Wolters Kluwer Scheduled Third-Quarter 2012 Trading Update

Wolters Kluwer Scheduled Third-Quarter 2012 Trading Update 
ALPHEN AAN DEN RIJN, NETHERLANDS -- (Marketwire) -- 11/07/12 -- 
Wolters Kluwer today released its scheduled third-quarter 2012
trading update. 
Highlights  * Full-year 2012 guidance confirmed. 
* Nine-month revenue up +3% in constant currencies, up +1%
-    European markets remain challenging; Legal & Regulatory
Europe deteriorates in third quarter. 
-    North America and Asia driving growth; Tax & Accounting
improves  in third quarter. 
-    Recurring revenues (75% of total) sustain momentum. 
* Nine-month EBITA margin stable year-on-year. 
* Nine-month ordinary free cash flow increased in constant
* Leverage ratio net-debt-to-EBITDA improves to 2.8x (2011
year-end: 3.1x). 
-    Expect net-debt-to-EBITDA to approach target of 2.5x by
Nancy McKinstry, CEO and Chairman of the Executive Board, commented:
"Our performance in the third quarter was largely as anticipated,
with our European operations facing a difficult macro-economic
environment and our North
American businesses maintaining their
recent momentum. Growth in our online,
software, and services
products globally continues to support overall positive
growth for the group. We are actively managing the portfolio to
faster growth, investing in product innovation and geographic
expansion, and
seeking further operating efficiencies. The quality of
the business continues to improve and we remain confident we will
deliver on our full-year guidance." 
Full-Year 2012 Outlook 
We reiterate our full-year 2012 guidance, despite worsened conditions
in Europe
and growing uncertainty around the US economy as we enter
the fourth

 Performance indicators     2012 Guidance(3))
 Ordinary EBITA margin      21.5-22.5%
 Ordinary free cash flow1)  > = EUR425 million
 Return on invested capital > = 8%
 Diluted ordinary EPS1)     Low single-digit growth2)
 (1)) In constant currencies (EUR/USD 1.39)
 (2)) Includes effect of 2012 share bu
y-backs, stock dividend and
 performance shares.
 (3)) Guidance is for continuing operations.

Springboard cost savings are on track to reach a run rate of
EUR205-EUR210 million
in the full year (compared to EUR191 million in
Guidance is based on constant exchange rates. Wolters Kluwer
generates more than
half of its ordinary EBITA in North America. As a
rule of thumb, based on our
2011 currency profile, a 1 U.S. cent move
in the average EUR/USD exchange rate
for the year causes an opposite
0.8 euro-cent change in diluted ordinary EPS. 
Net financing costs are expected to be approximately EUR125 million
in constant
currencies. The benchmark effective tax rate on ordinary
income before tax is
expected to be approximately 27.5% in 2012 due
to an increasing proportion of
profits in higher tax regions, such as
North America. Our divisional outlook for 2012 is as follows: 
In Legal & Regulatory, we expect European markets to remain
challenging in the
near term. Our North American Legal & Regulatory
business is positioned for growth, although transactional revenue
streams have softened in recent months.
The division's results will
reflect two disposals of non-core publishing operations in the
Netherlands which were completed in the second quarter of 2012. 
In Tax & Accounting, we continue to expect positive organic growth in
the second
half reflecting seasonal patterns. As indicated in July, we
expect the  second-half margin to be broadly in line with the second
half of 2011. 
In Health, we expect continued strong demand for Clinical Solutions.
Trends in
journal advertising markets are likely to remain weak.
Margins should benefit
from the ongoing shift towards electronic
products. The acquisition of Health
Language, announced on October
17, is currently expected to close in early 2013. 
In Financial & Compliance Services, we expect good growth in
Financial Services
and Audit, Risk & Compliance, but continued
weakness in Transport Services. Margins reflect investment in global
expansion and lower Transport Services transactional revenues. 
Dividend Policy and Anti-dilution Policy 
Wolters Kluwer has a progressive dividend policy under which the
company expects
to increase the dividend per share each year.
Shareholders have the option to
elect dividend pay-out in cash or
stock. As per our announcement on July 25,
Wolters Kluwer intends to
offset the dilution of its stock dividend and performance share
issuance annually via share repurchases. For the full year
2012, the
company expects to repurchase shares for up to EUR135 million. As
November 6, a total of 7.7 million ordinary shares have been
repurchased this
year for a total consideration of EUR100 million
(average purchase price EUR13.07). 
Third-Quarter Developments 
Third-quarter organic revenue growth was 1%, overall in line with the
first half. Growth in North America and Asia Pacific has been
partially offset by declines in Legal & Regulatory Europe. Total
recurring revenues (75% of group
total) maintained momentum, as
growth in electronic and services subscriptions
more than offset the
ongoing decline in print subscriptions. Trends in
transactional and other cyclical products weakened modestly in
the quarter. 
The third quarter EBITA margin improved slightly and the nine-month
margin was
broadly stable year-on-year, supported by Springboard
savings, the ongoing shift
in business mix, and the favorable effect
of currency. Third-quarter cash flow
from operations increased in
constant currencies and the cash conversion ratio
improved in the
quarter compared to the same period a year ago. Ordinary free
flow also increased in constant currencies in the third quarter and
for the first nine months. 
Our net-debt-to-EBITDA ratio (12 month rolling basis) was 2.8x as of
30, 2012, improving from 2.9x as of June 30, 2012 and 3.1x
at year-end 2011. We expect to approach our target of 2.5x by the end
of this year. This takes into
account acquisitions completed in the
second half, the largest of which was FinArch. 
Legal & Regulatory saw organic revenue trends deteriorate in the
third quarter,
due mainly to weakening trends in loose leafs, books
and cyclical products (training, advertising) across Europe. The
North American Legal & Regulatory
business saw good organic growth in
the third quarter, with Law & Business improving and Corporate Legal
Services (CLS) sustaining good momentum despite
lower transaction
volumes associated with M&A, business formation, and
Tax & Accounting improved to positive organic growth in the third
quarter, as
anticipated. Growth in North American tax software more
than offset continued
weakness in tax publishing and bank products.
European revenues showed positive
growth in the third quarter,
despite the worsened economic conditions. Growth in European tax
software compensated for declines in loose leaf, book and
revenues in the region. In Asia Pacific, revenues declined
organically in the
quarter due mainly to timing of publishing
releases in Australia. Acclipse, which offers online accounting
software, including cloud-based solutions for
finance and tax
professionals in Australia, New Zealan
d, and other parts of
Pacific, was acquired during the quarter. 
Health remains on track to deliver good growth and margin improvement
this year.
Clinical Solutions achieved double-digit organic revenue
growth in the third
quarter, with UpToDate, ProVation Medical and
Clinical Drug Information all performing well. The acquisition of
Health Language, currently expected to close
in early 2013, brings
medical terminology management databases and software that
are highly
complimentary to existing Clinical Solutions services. In
Research, Ovid's growth was positive in the quarter, while
our medical journals
faced continued weakness in advertising markets.
Professional & Education books
achieved growth in the U.S. education
segment, but this was offset by weakness
in medical practice
textbooks and international sales. 
Financial & Compliance Services organic growth moderated in the third
from the levels seen in the first half. The full year is
still expected to see
acceleration in growth compared to 2011.
Financial Services, which in the first
half had benefitted from
implementation fees from new banking customers, achieved good organic
growth, primarily from products for U.S. mortgage and lending
markets. FRSGlobal achieved double-digit organic growth in the
quarter as it continues to roll out globally. The combination
with FinArch, acquired in July, strengthens and extends our
capabilities and geographic reach.
Transport Services, based in
Europe, saw continued top line weakness, particularly in
transactional revenues. Audit, Risk & Compliance delivered strong
organic revenue growth as it invests in expansion in Asia and Central
and South America. 
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 reported 2011 annual revenues of EUR3.4 billion. The
group employs
over 18,500 people worldwide and maintains operations in
over 40 countries across Europe, North America, Asia Pacific and
Latin America. The company is
headquartered in Alphen aan den Rijn,
the Netherlands. Wolters Kluwer shares are listed on NYSE Euronext
Amsterdam (symbol: WKL) and are included in the AEX and
Euronext 100
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. 

December 7, 2012         Investor Seminar: Financial & Compliance Services
February 20, 2013        Full Year 2012 Results

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a result of new information, future events or otherwise. 
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Caroline Wouters
Corporate Communications
t + 31 (0)172 641 459
Meg Geldens
Investor Relations
t + 31 (0)172 641 407
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