Wolters Kluwer First-Quarter 2020 Trading Update

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Wolters Kluwer First-Quarter 2020 Trading Update

May 6, 2020 – Wolters Kluwer, a global leader in professional information, software solutions, and services, today releases an update on first-quarter 2020 trading and the impact of COVID-19.

Highlights

• 2020 guidance suspended due to uncertainty caused by the impact of COVID-19.
  • Recurring revenues (approximately 80% of annual revenues) expected to show resilience.
  • Non-recurring revenues expected to see weaker trends in current market conditions.
• First-quarter revenues up 3% in constant currencies and up 4% organically.
  • Recurring revenues (82%) rose 5% while non-recurring revenues declined 2% organically.
  • Digital & services revenues (93%) grew 5% while print revenues declined 13% organically.
• First-quarter adjusted operating profit margin increased by 110 basis points.
• First-quarter adjusted free cash flow declined 9% in constant currencies.
• Strong balance sheet and liquidity position.
  • Twelve months’ rolling net-debt-to-EBITDA ratio 1.5x as of March 31, 2020.
  • Cash-on-hand and undrawn credit facility amply cover our funding needs.
• Final dividend for 2019 approved by shareholders and to be paid on May 20, 2020.
• 2020 share buyback of up to €350 million maintained.
  • €125 million completed in the year through May 5, 2020.
  • Pace of buybacks to be slowed: mandate for €50 million in buybacks for next three months.

Nancy McKinstry, CEO and Chairman of the Executive Board, commented: “As we navigate the disruption caused by the spread of COVID-19, Wolters Kluwer has been focused on the health and well-being of its employees and on providing solutions and support to our customers around the world. Our employees have shown tremendous dedication, ingenuity, and agility and I would like to thank them for their hard work and commitment. Our first quarter results saw limited impact from COVID-19, but given current uncertain market conditions, we feel it is appropriate to suspend our specific 2020 guidance until we have greater clarity on the sales environment and on revenue trends. We have initiated plans to mitigate the impact of COVID-19 with expense reductions, while protecting jobs and key product and strategic investments. We start from a strong financial position and are confident we can weather the economic disruption while focusing on achieving our longer-term strategic goals.”