Full-Year Guidance Reiterated
Amsterdam (July 29, 2009) - Wolters Kluwer, a market-leading global information services and publishing company focused on professionals, released today its 2009 half-year results. Highlights include an improved operating margin, strong free cash flow growth, and stable performance from subscription businesses. These results reflect a resilient company, supported by an effective cost savings program, a strong financial foundation, and a growing online and software portfolio designed to drive long-term profitable growth.

Highlights
Diluted ordinary EPS grew 12% to €0.70 (2008: €0.62) or €0.64 at constant currencies
Ordinary EBITA margin improved 70 basis points to 18.6% reflecting success of cost savings programs, growth in electronic revenue, and the contribution of recent acquisitions
Free cash flow grew 38% to €146 million (2008: €106 million) or €134 million at constant currencies
Revenue growth of 2% at constant currencies, organic revenue declined 3% due to the economic cycle effect on transactional and cyclical product lines, currencies lifted reported growth to 7%
Springboard operational excellence cost savings program on track and expected to comfortably deliver full-year run rate savings of €55 million this year and €120 million by 2011
Net debt reduced to €2,235 million (€2,254 million at December 31, 2008)
Progressive annual dividend policy reiterated
2009 full-year guidance reiterated

Key Figures First Half 2009

Six months ended June 30 2009 2008 change change CC change OG
Revenue (€ millions) 1,720 1,608 7% 2% (3%)
Electronic revenue % of total 52% 50%
Ordinary EBITA (€ millions) 320 288 11% 4% (6%)
Ordinary EBITA margin (%) 18.6% 17.9%
Ordinary net income (€ millions) 203 178 14% 2%
Diluted EPS (€) 0.45 0.50 (10%) (21%)
Diluted ordinary EPS (€) 0.70 0.62 12% 0%
Free cash flow (€ millions) 146 106 38% 27%
change - % Change; change CC - % Change constant currency (EUR/USD 1.47); change OG - % Organic growth


Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the company's half-year performance:

"We are pleased to deliver solid profitability and cash flow in the first half of 2009. The performance over the first half demonstrates that the stable subscription base and growing online and software portfolio is serving Wolters Kluwer well. Electronic revenue grew 7% and now comprises 52% of total revenue, up from 50% in the prior year.

With a continued focus on operational excellence and a commitment to invest 8-10% of revenues in the business, we have the foundation in place to support long-term growth. We are confident that the macro trends leading to increased regulation, more complex compliance requirements, and a strong focus on productivity among all our customer segments will continue to drive the need for our high quality information and software solutions. Based on our performance for the first half of 2009, we are confident to reiterate our full-year 2009 guidance."

Overview

Despite challenging market conditions, the company's profitability improved in the period. Ordinary EBITA grew by 11% and the ordinary EBITA margin improved 70 basis points to 18.6% from 17.9% in 2008 driven by strong growth in higher margin online and software products, the contribution of acquisitions completed in the prior year, and operational excellence programs, including project Springboard. As a result of these improvements, diluted ordinary earnings per share grew 12% in 2009 to €0.70; at constant currencies, diluted ordinary earnings per share were €0.64.

The company's leading brands, resilient portfolio, and strong cash generation continue to support a solid financial position. In the six months ended June 30, 2009, free cash flow grew 38% to €146 million. Net debt as of June 30, 2009, was €2,235 million (€2,254 million December 31, 2008) representing a net-debt-to-EBITDA ratio of 3.1. The net-debt-to-EBITDA ratio was reduced in the first half in keeping with management's intention to move closer to its target of 2.5 times net-debt-to-EBITDA over the medium term. Prior year debt refinancing at attractive rates extended the maturity profile out beyond 2013, ensuring a strong liquidity position and sufficient headroom in excess of the company's €500 million policy minimum.

The full press release on the 2009 half-year results is available here: PDF version of Press Release