Wolters Kluwer Sets Strategy to Accelerate Profitable Growth

| Source: Wolters Kluwer N.V. Wolters Kluwer N.V.

Three-Year Plan Successfully Executed
New Strategy Builds on Established Foundation to Accelerate Profitable Growth
Strategic Alternatives for Education to be Explored
 
Amsterdam (September 27, 2006) - Wolters Kluwer, a leading global information services company and publisher, today outlined its strategy for accelerating profitable growth as its current three-year plan for strengthening and transforming the company nears successful completion. Wolters Kluwer also stated it will explore strategic alternatives for its Education division.
 
Nancy McKinstry, CEO and Chairman of the Executive Board, who is announcing the new strategy at a meeting with investors and financial analysts today, commented: "With our three- year plan near completion, Wolters Kluwer is well positioned to accelerate its growth. We are the leader in key markets, providing a broad range of essential content, software and services to our customers. We will build on these strengths by expanding our core vertical market positions, extending our reach into adjacent customer segments, and leveraging our global scale. I am pleased with the success of our three-year plan and I am confident that our new strategy will continue to deliver superior value to our customers and shareholders."
 
Highlights Include:
 
Results of Current Three-Year Plan Provide Established Foundation:
 
Since 2003, Wolters Kluwer has achieved the goals set out in the three-year plan including:
  • Restoring organic growth across all divisions, from -2% in 2003 to 2-3% by year end 2006; and on track to reach the 4% target in 2007
  • Achieving annual cost savings of €150-160 million in 2007 with the completion of the plan
  • Growing online and software positions significantly, to represent 45% of total revenues in 2006 compared with 31% in 2003
  • Building a deep customer focus and substantial execution capabilities within the organization
  • Strengthening its financial flexibility and balance sheet
  • Delivering superior shareholder value with total shareholder return of 81%[1]
 
Strategy for 2007 and Beyond:
 
Accelerate Profitable Growth:
  •          Grow leading positions in core vertical markets
  •          Capture key adjacent customer and market segments
  •          Exploit global scale and scope
  •          Institutionalize operational excellence
    •  
    Deliver Superior Shareholder Value:
  •          Organic revenue growth beyond 2007 of 4-5%
  •          Double-digit ordinary diluted EPS growth[2] beyond 2007
  •          Return on invested capital exceeding WACC[3] from 2007 onwards
  •          Progressive dividend policy with a proposal to increase the 2006 dividend by 5% to €0.58[4]

    • [1] Performance from October 31, 2003 to August 31, 2006 including dividend reinvestment
    [2] In constant currencies
    [3] Weighted Cost of Capital (WACC) is 8% after tax
    [4] To be proposed to the Annual General Meeting of Shareholders in April 2007
     
     
    The full press release can be downloaded from the following link: 
     

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