CorporateInvestorsJuly 05, 2010

Wolters Kluwer confirms guidance

The operating performance underpins the company’s confidence in reaching its previously stated full-year 2010 guidance.

Wolters Kluwer reiterates its guidance for the full year 2010 and medium term, based on trading conditions through May 2010. Wolters Kluwer expects organic revenue growth to be flat for the first half-year 2010 and ordinary EBITA margin to be in line with the first half-year 2009, and expects solid free cash flow. This operating performance underpins the company’s confidence in reaching its previously stated full-year 2010 guidance (see table below). The company made this announcement prior to its scheduled half-year 2010 results on July 28, 2010, in light of an inadvertent release of information.

Key Performance Indicators 2010 Guidance
Ordinary EBITA margin 20-21%
Free cash flow 1 ≥ €400 million
Return on invested capital ≥ 8%
Diluted ordinary EPS 1 €1.41 to €1.45

In constant currencies (EUR/USD = 1.39)

Medium-term outlook

Wolters Kluwer also reiterates its medium-term outlook, as stated on February 24, 2010 (see table below), supported by the shift toward higher margin electronic solutions and the additional contribution from operational excellence initiatives including the Springboard program. The company expects to deliver steadily improving operating margin, ordinary EBITA, and diluted ordinary earnings per share in constant currencies. Free cash flow is expected to be equal to or greater than €400 million per annum in constant currencies, reflecting the resilient and growing subscription base. Return on invested capital will equal or exceed 8%.

Key Performance Indicators Medium-Term Outlook
Revenue growth/portfolio composition Double-digit online & software growth
Online, software & services revenues ≥75%  of total revenues
Ordinary EBITA Continuous improvement
Diluted ordinary EPS 1 Continuous improvement
Free cash flow 1 ≥ €400 million per annum
Return on invested capital ≥ 8%

In constant currencies (EUR/USD = 1.39)

On July 28, 2010, Wolters Kluwer will release its first half-year 2010 results.

About Wolters kluwer

Wolters Kluwer (WKL) is a global leader in professional information, software solutions, and services for the health, tax & accounting, governance, risk & compliance, and legal & 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.

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.
Contacts
Annemarije Dérogée-Pikaar
Annemarije Dérogée - Pikaar
Director, Corporate Affairs & Communications
Global Branding & Communications
Meg Geldens
Meg Geldens
Vice President, Investor Relations
Investor Relations