1. Publisher financial planning Liz Ferguson Associate Publishing Director Wiley-Blackwell liz.ferguson@wiley.com

2. Outline Annual planning cycles –Fiscal (corporate) –Calendar (title/society level) Performance targets and monitoring Three planning case studies –Backlist pricing –New journals –Society contracts

3. 1.ANNUAL CYCLES

4. Context 1500 journals 700 society relationships Diverse revenue streams New products Emerging business models Wiley STMSP&THE Wiley N AmEMEAAPAC

5. Fiscal year timetable PlanningReporting Fiscal year start May JuneYear-end results July Aug Develop 3- year strategic plan and budget SepQ1 results Oct PlanningReporting Develop 3- year strategic plan and budget Nov DecQ2 results Submission and review of plan Jan Feb Board approval plan MarQ3 results Fiscal year end April

6. Fiscal planning and reporting Monthly management accounts Quarterly projections Quarterly full year re-forecasts Year-end Earnings releases to stock market 3-year strategic plans

7. The 3-year strategic plan Aligned with business objectives High-level backlist assumptions (Society) contract targets Acquisitions New initiatives

8. Calendar year timetable PlanningReporting JanExternal accounts start Title budgeting begins Feb Mar Communicate pricing AprilExternal accounts end Finalise society pricing May PlanningReporting Pricing of owned titles June July Aug Title level budgeting begins SeptForecasts updated Oct Nov Dec

9. Society planning and reporting Monthly income reports Annual accounts Budgets and forecasts Pricing discussions Scenario planning

10. 2.PERFORMANCE AND MONITORING

11. External monitoring Society audits Stock market and stakeholders Audit SOXA compliance

12. Performance targets Annual growth expectations –publisher circumstance – product type and market New business versus backlist Diversification of revenue streams Management of external costs Contingency planning Operations and cost structure

13. 3.PLANNING CASE STUDIES

14. Principles of list pricing Societies have ultimate decision making responsibility Increases to be within reasonable range Base rate increases should preserve the value of licensed arrangements When possible, support growth and development of journals

15. List pricing factors External market conditions Internal growth expectations Society expectations Impact of licensed deals Historical commitments or plans Current price points and sensitivities

16. Management of list pricing Global exercise at business unit level Process begins in February Consultation process on society titles finishes end May Pricing of owned journals begins and ends in June

17. Understanding the pressures Then –Sales people talk with librarians –Editorial staff talk with societies Now –Editorial staff (and societies through us) attend meetings with librarians –Sales people attend meetings with societies

18. New journals Increasing research output Intellectual strength Maintaining and growing market position Support from the community Internal support

19. Supporting new journals Major investment over 10 years Editorial strength costs Marketing costs ‘Free’ for 2 years

20. Evolutionary Applications Online only ISI-indexed in first year Endorsed by two international societies High usage ALPSP Best New Journal 2009

21. New society contracts Highly competitive Services matter, financial offer usually critical Structure of financial plans vary hugely Projections vary widely

22. Financial requirements Some specify parameters Nature of arrangement Editorial stipends Signing bonuses Guaranteed income

23. Financial offer Business plan prepared by commissioning editor –Revenues –Costs –Structure of offer Marketing and sales involved Commercial finance review Authorisation required

24. Conclusion Reporting never ends Planning involves many business functions Complexity is increasing External stakeholders have a strong voice