Wolters Kluwer Full Year 2003 Results Nancy McKinstry Chairman Executive Board Boudewijn Beerkens Member Executive Board / CFO 8 March 2004 - Amsterdam.

Wolters Kluwer Wolters Kluwer

Full Year 2003 ResultsFull Year 2003 Results

Nancy McKinstry Chairman Executive Board

Boudewijn Beerkens Member Executive Board / CFO

8 March 2004 - Amsterdam

AgendaAgenda

Highlights

Market / Divisional Review

Financials

Divisional 2004 Plans

Outlook & Summary

Q&A

38 March 2004 Full Year 2003 Results

Highlights

New strategy firmly in place

Ordinary net income of € 349 million, -8% in constant currencies (OAP: € 343 million -12% in constant currencies; 1st half 03, -26%)

Revenues €3,436 million; ordinary EBITA €610 million; ordinary EBITA margin 18% (OAP: Revenues € 3,352 million; ordinary EBITA € 601 million)

Strong revenue growth in Canada, Italy, CEE, Spain as well as Tax Compliance, Teleroute and Professional & Education

Significant cost reductions of € 79 vs 2002 million achieved; one third structural

Reduction of 521 ultimo FTEs achieved (organic)

Maintained dividend at € 0.55 for 2003

Ordinary EPS fully diluted of € 1.18 (OAP: € 1.16)


Key Financials 2003 (NAP)

Constant % Currencies

2003 %EUR million

Revenues

Ordinary EBITA

Ordinary EBITA margin %

EBITA margin %

Ordinary Net Income

Ordinary EPS (fully diluted)

Ordinary free Cash flow

3,436

610

18

15

349

1.18

393

3,969

763

19

19

442

1.50

400

(4)

(10)

(8)

2002

(13)

(20)

(21)


Revenue growth*

Ordinary EBITA margin(After exceptional items)

Cash conversion

Ordinary Free Cash Flow

ROIC % **

Ordinary EPS (€)***

Key Operational Measures

Key Financial Measures

0%

18%

15%

109%

2003

€393 mln

7

1.18

Key Performance Indicators

* Excl. divestments ** After Tax *** Fully diluted

-1%

14%

HY 2003

€74 mln

0.42


Restructuring Costs*€ mln

Total Cost Savings

€ mln

Health

Education

16 2

13 18

LTB Europe

LTB North America

45 21

16 23

TOTAL 96* 79

Structural Cost Savings

€ mln

-

-

14

15

29

Restructuring Costs and Savings 2003

Non-core/Corporate 6 13 -

LTB Asia Pacific - 2 -

* Exceptional item

OrganicFTE

Reductions

35

78

137

166

521

60

45

Market / Divisional Review



LTB Europe


LTB Europe

• Growth in revenues and EBITA impacted by disappointing results from UK and the Netherlands

• Overall business affected by weak economic conditions, decline in advertising and lack of major legislation

• Good growth in Central Europe, Italy, Spain, Scandinavia and Teleroute

• Advertising trends (7% of divisional revenues) adversely impacted revenue in France and the Netherlands

• 28% of cluster revenues are electronic

FR16%

TLR5%

I T/ SP16%

GER/ AUS/CEE17%

BEL9%

SC3%

UK14%

NL20%

Revenues (EUR) Ord. EBITA (EUR)Ord. EBITA margin %

1,27920916.3

1,26622818.0

(21)(24)

58 9

(24)(4)

13(19)

Million TotalCurrencyAcquisition/DivestmentOrganic20022003

Change (mln)


LTBE • Online legal database in France, Belgium and Spain have been migrated onto the EIP

• The Symphony project (common chart of account and finance hierarchy) is progressing well and according to plan

• Chief Publishing Officer (CPO) and Chief Services Officer (CSO) roles in all countries have been established

• 137 FTEs were reduced

• Restructuring plans begun in Belgium led to stabilized revenues and improved profitability

• Consolidation into a single financial system progressing well

Belgium

• Launched legal attack plan products; a collection of horizontal law books/CDs and on-line products

Germany

Accomplishments 2003


• Strong organic growth• The competitive position in legal market was

enhanced with the acquisition of Cedam• Successful launch of Giotto; an integrated

payroll/content solution and the tax product BIG was revamped which led to higher new sales and renewal rates

• In the UK, restructuring plans are progressing well as evidenced by stabilized renewal rates

• BTR, our tax flagship product was enhanced and the first business advice module was launched

• New CEO appointed

Italy

UK

• Declines in advertising and non-legal/tax areas impacted overall performance

• Order management system issues were resolved• Won a new three year contract with the Dutch Tax Department

to deliver Knowledge Portal

Netherlands



LTB North America


LTB North America

• Despite challenging economic conditions, good revenue growth was achieved LIS, Tax Compliance and CCH Canada

• Aspen’s business performance has stabilized and systems issues have been fixed

• Stronger year-end renewal performance positioned these units for improved results in 2004

• Electronic sales 46% of cluster revenues

12%

15%

4% 14%

27%

28%

BSIAspen

CCH LIS

CCH Tax Compliance

CCH Canadian

CCH US Publishing

Ord. EBITA margin %

Revenues (USD)(EUR)

Ord. EBITA (USD)(EUR)

1,1581,025

302267

20

2

(202)

(58)

(22)

4

(204)

(52)

1,1601,229

302319

26.1 26.0


Change (mln)


LTB NA• Restructuring executed according to plan; 4 operating

units organized around customer units (into 2 divisions)• Significant cost savings were achieved to improve operating

margin levels to 26% for the full year• 166 FTEs were reduced

• Product line was rationalized to sharpen the focus on legal customers; revenues were reduced by approximately US $40 mln

• Systems-related issues were fixed • Integration with the CCH legal unit going well

• Market share gains driven by strength of software solutions• Extended leading position in the corporate legal market

through the acquisition of TyMetrix, the #1 provider of e-billing services

Aspen

LIS



• Tax Compliance showed strong organic growth (7%)• Launch of the enhanced TRN (Tax Research Network)

product in November further strengthened position in the tax research market

BSI

CCH Tax

• Performance impacted by lack of significant legislation, slow new sales of software and delays in new sales of Patriot Act related products

• Successful launch of Expere; product targeted at the national bank market and won a major contract



LTB Asia Pacific

• Momentum returning to region

• Strong performance from CCH New Zealand; Lawbase

• Successful CCH Australian product; Tax Solution Finder

• Regional shared services group up and running well

• Overall CCH Asia Pacific has strong pricing, new product and pipeline profile


Asia13%

NZ9%

Aus78%

Revenues (AUD)(EUR)

Ord. EBITA (AUD)(EUR)

Ord. EBITA margin %

117671710

14.8

3

-

(1)

-

-

1

2

1

1136515

913.5


Change (mln)


Health


Health• Health division is mid way through a major

restructuring program that began in November 2002

• Overall 2003 performance below expectations due to setbacks in the journal business, a weak advertising market, flat library budgets, and the bankruptcy of European distributor

• The revitalization of core publishing program is achieving good results

• OVID on-line revenues continue to grow through a combination of increased market penetration and usage growth, journal business was challenged by the loss of a major publication

• Weak advertising trends (7% of divisional revenues)

• Electronic sales 30% of cluster revenues

18%33%

8%

41%

Medical Research

Pharma Solutions

Prof. & Education

Clinical Tools

Revenues (USD)(EUR)


Ord. EBITA margin %

75066311710315.6

4

-

(125)

(20)

(9)

(7)

(130)

(27)

74979312313016.4


Change (mln)


Professional & Education

• Solid revenue growth (2%) due to the rejuvenation of core publishing program; e.g. launch of a new journal Nursing Made Incredibly Easy was launched

• Strong market share gains in education

• Usage of Ovid online increased by 22%; with organic growth over 2%

• Strong international sales from customers who added OVID to print subscriptions

• 2 key society wins; the American College of Obstetrics and Gynecology (ACOG) and the American Academy of Medical Colleges

Medical Research

Health • Reorganized business around four major customer segments




• Increase in third party re-print sales impact margin levels • Six new journal titles were launched • The Medical Communications business showed strong

improvement in Europe/ Asia-Pacific with significant gains in new clients

• Completed Medi-Span & Facts and Comparisons integration

• E-facts sales gaining momentum • Launched SkolarMD@OVID

Pharma Solutions

Clinical Tools



Education


Education

• Margins improved by gaining additional operating efficiencies in Belgium and the Netherlands and strong focus on cost control throughout cluster

• Strong management put in place the UK and the Netherlands

• Digital Spirit acquisition, an e-learning company, advanced Education’s growth plans in the educational e-learning and services markets

• Revenue results impacted by tight government spending in Sweden, UK and Germany

Other10%

UK16%

Sweden23%

Germany/ Aus 15%

Netherlands 36%


30254

18.0

31356

17.9

(11)(2)

51

(5)(1)

(11)(2)


Change (mln)


NL

Germany • Digital Spirit performance exceeded expectations• Exiting Austrian co-operative deal; Austria now integrated

into Germany

Education• Significant cost savings achieved• SAP Klopotek implementation well underway• 78 FTEs were reduced

• Q4 organic revenue improved to a large order for Primary Education and stronger Secondary Education sales

• Tight government spending continues



Sweden

Belgium • Strong EBITA improvement level against last year due to tighter operating control by new management

• At Liber Hermods, focus shifting to corporate E-learning; benefiting from the Digital Spirit customer base and products

UK• Moorhouse Black showed strong growth (40%)• New management delivering; product development pipe-

line stronger; sales & marketing receiving greater attention



Non-Core

• Successful divestment of KAP, BSL and ISBW

• Strong focus on cost control which led to significant improvements in margins in the second half of 2003

• Stabilized revenues despite weak advertising trends (21% of revenues)



10010

10.2

30358

19.3

(8)1

(193)(49)

(2) (203)(48)


Change (mln)

Financials

Boudewijn Beerkens Member Executive Board / CFO


Financial Highlights NAP Ordinary net income -8% in constant currencies

Currency effects translation results

Lower financing charges of € 114 mln (2002: € 141 mln) Due to lower interest rates / lower net debt balance

Net debt reduced by 29% from € 2.7 bln to € 1.9 bln

Successful bond buy-back program of € 1.1 bln and new bond issue of € 700 mln

Effective tax rate on ordinary net income 28.6% (27.2% in 2002)

Wolters Kluwer moving closer to IFRS

Positive cash flow and tighter working capital control; Free cash flow of € 393 mln

Stricter policy led to fewer acquisitions


2003 Results NAP

2003 %2002 Constant currencies %

EUR mln

RevenuesOrdinary EBITA- Ordinary EBITA margin %

ExceptionalsEBITA- EBITA margin %

Amortization of intangibles

Financing results

Taxation on incomeNon-consolidated and minority interestResults on divestments (after tax)

Net income

3,96976319.2

-76319.2

(415)(141)

(122)(10)

307

382

(13)(20)

(4)(10)

3,43661017.8

(96)51415.0

(423)(114)

(61)(5)

20

(69)


2003 Results NAP (cont)

Net income


Taxation on amortization

Results on divestments (after tax)

Exceptional items (after tax)

Ordinary Net Income

Ordinary EPS € (fully diluted)

(69)

423

(46)

(20)

61

349

1.18

382

415

(48)

(307)

-

442

1.50


EUR mln

(21) (8)


Wolters Kluwer closer to IFRS

Wolters Kluwer prepares financial statements in accordance with Dutch GAAP

Dutch accounting standards are moving towards IFRS

Wolters Kluwer has implemented changes in Dutch standards in its financial statements 2003, bringing WK closer to IFRS

Year-end 2003 results will include these accounting changes

– RJ 270 (profit and loss accounting, corresponding with IAS 18);

– RJ 271 (employee benefits, corresponding with IAS 19);

– RJ 160 (which relates to post balance sheet events, corresponding with IAS 10).

Equity opening

balance 2003 Revenues

2003 2002

RJ 270 (67) 84RJ 271 (58) - Total 31 84

EUR mln (after tax)

75 -

75

Net Income 2003 2002

9

6

(7)

54

(3) 61RJ 160 156 - - - -


2003 Restatement of results: Marginal impact

2003Old accounting

2003New accounting

EUR mln




Financing results


Net income

3,35260117.9

(96)50515.1

(423)(114)

(58)(5)

20

(75)

3,43661017.8

(96)51415.0

(423)(114)

(61)(5)

20

(69)

RestatementNetting Push Multi Misc.

72-

-

1212

(3)

9

--

-

-(3)

(3)


Consolidated Balance Sheet2003EUR mln 2002

Total fixed assets

Total current assets

Total current liabilities

Working capital

Capital Employed

Shareholders’ equity

Perpetual subordinated bond

Convertible bond

Minority interests

ProvisionsLong term loans

Total Financing

3,299

1,745

(1,353)

392

3,691

861

225

490

3

306

1,806

3,691

4,107

2,054

(1,571)

483

4,590

1,278

225

700

3

394

1,990

4,590


Cash flow from operating activities

610

112

34

2003 EUR mln 2002

763

118

(39)

Ordinary EBITA

Depreciation

Autonomous movements in working capital

Cash flow from operations 756 842

(131)

(109)

(28)

1

(267)

(134)

(106)

(24)

8

(256)

Financing costs

Paid corporate income tax

Appropriation of reorganizing provisions

Other

Cash flow from operating activities 500 575


Cash flow from investments

2003 EUR mln 2002

130796Cash flow surplus

(445)296Cash flow investments

Acquisition spending

Divestment of activities

(300)

30

(97)

500

(147)

(28)

(92)

(15)

Net expenditure fixed assets

Appropriation acquisition provisions



Cash flow from financing

2003 EUR mln 2002

130796Cash flow surplus1

-

43

(92)

(24)

-

23

(616)

(73)

(10)

Exercise of stock options

Swap gains

Movement in long term loans/bonds/debts

Dividend payments

Repurchased shares

(72)(676)Cash flow financing


2003 EUR mln 2002

239

(4)

235

293

(9)

284

Cash and cash equivalents as at Jan. 1

Exchange differences on cash equivalents

400393Free cash flow

58120Net cash flow

293404Cash and cash equivalents as at Dec. 31

Free cash flow


Net expenditure fixed assets (92) (147)

Appropriation of acquisition provisions (15) (28)

(72)(676)Cash flow financing

(445)296Cash flow investments



Currency Translation Impacts Results 2003 NAP

Total organic

Acquisitions

Divestments

In constant currencies

Currency

Total

Revenues Ordinary EBITA

(2) (4)

2 1

(5) (7)

(4) (10) (8)

(9) (10) (13)

(13) (20) (21)

Ordinary Net Incomein %


Exposure management

Goal: to mitigate the effects of exchange rate and interest rate movements on results, balance sheet and cash flow

Identified risks:

- Liquidity risk → Ample headroom, funding at least 1 year in advance

- Interest rate risk → Large part of fixed rate debt reflecting stable business

- Currency risk → Preference for ‘natural’ hedges

- Credit risk → Restrictions on counterparties

Strict policies and governance in place, identified ranges


Bond Buy-Back / New Issue

Tender: Face/nominal value

Senior bond’05 EUR 550 mln: Tender, 69% buy EUR 380 mln

Senior bond’06 EUR 750 mln: Tender, 71% buy EUR 536 mln

Convertible ’06 EUR 700 mln: Tender, 30% buy EUR 210 mln

Total buy back: approx. EUR 1,125 mln

Sources: New senior bond EUR 700 mln Surplus cash EUR 425

mln Total: approx. EUR 1,125 mln

Debt maturity profile

182

732

1.450

227

227

225182

227

227

700

225

704

352

-

200

400

600

800

1.000

1.200

1.400

1.600

2003 2004 2005 2006 2007 2008 2009 2013 2014+

Debt

in E

UR m

lnPre Sting

Post Sting


Acquisitions and Divestments 2003 Stricter policy led to fewer strategic acquisitions:

- Manual Industrial Property - Cedam

- Digital Spirit - TyMetrix

- Atchley - Stanford Skolar

Total acquisition commitment € 115 mln; cash out € 51mln

Annualized revenues € 59 mln

Sales multiplier 1.9

Earn-out deals

3 companies were divested:

- ISBW

- Educational assets of Aspen

- Public Law assets of KLI


Return on invested capital (ROIC)

One of the six key performance indicators

Numerator: Full year ordinary EBITA after tax

Denominator: average invested capital, defined as capital employed adjusted for non-operating items, exceptional items, cash, cumulative goodwill and publishing rights amortization and goodwill charged to equity

The 2004 ROIC effected by additional product development spending

Target 2004

2007 onwards

2003

ROIC

Key Financial Measure

6% ≥ WACC7%


Financial position in good shape to support the new strategy

Prepared for IFRS

No material debt has to be refinanced in 2004

Strong liquidity, reduced net debt and pushed out maturities

Cash flow remains strong asset

Results will to a certain extent remain exposed to currency fluctuations

Divisional Action Plans 2004



Focused on:

• Focus on health/medical market

• Reinforce our leadership in institutional research

• Revitalize the core text and reference business

• Pursue growth in global, pharmaceutical and clinical tools markets

Health Strategy


2004 Plans: Health

Reduce CostsReduce Costs22

Reorganize Reorganize Strengthen sales and marketing33

InvestInvest11

Expand product offerings within clinical tools and pharma Drive penetration and usage of the Ovid online platform Enhance presence in international markets Expand content offerings in nursing and medicine

Expand product offerings within clinical tools and pharma Drive penetration and usage of the Ovid online platform Enhance presence in international markets Expand content offerings in nursing and medicine

Develop shared services in finance and HR Consolidate production, fulfillment and distribution


Example Ovid

Strengthen And Expand Customer Relationships

Value Added ProductsResearchers

Workflow Integration

Value Added ProductsContent Creators

Ovid@Hand

SkolarMD@Ovid

Society Membership Module

Society Portal Creation

MS Office Research Pane

HP Medical Desktop

Pay Per View Access

Paperless Workflow

Peer Review Tracking Software

Portal Toolkit

LinkSolver

Higher Retention Rates

Broader Distribution

Increased Revenue and Profit

OvidResearcher

Article Pre-publication


OVID


Demo


Focused on:

• Strengthen position in corporate legal workflow tools

• Build integrated solutions for banking, brokerage and insurance

• Expand into adjacent markets with banking compliance solutions

• Outsource select technology functions

• Develop shared services for HR and Finance

• Streamline/automate service fulfillment workflows

Corporate & Financial Services Strategy


2004 Plans: Corporate & Financial Services

Reduce CostsReduce Costs22

Reorganize Reorganize 33

InvestInvest11

CFS Investor / Analyst Day – 27th of April, 2004 New York

Migrate to hybrid offshore development model Implement new contact management system to support Expere Drive data center consolidation

Migrate to hybrid offshore development model Implement new contact management system to support Expere Drive data center consolidation

Reorganize into customer-facing units Improve marketing and selling effectiveness Integrate new products transferred from CCH business with LIS

and BSI units

Reorganize into customer-facing units Improve marketing and selling effectiveness Integrate new products transferred from CCH business with LIS

and BSI units

Continue development of integrated compliance and practice management suite (e.g. hCue) for corporate law market

Complete development of Expere integrated loan compliance system for large bank market

Develop next generation of end to end solutions in banking, insurance and securities compliance

Integrate TyMetrix e-billing with CT representation services

Continue development of integrated compliance and practice management suite (e.g. hCue) for corporate law market

Complete development of Expere integrated loan compliance system for large bank market

Develop next generation of end to end solutions in banking, insurance and securities compliance

Integrate TyMetrix e-billing with CT representation services


Tax & Accounting Strategy

Focused on:

• Expand #1 market position by:

• Delivering integrated content solutions

• Continuing to build out software suites (e.g launch of Client Write Up)

• Upgrading publishing platform (TRN)

• Extend publishing content in accounting market and improve software position within State Tax Group

• Reduce the cost base by moving to shared services for support functions, streamlining technology platforms and leveraging off-shore development


2004 Plans: Tax & Accounting

Reduce CostsReduce Costs Outsource select technology functions Develop shared services in Finance and HR (with CLS unit) Drive data center consolidation

22

Reorganize Reorganize 33

InvestInvest11

Enhance publishing platform (TRN) throughout 2004 and build next generation delivery platform to achieve one common, global system

Improve state tax software product through enhancements and partnerships

Launch new tax and accounting content and additional software modules (e.g. business valuation)

Increase sales coverage

Enhance publishing platform (TRN) throughout 2004 and build next generation delivery platform to achieve one common, global system

Improve state tax software product through enhancements and partnerships

Launch new tax and accounting content and additional software modules (e.g. business valuation)

Increase sales coverage

Complete reorganization of division Combine Aspen accounting unit with Tax Integrate tax research and publishing units


Legal Strategy

Focused on:

• Re-energize the core business

• Continue stabilization of Aspen

• Increase sales and marketing to support existing products

• Launch key integrated libraries (CCH and Aspen content)

• Accelerate development of electronic product offerings

• Refocus Loislaw as value leader

• Reduce cost base through shared services and combined Aspen / CCH fulfillment


2004 Plans: Legal

Reduce CostsReduce Costs Develop shared services in Finance and HR (with CLS unit)

Drive data center consolidation Develop integration plan for combined CCH/Aspen

fulfillment

22

Reorganize Reorganize Complete Integration of CCH and Aspen33

InvestInvest11

Increase sales and marketing to support existing products Launch key integrated libraries (CCH and Aspen content) Continue the focus of of Aspen on the legal market

Increase sales and marketing to support existing products Launch key integrated libraries (CCH and Aspen content) Continue the focus of of Aspen on the legal market


ProSystems


Demo


Legal, Tax & Regulatory Europe Strategy

Focused on:

• Improve operating performance in UK and Netherlands; continue implementation of restructuring plan in Belgium

• Grow online products and software tools across all core markets

• Expand the European Internet Platform

• Develop shared back-office services


Reduce CostsReduce Costs

Achieve SAP milestones Extend Mercury (purchasing, production efficiencies) to

other countries Develop more aggressive restructuring plan in Netherlands

22

Reorganize Reorganize Strengthen management team selectively Complete reorganization and rationalization of sales and

marketing approach in UK33

InvestInvest11 Develop and execute market expansion plans in France,

Germany, Italy Accelerate of the European Internet Platform (EIP)

implementation plan Extend product offering in software tools with tax markets

Develop and execute market expansion plans in France, Germany, Italy

Accelerate of the European Internet Platform (EIP) implementation plan

Extend product offering in software tools with tax markets

2004 Plans: Legal, Tax & Regulatory Europe


Education Strategy

Focused on:

• Reinforce text book publishing leadership position

• Expand market share by investing and marketing blended learning solutions (e.g. mixed media)

• Pursue growth in adjacent markets (e.g. e-learning)

• Develop shared back-office services


Reduce Costs Right size in country operations Achieve €15 million reduction in cost base

(2003-2006) Develop additional shared back office opportunities

Right size in country operations Achieve €15 million reduction in cost base

(2003-2006) Develop additional shared back office opportunities

22

Reorganize 33

Invest11

Drive product development, sales and marketing to increase market share as as new curriculum is adopted

Increase launch of integrated packages (books plus

ICT components) and move to value pricing Extend success with Digital Spirit and Moorhouse Black

within division

Drive product development, sales and marketing to increase market share as as new curriculum is adopted

Increase launch of integrated packages (books plus

ICT components) and move to value pricing Extend success with Digital Spirit and Moorhouse Black

within division

2004 Plans: Education

Continue to strengthen sales and marketing Continue to strengthen sales and marketing


Revenue growth*

Ordinary EBITA margin(After exceptional items)

Cash conversion

Ordinary Free Cash Flow

ROIC % **

Ordinary EPS***

Key Operational Measures

Key Financial Measures

0-1%

14-15%

13-14%

85-95%

Target 2004

€ 150 -200 mln

6%

€ 0.99

3-4%

19-20%

85-90%

2007 onwards

> €300 mln

WACC

> € 1.40

Outlook - Key Performance Indicators

0%

18%

15%

109%

2003

€393 mln

7%

€ 1.18 * Excl. divestments ** After Tax *** Fully diluted WACC is currently 8% after tax At constant currencies


Market Environment & Trading Conditions

Reiterate outlook given on October 30th

Positive 4th quarter trends seen in North America are continuing

Health is positioned to have a stronger 2004

Strong front list and new titles from Professional & Education

Journal wins; American College of Obstetrics and Gynecology (ACOG) and the American Academy of Medical Colleges

Sales momentum of eFacts, SkolarMD@OVID and other clinical tools

Trading conditions LTR Europe unchanged

Legislative activity remains low in Germany and the Netherlands

Weak advertising and business consulting

Education, while still facing tight government budgets, is poised to see positive trend from new curriculum adoptions

SummarySummary

Progress in line with expectations

First year of three-year plan set out in October 2003

Further capitalizing on valuable market positions

Healthy free cash flow

Balance sheet strengthened to support future growth

Overall confidence; sound medium and long-term prospects

The Professional’s First ChoiceProvide information, tools and solutions to

help professionals make their most critical decisionseffectively and improve their productivity

The Professional’s First ChoiceProvide information, tools and solutions to

help professionals make their most critical decisionseffectively and improve their productivity

AppendixAppendix

Publication Annual Report – April 6

CFS Investor/Analyst Day - April 27, New York

Q1 Results – May 13, conference call

Half Year Results – August 10, presentation

Q3 Results – November 17, conference call

CalendarCalendar


Key Financials 2003 OAP

Constant % Currencies

2003 %EUR million

Revenues

Ordinary EBITA

Ordinary EBITA margin %

EBITA margin %

Ordinary Net Income

Ordinary EPS before amortization of

intangibles, and exceptionals (fully diluted)

Ordinary free Cash flow

3,352

601

18

15

343

1.16

393

3,895

777

20

17

453

1.52

400

(5)

(13)

(12)

2002

(14)

(23)

(24)


2003 Results OAP


EUR mln




Financing results


Net income

3,35260117.9

(96)50515.1

(423)(114)

(58)(5)

20

(75)

3,89577720.0

(98)67920.5

(415)(141)

(88)(10)

303

328

(14)(23)

(5)(13)


2003 Results OAP (cont)

Net income


Taxation on amortization

Results on divestments (after tax)

Exceptional items (after tax)

Ordinary Net Income

Ordinary EPS € (fully diluted)

(75)

423

(46)

(20)

61

343

1.16

328

415

(48)

(303)

61

453

1.52


EUR mln

(24) (12)


Currency Translation Impacts Results 2003 OAP

Total organic

Acquisitions

Divestments

In constant currencies

Currency

Total

Revenues Ordinary EBITA

(2) (7)

2 1

(5) (7)

(5) (13) (12)

(9) (10) (12)

(14) (23) (24)

Ordinary Net Incomein %


Q4 2003 Performance OAP

LTB Europe

LTB North America

Ord. EBITA margin %

Revenues (USD)(EUR)


33428311195

2

1

(57)

(19)

(1)

(4)

(56)

(22)

337339114117

33.1 33.8

Million TotalCurrencyAcquisition/DivestmentOrganicQ402Q403

Change (mln)


37885

22.6

37791

24.2

(10)(7)

17 2

(6)(1)

1(6)


Change (mln)


LTB Asia Pacific

Health

Revenues (AUD)(EUR)


Ord. EBITA margin %

2917

64

21.4

-

-

-

-

1

1

1

1

2916

53

16.4


Change (mln)

Revenues (USD)(EUR)


Ord. EBITA margin %

1951644438

22.5

-

-

(34)

(8)

-

4

(34)

(4)

1971984142

20.7


Change (mln)



Education

Non-Core


47(1)(2)

46(3)(7)

(2)2

41

(1)(1)

12


Change (mln)


3313

38.8

8523

27.3

(4)3

(48)(13)

--

(52)(10)


Change (mln)



Performance 2003 OAP

LTB Europe

LTB North America


1,27121516.9

1,25823418.6

(21)(23)

58 8

(24)(4)

13(19)


Change (mln)

Ord. EBITA margin %

Revenues (USD)(EUR)


1,123993282249

20

2

(197)

(55)

(44)

(24)

(221)

(77)

1,1471,214

308326

25.1 26.8


Change (mln)


LTB Asia Pacific

Health


Revenues (AUD)(EUR)


Ord. EBITA margin %

117671710

14.8

3

-

(1)

-

-

1

2

1

1136515

913.5


Change (mln)

Revenues (USD)(EUR)


Ord. EBITA margin %

71363011710316.4

3

-

(124)

(21)

2

(7)

(119)

(28)

70875012313117.4


Change (mln)


Education

Non-Core



29156

19.2

30056

18.7

(10)-

51

(4)(1)

(9)0


Change (mln)


10011

10.9

30958

18.9

(14)2

(193)(49)

(2)-

(209)(47)


Change (mln)


2%6%

10%13% 13%

20%

18%

25%

16%

16%

17%

17%

1999 2000 2001 2002 2003 2006E

Internet Other Electronic

Electronic Revenues 31% of Total

18%

22%

27%

30%

45%

31%


Electronic Revenues

Internet/ On-line

CD-ROM

Electronic

65

293

358

5

23

28

64

254

318

5

20

25

LTB Europe (EUR mln) 2003 %2002%

Internet/On-line

CD-ROM

Electronic

245

271

516

22

24

46

227

279

506

20

24

44

LTB NA (USD mln) 2003 %2002%


Electronic Revenues

Internet/On-line

CD-ROM

Electronic

14

19

33

12

16

28

9

26

35

8

23

31

LTB AsiaPacific(AUDmln) 2003 %2002%

Internet/On-line

CD-ROM

Electronic

157

54

211

22

8

30

138

77

215

20

11

31

Health (USD mln) 2003 %2002%


Electronic Revenues

Internet/On-line

CD-ROM

Electronic

15

5

20

5

2

7

14

6

20

5

2

7

Education (EUR mln) 2003 %2002%


Key Performance Indicators

Revenue growthGrowth in revenues over a period with respect to the previous comparable period (includes impact of organic growth, acquisitions and divestments and currency movements, unless specifically denominated “in constant currencies”)

Ordinary EBITA EBITA before exceptional items such as results on divestments and exceptional reorganization provisions

Ordinary EBITA marginOrdinary EBITA as a % of revenues

Cash conversionCash flow from operations less net expenditure on fixed assets divided by Ordinary EBITA

Free cash flowCash flow from operating activities, less the net expenditure on fixed assets and the release/appropriation of acquisition provisions

ROIC (Return on Invested Capital)Full year Ordinary EBITA after estimated allocated tax, divided by average invested capital, defined as capital employed adjusted for non-operating items, exceptional items, cash, cumulative goodwill and publishing rights amortization and goodwill charged to equity

Ordinary EPS fully dilutedOrdinary net income plus interest adjustment divided by the fully diluted weighted average number of shares

Wolters Kluwer Full Year 2003 Results Nancy McKinstry Chairman Executive Board Boudewijn Beerkens Member Executive Board / CFO 8 March 2004 - Amsterdam.

Documents

ebita eur

ltb europe slide

divisional revenues

amsterdam slide

disappointing results

place ordinary net income

stabilized revenues

cluster revenues