Wolters Kluwer 2011 Half-Year Results - Building Growth Momentum, Strengthened Portfolio

7/27/2011, 8:00 AM (Source: GlobeNewswire)
Alphen aan den Rijn (July 27, 2011) - Wolters Kluwer, a market-leading global
information services company focused on professionals, today released its 2011
half-year results. Highlights include strong operating performance, a strategic
re-focusing of the Health & Pharma Solutions division, and reiterated outlook
for 2011.

The information in this press release is based on continuing operations,
excluding the planned divestment of the pharma business, unless stated

* 3% revenue growth in constant currencies to €1,619 million (1% organic)
fueled by strong growth in electronic and service subscriptions which grew
7% in constant currencies.
* Online, software, and services now constitute 72% of total revenue.
* Ordinary EBITA up 3% in constant currencies (1% organic) supported by
migration to higher margin electronic products and contributions from the
Springboard program.
* Diluted ordinary EPS of €0.65 increased 2% over prior half year.
* Solid free cash flow of €131 million impacted by tax payments, on track for
full-year guidance.
* Planned divestment of pharma business will focus the Health & Pharma
Solutions division on leading market positions in professional information
and clinical solutions; non-cash impairment charge of €106 million recorded
as part of discontinuing operations.
* Full-year guidance for total Company reiterated for 2011.

Key Figures 2011 Half-Year

Six months ended June 30 2011 2010 D D CC D OG
Revenue (€ millions) 1,619 1,605 1% 3% 1%

Electronic and services revenue (% of
total) 72% 70%

Ordinary EBITA (€ millions) 325 324 0% 3% 1%

Ordinary EBITA margin (%) 20.1% 20.2%

Ordinary net income (€ millions) 196 190 3% 1%

Diluted EPS (€) 0.39 0.44 (11%) (15%)

Diluted ordinary EPS (€) 0.65 0.63 2% (1%)

Free cash flow (€ millions) 131 171 (23%) (22%)
D - % Change; D CC - % Change constant currencies (EUR/USD 1.33); D OG - %
Organic growth

Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the
"I am encouraged with the considerable progress made during the first half year.
Strong growth in online, software, and services is accelerating our revenue
growth and supports the successful transformation of our business. Underlying
trends in new sales and retention levels are improving in all geographies.

Today, we announced the planned divestment of our pharma business. The Health
division will focus on taking full advantage of our leading positions in
professional information and clinical decision support solutions, one of the
fastest growing areas of Health, to deliver enhanced value to our stakeholders.

With these strategic changes and our first half-year results, we are confident
that we will deliver on our expectations for the full year."

Financial Overview

(All amounts are in millions of euros unless otherwise indicated)
Six months ended June 30 | 2011| 2010| D|D CC| D OG
Revenues |  |  |  |  |
Legal & Regulatory | 695| 704|(1%)| 0%| 0%
Tax & Accounting | 467| 474|(2%)|(1%)| (1%)
Health & Pharma Solutions | 295| 284| 4%| 9%| 6%
Financial & Compliance Services| 162| 143| 14%| 17%| 3%
Total revenues |1,619|1,605| 1%| 3%| 1%
  |  |  |  |  |
Ordinary EBITA |  |  |  |  |
Legal & Regulatory | 136| 131| 4%| 6%| 4%
Tax & Accounting | 129| 137|(6%)|(6%)| (6%)
Health & Pharma Solutions | 51| 47| 9%| 19%| 16%
Financial & Compliance Services| 29| 30|(4%)| 0%| 0%
Corporate | (20)| (21)|(4%)|(4%)| (4%)
Total ordinary EBITA | 325| 324| 0%| 3%| 1%
D - % Change; D CC - % Change constant currencies (EUR/USD 1.33); D OG - %
Organic growth

Revenues grew 3% in constant currencies to €1,619 million, with organic growth
of 1% (HY 2010: 0%). Legal & Regulatory revenues were in line with HY 2010, with
organic growth improving markedly from -3% organic growth at HY 2010 led by
strong results in North America. Tax & Acccounting revenues fell 1% organic,
impacted by the restructuring of bank product revenue (2% of annual division
revenues), which is expected to shift revenues into the second half year. Health
& Pharma Solutions revenues grew by 9% in constant currencies (6% organic),
driven by strong growth at Ovid and double-digit growth in Clinical Solutions.
Financial & Compliance Services' revenue growth of 17% (3% organic) was
supported by double-digit growth in Audit, Risk, and Compliance (ARC Logics),
strong performance from banking and compliance products, and global expansion
through the acquisition of FRSGlobal. Emerging market results are advancing,
with revenues in China growing with strong double-digit numbers.

Ordinary EBITA improved 3% in constant currencies to €325 million. The company
improved profitability by the continued shift towards higher margin electronic
solutions, diligent cost management, and the impact of the Springboard
operational excellence program.

The Springboard operational excellence program continued to deliver positive
results. Half-year cost savings of €88 million position the program to meet its
full-year run rate savings estimate of €170-€180 million. Total costs incurred
during the period were €30 million.

Diluted ordinary EPS increased 2% to €0.65 (HY 2010: €0.63). Net finance costs
were €59 million and the effective tax rate was 26%, both in line with
expectations. The fully diluted weighted average number of shares increased from
300.3 million to 302.8 million, due to the stock dividend and incentive shares,
partially offset by the impact of the share buy-back (2.1 million shares
purchased in the first half year 2011 for a total consideration of €35 million).

The planned divestment results in a non-cash impairment charge of €106 million
which is reported as part of Result from discontinuing operations, after tax.

Free cash flow was €131 million, (HY 2010: €171 million), impacted by higher tax
payments and the timing of tax refunds when compared against the first half of

The net-debt-to-EBITDA ratio was 3.0 (HY 2010: 2.9), with the dividend payment,
share buy-back program, and acquisitions occuring in the first half year,
against cash flow which is heavily weighted in the fourth quarter. The Company
maintains a medium-term objective of achieving a net-debt-to-EBITDA ratio of
2.5. Prior year debt refinancing at attractive rates extended the maturity
profile beyond 2014, ensuring a strong liquidity position and sufficient

The full press release on the 2011 Half-Year Results is available here:
Wolters Kluwer 2011 Half-Year Results (PDF)

About Wolters Kluwer
Wolters Kluwer is a market-leading global information services company.
Professionals in the areas of legal, business, tax, accounting, finance, audit,
risk, compliance, and healthcare rely on Wolters Kluwer's leading information-
enabled tools and software solutions to manage their business efficiently,
deliver results to their clients, and succeed in an ever more dynamic world.

Wolters Kluwer had 2010 annual revenues of €3.6 billion, employs approximately
19,000 people worldwide, and maintains operations across Europe, North America,
Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan
den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and
are included in the AEX and Euronext 100 indices.

Visit our website, YouTube, follow @Wolters_Kluwer on Twitter, or look up
Wolters Kluwer on Facebook for more for information about our customers, market
positions, brands, and organization.

Media Investors/Analysts

Caroline Wouters Jon Teppo

t + 31 (0)172 641 459 t + 31 (0)172 641 407

press@wolterskluwer.com ir@wolterskluwer.com

Presentation by Senior Management on July 27, 2011 - www.wolterskluwer.com

Media Roundtable: 11:00 AM CET. This event will be held for members of the press
taking place at the Beurs van Berlage, Amsterdam and will be podcasted on the
corporate website.

Investor/Analyst meeting: 13:00 PM CET. This event will take place at the Beurs
van Berlage, Amsterdam and will be webcast live on the corporate website.

Should you wish to change how you receive information from Wolters Kluwer,
please click here.

Forward-looking Statements
This press release 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.

The full press release on the 2011 Half-Year Results is available here:

Wolters Kluwer 2011 Half-Year Results (PDF):

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Source: Wolters Kluwer NV via Thomson Reuters ONE

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