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2016-05-11

Wolters Kluwer NV: Wolters Kluwer 2016 First-Quarter Trading Update

May 11, 2016 - Wolters Kluwer, a global leader in professional information
services, today released its scheduled 2016 first-quarter trading update.

Highlights

* Full-year 2016 guidance reiterated.
* First-quarter revenues up 2% in constant currencies and up 3% organically.
- Digital&services revenues continue to drive the group's organic growth.
* First-quarter adjusted operating profit margin increased.
* First-quarter adjusted free cash flow increased in constant currencies.
* Net-debt-to EBITDA ratio 1.5x as of 31 March, 2016.

Nancy McKinstry, CEO and Chairman of the Executive Board, commented
:
"Our overall performance in the first quarter was in line with our
expectations and we are on track to achieve our outlook for 2016. We continue
to allocate capital towards our leading growth units and digital products,
with increasing focus on expert solutions that help our professional
customers be more effective and productive in their daily workflow. We also
remain focused on driving efficiencies across the board to help fund our
ongoing program of product innovation."

First Quarter Developments

In the first quarter, revenues increased 2% at constant currencies and 3% on
an organic basis. The effect of divestitures on revenues exceeded the effect
of acquisitions in the first quarter. In reporting currency, revenues rose
3%, reflecting a 1% positive impact on revenues from currency, as the
stronger U.S. Dollar (average EUR/USD 1.10 in the quarter) outweighed
weakness in other currencies. Organic growth was supported by solid momentum
in recurring revenues. Non-recurring revenues, in aggregate, advanced at a
more moderate pace in the first quarter, largely as expected.The quarter saw
deceleration in North America and Asia Pacific&ROW offset by improvement in
Europe. The first-quarter adjusted operating profit margin increased compared
to a year ago, supported by the ongoing shift in business mix, lower
restructuring charges, the results of efficiency programs, and disposals of
certain loss-making units.

Healthachieved good organic growth and increased its adjusted operating profit
margin in the first quarter. Organic growth benefitted from phasing which
will reverse in the second quarter. Clinical Solutions delivered strong
organic growth, led byUpToDate
. Health Learning, Research&Practice performed well on an organic basis,
supported by growth in digital subscription revenues. For the full year, we
continue to anticipate another year of good organic revenue growth for the
division, supported by robust organic growth in Clinical Solutions and a
gradually improving trend in Health Learning, Research&Practice. Margins are
expected to improve slightly even as we continue to invest to drive organic
growth.

Tax&Accountingdelivered modest organic growth, in line with our expectations,
largely reflecting seasonal patterns and timing. Adjusted operating profit
margins declined, in line with our guidance, due to increased product
investment. Growth in software solutions continued to be partly offset by
weakness in print formats, bank products and training, as anticipated. For
the full year, we expect underlying revenue growth to slightly improve from
2015 levels, driven by continued mix shift towards software solutions. The
first half is, however, expected to see slower growth due to seasonal sales
patterns and timing effects. Margins are expected to ease in the first half,
but to be maintained for the full year.

Governance, Risk&Compliancedelivered good organic growth, albeit slower than
in the comparable quarter of 2015. Legal Services (the former Corporate Legal
Services unit excluding CT Lien Solutions) saw recurring subscription
revenues and transaction fees grow at a more moderate pace. Financial
Services (which comprises all units serving financial services customers,
including CT Lien Solutions) also experienced more temperate growth as it
faced challenging comparables related to last year's strong growth in
software implementations and the enactment of the TILA RESPA regulation.
Transport Services saw revenue decline as expected. For the full year, we
continue to expect the division to deliver positive but slower organic
growth, given demanding comparables for transactional and non-recurring
license and implementation fees. The latter effect is expected to be more
pronounced in the second quarter. Full-year margins are expected to improve
slightly.

Legal&Regulatorysaw its rate of organic revenue decline improve compared to
the comparable quarter. Digital solutions grew well, but this performance
was, as expected, more than offset by lower revenues from print formats.
Overall divisional revenues also reflect a number of divestitures completed
in 2015. The divisional adjusted operating profit margin improved due to
lower restructuring costs, operating efficiencies, and certain divestitures.
For the full-year, we continue to expect the division's organic revenue
decline to be similar to 2015, with print trends continuing to outweigh
growth in digital. Organic growth in the first half is expected to benefit
from timing and one-off factors. Full-year margins are expected to improve
due mainly to lower restructuring costs; savings are expected to be
reinvested in wage inflation and increased product investment.

Cash Flow and Net Debt

Cash conversion was broadly stable in the first quarter compared to a year
ago. Adjusted free cash flow increased in constant currencies, mainly as a
result of higher adjusted operating profit. First quarter net acquisition
spending, net of cash acquired, was €8 million. Twelve-months-rolling
net-debt-to-EBITDA was 1.5x at the end of March and remains favorable to
target (2.5x).

In February 2016, we announced a share buyback program for up to €600 million
over three years (2016-2018). As of May 10, a total of 0.3 million ordinary
shares have been repurchased for a total consideration of approximately €10
million.

A final dividend of €0.57 per share was approved at the Annual General Meeting
of Shareholders in April and will be paid in the second quarter. The final
dividend brings the total dividend over the 2015 financial year to €0.75 per
share, an increase of 6% compared to the 2014 dividend. For 2016, the interim
dividend will again be set at 25% of the prior year's total dividend.

Full-Year 2016 Outlook

We reaffirm our full-year 2016 guidance. The table below provides our guidance
for the full-year.

--------------------------------------------------------------------------------
| 2016 Outlook |
| Performance indicators 2016 guidance |
| Adjusted operating profit margin 21.5%-22.0% |
| Adjusted free cash flow €600-€625 million |
| Return on invested capital >9% |
| Diluted adjusted EPS Mid-single-digit growth |
| Guidance for adjusted free cash flow and diluted adjusted EPS is in constant |
|currencies (EUR/USD 1.11). Guidance for EPS growth assumes the announced |
|share repurchases are equally spread over 2016-2018. Adjusted operating |
|profit margin and ROIC are in reported currency. |
--------------------------------------------------------------------------------
Our guidance is based on constant exchange rates. In 2015, Wolters Kluwer
generated more than half of its revenues and adjusted operating profit in
North America. As a rule of thumb, based on our 2015 currency profile, a 1
U.S. cent move in the average EUR/USD exchange rate for the year causes an
opposite change of approximately one and a half euro-cents in diluted
adjusted EPS.

Restructuring costs, which are included in adjusted operating profit, are
expected to start returning to normal levels in 2016: we expect these costs
to be around €15-€25 million in 2016 (2015: €46 million). We expect adjusted
net financing costs of approximately €105 million, excluding the impact of
exchange rate movements on currency hedging and intercompany balances. We
expect the benchmark effective tax rate to return to the range of 27%-28% in
2016. We expect a cash conversion ratio of approximately 95%, with capital
expenditure rising to around 5% of total revenue.

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.

About Wolters Kluwer

Wolters Kluwer is a global leader in information services and solutions for
professionals in the areas of health, tax and accounting, finance, risk and
compliance, and legal. We help our customers make critical decisions every
day by providing expert solutions that combine deep domain knowledge with
specialized technology and services.

Wolters Kluwer reported 2015 annual revenues of €4.2 billion. The group,
headquartered in Alphen aan den Rijn, the Netherlands, serves customers in
over 180 countries, maintains operations in over 40 countries, and employs
approximately 19,000 people worldwide.

Wolters Kluwer shares are listed on 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,
visitwww.wolterskluwer.comand follow us onTwitter, Facebook, LinkedIn, and
YouTube.

Financial Calendar

---------------------------------------------------------------------------
| May 12, 2016 Payment date: 2015 final dividend ordinary shares |
| May 19, 2016 Payment date: 2015 final dividend ADRs |
| July 29, 2016 Half-Year 2016 Results |
| August 29, 2016 Ex-dividend date: 2016 interim dividend |
| August 30, 2016 Record date: 2016 interim dividend |
| September 14, 2016 Payment date: 2016 interim dividend ordinary shares |
| September 21, 2016 Payment date: 2016 interim dividend ADRs |
| November 2, 2016 Nine-Month 2016 Trading Update |
| February 22, 2017 Full-Year 2016 Results |
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| Corporate Communications Investor Relations |
| t + 31 (0)172 641 470 t + 31 (0)172 641 407 |
| press@wolterskluwer.com ir@wolterskluwer.com |
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Forward-looking Statements...

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