Wolters Kluwer Scheduled 2011 Third-Quarter Trading Update

11/9/2011, 8:00 AM (Source: GlobeNewswire)
Full-Year Guidance Reiterated

Alphen aan den Rijn (November 9, 2011) - Wolters Kluwer, a market-leading global
information services company focused on professionals, today released its
scheduled 2011 third-quarter trading update highlighting solid growth in online
and software solutions, resilient performance of its subscription base, and
confirming full-year guidance. The company announced the sale agreement for
Marketing & Publishing Services, part of planned divestment of its pharma
assets.

Highlights

* Full-year 2011 guidance reiterated.
* Solid growth of online and software solutions, led by clinical decision
support products, tax and accounting software, and audit, risk, and
compliance solutions.
* Organic growth levels consistent with first half year; growing subscription
revenues remain resilient.
* Springboard cost savings running ahead of target; program expanded to
generate additional run rate savings of €30 million with a one-time
investment of €20 million.
* Pharma divestment process on track; sale agreement for Marketing &
Publishing Services (MPS) announced.
* Acquisition of NRAI in September strengthens leading position in Corporate
Legal Services.
* 5.1 million ordinary shares repurchased in Q3 for a total of €65 million;
this completes the announced €100 million share buy-back program, with a
total of 7.2 million shares repurchased.
* Progressive dividend policy reiterated; providing strong yield to
shareholders.
* Continued investment in high growth segments position the company for future
growth.


Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the
company's third-quarter trading update:

"I am encouraged with the company's performance in the third quarter.
Challenging global economic circumstances highlight the importance of our
customer relationships, strong brands, and resilient subscription base that
ensure stability in the company's results.

In the third quarter, the company delivered solid performance across the
business, and we continued to grow our subscription base through increased
penetration of on-line and software solutions.

I remain confident in the growing strength of the portfolio. Our continued
investment in market segments and geographies that offer the strongest potential
for future returns supports our ability to deliver long-term profitable growth."

Third-Quarter Developments

In the third quarter, the company saw solid performance across the business,
with levels of growth that were consistent with the first half year.
Subscriptions, which represent approximately 75% of total revenues continued to
grow, underpinned by stable retention rates and the continued growth of online
and software solutions. This positive trend highlights the overall resilience of
the company's portfolio.

Trading conditions have remained mostly in line with the prior six months.
Recent economic concerns have reinforced conservative spending patterns for new
products, particularly in the European Legal & Regulatory markets. While
cyclical revenues continued to grow, the rate of growth began to level-off in
the third quarter, with transactional volumes related to corporate activity and
lending slowing relative to the accelerated growth seen over the last 18 months.
Book sales, training, and transport transaction volumes also experienced
increased pressure.

The Health & Pharma Solutions division continued to perform well, with strong
growth at Clinical Solutions and Ovid driving margin expansion. Within the Tax &
Accounting division, software sales remain strong. In addition, the shift of
bank product revenue to the second half year is also proceeding as expected.
Financial & Compliance Services continued to see solid growth in overall
revenue, fueled by international expansion initiatives related to the FRSGlobal
acquisition in 2010 and strong performance from audit, risk, and ARC Logics
product lines. This result is tempered by slowing transactional volumes in
banking and transport services volumes experienced in the third quarter. In the
Legal & Regulatory division, overall revenue declined slightly with growth in
electronic revenues offset by print attrition and lower book sales. Solid growth
at Corporate Legal Services continues despite lower transactional volumes for
M&A and IPO activity, which declined in the third quarter in terms of the number
of transactions and average deal value.

Operating margins and free cash flow in the third quarter remain in line with
expectations and guidance for the full year.
Key Programs

In a separate press release distributed this morning, the company announced the
signing of a definitive agreement to sell its pharma promotional business,
Marketing & Publishing Services (MPS), to Springer.  This sale represents
approximately 35% of the company's pharma-related assets in terms of revenue and
encompasses 450 employees globally. The proceeds from this divestment are
expected to be used for general corporate purposes including the reduction of
debt levels in line with the company's stated objectives. The transaction is
subject to customary closing conditions, including regulatory approvals.

In September, the company completed the acquisition of National Registered
Agents, Inc. (NRAI) which was initially announced on June 14. Through this
acquisition, Wolters Kluwer Corporate Legal Services strengthens its position as
a leading provider of legal compliance and corporate governance solutions.

The Springboard operational excellence program is on track in the third quarter
to exceed its targeted run rate cost savings of €170-180 million by the end of
the year. Based on the continued success of the program, run rate savings
estimates for the program are being raised to €205-210 million with associated
exceptional, non-recurring costs of €99-109 million expected for the year. The
Springboard program will end in 2011 and is designed to reduce structural costs.

 Springboard Summary Savings and Costs
------------------------------------------------------------------+-------------
€ millions (pre 2008 Actual 2009 Actual 2010 Actual Revised 2011 | Total
tax) Estimate| Estimate
------------------------------------------------------------------+-------------
Run rate cost 16 84 146 205-210| 205-210
savings (1)) |
|
Exceptional 45 68 58 99-109| 270-280
program costs |
------------------------------------------------------------------+-------------
(1) )In 2008 constant currencies (EUR/USD = 1.37)

In the third quarter, the company repurchased 5.1 million ordinary shares at an
average price of €12.73 for a total amount of €65 million. For the full year, a
total of 7.2 million ordinary shares were repurchased. This completes the €100
million share buy-back program that was announced in February 2011. For full-
year ordinary earnings per share (EPS) calculation purposes, the weighted
average number of fully diluted ordinary shares at year end 2011 is expected to
be approximately 302.3 million shares.

2011 Outlook Reiterated
()
  2011 Guidance
---------------------------------------------------------------------------
Performance indicators Total Company Continuing Operations(1))
---------------------------------------------------------------------------
Ordinary EBITA margin 20.5-21.0% 21.5-22%

Free cash flow(2)) >= €425 million ~€412million

Return on invested capital >= 8% >= 8%

Diluted ordinary EPS(2) ) €1.50 to €1.55 €1.46 to €1.51
---------------------------------------------------------------------------

(1) )Based on divestment guidance provided July 27, 2011; uses mid-point of
2-3% EPS dilution
(2))In 2011 constant currencies (EUR/USD = 1.33)


Despite increased macro economic uncertainty, the company is on track to deliver
within its full-year guidance for the total company. With the peak subscription
renewal season underway, the subscription portfolio, which constitutes 75% of
total revenues, is expected to continue to be resilient. Improving results in
software solutions are expected to offset challenges in transactional product
lines and print publishing.

As highlighted in the half-year 2011 results press release, the contribution
from the discontinuing operations is expected to have the following impact on
full-year pro-forma results for the continuing operations: improved ordinary
EBITA margin of approximately 100 basis points and reduced diluted ordinary EPS
and free cash flow of approximately 2-3% and 3%, respectively. Guidance and
full-year reporting will focus on continuing operations.

Ordinary EBITA margin for continuing operations is expected to improve with
results between 21.5% and 22% for the full year underpinned by the migration of
customers to more profitable electronic products and the continuing contribution
of the Springboard program. These efforts are expected to offset pressure from
wage and other inflationary expenditures. As in prior years, management will
continue to invest approximately 8-10% of revenues in new products and platforms
to drive future growth.

Free cash flow in constant currencies is expected to be approximately €412
million for the year for continuing operations. Diluted ordinary earnings per
share is expected to be between €1.46 and €1.51 in constant currencies.

Benchmark Figures
Wherever used in this press release, the term "ordinary" refers to figures
adjusted for exceptional items and, where applicable, amortization of publishing
rights and impairment of goodwill and publishing rights. Exceptional items
consist of qualifying restructuring expenses and acquisition costs. "Ordinary"
figures are non-IFRS compliant financial figures, but are internally regarded as
key performance indicators to measure the underlying performance of the base
business. These figures are presented as additional information and do not
replace the information in the income statement and in the cash flow statement.
The term "ordinary" is not a defined term under International GAAP.

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

Calendar
February 22, 2012 Full-Year 2011 Results

March 14, 2012 Publication 2011 Annual Report

April 25, 2012 Annual General Meeting of Shareholders


Full overview available at www.wolterskluwer.com.

Media Investors/Analysts

Caroline Wouters Jon Teppo

Vice President, Corporate Communications Vice President, Investor Relations

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

press@wolterskluwer.com ir@wolterskluwer.com


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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



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