Alphen aan den Rijn, May 3, 2023 – Wolters Kluwer, a global leader in professional information, software
solutions and services, today releases its first-quarter 2023 trading update.
Highlights
? Full-year 2023 guidance reiterated.
? First-quarter revenues up 5% in constant currencies and up 6% organically.
? Recurring revenues (82%) up 7% organically; non-recurring revenues up 2% organically.
? Digital & services revenues (94%) grew 7% organically; print revenues declined 5% organically.
? Expert solutions revenues (58%) grew 7% organically.
? First-quarter adjusted operating profit margin decreased 270 basis points.
? Personnel costs and personnel-related expenses increased, as expected.
? First-quarter adjusted free cash flow decreased 23% in constant currencies, mainly due to lower working
capital inflows related to timing of payments.
? Net debt-to-EBITDA was 1.3x as of March 31, 2023.
? Progress on 2023 share buyback: €303 million of intended share buyback of up to €1 billion completed in
the year through May 1, 2023.
Nancy McKinstry, CEO and Chair of the Executive Board, commented: “We have seen a good start to the year,
with performance broadly as expected. Product investment has been sustained at high levels as we continue
to pursue opportunities for organic growth while enhancing our solutions for customers. The creation of a
fifth division, Corporate Performance & ESG, was implemented in March and our teams around the world are
focused on executing on our strategy. We are confident in reiterating our guidance for full-year 2023.”
First-quarter 2023 developments
First-quarter revenues increased 5% in constant currencies, reflecting organic growth of 6% (1Q 2022: 8%),
partly offset by the impact of net divestitures. In the first quarter, the average EUR/USD rate was favorable
(averaging 1.07 in 1Q 2023 versus 1.12 in 1Q 2022). Recurring revenues (82% of revenues), which include
subscriptions and other repeating revenue streams, increased 7% organically (1Q 2022: 8%). Non-recurring
revenues (18% of revenues) rose 2% organically, marking an expected slowdown from a year ago (1Q 2022:
9%). Of non-recurring revenues, Governance, Risk & Compliance transactional revenues declined 1%
organically (1Q 2022: 1% increase). Print book trends were mixed. Other non-recurring revenues, mainly
comprised of on-premise software licenses and implementation fees, rose 2% organically against a tough
comparable (1Q 2022: 14% organic growth). The adjusted operating profit margin declined 270 basis points in
the first quarter, reflecting the expected increase in personnel costs and personnel-related expenses such
as office and travel costs.
In March, we implemented the new five-division structure announced on February 22, 2023. The discussion
below still follows the previous four-division reporting structure. Pro forma historical figures for the five
divisions will be provided in advance of our half-year 2023 report.
Health revenues grew 5% organically (1Q 2022: 9%). Clinical Solutions grew 6% organically (1Q 2022: 9%), led
by our clinical decision support solution, UpToDate, and patient engagement solution, Emmi. Clinical drug
information revenues returned to mid-single digit organic growth. Learning, Research & Practice grew 3%
organically against a challenging comparable (1Q 2022: 9%). Digital subscription revenues for medical
research and nursing solutions grew 4% organically, while print books, journal advertising, and other nonrecurring revenues declined.
Tax & Accounting revenues grew 11% organically (1Q 2022: 9%). Our North American professional Tax &
Accounting business sustained double-digit organic growth, mainly driven by cloud software, including the
CCH Axcess suite. The North American business benefitted from continued strength of outsourced
professional services and a favorable print book publishing schedule. Professional Tax & Accounting in
Europe and Asia Pacific both recorded a strong start to the year. Our Corporate Performance unit,
comprising CCH Tagetik and U.S. Corporate Tax, recorded accelerated double-digit organic growth,
supported by strong performance in cloud software and services across all major global regions.
Wolters Kluwer First-Quarter 2023 Trading Update Page 2 of 4
Governance, Risk & Compliance revenues were flat on an organic basis against a tough comparable
(1Q 2022: 8%), largely as expected. A 6% decline in non-recurring revenues (37% of division revenues) was
offset by 4% organic growth in recurring revenues. In Legal Services, organic growth was 2% (1Q 2022: 7%), as
solid growth in recurring subscriptions was partly offset by a 2% organic decline in Legal Services
transactional revenues. In Financial Services, organic revenues declined 3% (1Q 2022: organic growth of 8%),
as momentum in recurring revenues slowed and non-recurring revenues declined. Lien Solutions and
mortgage transaction volumes declined while on-premise software license and implementation fees were
lower than a year ago.
Legal & Regulatory revenues grew 7% organically (1Q 2022: 6%). Legal & Regulatory Information Solutions
(74% of divisional revenues) delivered stable 3% organic growth (1Q 2022: 3%), as digital and services
subscriptions increased 8% organically (1Q 2022: 7%), more than compensating for a decline in training and
other non-recurring products. The Enablon EHS/ORM1 platform delivered double-digit organic growth in
both recurring cloud subscriptions and non-recurring software license fees in the quarter. In constant
currencies, divisional revenues declined 3% due to the divestment on November 30, 2022, of legal publishing
assets in France and Spain.
Cash flow and net debt
First-quarter adjusted free cash flow declined 23% in constant currencies, due to lower working capital
inflow in the quarter as a result of timing of payments. In addition, capital expenditure increased due to
investments in innovation. Paid financing cost and paid tax were lower than a year ago. Net cash spend on
acquisitions was €24 million, mainly related to the acquisition of NurseTim on January 9, 2023. A total of
€230 million in cash was deployed towards share repurchases during the quarter.
As of March 31, 2023, net debt was €2,227 million, compared to €2,253 million at December 31, 2022. Net-debtto-EBITDA, based on rolling twelve-month EBITDA, was 1.3x at the end of March 2023, compared to 1.3x at
year-end 2022. As of March 31, 2023, the number of issued ordinary shares outstanding (excluding 10.5
million shares held in treasury) was 247.0 million.
In early April, we issued a new €700 million Eurobond with an 8-year term and 3.750% annual coupon.
Dividends and share buybacks
In the year to date (through May 1), Wolters Kluwer has repurchased 2.8 million ordinary shares for a total
consideration of €303 million (average share price €109.22). This includes a block trade of €43.5 million
executed on February 23, 2023, to offset the dilution caused by our incentive share issuance.
For the period starting May 4, 2023, up to and including July 31, 2023, we have engaged a third party to
execute €200 million in share buybacks on our behalf, within the limits of relevant laws and regulations (in
particular Regulation (EU) 596/2014) and Wolters Kluwer’s Articles of Association. Share repurchases will be
used for capital reduction purposes and to meet obligations arising from share-based incentive plans.
At the Annual General Meeting to be held on May 10, 2023, shareholders will be asked to approve a total
dividend of €1.81 over financial year 2022, an increase of 15% compared to the 2021 dividend. If approved,
the final dividend of €1.18 per share will be paid to shareholders on June 6, 2023 (ADRs: June 13, 2023). The
interim dividend for 2023 will be set at 40% of the 2022 total dividend.
ESG developments
In the first quarter, we made progress in advancing our ESG performance. In the area of human capital, we
continued efforts to attract and retain talent and to support employee engagement and belonging. A range
of initiatives around training and career development are planned for 2023. Efforts to reduce our Scope 1
and Scope 2 emissions continued, with our global real estate team on track to deliver a further reduction in
absolute square meters of office space in 2023. Our program of decommissioning on-premise servers
continued as we migrated applications and customers to energy-efficient cloud platforms. As reported
previously, in early 2023, we submitted near-term targets to the Science Based Targets initiative (SBTi) for
validation, to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 50% and absolute Scope 3
GHG emissions by 30% by the year 2030 from a 2019 base year. We are continuing our review of the new EU
Corporate Sustainability Reporting Directive (CSRD) in preparation for its application in 2024.
1 EHS/ORM = environmental, health & safety and operational risk management.

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