effort that they've put in to make sure that the customers on the front line are getting everything that they need, and we're doing everything we can to work with them to try and stem the pandemic effect. So I want to just commend them because I think it's really been a herculean effort. So Meg, I think we're -- back to you.

So thank you for that great closing question, Sami and Nancy, your great answer there. So thank you, everyone, for listening and participating in the Q&A. We hope we provided you with a better understanding of our health business and our product development team. Do get in touch if you have any follow-up questions or feedback and if there's any further questions that come in, we'll try and get back to you in coming days. So thank you again, and we hope to see you again soon. Thank you.