WoltersKluwer

1
WoltersKluwer
First Half Year Results 2003

• August 12, 2003 - Amsterdam

2
Agenda
Highlights HY 2003 R. Pieterse Cluster/Market
Review R. Pieterse Financials B.
Beerkens Summary, Outlook and QA R. Pieterse
3
Highlights

• Challenging economic environment for all clusters
  impacts revenues and income EBITA margin under
  pressure
• Benchmark net profit -26 at constant currencies
  (1st quarter 03, -31)
• Electronic sales increase to 34 of total
  continuing revenues
• New executive team now in place
• Positive cash flow and tighter working capital
  control29 reduction of net debt
• Acceleration of restructuring program and
  significant cost reductions at least EUR 70 mln
  full year
• Organic staff reduction of 500 FTEs already
  achieved

4
Key Financial HY 03

Constant ? Currencies

HY 03
?
HY 02
EUR million
Revenues Ordinary EBITA Ordinary EBITA margin
Benchmark Net Profit Ordinary EPS before
amortization of intangibles, and exceptionals
(fully diluted) Ordinary free Cash flow
1,609 230 14.3 120 0.42 74
1,917 347 18.1 194 0.66 42
(6) (24) (26)
(16) (34) (38)

5
Organic Growth

Revenues
Ordinary EBITA
HY 03
HY 02
HY 03
HY 02

(3.4) 1.5 (18.8) (5.5) 2.7 5.4 1.3 5.8
(4.9) (1.4) (6.8) (0.1)
(5.6) 5.5 (24.3) 0.2 (10.4) 0.5 (9.5) 0.6 (1
6.0) 6.0 (33.8) 0.8

• Total organic
• Acquisitions
• Divestments
• At constant rates
• Currency
• Total

6
Electronic Revenues
?
LTB Europe (EUR mln)
HY 03

HY 02

?
LTB NA (USD mln)
HY 03

HY 02

7
Electronic Revenues
?
LTB AsiaPacific(AUDmln)
HY 03

HY 02

?
Health (USD mln)
HY 03

HY 02

8
Electronic Revenues
?
Education (EUR mln)
HY 03

HY 02

9
Cluster Market Review
Rob Pieterse Chairman Executive Board Wolters
Kluwer nv
10
LTB Europe

• Growth in revenues and EBITA impacted by
  disappointing results from UK, Belgium and the
  Netherlands
• Overall business affected by slow economic
  conditionsorganic performance -1 (flat LY)
• Weak advertising trends cause revenue decline in
  France and the Netherlands improving trends in
  non-advertising revenues in the Netherlands
• Good growth rates for Italy, Scandinavia, CEE,
  Spain and Teleroute
• Italian and Spanish software strong on back of
  tax developments
• 28 of revenues are electronic (5 Internet)

11
LTB Europe

• Key focus on cost reduction
• Major initiatives to address organic growth and
  infrastructure enhancements
• Aggressive cost management in the UK and
  management changes
• Strong market positions across Europe
  initiatives taken to enhance market share further

12
CCH Canadian
LTB North America
CCH Tax Compliance
CCH US Publishing
CCH LIS

• Cluster performance negatively impacted
  specifically by BSI and Aspen
• LIS flat compared to last year despite slow down
  in transactional markets
• CCH Tax Compliance grew solidly boosted by strong
  core and accelerated new products CCH Canada
  also performed strongly
• Steady underlying performance from CCH overall
  despite economic conditions retention rate
  stabilizing

Aspen
CCH BSI
13
LTB North America

• Electronic revenues 51 of total
  Internet/On-line 26
• Benefits expected in second half from the
  reorganization of the cluster into customer
  facing groups, with significant cost reductions,
  appointment of CEOs and management changes at
  Aspen back office and finance teams
• Market share set to strengthen as a result of
  actions taken to upgrade content platform
• New product development and sales and marketing
  initiatives maintained despite cost reductions

14
LTB Asia Pacific

• Momentum returning to region
• Revenues affected by CCH Software and lower
  subscription levels at CCH Publishing
• Cost reduction initiatives underway
• Overall CCH Asia has strong pricing, new product
  and pipeline profile

15
Pharma Solutions
Health
Prof. Education
Clinical Tools

• Professional Education performing well strong
  revenue and cost management profile especially
  in Nursing and Health Professional titles
• Good showing from Clinical Tools in Facts
  Comparisons and Medispan integration going
  according to plan
• Lower revenues mainly due to Medical Research
  (phasing issues, softness in the international
  market and reduced advertising revenues)
• Weaker journal and book revenues at Pharma
  Solutions

Medical Research
16
Health

• Customer focused initiatives being intensified
• Continuing production efficiencies
• Major new book program at Professional and
  Education underway
• Increased focus on targeting society journals
  (new contracts booked)
• New intra-cluster product development initiatives
• Actions taken are further strengthening Wolters
  Kluwers strong positions in key Health market
  segment
• Expected growth for Health above company average

17
Education

• Seasonal business balanced towards second half of
  year
• Revenues down
• primary education negatively affected as
  government funded book budgets have been cut
• adverse market conditions in UK and Sweden
• Management changes in the UK and the Netherlands
• Strong focus on cost control throughout cluster

Netherlands 35
18
Education

• Focus on improved sales and marketing cross
  cluster efficiencies and improved cost structure
• Investment in development of blended learning
  solutions ready for commercial launch in a
  number of key markets Digicoach
• Cooperation with IBM to provide e-learning
  solutions to schools in UK and the Netherlands
• Businesses aligned to take full advantage of
  2004-2006 cycle peak in secondary education
• Education Cluster Day November 24th, Amsterdam

19
Financials
Boudewijn Beerkens Member Executive Board /
CFO Wolters Kluwer nv
20
Actions Taken

• Impairments
• Currency Hedging
• Share Buy-Back
• Dutch GAAP (moving to IAS/IFRS) RJ 270 and RJ
  271
• Cash Flow Working Capital Management
• Stricter Acquisition Policy

21
Overview

• Economic environment puts pressure on Wolters
  Kluwers Net Profit Benchmark leading to downward
  adjustment for full year
• Solid cash flow half year 2003
• 29 decrease in net debt from EUR 2,993 mln to
  EUR 2,122 mln
• Key financial ratios improved
• Limited acquisition spending
• Buy-back of shares
• Strategy Update on October 30th will outline
  medium to long term plans

22
HY 03 Results
HY 03

HY 02
Constant currencies
EUR mln
Revenues EBITA EBITA margin Amortization of
intangibles Financing results Taxation on
operating income Non-consolidated and minority
interest Results on divestments (after
taxation) Net income
1,609 230 14.3 (291) (58) (10) (4) 18 (115)
1,917 347 18.1 (174) (74) (67) (2) 2 32
(16) (34)
(6) (24)

Impairment effect (EUR 155 mln)
23
HY 03 Results (cont)
HY 03

HY 02
Constant currencies
EUR mln
Net income Amortization of intangibles Taxation
on amortization Results on divestments (after
taxation) Ordinary BM net income Ordinary EPS
before amortization of intangibles, and
exceptionals (fully diluted)
(115) 291 (38) (18) 120 0.42
32 174 (10) (2) 194 0.66
(38)
(26)

Impairment effect (EUR 155 mln)
24
Consolidated Balance Sheet
HY 03
EUR mln
HY 02
Total fixed assets Total current assets Total
current liabilities Working capital Capital
Employed Shareholders equity Perpetual
subordinated bond Convertible bond Minority
interests Provisions Long term loansTotal
Financing
3,578 1,991 (1,257) 734 4,312 1,050 225 700 5 346
1,9864,312
4,732 1,264 (1,340) (76) 4,656 1,297 225 700 3 254
2,1774,656


25
Wolters Kluwer complies with Dutch GAAP RJ 270
and RJ 271

• Wolters Kluwer has implemented RJ 270 and RJ 271
  as per 1 January 2003, bringing it closer to
  IAS/IFRS
• RJ 270 / IAS 18 Revenue Recognition
• RJ 271 / IAS 19 Pensions/Employee Benefits
• Estimated impact
• Year-end 2003 results will include these
  accounting changes

EUR mln (after tax)
Equity opening
Revenue 2003

EBITA 2003

balance 2003








RJ 270
(80)

75

pm

RJ 271
(50)

-

pm





Total

(130)

75

pm


26
Improving Key Financial Ratios
2.8
Net debt to EBITDA (Rolling 12 months)
3.2
2.3
2.0
Net interest bearing debt to shareholders equity
4.9 5.6 2,993
5.3 6.2 2,122

• Net interest coverage
• EBITA
• EBITDA(Rolling 12 months)
• Net debt (29 improvement)

27
Cash flow statement
HY 03
EUR mln
HY 02

• ?

28
Cash flow statement (Contd)
HY 03
EUR mln
HY 02


29
Working Capital Development(Organic
Trend)Analysis of contribution () absorption of
(-) Cash Flow
HY 03
EUR mln
HY 02
(4) 2 1 (53) 89 (77) (42)
(20) (35) (14) (62) 86 (71) (116)
Inventories Trade debtors Other
debtors Trade creditors Deferred income Other
short-term liabilities Increase/(Decrease)
30
Acquisitions HY 2003
Stricter acquisition policy and focus on core
markets in Europe and US
2002
2000
2001
Total 00-03
EUR mln
HY03
32
37
29
of transactions (incl. minority stakes)
104
6
1,361
300
458
533
Total investment
70
618
162
211
204
Acquired annual revenues
41
1.9 7.3
2.2 6.8
2.6 11.1
Revenues multiplier EBITA multiplier
1.7 10.6
2.2 8.3
31
Summary Outlook

• Trading conditions will remain challenging for
  the rest of 2003
• Inevitable impact on revenues and income
• Benchmark ordinary net income at constant
  currency rates will be significantly below that
  of last year and lower than indicated in May
• Second half of the year expected to be stronger
  than the first half, also showing benefits of
  accelerated cost cutting and restructuring
• Improvement in financial controls and strong
  focus on cash generation
• Further capitalizing on valuable market positions
• Sound medium and long-term prospects, - further
  details in the Strategy Update, October 30th

32

• Strategy Update October 30th, London
• Q3 Results November 12th, conference call
• Education Cluster Day November 25th, Amsterdam

33
Appendix
34
Revenues by Media
?
EUR mln
HY 03

HY 02


35
Overview Electronic sales per cluster
EUR mln
HY 03

• HY 02 of cluster sales

HY 02

• HY 03 of
• cluster sales

36
Print Revenues
?
EUR mln
HY 03

HY 02

37
Print and services Revenues in local currency
LTB Europe (EUR mln)
HY 03
HY 02
100 99 112 60 83 454
118 43 141 58 93 453
Loose-leaves Info Packaging Journals/news. Books D
ocument services Total
LTB North America (USD mln)
HY 03
HY 02
97 4 15 59 117 292
85 4 10 48 113 260
Loose-leaves Info Packaging Journals/news. Books D
ocument services Total
38
Print and services Revenues in local currency
HY 03
LTB Asia Pacific (AUD mln)
HY 02
25 3 1 9 5 43
25 3 1 9 2 40
Loose-leaves Info Packaging Journals/news. Books D
ocument services Total
Health (USD mln)
HY 03
HY 02
9 0 127 67 19 222
11 15 131 67 19 243
Loose-leaves Info Packaging Journals/news. Books D
ocument services Total
39
Print Revenues in local currency
Education (EUR)
HY 03
HY 02
0 0 102 6 108
0 0 108 6 114
Loose-leaves Journals/news. Books Other Total
40
Q2 03 results per cluster
LTB North America
Million
Q2 02
Q2 03
Revenues (USD) (EUR) EBITA (USD) (EUR) E
BITA margin
259 227 53 46 20.5
277 304 72 79 25.9
41
Q2 03 results per cluster
LTB Asia Pacific
Million
Q2 02
Q2 03
Revenues (AUD) (EUR) EBITA (AUD) (EUR) E
BITA margin
27 15 1.6 0.9 5.8
26 15 2.4 1.4 9.2
Health
Million
Q2 02
Q2 03
Revenues (USD) (EUR) EBITA (USD) (EUR) E
BITA margin
180 159 30 27 16.7
182 199 31 34 17.0
42
Q2 03 results per cluster
43
WoltersKluwer
First Half Year Results 2003

• August 12, 2003 - Amsterdam