WTKWY Wolters Kluwer (PK)

Highlights

• Full-year 2014 guidance reiterated.
• First-half revenues up 2% in constant currencies and up 1% organically.
  • Leading, growing positions (47% of total revenues) on average grew 6% organically.
  • Digital revenues (68% of total) grew 5% organically, more than offsetting print decline.
  • Digital and services revenues now account for 81% of total revenues (HY 2013: 78%)
• First-half adjusted operating profit margin declined, as expected, due to restructuring costs.
  • Restructuring costs of €19 million in first half; continue to expect €25-30 million for full year.
• First half diluted adjusted EPS €0.63, up 1% at constant currencies.
• Adjusted free cash flow €136 million, up 1% at constant currencies.
• Net-debt-to-EBITDA of 2.6x, following dividend and acquisition payments in second quarter.
• Acquisition of Datacert in April builds on our leading growth position in Corporate Legal Services.
• Announcing renewal of €600 million multi-currency credit facility.

Interim Report of the Executive Board

Nancy McKinstry, CEO and Chairman of the Executive Board, commented: "In the first half of the year, we continued to build on and invest in our leading, growing positions and digital solutions, and these areas delivered sustained organic growth. Trends in Europe are still quite varied, but we are encouraged by recent performance of digital products in this region. Our planned restructuring program is well underway and we remain confident of achieving the guidance we set out at the start of the year."

Key Figures 2014 Half-Year

D - % Change; D CC - % Change constant currencies (EUR/USD 1.33); D OG - % Organic growth. Benchmark and IFRS figures are for continuing operations unless otherwise noted. Benchmark figures are performance measures used by management. See Note 5 of this Interim Financial Report for a reconcilation from IFRS to benchmark figures. 1) International Financial Reporting Standards as adopted by the European Union. 2) Includes discontinued operations in 2013.

Full-Year 2014 Outlook

We reiterate the full-year guidance set out in February this year. Our full-year 2014 margin guidance includes anticipated restructuring costs of €25-€30 million, of which €19 million occurred in the first half. The table below provides our 2014 guidance.

Guidance for adjusted free cash flow and diluted adjusted EPS is in constant currencies (EUR/USD 1.33).

Our guidance is based on constant exchange rates. Wolters Kluwer generates more than half of its revenue and adjusted operating profit in North America. As a rule of thumb, based on our 2013 currency profile, a 1 U.S. cent move in the average EUR/USD exchange rate for the year causes an opposite 1.0 euro-cent change in adjusted diluted EPS.

Our guidance assumes no significant change in the scope of operations. We may make further disposals which could be dilutive to margins and earnings in the near term. Additional information underlying our guidance is provided in the table below.

1) In constant currencies (EUR/USD 1.33).

About Wolters Kluwer  Wolters Kluwer is a global leader in professional information services. Professionals in the areas of legal, business, tax, accounting, finance, audit, risk, compliance and healthcare rely on Wolters Kluwer's market 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 reported 2013 annual revenues of €3.6 billion. The group serves customers in over 150 countries, and employs over 19,000 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

Wolters Kluwer shares are listed on NYSE Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

For more information about our products and organization, visit www.wolterskluwer.com, follow @Wolters_Kluwer on Twitter, or search for Wolters Kluwer videos on YouTube.

Calendar

Forward-looking Statements 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.

The full press release on the 2014 Half-Year Results is available here:

Wolters Kluwer 2014 Half-Year Report http://hugin.info/130682/R/1842711/641442.pdf

HUG#1842711

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