Artificial Intelligence
Wolters Kluwer 2020 Half-Year Report
Wolters Kluwer 2020 Half-Year Report
August 5, 2020 – Wolters Kluwer, a global leader in professional information, software solutions, and services, today releases its half-year 2020 results.
Highlights
- Revenues €2,294 million, up 3% in constant currencies and up 3% organically.
- Excluding revenues associated with the PPP1, organic growth would have been 2%.
- Recurring revenues up 4% organically (81% of total revenues); non-recurring impacted by COVID-19.
- Digital & services revenues up 5% organically (93% of total); print down 18% organically.
- Adjusted operating profit €577 million, up 14% in constant currencies.
- Adjusted operating profit margin benefitted from temporary cost reductions and other factors.
- Diluted adjusted EPS €1.59, up 18% in constant currencies.
- Adjusted free cash flow €336 million, up 10% in constant currencies.
- Balance sheet and liquidity remain strong.
- Net-debt-to-EBITDA 1.5x; recent refinancing improves liquidity and extends maturity profile.
- Interim dividend of €0.47 per share, set at 40% of prior year total dividend.
- Share buyback: €175 million of 2020 buyback of up to €350 million completed to date.
- Outlook 2020: specific guidance remains suspended.
- Recurring revenues from digital information, software and service subscriptions holding up well.
- Print and non-recurring revenue streams expected to be weak in the remainder of the year.
Half-Year Report of the Executive Board
Nancy McKinstry, CEO and Chairman of the Executive Board, commented: “In these unprecedented times, I am particularly proud of our employees who have been focusing their efforts on supporting our customers and who have remained agile and engaged while adjusting to remote working conditions. COVID-19 has impacted non-recurring and print revenue streams and slowed new sales activity, but our strategically important recurring digital revenues are demonstrating resilience. While we continue to suspend our specific 2020 guidance, we remain confident in the company’s long-term prospects.”
Key Figures – Six months ended June 30 | |||||
€ million, unless otherwise stated | 2020 | 2019 | ∆ | ∆ CC | ∆ OG |
Business performance – benchmark figures | |||||
Revenues | 2,294 | 2,204 | +4% | +3% | +3% |
Adjusted operating profit | 577 | 497 | +16% | +14% | +14% |
Adjusted operating profit margin | 25.2% | 22.5% | |||
Adjusted net profit | 426 | 351 | +21% | +16% | |
Diluted adjusted EPS | 1.59 | 1.28 | +24% | +18% | |
Adjusted free cash flow | 336 | 300 | +12% | +10% | |
Net debt | 2,247 | 2,318 | -3% | ||
IFRS reported results | |||||
Revenues | 2,294 | 2,204 | +4% | ||
Operating profit | 500 | 423 | +18% | ||
Profit for the period | 374 | 303 | +23% | ||
Diluted EPS (€) | 1.40 | 1.11 | +26% | ||
Net cash from operating activities | 491 | 436 | +13% | ||
∆: % Change; ∆: CC % Change in constant currencies (€/$ 1.12); ∆: OG % Organic growth. Benchmark adjusted figures are performance measures used by management. See Note 4 for a reconciliation from IFRS to benchmark figures. |
Full-Year 2020 Outlook Remains Suspended due to COVID-19 Uncertainty
The COVID-19 pandemic and the measures and restrictions to control it continue to create challenges for our customers and uncertainty around economic conditions for everyone. Until we have greater clarity on the outlook, our specific 2020 guidance on adjusted operating profit margin, adjusted free cash flow, return on invested capital (ROIC), and diluted adjusted EPS remains suspended.
We currently expect recurring revenues for digital information, software and services subscriptions to show resilience, but we note that new sales of subscription products have been more difficult in current market conditions. Recurring revenues from print subscriptions have seen accelerated decline, which we expect will continue in the coming quarters. Of our non-recurring revenues2 (FY 2019: 22% of total revenues), sales of new software licenses and implementation services are seeing delays, while transactional volumes, training, books, and other ad hoc revenue products are likely to remain weak in current conditions. A freeze on travel, a hold on non-critical hiring, and other temporary cost reductions initiated in the second quarter benefitted margins in the first half. These measures and additional programs and restructuring planned for the second half are aimed at protecting the full-year 2020 adjusted operating profit margin while sustaining investment in key products and strategic infrastructure.
If current exchange rates persist, the U.S. dollar rate will have a negative effect on results reported in euros. In 2019, Wolters Kluwer generated more than 60% of its revenues and adjusted operating profit in North America. As a rule of thumb, based on our 2019 currency profile, each 1 U.S. cent move in the average €/$ exchange rate for the year causes an opposite change of approximately 2 euro cents in diluted adjusted EPS.
Restructuring costs are included in adjusted operating profit. We now anticipate that restructuring costs will be in the range of €25-€35 million in 2020 (FY 2019: €26 million), higher than anticipated at the start of the year. We currently expect adjusted net financing costs of approximately €70 million in constant currencies3, including approximately €10 million in lease interest charges. We currently expect the benchmark tax rate on adjusted pre-tax profits to be in the range of 23%-24% for 2020.
Capital expenditure is expected to be at the upper end of our normal range of 5%-6% of total revenues (FY 2019: 4.9%). Cash repayments of lease liabilities are expected to be in line with depreciation of right-of-use assets (FY 2019: €80 million). We currently expect the full-year cash conversion ratio to be around 95% (FY 2019: 96%). See Note 5 for the calculation of our cash conversion ratio.
Any guidance we provide assumes no additional significant change to the scope of operations. We may make further acquisitions or disposals which can be dilutive to margins and earnings in the near term.
2020 Outlook by Division
Health: We currently expect full-year organic growth to be positive but slower than 2019 levels.
Tax & Accounting: We currently expect full-year revenues to be broadly flat on an organic basis compared to prior year due to a challenging comparable (FY 2019: organic growth of 6%) and a more difficult new sales environment.
Governance, Risk & Compliance: Excluding revenues associated with the PPP1, we expect revenues to see organic decline for the full year, due to declines in non-recurring revenues.
Legal & Regulatory: We currently expect organic decline in revenues in 2020 due to accelerated declines in print products and lower license fees, training, and other non-recurring revenues.
Our Business and Strategy
Our mission is to empower our professional customers with the information, software solutions, and services they need to make critical decisions, achieve successful outcomes, and save time. We support professionals across four customer segments: health; tax & accounting; governance, risk & compliance; and legal & regulatory. All our customers face the challenge of increasing proliferation and complexity of information and the pressure to deliver better outcomes at a lower cost. Many of our customers are looking for mobility, flexibility, intuitive interfaces, and integrated open architecture technology to support their decision-making. We aim to solve their problems and add value to their workflow with our range of digital solutions and services, which we continuously evolve to meet their changing needs. Since 2003, we have been re-investing 8%‑10% of our revenues in developing new and enhanced products and the supporting technology platforms.
Our fastest growing products continue to be our expert solutions, which combine deep domain knowledge with specialized technology and services to deliver answers, analytics, and improved productivity for our customers. Our business model is primarily based on subscriptions or other recurring revenues (81% of total revenues in HY 2020), augmented by implementation services revenues as well as volume-based transactional or other non-recurring revenues. Renewal rates for our digital information, software and service subscriptions are high and are one of the key indicators by which we measure our success. We have been evolving our technology towards fewer, globally scalable platforms, with reusable components. We are transitioning our solutions to the cloud and leveraging advanced technologies such as artificial intelligence, natural language processing, and predictive analytics to drive further innovation. We are standardizing tools, streamlining our technology infrastructure (including data centers) and improving our development processes using agile methods. It is our 19,000 employees who drive our achievements and we have been working to ensure we are providing engaging and rewarding careers.
Strategic Priorities 2019-2021
While COVID-19 is impacting our near-term financial performance, we remain committed to the strategic priorities we set out at the start of 2019. These strategic priorities are to:
- Grow Expert Solutions: We will focus on scaling our expert solutions by extending these offerings and broadening their distribution through existing and new channels, including strategic partnerships. We will invest to build or acquire positions in adjacent market segments.
- Advance Domain Expertise: We intend to continue transforming our information products and services by enriching their domain content with advanced technologies to deliver actionable intelligence and deeper integration into customer workflows. We will invest to enhance the user experience of these products through user-centric design and differentiated interfaces.
- Drive Operational Agility: We plan to strengthen our global brand, go-to-market and digital marketing capabilities to support organic growth. We will invest to upgrade our back-office systems and IT infrastructure. By 2021, we expect to complete the modernization of our Human Resources technology to support our efforts to attract and nurture talent.
In the 2019-2021 timeframe, we expect to maintain product development at between 8%-10% of total revenues. We expect to fund the modernization of back-office systems by deriving additional cost savings. The strategy is based on organic growth, although we may make further bolt-on acquisitions or non-core disposals to enhance our value and market positions. Acquisitions must fit our strategic direction, strengthen or extend our existing business, be accretive to diluted adjusted EPS in their first full year and, when integrated, deliver a return on invested capital above our weighted average cost of capital (8%) within three to five years.
Despite the COVID-19 disruption, we are making progress on this plan. In the first half of 2020, our expert solutions accounted for over 50% of total revenues and continued to deliver faster organic growth than the group as a whole. Our global expert solutions, which include products such as UpToDate in Health, TeamMate and CCH Tagetik in Tax & Accounting, OneSumX in Governance, Risk & Compliance, and Enablon in Legal & Regulatory, in aggregate achieved high single-digit organic growth. In the first half, we divested several small businesses that no longer fit our long-term strategic direction, contributing to a more focused portfolio. We increased investment in our digital information products, such as our European legal research solutions and our tax research platform CCH Answer Connect, to enhance their content, functionality and user interfaces, and to add capabilities that leverage artificial intelligence. We also advanced our operational agility, making further progress in the first half in moving towards standardized technology platforms and components and transitioning products to the cloud. In the first half of 2020, cloud software revenues grew 19% organically reaching just over a quarter of our total software revenues.
Financial Policy, Capital Allocation, Net Debt and Liquidity
Wolters Kluwer uses its cash flow to invest in the business organically and through acquisitions, to maintain optimal leverage, and provide returns to shareholders. We regularly assess our financial position and evaluate the appropriate level of debt in view of our expectations for cash flow, investment plans, interest rates, and capital market conditions. While we may temporarily deviate from our leverage target at times, we continue to believe that, in the longer run, a net-debt-to-EBITDA ratio of around 2.5x remains appropriate for our business given the high proportion of recurring revenues and resilient cash flow.
Dividend Policy
For more than 30 years, Wolters Kluwer has increased or maintained its annual dividend per share in euros (or euro equivalent). In 2007, the company established a progressive dividend policy and, since 2011, all dividends are paid in cash. In 2015, we introduced an interim dividend payment, aligning cash distributions closer to our seasonal cash flow pattern.
Wolters Kluwer remains committed to a progressive dividend policy, under which we aim to increase the dividend per share in euros each year, independent of currency fluctuations. The pay-out ratio4 can vary from year to year. Proposed annual increases in the dividend per share take into account our financial performance, market conditions, and our need for financial flexibility. The policy takes into consideration the characteristics of our business, our expectations for future cash flows, and our plans for organic investment in innovation and productivity, or for acquisitions. We balance these factors with the objective of maintaining a strong balance sheet.
Interim Dividend 2020
As announced on February 26, 2020, the interim dividend for 2020 was set at 40% of the prior year total dividend. This results in an interim dividend of €0.47 per share, to be distributed on September 24, 2020 to holders of ordinary shares, or October 1, 2020, to holders of Wolters Kluwer ADRs.
Shareholders can choose to reinvest both interim and final dividends by purchasing additional Wolters Kluwer shares through the Dividend Reinvestment Plan (DRIP) administered by ABN AMRO Bank N.V.
Share Buyback 2020
As a matter of policy since 2012, Wolters Kluwer will offset the dilution caused by our annual incentive share issuance with share repurchases (Anti-Dilution Policy). In addition, from time to time when appropriate, we return capital to shareholders through further share buyback programs. Shares repurchased by the company are added to and held as treasury shares and are either cancelled or held to meet future obligations arising from share-based incentive plans.
On February 26, 2020, we announced our intention to repurchase shares for up to €350 million during 2020. On May 6, 2020, we re-affirmed this intention with the stipulation that we would temporarily slow the pace of share repurchases. In the year to August 4, 2020, we have spent €175 million on share buybacks, of which €154 million was settled in the first half of 2020.
Assuming global economic conditions do not deteriorate substantially, we believe current levels of cash returns leave us with ample headroom to support our dividend plans, to sustain organic investment in innovation and productivity, and to make selective acquisitions. The share repurchases may be suspended, discontinued, or modified at any time.
For the period starting August 6, 2020, up to and including October 28, 2020, we have engaged a third party to execute €100 million in share buybacks on our behalf, within the limits of relevant laws and regulations (in particular Regulation (EU) 596/2014) and the company’s Articles of Association. The maximum number of shares which may be acquired will not exceed the authorization granted by the General Meeting of Shareholders. Repurchased shares are added to and held as treasury shares and will be used for capital reduction purposes or to meet future obligations arising from share-based incentive plans.
Net Debt and Liquidity Position
Net debt at June 30, 2020, was €2,247 million, compared to €2,318 million at June 30, 2019 and €2,199 million at December 31, 2019. The rolling twelve months’ net-debt-to-EBITDA ratio was 1.5x at June 30, 2020.
Our liquidity position remains strong with, as of June 30, 2020, net cash available of €502 million (cash and cash equivalents of €978 million less bank overdrafts used for cash management purposes of €476 million), partly offset by outstanding Euro commercial paper of €305 million.
On July 3, 2020, we issued a new €500 million 10-year senior unsecured Eurobond with an attractive coupon of 0.75%. The proceeds will be used for general corporate purposes.
On July 10, 2020, we signed a new €600 million 3-year multi-currency credit facility. This new facility will mature in 2023 and includes two one-year extension options, replacing an existing facility which was due to expire in July 2021. This facility is currently undrawn. We remain comfortably below the debt covenant on our credit facility.
Apart from a €250 million private loan agreement maturing in December 2020, we currently have no long-term debt maturing between 2020 and 2022.
Share Cancellation 2020
At the 2020 Annual General Meeting of April 23, 2020, shareholders approved a resolution to cancel for capital reduction purposes any or all ordinary shares held in treasury or to be acquired by the company as authorized by shareholders, up to a maximum of 10% of issued share capital. As authorized by shareholders, the Executive Board has determined the number of ordinary shares to be cancelled this year is 5.5 million. Wolters Kluwer intends to cancel these shares in the second half of 2020. As of August 4, 2020, Wolters Kluwer held 8.1 million shares in treasury. A portion of these treasury shares will be retained in order to meet future obligations under share-based incentive plans.
Half-Year 2020 Results
Benchmark Figures
Group revenues rose 4% overall to €2,294 million, including a 1% positive impact from currency, mainly the U.S. dollar which averaged €/$ 1.10 in the period (HY 2019: €/$ 1.13). In constant currencies, revenues increased by 3%. The net effect of divestments and acquisitions on revenues was slightly negative. Excluding both the impact of currency and the effect of acquisitions and disposals, organic growth was 3% (HY 2019: 4%). Excluding revenues associated with the PPP1, organic growth would have been 2%.
Revenues from North America, which accounted for 63% of group revenues, grew 4% organically (HY 2019: 3%). Revenues from Europe, 30% of total revenues, saw organic growth decelerate to 2% (HY 2019: 6%), with all divisions experiencing slower growth. Revenues from Asia Pacific and Rest of World, 7% of total revenues, were broadly stable on an organic basis (compared to growth of 3% a year ago), with robust performance in Tax & Accounting offset by weakened trends in other divisions.
Adjusted operating profit was €577 million, an increase of 14% in constant currencies. The adjusted operating profit margin increased 270 basis points to 25.2% (HY 2019: 22.5%), as a result of temporary cost reductions, including a freeze on travel, a hold on non-critical hiring, a reduction in promotional spending, and other short-term actions initiated in mid-March. In addition, the margin reflects a €10 million reduction in restructuring charges, a one-time insurance reimbursement, and a benefit from revenues associated with the PPP1.
Our share of profits from associates, net of tax, was €5 million (HY 2019: €0 million), mainly due to a one-time higher result related to the stake in Logical Images that was divested in May 15, 2020, for €10 million.
Adjusted net financing costs reduced to €25 million (HY 2019: €31 million), reflecting exchange rate movements.
Adjusted profit before tax was €557 million (HY 2019: €466 million), up 15% in constant currencies. The benchmark tax rate on adjusted profit before tax reduced to 23.5% (HY 2019: 24.7%) due to lower interest charges and limitations in The Netherlands and the favorable impact of tax losses in 2020.
Adjusted net profit was €426 million (HY 2019: €351 million), an increase of 16% in constant currencies.
Diluted adjusted EPS was €1.59 (HY 2019: €1.28), up 18% in constant currencies, reflecting the increase in adjusted net profit and a 2% reduction in the diluted weighted number of shares outstanding to 267.6 million (HY 2019: 273.3 million).
IFRS Reported Figures
Reported operating profit rose 18% to €500 million (HY 2019: €423 million), mainly reflecting the 16% increase in adjusted operating profit. Amortization and impairment of acquired identifiable intangible assets increased to €75 million (HY 2019: €73 million).
Reported financing results amounted to a net cost of €19 million (HY 2019: €24 million), including a €7 million net gain on disposals of associates and financial assets (HY 2019: €9 million). The disposals included our remaining 45% interest in Medicom in China and our 40% interest in Logical Images in the U.S.
The reported effective tax rate was 23.1% (HY 2019: 24.0%) reflecting lower interest charges and limitations in the Netherlands and the favorable impact of tax losses in 2020. Total reported profit for the period increased 23% to €374 million (HY 2019: €303 million) and diluted earnings per share increased 26% to €1.40 (HY 2019: €1.11).
Cash Flow
Adjusted operating cash flow was €485 million (HY 2019: €447 million), up 7% in constant currencies. The cash conversion ratio declined to 84% (HY 2019: 90%) due to increased capital expenditures and increased working capital outflows. Net capital expenditure increased to €121 million (HY 2019: €100 million) due to increased expenditure related to investments in critical products and systems. Working capital outflows reflect timing of payments. Cash payments related to leases, including lease interest payments, increased to €41 million (HY 2019: €39 million). Depreciation, including the amortization and impairment of internally developed software and other products, increased 2% at constant currencies to €103 million (HY 2019: €100 million). Depreciation of right-of-use-assets was €36 million (HY 2019: €35 million).
Net interest paid, excluding lease interest paid, was €39 million (HY 2019: €34 million). Corporate income tax paid was €111 million, broadly in line with the prior period (HY 2019: €112 million). Net cash use of restructuring provisions amounted to €4 million (HY 2019: €6 million), relating to net restructuring additions of €3 million and appropriations of €7 million.
Adjusted free cash flow was €336 million (HY 2019: €300 million), up 12% overall and up 10% in constant currencies.
Total acquisition spending, net of cash acquired and including transaction costs, was €26 million (HY 2019: €34 million) and primarily relates to the acquisition of CGE by Legal & Regulatory. Deferred payments on acquisitions completed in prior years, including earnouts, amounted to €3 million (HY 2019: €0 million).
Divestment proceeds, net of cash disposed and transaction costs, were €20 million (HY 2019: €32 million) and relate to the divestment of certain Belgian training assets, the sale of certain German business lines, and the sale of our stakes in Medicom and Logical Images.
Dividends paid to shareholders during the first six months amounted to €210 million (HY 2019: €174 million) in respect of the 2019 final dividend. During the first six months, €156 million of shares were repurchased (HY 2019: €87 million) of which €154 million was settled before June 30 (HY 2019: €84 million).
Net Debt and Leverage
Net debt at June 30, 2020, was €2,247 million compared to €2,199 million at December 31, 2019. Included in net debt were €370 million of short-term and long-term lease liabilities. The rolling twelve-months’ net-debt-to-EBITDA ratio was 1.5x (Year-end 2019: 1.6x).
Sustainability
We continue to pay close attention to our performance on environmental, social, and governance matters. We are currently launching a new Code of Business Ethics to reinforce a culture of integrity and openness. The new code will form part of our annual mandatory compliance training for all employees globally. During the ongoing COVID-19 pandemic, we have been conducting regular employee surveys to monitor engagement levels and inform managers on what support is needed during this time, when approximately 95% of employees are still working from home and many are experiencing increased workloads.
This year we also strengthened our “Green is Green” program which aims to support our office managers and employees to adopt environmentally sound practices. The recently agreed new credit facility provides us with an option to introduce sustainability or ESG targets.
About Wolters Kluwer
Wolters Kluwer (WKL) is a global leader in professional information, software solutions, and services for the healthcare; tax and accounting; governance, risk and compliance; and legal and regulatory sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.
Wolters Kluwer reported 2019 annual revenues of €4.6 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 19,000 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt (ADR) program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).
For more information, visit www.wolterskluwer.com, follow us on Twitter, Facebook, LinkedIn, and YouTube.
Financial Calendar
September 1, 2020 Ex-dividend date: 2020 interim dividend
September 2, 2020 Record date: 2020 interim dividend
September 24, 2020 Payment date: 2020 interim dividend
October 1, 2020 Payment date: 2020 interim dividend ADRs
October 30, 2020 Nine-Month 2020 Trading Update
February 24, 2021 Full-Year 2020 Results
March 10, 2021 Publication of Annual Report
April 22, 2021 Annual General Meeting of Shareholders
Media Investors/Analysts
Annemarije Dérogée-Pikaar Meg Geldens
Global Branding & Communications Investor Relations
t + 31 (0)172 641 470 t + 31 (0)172 641 407
[email protected] [email protected]
Forward-looking Statements and Other Important Legal Information
This report contains forward-looking statements. These statements may be identified by words such as “expect”, “should”, “could”, “shall” and similar expressions. Wolters Kluwer cautions 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 the forward-looking statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets in which Wolters Kluwer is engaged; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer’s businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Elements of this press release contain or may contain inside information about Wolters Kluwer within the meaning of Article 7(1) of the Market Abuse Regulation (596/2014/EU).
Trademarks referenced are owned by Wolters Kluwer N.V. and its subsidiaries and may be registered in various countries.
1 Throughout this document, “the PPP” refers to the U.S. Small Business Association’s Paycheck Protection Program established by the 2020 U.S. Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Wolters Kluwer Compliance Solutions (part of Governance Risk & Compliance) adapted its TSoftPlus platform to support its bank customers in lending under this program.
2 Non-recurring revenues include revenues from transactional services, software license sales and implementation services, training, advertising, print books, and other products sold on an ad hoc basis.
3 Guidance for net financing costs in constant currencies excludes the impact of exchange rate movements on currency hedging and intercompany balances.
4 Pay-out ratio: dividend per share divided by adjusted earnings per share.
Attachment
Artificial Intelligence
Cayman Enterprise City Publishes Socio-Economic Impact Assessment by Economist and Leading Advisor on the Caribbean, Marla Dukharan
The Impact of Cayman Enterprise City’s Socio-Economic Development Project Nears USD $1 Billion
GRAND CAYMAN, Cayman Islands, May 16, 2024 /PRNewswire/ — Cayman Enterprise City (CEC) has released a Socio-Economic Impact Assessment by Marla Dukharan. The report illustrates that CEC is increasing its impact by supporting higher earnings for Caymanians and is driving a shift towards a knowledge-based economy by focusing on high productivity sectors. The release by Dukharan reads, “Caymanian resourcefulness and private sector-led innovation have been the driving force behind the islands’ outstanding socio-economic success. Cayman Enterprise City underpins the next generation of Cayman innovation and dynamism.”
With an economic impact of USD $130 million in 2023, contributing just under USD $1 billion to the local economic activity in 12 years since inception, “CEC is helping the nation to diversify economically, in terms of sectors and jobs, ensuring locals have economic and employment opportunities that match the nation’s progress,” the report reads.
The CEC socio-economic development project is now home to 352 Special Economic Zones Companies (SEZCos), many of which are globally recognised institutions led by top executives and industry experts. “CEC member companies are providing high-value employment with salaries exceeding those typically found outside of the special economic zone,” said Charlie Kirkconnell, Chief Executive Officer at CEC. “The CEC community is fully invested in Cayman and the report illustrates that the CEC socio-economic development project is making a very significant impact on Cayman’s economy and community.”
“As CEC continues to grow, it continues to create significant employment and entrepreneurial opportunities for Caymanians and we encourage anyone that might be interested in finding out how they might get involved, whether as a member of the community and/or as a volunteer in our Enterprise Cayman non-profit organisation (NPO).”
77% of Caymanian-held jobs at CEC member companies, are in sectors with high social returns and increasing global demand. “By putting skills first and prioritizing learning, CEC is enabling new industries to take root,” the release by Dukharan reads.
CEC, through its Enterprise Cayman NPO, is a first-mover in private sector-facilitated education and training in the Caribbean, making it a leading force to boost youth participation in the economy. By offering training in specialised skills, Enterprise Cayman is helping to close the gap in higher education and earnings for Caymanians. “Through Enterprise Cayman we’ve set out to strategically support meaningful employment and entrepreneurial opportunities for Caymanians, by providing internship and mentorship opportunities, by hosting skill-building and career focused training, and by providing invaluable networking and community engagement opportunities,” said Kirkconnell.
In 2023 individuals took advantage of 4,226 opportunities to participate in education, training, and career development events and, since launching entrepreneurial programming in 2021, Enterprise Cayman has worked with 41 new Cayman-born business ventures. “We’re helping to develop a local talent pool that meets the demand of Cayman’s growing digital innovation and technology sectors while, in parallel, offering exciting opportunities for individuals to launch new business ventures within an innovative business environment,” said Kirkconnell.
With CEC’s new campus and state-of-the-art facilities, Signal House, the project “holds the promise of deep, continued economic impact,” the report concludes.
To access CEC’s economic impact assessments and Enterprise Cayman’s annual reports please visit https://www.enterprisecayman.ky/reports. For more information on how to get involved and for upcoming programmes and events visit www.enterprisecayman.ky.
Website: www.caymanenterprisecity.com LinkedIn: @CaymanEnterpriseCityTwitter: @CEC_CaymanInstagram: @CaymanEnterpriseCityFacebook: @CaymanEnterpriseCityYouTube: @ceccayman
About Cayman Enterprise City
Cayman Enterprise City (CEC) is an award-winning development project which consists of three special economic zones (SEZs) focused on attracting knowledge-based and specialised-services businesses to set up a genuine physical presence in the Cayman Islands. The zones included within CEC are Cayman Tech City, Cayman Commodities & Derivatives Centre, and Cayman Maritime & Aviation City. With a dedicated Government Authority, licensing fee concessions and guaranteed fast-track processes, CEC enables international companies to quickly and efficiently establish a Cayman Islands office, which in turn enables them to generate active business income within a tax neutral environment.
About Enterprise Cayman
Enterprise Cayman is a non-profit organisation (NPO) powered by Cayman Enterprise City in partnership with Cayman Islands’ special economic zone companies (SEZCos). The organisation, which applies the Theory of Change (TOC) methodology, provides Caymanians and residents with access to high-quality learning experiences and opportunities to develop and launch new business ventures, to pursue careers within the technology and innovation sectors, and to join a dynamic network of industry professionals. Let’s grow the next generation of Caymanian innovators and entrepreneurs with Enterprise Cayman!
Logo: https://mma.prnewswire.com/media/1317764/2860789/Cayman_Enterprise_City_Logo.jpg
FOR MORE INFORMATION:Contact: Kaitlyn Elphinstone Email: [email protected]
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Artificial Intelligence
Strava Unveils New Chapter of Accelerated Product Development at Brand’s Flagship Event
The Company introduces increased product velocity, leveraging advancements in Artificial Intelligence, in service of its vision of a world connected through movement
LOS ANGELES, May 16, 2024 /PRNewswire/ — Strava, the leading digital community for active people with more than 125 million athletes, today showcased its latest initiatives and product developments at its annual event, Camp Strava. With the theme of Progress, Together company leaders announced how the platform will empower its global community to make progress in the way they explore, move, and connect on Strava.
“Strava is gaining momentum to realize our vision of a world connected through movement,” said Michael Martin, chief executive officer of Strava. “We are focused on two fundamental shifts to accelerate how we deliver value to 125 million people globally– building for women and leveraging Artificial Intelligence – which will unlock new community-and-partner-powered experiences across the platform.”
A New Era of Product VelocityStrava, with new leaders at the helm, is ushering in its next era of product velocity. The company listened closely to feedback from its global community and announced three of the most requested features coming to the platform by the end of the year.
The first of these updates, AI-enabled Leaderboard Integrity, will harness machine learning to automatically flag irregular, improbable, or impossible activities recorded to the platform. Trained by millions of activities, this feature allows all users on Strava to play fair and have more fun.
Additionally, the company announced a new Family Plan Subscription, the sister of the company’s Student Plan. With Family Plan, it’s easier to make a fitness commitment with your community by sharing an annual subscription with up to three other people – friends, family, or fitness family. Launching in select countries this summer, with plans to roll out globally by the end of the year, Strava’s newest annual subscription option offers the best value for groups (up to four), with a discount off the regular subscription price for each member.
Strava also implemented an updated design system, an initiative that is integral in driving a heightened pace of product innovation at the company. Through this work, Strava announced the launch of one of the company’s most requested features, Dark mode. Dark mode will improve the in-app experience for all users, reducing eye strain and improving accessibility while they record activity or scroll through the feed. Athletes can expect a rollout later this summer with options to keep their mobile settings always dark, always light, or match their device settings.
Company leaders highlighted several other features and updates to current products like Flyover, with its next iteration offering an overlay with activity stats and off-platform sharing capabilities. The overlay is available today for Strava subscribers and an off-platform sharing option will be released later this year.
Build for Her, Build for ManyStudies show that women of all ages participate in sports at a far lower rate than men, and overall, despite wanting to be active, find less time to dedicate to an active lifestyle. As the company continues on its mission to motivate people to live their best active lives, building for women on the platform will ultimately serve everyone in the Strava community. Several new features and initiatives were announced as a part of this strategic focus, which includes:
Night Heatmaps: Night Heatmaps show only activities between sundown and sunrise – so athletes can get an idea of which roads, trails, and paths are well-trafficked after hours. Since Night Heatmaps filter for after-hours routes, it can be a helpful tool for female athletes training before sunrise and after sunset.Quick Edit: For active women, having control over what is shared with the Strava community that cheers them on – like what time a run is logged – is important. Quick Edit makes it easier to make the most common edits – like activity name, and privacy settings so you can hide your start time, your map, or other workout stats.Strive for More®: The company announced a new phase of its Strive for More® initiative, created in 2022 to promote and support women in movement and sport. Today, Strava unveiled an official partnership with media company TOGETHXR to encourage more women to watch – and play – women’s sports. As part of the partnership, Strava will also donate $100,000 to the Alex Morgan Foundation, started by co-founder of TOGETHXR, Alex Morgan, to support their mission to help girls and women find confident paths forward in sports and life.Athlete IntelligenceToday, Strava announced the start of an accelerated product roadmap, outlining how Strava will implement the latest technological enhancements in AI and machine learning, to transform the athlete experience.
One key advancement to the platform includes the company’s latest development, Athlete Intelligence. Strava is introducing its beta AI-powered feature which turns each subscriber’s training data into an easily digestible summary that contextualizes their accomplishments and fitness goals. Unlike other AI-powered training services, Strava connects with thousands of devices, wearables, and fitness apps, so an athlete’s insights can consider their entire fitness story across multiple sports and modalities.
The features shared at Camp Strava will be released on a rolling basis through the end of the year. To view the full list of product releases and further details, visit www.press.strava.com.
For more information on Strava, to create a free account, or to start a free subscription trial visit www.strava.com.
About Strava Strava is the leading digital community for active people with more than 125 million athletes, in more than 190 countries. The platform offers a holistic view of your active lifestyle, no matter where you live, which sport you love and/or what device you use. Everyone belongs on Strava when they are pursuing an active life. Join the community, find motivation and discover new experiences with a Strava subscription.
Visit www.strava.com for more information and connect with Strava on Instagram, Twitter, Facebook, YouTube and LinkedIn.
Media Contact: [email protected]
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Artificial Intelligence
Japan Data Center Market Investment to Reach $14.48 Billion by 2028 – Watch Out Exclusive Insight on Japan & Hong Kong Data Center Market – Arizton
CHICAGO, May 16, 2024 /PRNewswire/ — Arizton publishes the latest research report on the Japan data center market and Hong Kong data center market.
The Japan Data Center Market to Witness Investments of $14.48 Billion by 2029.
Get Insights on 107 Existing Data Centers and 41 Upcoming Facilities across Japan.
The data center market in Japan is experiencing the emergence of self-built hyperscale data center facilities by major operators such as Google, Microsoft, and Amazon Web Services (AWS). This development is expected to impact the colocation market in Japan. Since these hyperscale operators store workloads in their own data center facilities, it may reduce the source of revenue generation for colocation operators.
Japan is a well-established data center market in the APAC region. The country supports investments with its macroeconomic policies and other incentives for investors. The market is witnessing several investments from local and global data center operators, further expanding its presence. Tokyo and Osaka are Japan’s major destinations for data center development, accounting for over 90% of the existing data center facilities. The government announced the offer of subsidies in Hokkaido and Kyushu for data center development and decentralize data centers from Tokyo and Osaka.
Investment Opportunities
In October 2023, SoftBank and its subsidiary, IDC Frontier, announced the plan to develop a new data center facility in Tomakomai City, Hokkaido. The company invested around $420 million toward the project, for which it received subsidies worth $190 million from the Ministry of Economy, Trade, and Industry. In July 2023, Internet Initiative Japan (IIJ) launched its second data center building at the Shiroi data center campus in Chiba Prefecture, Greater Tokyo. Once fully built, the campus will house four data center buildings. Furthermore, the company is involved in a third expansion initiative in its Matsue City campus (which will likely go live in 2025).In June 2023, Digital Edge, in partnership with Hulic, a real estate developer, announced the start of the construction of a new data center facility, TY07, in Tokyo. The facility is expected to go online by 2025.In April 2024, GDS Services partnered with Gaw Capital to develop a new data center campus in Fuchu City, Tokyo. Both companies will jointly invest toward developing a new data center facility, with the first phase slated to go online by 2026.To Buy this Research Now, Click: https://www.arizton.com/market-reports/japan-data-center-market-investment-analysis
Existing Vs. Upcoming Data Centers
Existing Facilities in the Region (Area and Power Capacity)TokyoOsakaOther CitiesList of Upcoming Facilities in the Region (Area and Power Capacity)TokyoOsakaOther CitiesVendor Analysis
IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise (HPE), Hitachi Vantara, Huawei Technologies, IBM, Inspur, Lenovo, NEC, NetApp, and Oracle.
Data Center Construction Contractors & Sub-Contractors: Arup, AECOM, Daiwa House Industry, Fuji Furukawa Engineering & Construction, Hibiya Engineering, ISG, Kajima Corporation, Keihanshin Building, Linesight, MARCAI DESIGN, Meiho Facility Works, Nikken Sekkei, NTT FACILITIES, Obayashi Corporation, SHINRYO Corporation, TAISEI Corporation.
Support Infrastructure Providers: 3M, ABB, Alfa Laval, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Johnson Controls, Kawasaki Heavy Industries, KOHLSER-SDMO, Legrand, Mitsubishi Electric, Rittal, Rolls-Royce, Schneider Electric, STULZ, Siemens, Vertiv.
Data Center Investors: AirTrunk, Alibaba Cloud, Amazon Web Services, AT TOKYO, Colt Data Centre Services, Digital Edge, Equinix, Fujitsu, Goodman, Google, IDC Frontier, Internet Initiative Japan (IIJ), MC Digital Realty, Microsoft, NTT Communications, SCSK Corporation (NETXDC), Telehouse, Tencent Cloud, TIS INTEC Group.
New Entrants: Ada Infrastructure, Edge Centres, CyrusOne, ESR, GDS Services, Keppel Data Centres, NEXTDC, Princeton Digital Group (PDG), SC Zeus Data Center, STACK Infrastructure, ST Telemedia Global Data Centres, Vantage Data Centers, Yondr.
The Hong Kong Data Center Market will Witness Investments of $4.80 Billion by 2029.
Get Insights on 54 Existing Data Centers and 12 Upcoming Facilities across Hong Kong.
The Hong Kong data center market is booming, driven by the increasing demand for digital services. The data center investments in Hong Kong over the next two to three years are expected to remain high due to the surge in demand and the significant boost due to the advancements in AI technologies. Investors are actively investing in this market.
Hong Kong is a mature and thriving market for data center development in the APAC region. Investors find it an attractive market owing to the high internet and social media usage levels, a robust business ecosystem, and excellent connectivity through both inland and submarine cables. Additionally, the deployment of 5G technology further enhances its appeal.
Hong Kong stands out globally for the incredibly high rates of cell phone and home broadband service usage. With around 300 licensed internet service providers, there is robust competition, providing data center operators with a wide range of choices.
Hong Kong is considered an attractive destination for businesses due to various reasons. Its proximity to mainland China and its import-export relations with major markets, such as China and the US, make it easier for businesses to operate. Additionally, the market has experienced significant growth in Foreign Direct Investment (FDI), ranking after countries like the UK, the US, and China.
Investment Opportunities
In December 2023, the company completed the core and shell construction of phase-1 of the MEGA IDC data center campus. The facility has already signed lease agreements with cloud service providers and international banks for its available space. The company plans to expand the campus through phase-2 during the forecast period.In March 2023, the company launched its seventh data center facility, MEGA Gateway, in Tsuen Wan. The facility is part of its connected MEGA campus.Goodman is among the major investors in the Hong Kong market, and it is continuously expanding its data center presence. In March 2024, the company announced the construction of the new Texaco data center facility in Tsuen Wan. The facility is a brownfield construction that involved the conversion of an industrial building into a data center facility. The facility is likely to go online by 2026.Over 60% Of Future Demand to Come from Cloud Service Providers
The Hong Kong data center market has the presence of on-premises data centers operated by educational institutions, the government, and financial services such as HSBC Bank. A significant decline in on-premises data centers will occur in the next three to five years owing to the increase in digitalizing initiatives across sectors and the strong growth in demand for colocation and cloud services. In addition, most existing service providers offer managed solutions to enterprise customers, which will likely grow in the market from 2024-2029.
The market has the presence of all global cloud operators, such as Amazon Web Services (AWS), Google, Microsoft, Alibaba Cloud, Huawei Cloud, and Tencent Cloud. This will propel the demand for wholesale colocation services through these service providers’ continuous expansion initiatives. The cloud segments will likely dominate capacity take-up over the next five years. In addition, the market will witness the entry of multiple global organizations to service customers through a local presence.
To Buy this Research Now, Click: https://www.arizton.com/market-reports/hong-kong-data-center-market-size-analysis
Existing VS. Upcoming Data Centers
Existing Facilities in the Region (Area and Power Capacity)Tseung Kwan OKwai ChungTsuen WanFanlingFo TanChai WanTai PoOther LocationList of Upcoming Facilities in the Region (Area and Power Capacity)Tseung Kwan OKwai ChungTsuen WanFanlingFo TanChai WanTai PoOther LocationVendor Analysis
IT Infrastructure Providers: Arista Network, Atos, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise (HPE), Huawei Technologies, IBM, Inspur, Lenovo, NetApp.
Data Center Construction Contractors & Sub-Contractors: Arup, AtkinsRéalis, Aurecon, BYME Engineering, Chung Hing Engineers Group, Cundall, DSCO Group, Gammon Construction, ISG, Studio One Design.
Support Infrastructure Providers: ABB, Airedale, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, KOHLER, Legrand, Mitsubishi Electric, Piller Power Systems, Rittal, Schneider Electric, Siemens, STULZ, Sumber, Vertiv.
Data Center Investors: AirTrunk, BDx, CITIC Telcom International, China Mobile International (CMI), China Unicom, Digital Realty, Equinix, ESR, GDS Services, Global Switch, Goodman, iTech Towers Data Centre Services, NTT DATA, SUNeVision Holdings (iAdvantage), Telehouse, Towngas Telecom (TGT), Vantage Data Centers.
New Entrants: Angelo Gordon and Mapletree Investments
Japan & Hong Kong Data Center Market Segmentation
IT Infrastructure
Servers
Storage Systems
Network Infrastructure
Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgears
PDUs
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Rack Cabinets
Other Mechanical Infrastructure
Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units
General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression Systems
Physical Security
DCIM
Tier Standard
Tier I & Tier II
Tier III
Tier IV
Check Out Some of the Top Selling Research Reports:
Malaysia Data Center Market – Investment Analysis & Growth Opportunities 2024-2029https://www.arizton.com/market-reports/malaysia-data-center-market-size-analysis
Singapore Data Center Market – Investment Analysis & Growth Opportunities 2024-2029https://www.arizton.com/market-reports/singapore-data-center-market-size-analysis
Southeast Asia Data Center Construction Market – Industry Outlook & Forecast 2024-2029https://www.arizton.com/market-reports/southeast-asia-data-center-construction-market
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We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
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