Earnings Release • Jul 27, 2011
Earnings Release
Open in ViewerOpens in native device viewer
Alphen aan den Rijn (July 27, 2011) - Wolters Kluwer, a market-leading global information services company focused on professionals, today released its 2011 half-year results. Highlights include strong operating performance, a strategic re-focusing of the Health & Pharma Solutions division, and reiterated outlook for 2011.
The information in this press release is based on continuing operations, excluding the planned divestment of the pharma business, unless stated otherwise.
| Six months ended June 30 | 2011 | 2010 | ∆ | ∆ CC | ∆OG |
|---|---|---|---|---|---|
| Revenue (€ millions) Electronic and services revenue (% of |
1,619 | 1,605 | 1% | 3% | 1% |
| total) | 72% | 70% | |||
| Ordinary EBITA (€ millions) | 325 | 324 | 0% | 3% | 1% |
| Ordinary EBITA margin (%) | 20.1% | 20.2% | |||
| Ordinary net income (€ millions) | 196 | 190 | 3% | 1% | |
| Diluted EPS (€) | 0.39 | 0.44 | (11%) | (15%) | |
| Diluted ordinary EPS (€) | 0.65 | 0.63 | 2% | (1%) | |
| Free cash flow (€ millions) | 131 | 171 | (23%) | (22%) |
∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the performance: "I am encouraged with the considerable progress made during the first half year. Strong growth in online, software, and services is accelerating our revenue growth and supports the successful transformation of our business. Underlying trends in new sales and retention levels are improving in all geographies.
Today, we announced the planned divestment of our pharma business. The Health division will focus on taking full advantage of our leading positions in professional information and clinical decision support solutions, one of the fastest growing areas of Health, to deliver enhanced value to our stakeholders.
With these strategic changes and our first half-year results, we are confident that we will deliver on our expectations for the full year."
| (All amounts are in millions of euros unless otherwise indicated) | ||||
|---|---|---|---|---|
| ------------------------------------------------------------------- | -- | -- | -- | -- |
| Six months ended June 30 | 2011 | 2010 | ∆ | ∆ CC | ∆ OG |
|---|---|---|---|---|---|
| Revenues | |||||
| Legal & Regulatory | 695 | 704 | (1%) | 0% | 0% |
| Tax & Accounting | 467 | 474 | (2%) | (1%) | (1%) |
| Health & Pharma Solutions | 295 | 284 | 4% | 9% | 6% |
| Financial & Compliance Services | 162 | 143 | 14% | 17% | 3% |
| Total revenues | 1,619 | 1,605 | 1% | 3% | 1% |
| Ordinary EBITA | |||||
| Legal & Regulatory | 136 | 131 | 4% | 6% | 4% |
| Tax & Accounting | 129 | 137 | (6%) | (6%) | (6%) |
| Health & Pharma Solutions | 51 | 47 | 9% | 19% | 16% |
| Financial & Compliance Services | 29 | 30 | (4%) | 0% | 0% |
| Corporate | (20) | (21) | (4%) | (4%) | (4%) |
| Total ordinary EBITA | 325 | 324 | 0% | 3% | 1% |
∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
Revenues grew 3% in constant currencies to €1,619 million, with organic growth of 1% (HY 2010: 0%). Legal & Regulatory revenues were in line with HY 2010, with organic growth improving markedly from -3% organic growth at HY 2010 led by strong results in North America. Tax & Acccounting revenues fell 1% organic, impacted by the restructuring of bank product revenue (2% of annual division revenues), which is expected to shift revenues into the second half year. Health & Pharma Solutions revenues grew by 9% in constant currencies (6% organic), driven by strong growth at Ovid and double-digit growth in Clinical Solutions. Financial & Compliance Services' revenue growth of 17% (3% organic) was supported by doubledigit growth in Audit, Risk, and Compliance (ARC Logics), strong performance from banking and compliance products, and global expansion through the acquisition of FRSGlobal. Emerging market results are advancing, with revenues in China growing with strong double-digit numbers.
Ordinary EBITA improved 3% in constant currencies to €325 million. The company improved profitability by the continued shift towards higher margin electronic solutions, diligent cost management, and the impact of the Springboard operational excellence program.
The Springboard operational excellence program continued to deliver positive results. Half-year cost savings of €88 million position the program to meet its full-year run rate savings estimate of €170-€180 million. Total costs incurred during the period were €30 million.
Diluted ordinary EPS increased 2% to €0.65 (HY 2010: €0.63). Net finance costs were €59 million and the effective tax rate was 26%, both in line with expectations. The fully diluted weighted average number of shares increased from 300.3 million to 302.8 million, due to the stock dividend and incentive shares, partially offset by the impact of the share buy-back (2.1 million shares purchased in the first half year 2011 for a total consideration of €35 million).
The planned divestment results in a non-cash impairment charge of €106 million which is reported as part of Result from discontinuing operations, after tax.
Free cash flow was €131 million, (HY 2010: €171 million), impacted by higher tax payments and the timing of tax refunds when compared against the first half of 2010.
The net-debt-to-EBITDA ratio was 3.0 (HY 2010: 2.9), with the dividend payment, share buy-back program, and acquisitions occuring in the first half year, against cash flow which is heavily weighted in the fourth quarter. The Company maintains a medium-term objective of achieving a net-debt-to-EBITDA ratio of 2.5. Prior year debt refinancing at attractive rates extended the maturity profile beyond 2014, ensuring a strong liquidity position and sufficient headroom.
| Performance indicators | 2011 Guidance |
|---|---|
| Ordinary EBITA margin | 20.5-21.0% |
| Free cash flow2) | ≥ €425 million |
| Return on invested capital | ≥ 8% |
| Diluted ordinary EPS2) 3) | €1.50 to €1.55 |
1) Based on total Wolters Kluwer, including pharma business.
2) In 2011 constant currencies (EUR/USD = 1.33)
3) Assumptions: financing costs: €130 million; effective tax rate: 26%; diluted weighted average number of shares: 307 million excluding impact of share buy-back.
A solid start to the year reinforces the Company's confidence in its 2011 full-year outlook. Management continues to expect good growth in software and workflow solutions to outweigh challenges in print-based publishing and cyclical revenue sources such as training, consulting, and advertising. Geographically, the Company continues to expect that markets in North America and Asia will continue to improve, while the pace of European market recovery is expected to be slow.
Improving margins will be underpinned by the migration of revenues to more profitable electronic products, ongoing stringent cost management, and the continuing contribution of the Springboard program. As in prior years, management will continue to invest approximately 8-10% of revenues in new products and platforms to drive future growth.
The contribution from the discontinuing operations is expected to have the following impact on full-year pro-forma results for the continuing business: improved ordinary EBITA margin of approximately 100 basis points and reduced diluted ordinary EPS and free cash flow of approximately 2-3% and 3%, respectively.
Legal & Regulatory
(All amounts are in millions of euros unless otherwise indicated)
| Six months ended June 30 | 2011 | 2010 | ∆ | ∆ CC | ∆ OG |
|---|---|---|---|---|---|
| Revenues | |||||
| Electronic & service subscription | 299 | 302 | (1%) | 1% | (1%) |
| Print subscription | 156 | 165 | (6%) | (6%) | (6%) |
| Other non-cyclical | 25 | 25 | 0% | 1% | 14% |
| Total recurring revenues | 480 | 492 | (3%) | (1%) | (2%) |
| CLS transactional | 74 | 66 | 12% | 17% | 17% |
| Books | 56 | 61 | (8%) | (8%) | (8%) |
| Other cyclical | 85 | 85 | 0% | 1% | 3% |
| Total Revenues | 695 | 704 | 0% | 0% | 0% |
| Operating profit | 90 | 93 | |||
| Ordinary EBITA | 136 | 131 | 4% | 6% | 4% |
| Ordinary EBITA margin | 19.6% | 18.6% | |||
| Net capital expenditure (CAPEX) | 16 | 19 | |||
| Ultimo FTEs | 7,684 | 7,978 |
∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
Division revenues of €695 million were in line with HY 2010 in constant currencies, with the organic trend improving from -3% at HY 2010 to 0% in HY 2011. Subscription revenue (69% of division revenues) benefitted from improved retention rates and increased new sales levels. Online revenues posted 9% organic growth driven by product innovation. These results were offset by ongoing pressure on print-based revenues across the division. The rate of subscription print decline did abate compared with prior year, reflecting improved retention levels.
North American revenues, which constitute 38% of the division's revenues, grew 5% organically. These results were fueled by sustained recovery of the corporate market, with Corporate Legal Services (CLS) posting 8% organic growth, driven by increased volumes of corporate and lending transactions and strong performance from TyMetrix and Corsearch. Transactional revenue across the unit saw organic growth of 17%. In June, CLS announced the acquisition of NRAI, subject to regulatory approval, a leading provider of registered agent and corporate services.
Law & Business saw positive growth in the U.S., driven by 6% growth in online revenues, improved retention, and strong performance in Legal Education. This performance was largely offset by continued declines in print products. Europe declined 3%, impacted by the pace of market recovery, which continued to pressure print and cylical product lines and new sales, although the underlying trend is improving in most countries.
Despite measured market recovery, the division's ordinary EBITA margin improved to 19.6% (HY 2010: 18.6%), reflecting the contribution of higher margin electronic solutions, improved growth in the CLS business, stringent cost management, and the contribution from Springboard initiatives. Strong profitability from this division continues to fuel growth investments across the business.
Looking forward: For the remainder of the year, the Company expects conditions to remain solid in the U.S., with strong volumes of corporate and lending transactions at CLS continuing and with measured improvements expected in the broader legal markets. Continued investment in higher value online and software solutions is expected to fuel growth, while the rate of print decline is expected to remain stable.
| Six months ended June 30 | 2011 | 2010 | ∆ | ∆ CC | ∆ OG |
|---|---|---|---|---|---|
| Revenues | |||||
| Electronic & service subscription | 282 | 275 | 3% | 4% | 3% |
| Print subscription | 46 | 50 | (8%) | (7%) | (7%) |
| Other non-cyclical | 98 | 105 | (7%) | (6%) | (6%) |
| Total recurring revenues | 426 | 430 | (1%) | 0% | 0% |
| Books | 21 | 24 | (13%) | (10%) | (10%) |
| Other cyclical | 20 | 20 | 0% | (2%) | (3%) |
| Total revenues | 467 | 474 | (2%) | (1%) | (1%) |
| Operating profit | 89 | 102 | |||
| Ordinary EBITA | 129 | 137 | (6%) | (6%) | (6%) |
| Ordinary EBITA margin | 27.6% | 28.9% | |||
| Net capital expenditure (CAPEX) | 18 | 18 | |||
| Ultimo FTEs | 5,570 | 5,481 |
(All amounts are in millions of euros unless otherwise indicated)
∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
Tax & Accounting revenues declined 1% organically to €467 million in the first half year (HY2010: €474 million). Half-year results were impacted by a change in the composition and phasing of bank products sales (approximately 2% of annual division revenues), which was reflected in revenues from the small firm segment in North America. As a result of structural changes to its bank product line, revenues are expected to be more heavily weighted towards the second half of the year, positively impacting noncyclical revenues for the full year. Excluding bank product sales, divisional organic growth was approximately 2%, with 6% growth in global software.
North American revenues, which constitute 65% of the portfolio, grew 3% organically (excluding bank products). This performance was supported by strong growth in software solutions and a record year of tax return e-filings, which increased nearly 12% year-over-year. European revenues were materially in line with 2010, as software revenue growth of 5% was offset by declines in print and cyclical activities such as training and advertising, particularly in the Netherlands.
The division also extended its footprint through two acquisitions that deliver cutting edge tax technology solutions in the tax and accounting markets. TopPower, a Belgium based provider of tax and accounting software was acquired in May 2011. In the Netherlands, the division acquired Twinfield, a pioneer and market leader in SaaS accounting software.
Ordinary EBITA declined 6% to €129 million, with an ordinary EBITA margin of 27.6% (2010: 28.9%). Positive contribution of high-margin software revenue growth, improving retention rates, and the contribution from Springboard initiatives were more than offset by the bank product restructuring.
Looking forward: In the second half year, performance for the division is expected to be driven by strong growth of tax and accounting software in all geographies, solid retention in subscription products, and a recovery of bank product revenue following restructuring. For the full year, management expects divisional organic revenue growth to be better than 2010 levels.
| Six months ended June 30 | 2011 | 2010 | ∆ | ∆ CC | ∆ OG |
|---|---|---|---|---|---|
| Revenues | |||||
| Electronic & service subscription | 153 | 135 | 13% | 19% | 12% |
| Print subscription | 38 | 43 | (12%) | (7%) | (7%) |
| Other non-cyclical | 16 | 13 | 23% | 37% | 37% |
| Total recurring revenues | 207 | 191 | 8% | 15% | 10% |
| Books | 59 | 63 | (6%) | (1%) | (1%) |
| Other cyclical | 29 | 30 | (4%) | (2%) | (2%) |
| Total revenues | 295 | 284 | 4% | 9% | 6% |
| Operating profit | 36 | 35 | |||
| Ordinary EBITA | 51 | 47 | 9% | 19% | 16% |
| Ordinary EBITA margin | 17.3% | 16.5% | |||
| Net capital expenditure (CAPEX) | 16 | 16 | |||
| Ultimo FTEs | 2,365 | 1,913 |
All amounts are in millions of euros unless otherwise indicated)
∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
The Health & Pharma Solutions division had a strong first half year. Revenues grew 9% in constant currencies (6% organic) to €295 million, supported by 12% organic growth in electronic and service subscriptions, with strong contributions from Clinical Solutions and Ovid online products.
At Medical Research, Ovid grew 7% organically driven by new product launches and strong international sales. These results were partially offset by the declines in print journals. In May, the unit launched OvidMD, a clinical tool designed especially for physicians.
Clinical Solutions delivered strong double-digit organic growth driven by UpToDate, ProVation Medical, and the drug information product lines. The unit also strengthened its position in the growing point-of-care market with two strategic transactions. In January, the divsion entered into a joint venture with Chinese drug information provider Medicom, expanding its clinical decision support and drug information business into the rapidly growing China market. In May, Lexicomp, a leading global drug information provider, was acquired bringing the division's clinical solutions products to over 500,000 pharmacists and clinicians in 149 countries.
Ordinary EBITA grew 16% organically to €51 million with the ordinary EBITA margin rising to 17.3% (HY 2010: 16.5%). These results reflect the solid flow-through of revenue growth to profitability, the positive impact from higher margin electronic products, and Springboard cost savings.
Looking forward: The Company expects continued strong growth in electronic products, spearheaded by the Clinical Solutions business and Ovid. Given the strong sales noted at the close of the quarter, the growth rate for the division is expected to normalize over the course of the year while continuing to exceed prior year levels. The strength of the portfolio and product mix is expected to improve ordinary EBITA margin through the year.
| Six months ended June 30 | 2011 | 2010 | ∆ | ∆ CC | ∆ OG |
|---|---|---|---|---|---|
| Revenues | |||||
| Electronic & service subscription | 86 | 71 | 21% | 24% | 6% |
| Print subscription | 2 | 2 | 27% | 13% | 13% |
| Other non-cyclical | 10 | 5 | 85% | 83% | 31% |
| Total recurring revenues | 98 | 78 | 26% | 28% | 8% |
| FS transactional | 27 | 24 | 11% | 14% | 14% |
| Other cyclical | 37 | 41 | (9%) | (4%) | (13%) |
| Total revenues | 162 | 143 | 14% | 17% | 3% |
| Operating profit | 12 | 17 | |||
| Ordinary EBITA | 29 | 30 | (4%) | 0% | 0% |
| Ordinary EBITA margin | 17.8% | 21.0% | |||
| Net capital expenditure (CAPEX) | 4 | 6 | |||
| Ultimo FTEs | 2,024 | 1,678 |
(All amounts are in millions of euros unless otherwise indicated)
∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
Divisional revenues grew 17% in constant currencies to €162 million, driven by 3% organic growth and a significant contribution from acquisitions, most notably FRSGlobal. Growth was supported by 8% organic growth in recurring revenues as customers adoption of compliance software solutions remained strong. Electronic, software, and services revenues now represent 92% of divisional revenues.
The core financial services unit (70% of division revenues) delivered 7% organic growth fueled by strong performance in mortgage document services and risk and compliance product lines. Audit, Risk, and Compliance (ARC Logics; 11% of division revenues) also had a strong half year, posting double-digit organic growth and pushing expansion across international markets. This result was partially offset by lower volumes in the Transport Services business (19% of division revenues).
Global expansion remains central to the divisional growth strategy, and contributed to 40% growth outside of the U.S. in the first half-year. ARC Logics for Financial Services expanded its enterprise risk management offering to the European marketplace, while FRSGlobal grew its customer base, particularly in Asia.
Ordinary EBITA was in line with 2010, with an ordinary EBITA margin of 17.8% (HY 2010: 21.0%) impacted by the lower transaction volumes at Transport Services and the phasing of investments to expand global leading positions.
Looking forward: It is expected that the division's growth in 2011 will be supported by stable lending volumes in the U.S., continued adoption of the ARC Logics product suite, and rapid global expansion through its recent acquisition, FRSGlobal. This will be tempered by continued weakness in the volumes that support the transport business. Due in part, to the phasing of investments that support international expansion, the Company expects margins to improve through the course of the second half year.
| (All amounts are in millions of euros unless otherwise indicated) | |||||
|---|---|---|---|---|---|
| Six months ended June 30 | 2011 | 2010 | ∆ | ∆ CC | ∆ OG |
| Operating profit | (21) | (21) | |||
| Ordinary EBITA | (20) | (21) | (4%) | (4%) | (4%) |
| Net capital expenditure (CAPEX) | 0 | 0 | |||
| Ultimo FTEs | 102 | 93 |
∆ - % Change; ∆ CC - % Change constant currencies (EUR/USD 1.33); ∆ OG – % Organic growth
This report contains the condensed consolidated interim financial report of Wolters Kluwer nv ('the Company'), a company with limited liability, headquartered in Alphen aan den Rijn, the Netherlands.
The condensed consolidated interim financial report for the six months ended June 30, 2011, consists of the interim report of the Executive Board, the condensed consolidated interim financial statements, and the statement by the Company's Executive Board.
The condensed consolidated interim financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2010.
The content of this condensed consolidated interim financial report has not been audited or reviewed by an external auditor.
Strong product innovation and a broadening geographic footprint continue to build the strength of the portfolio. Subscription-based revenue momentum is building, with total recurring revenues now accounting for 75% of total revenues. In addition, the strategic changes the Company is making in the Health & Pharma Solutions portfolio improve the focus on leading positions and enhance the growth profile of the business. The combination of these changes and the first half-year results support the Company's confidence to reiterate guidance of better top and bottom-line performance as the Company builds towards 2012.
The Company continues to expect good growth in software and workflow solutions to outweigh challenges in print-based publishing and cyclical revenue sources such as training, consulting, and advertising. Geographically, the Company continues to expect that markets in North America and Asia will continue to improve, while the pace of European market recovery is expected to be slow.
Today, the Company announced its planned divestment of its pharma business. These businesses are presented as discontinuing operations. In connection with its planned divestment, the Company recorded a non-cash impairment of €106 million, which is presented as part of results from discontinuing operations, after tax.
| Six months ended June 30 | |||||
|---|---|---|---|---|---|
| 2011 | 2010 | ∆ | ∆ CC | ∆ OG | |
| Revenue | 1,619 | 1,605 | 1% | 3% | 1% |
| Electronic & services revenue (% of | |||||
| total) | 72% | 70% | |||
| Operating profit | 206 | 226 | (8%) | (6%) | |
| Diluted EPS | 0.39 | 0.44 | (11%) | (15%) |
(All amounts are in millions of euros and from continuing operations unless otherwise indicated)
Revenues grew 3% in constant currencies to €1,619 million, with organic growth of 1% (HY 2010: 0%). Growth was supported by strong product development efforts which fueled 3% organic growth in electronic and service subscriptions. As expected, the rate of decline for print subscriptions began to moderate, as customers continue to adopt online solutions and economic conditions gradually improve. Subscriptionbased revenue momentum is building, with total recurring revenues now accounting for 75% of total revenues.
| Six months ended June 30 (All amounts are in millions of euros and |
||
|---|---|---|
| from continuing operations) | 2011 | 2010 |
| Revenues | ||
| Legal & Regulatory |
695 | 704 |
| Tax & Accounting |
467 | 474 |
| Health & Pharma Solutions |
295 | 284 |
| Financial & Compliance Services |
162 | 143 |
| Total revenues | 1,619 | 1,605 |
Legal & Regulatory revenue of €695 million was materially in line with last year (2010: €704 million), with the organic trend improving from -3% at HY 2010 to 0% in HY 2011. Subscription revenue benefitted from improved retention rates and increased new sales levels. Online and software revenues posted organic growth driven by product innovation, however, these results were offset by ongoing pressure on printbased revenues and the adverse impact of the economic cycle on advertising and other cyclical product lines.
Tax & Accounting revenue declined 2% to €467 million (1% organically) in the first half year (2010: €474 million). Half-year revenues were impacted by a change in the composition and phasing of bank products sales. As a result of structural changes to its bank product line, management expects these revenues to be more heavily weighted towards the second half of the year. Excluding bank product sales, divisional organic growth was approximately 2%.
Health & Pharma Solutions revenue grew 4% to €295 million supported by double-digit growth in electronic and service subscriptions, especially from Clinical Solutions and Ovid online products.
Financial & Compliance Services revenue grew 14% to €162 million, driven by 3% organic growth and contributions from acquisitions. Financial & Compliance Services' revenue growth was supported by double-digit growth in Audit, Risk, and Compliance (ARC Logics), strong performance from banking and compliance products, and global expansion through the acquisition of FRSGlobal.
For the first half of 2011, operating profit decreased to €206 million (2010: €226 million) mainly driven by higher cost for the Springboard operational excellence program and higher acquisition (integration) costs.
| Six months ended June 30 (All amounts are in millions of euros and |
||
|---|---|---|
| from continuing operations) | 2011 | 2010 |
| Operating profit | ||
| Legal & Regulatory |
90 | 93 |
| Tax & Accounting |
89 | 102 |
| Health & Pharma Solutions |
36 | 35 |
| Financial & Compliance Services |
12 | 17 |
| Corporate |
(21) | (21) |
| Total operating profit | 206 | 226 |
Legal & Regulatory operating profit decreased to €90 million in 2011 (2010: €93 million) reflecting higher Springboard costs and acquisition integration costs, partly offset by the contribution of higher margin electronic solutions, improved growth in the CLS business, and stringent cost management initiatives including Springboard.
Tax & Accounting operating profit declined to €89 million in 2011 (2010: €102 million) reflecting the impact of the change in the composition and phasing of bank products sales and higher amortization, which was partly offset by savings from Springboard initiatives.
Health & Pharma Solutions operating profit grew to €36 million in 2011 (2010: €35 million). There was strong improvement in profitability, reflecting the solid flow-through of revenue growth, and lower amortization offset by higher restructuring costs.
Financial & Compliance Services operating profit declined to €12 million in 2011 (2010: €17 million). Strong contribution of ARC Logics was more than offset by lower transaction volumes at Transport Services, the phasing of investments to expand global leading positions, higher amortization, and unfavorable currency differences.
In the first half of 2011, net financing costs decreased to €59 million (2010: €65 million), mainly due to favorable currency results.
The total effective tax rate of 19% for the first half year (2010: 21%) is lower compared to last year due to lower taxable income in high tax rate jurisdictions.
Profit for the period of €117 million declined compared to prior year (2010: €131 million), mainly as a result of higher restructuring and higher acquisition integration costs, partly offset by lower net financing costs and lower income tax expense.
Diluted EPS was €0.39 for the first-half of 2011 (2010: €0.44).
Ordinary EBITA remained flat at €325 million.
Ordinary net income grew to €196 million in 2011 (2010: €190 million) mainly due to lower financing costs; diluted ordinary earnings per share increased 2% to €0.65 (2010: €0.63).
The tax rate on ordinary income was 26% (2010: 26%).
Result from discontinuing operations after tax amounts to a loss of €108 million (2010: €5 million loss), mainly as a result of the non-cash impairment charge of €106 million following the planned divestment of the pharma business.
Profit for the period declined to €9 million (2010: €126 million), mainly as a result of the non-cash impairment charge of €106 million.
Diluted EPS was €0.03 for the first-half of 2011 (2010: €0.42).
Net debt increased from €2,035 million at December 31, 2010, to €2,194 million at June 30, 2011, and is mainly due to acquisition spending, cash dividend payment, share buy-back program, and lower free cash flow. The Company ended the half-year 2011 with a net-debt-to-EBITDA ratio of 3.0 (on a rolling basis) (December 31, 2010: 2.7).
In first-half 2011, free cash flow was €131 million, compared to €171 million in the same period of 2010, mainly due to higher corporate income tax payments in the first half of 2011 compared to 2010.
In the 2010 Annual Report, the Company has described certain risk categories that could have a material adverse effect on its operations and financial position. Those risk categories are deemed to be incorporated and repeated in this report by reference. In the Company's view, the nature and potential impact of these risk categories on the business are not materially different for the second half of 2011, except for any adverse impact that the planned divestment of the pharma business may have on the underlying businesses.
The Executive Board is responsible for the preparation of the condensed consolidated interim financial statements for the six months ended June 30, 2011, in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The responsibility of the Executive Board includes selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
The Executive Board is also responsible for the preparation of the Interim Report of the Executive Board. In this Interim Report the Executive Board endeavors to present a fair review of the situation of the business at balance sheet date and of the state of affairs in the half year under review. Such an overview contains a selection of some of the main developments in the first six months of the financial year and can never be exhaustive. This Interim Report also contains the current expectations of the Executive Board for the second half of the financial year. With respect to these expectations, reference is made to the disclaimer about Forward-looking Statements at the bottom of this press release. As required by provision 5:25d (2)(c) of the Dutch act on financial supervision (Wet op het financieel toezicht) and on the basis of the foregoing, the Executive Board confirms that to its knowledge:
N. McKinstry, CEO and Chairman of the Executive Board B.L.J.M. Beerkens, CFO and Member of the Executive Board J.J. Lynch, Jr., Member of the Executive Board
Condensed consolidated interim financial statements for the six months ended June 30, 2011, and 2010
Unaudited condensed consolidated statement of income Unaudited condensed consolidated statement of comprehensive income Unaudited condensed consolidated statement of cash flows Unaudited condensed consolidated statement of financial position Unaudited condensed consolidated statement of the changes in total equity Notes to the unaudited condensed consolidated interim financial statements
(in millions of euros, unless otherwise stated)
| Six months ended | ||
|---|---|---|
| June 30 | ||
| 2011 | 2010 | |
| Restated1 | ||
| Revenues | 1,619 | 1,605 |
| Cost of sales | 543 | 547 |
| Gross profit | 1,076 | 1,058 |
| Sales costs | 304 | 299 |
| General and administrative costs: | ||
| General and administrative operating expenses |
491 | 461 |
| Amortization of publishing rights and |
||
| impairments | 75 | 72 |
| Total operating expenses | 870 | 832 |
| Operating profit | 206 | 226 |
| Finance income | 4 | 5 |
| Finance costs | (63) | (70) |
| Results on disposals | (3) | 4 |
| Share of profit of equity-accounted investees (net | ||
| of tax) | 0 | 0 |
| Profit before tax | 144 | 165 |
| Income tax expense | (27) | (34) |
| Profit for the period from continuing operations | 117 | 131 |
| Result from discontinuing operations, after tax | (108) | (5) |
| Profit for the period | 9 | 126 |
| Profit attributable to: | ||
| Equity holders of the Company |
9 | 126 |
| Non-controlling interests |
0 | 0 |
| Profit for the period | 9 | 126 |
| Earnings per share (EPS) (€) | ||
| Basic EPS from continuing operations | 0.39 | 0.44 |
| Basic EPS from discontinuing operations | (0.36) | (0.01) |
| Basic EPS | 0.03 | 0.43 |
| Diluted EPS from continuing operations | 0.39 | 0.43 |
| Diluted EPS from discontinuing operations | (0.36) | (0.01) |
| Diluted EPS | 0.03 | 0.42 |
| 1) The 2010 comparative figures have been restated to present | ||
| the pharma business as discontinuing operations. |
| Six months ended | ||
|---|---|---|
| June 30 | ||
| 2011 | 2010 | |
| Comprehensive income: | ||
| Profit for the period | 9 | 126 |
| Other comprehensive income: | ||
| Net gains/(losses) on hedges of net investments and exchange | ||
| differences on translation of foreign operations | (121) | 288 |
| Gains/(losses) on cash flow hedges | 6 | 3 |
| Actuarial gains/(losses) on defined benefit plans | (3) | (19) |
| Income tax on items taken directly to or transferred from equity | 0 | 7 |
| Other comprehensive income/(loss) for the period, net of taxes | (118) | 279 |
| Total comprehensive income for the period, net of taxes | (109) | 405 |
| Attributable to: | ||
| Equity holders of the Company |
(108) | 402 |
| Non-controlling interests |
(1) | 3 |
| Total | (109) | 405 |
| Six months ended June 30 |
||
|---|---|---|
| 2011 | 2010 Restated1 |
|
| Cash flows from operating activities | ||
| Operating profit | 206 | 226 |
| Amortization, impairments, and depreciation | 126 | 122 |
| Springboard/acquisition integration costs | 40 | 26 |
| Acquisition related costs | 4 | 0 |
| Autonomous movements in working capital | 0 | 0 |
| Cash flow from operations | 376 | 374 |
| Paid financing costs | (102) | (101) |
| Paid corporate income tax | (80) | (33) |
| Appropriation of restructuring provisions | (34) | (37) |
| Share-based payments | 9 | 9 |
| Other | (3) | (4) |
| Net cash from operating activities | 166 | 208 |
| Cash flows from investing activities | ||
| Net capital expenditure | (54) | (59) |
| Acquisition spending | (151) | (25) |
| Receipts from disposal of activities | 4 | 4 |
| Dividends from equity-accounted investees | 1 | 1 |
| Net cash used for investing activities | (200) | (79) |
| Cash flows from financing activities | ||
| Exercise share options | 0 | 2 |
| Redemption loans | (3) | (211) |
| New loans | 0 | 8 |
| Movements in bank overdrafts | 52 | 91 |
| Repurchased shares | (35) | - |
| Dividend payments | (127) | (115) |
| Net cash used for financing activities | (113) | (225) |
| Net cash used for continuing operations | (147) | (96) |
| Cash flow discontinuing operations | ||
| Net cash from operating activities | (2) | (5) |
| Net cash used for investing activities | (2) | (2) |
| Net cash used for financing activities | 0 | 0 |
| Net cash used for discontinuing operations | (4) | (7) |
| Net cash used from/(used for) continuing and | ||
| discontinuing operations | (151) | (103) |
| Cash and cash equivalents at January 1 | 458 | 409 |
| Exchange differences on cash and cash equivalents | (5) | 15 |
| 453 | 424 | |
| Cash and cash equivalents at June 30 | 302 | 321 |
| 1) The 2010 comparative figures have been restated to present | ||
| the pharma business as discontinuing operations. |
| June 30, 2011 | December 31, 2010 | June 30, 2010 | ||||
|---|---|---|---|---|---|---|
| Non-current assets | ||||||
| Intangible assets | 4,296 | 4,584 | 4,648 | |||
| Property, plant, and equipment | 133 | 148 | 149 | |||
| Investments in equity-accounted | ||||||
| investees | 58 | 63 | 36 | |||
| Financial assets | 60 | 73 | 80 | |||
| Deferred tax assets | 89 | 89 | 107 | |||
| Total non-current assets | 4,636 | 4,957 | 5,020 | |||
| Current assets | ||||||
| Inventories | 82 | 85 | 91 | |||
| Trade and other receivables | 802 | 1,052 | 869 | |||
| Income tax receivable | 38 | 5 | 47 | |||
| Assets held for sale | 158 | - | - | |||
| Cash and cash equivalents | 302 | 458 | 321 | |||
| Total current assets | 1,382 | 1,600 | 1,328 | |||
| Current liabilities | ||||||
| Deferred income | 1,015 | 1,142 | 1,090 | |||
| Trade and other payables | 246 | 337 | 279 | |||
| Income tax payable | 34 | 43 | 36 | |||
| Short-term provisions | 32 | 24 | 32 | |||
| Borrowings and bank overdrafts | 406 | 377 | 511 | |||
| Liabilities held for sale | 64 | - | - | |||
| Other current liabilities | 333 | 457 | 374 | |||
| Total current liabilities | 2,130 | 2,380 | 2,322 | |||
| Working capital | (748) | (780) | (994) | |||
| Capital employed | 3,888 | 4,177 | 4,026 | |||
| Non-current liabilities | ||||||
| Long-term debt | 2,129 | 2,141 | 1,927 | |||
| Deferred tax liabilities | 242 | 243 | 259 | |||
| Employee benefits | 142 | 152 | 178 | |||
| Provisions | 6 | 10 | 6 | |||
| Total non-current liabilities | 2,519 | 2,546 | 2,370 | |||
| Equity | ||||||
| Issued share capital | 36 | 36 | 36 | |||
| Share premium reserve | 88 | 88 | 88 | |||
| Other reserves | 1,227 | 1,488 | 1,508 | |||
| Equity attributable to equity holders | ||||||
| of the Company | 1,351 | 1,612 | 1,632 | |||
| Non-controlling interests | 18 | 19 | 24 | |||
| Total equity | 1,369 | 1,631 | 1,656 | |||
| Total financing | 3,888 | 4,177 | 4,026 |
| 2011 | |||
|---|---|---|---|
| Equity | |||
| attributable | Non | ||
| to equity | controlling | Total equity | |
| holders of | interests | ||
| the Company | |||
| Balance at January 1 | 1,612 | 19 | 1,631 |
| Total comprehensive income for the | |||
| period, net of taxes | (108) | (1) | (109) |
| Share-based payments | 9 | 9 | |
| Cash dividend | (127) | (127) | |
| Exercise of share options | 0 | 0 | |
| Repurchased shares | (35) | (35) | |
| Balance at June 30 | 1,351 | 18 | 1,369 |
| 2010 | |||
|---|---|---|---|
| Equity attributable to equity holders of the Company |
Non controlling interests |
Total equity | |
| Balance at January 1 | 1,334 | 21 | 1,355 |
| Total comprehensive income for the | |||
| period, net of taxes | 402 | 3 | 405 |
| Share-based payments | 9 | 9 | |
| Cash dividend | (115) | (115) | |
| Exercise of share options | 2 | 2 | |
| Balance at June 30 | 1,632 | 24 | 1,656 |
These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standards (IAS) 34 Interim Financial Reporting. As permitted by IAS 34, these statements do not include all of the information required for full annual financial statements, and should be read in conjunction with Wolters Kluwer's 2010 Annual Report. In addition, the notes to the consolidated interim financial statements are presented in a condensed format. These condensed consolidated interim financial statements have not been audited.
The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in Wolters Kluwer's 2010 Annual Report, with the exception of the presentation and measurement policy for discontinued operations.
IFRS 5 requires to present non-current assets held for sale and the assets of a disposal group classified as held for sale separately from the other assets in the statement of financial position. The liabilities of a disposal group classified as held for sale are also presented separately from the other liabilities in the statement of financial position. Those assets and liabilities are not offset and presented as a single amount. In compliance with IFRS 5, non-current assets held for sale are carried at the lower of its carrying amount and fair value less costs to sell.
IFRS 5, Non-current assets held for sale and discontinued operations, defines a component of an entity as a part of the entity that comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. The Company has determined that a component is usually one level below the division level. A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, represents a separate major line of business, and is part of single co-ordinated overall plan to dispose of a separate major line of buisness. In compliance with IFRS 5, non-current assets held for sale are carried at the lower of its carrying amount and fair value less costs to sell.
Any gain or loss from disposal of discontinued operations, together with the results of these operations until the date of disposal is reported separately as discontinued operations. The financial information of discontinuing operations is excluded from the respective captions in the consolidated statements of income and cash flows and the related notes and is reported separately.
The consolidated statement of income and the consolidated statement of cash flows for the year 2010 have been restated to present the pharma business as discontinuing operations.
The preparation of condensed consolidated interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses. Actual results may differ from these estimates. In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to Wolters Kluwer's 2010 Annual Report. Reference is made to Note 31 'Accounting Estimates and Judgments' to the Consolidated Financial Statements of Wolters Kluwer. Further reference is made to Note 23 'Financial Risk Management and Financial Risks'. Note 23 discusses Wolters Kluwer's exposure to currency risks, interest rate risk, liquidity risk and credit risks. Actual results in the future may differ from current risk judgments.
Estimates and judgments are being continually evaluated and based on historic experience and other factors, including expectations of future events believed to be reasonable under the circumstances.
Wherever used in this press release, the term 'ordinary' refers to figures adjusted for exceptional items and, where applicable, amortization and impairment of goodwill and publishing rights. Exceptional items consist of qualifying restructuring expenses. 'Ordinary' figures are non-IFRS compliant financial figures, but are internally regarded as key performance indicators to measure the underlying performance of the business from continuing operations. These figures are presented as additional information and do not replace the information in the income statement and in the cash flow statement. The term 'ordinary' is not a defined term under IFRS.
Some of the businesses are impacted by seasonal purchasing patterns. Revenues of Wolters Kluwer's tax and regulatory businesses are strongest in the fourth and first quarters, in line with statutory (tax) filing requirements. The cash flow is typically strongest in the fourth quarter as calendar-year subscription renewals are received.
On July 27, 2011, Wolters Kluwer announced the planned sale of its pharma business. The Health & Pharma Solutions division will focus on its leading positions in professional information and clinical decisions support going forward. The majority of the pharma business is included in the Health & Pharma Solutions division. In connection with the planned sale a non-cash impairment charge of €106 million was recorded and presented as result from discontinuing operations. Prior year unaudited condensed consolidated interim financial statements have been restated.
The following table summarizes the results of the pharma business:
| Pharma business | Six months ended June 30 | ||
|---|---|---|---|
| 2011 | 2010 | ||
| Revenues | 108 | 123 | |
| Cost of sales | (73) | (81) | |
| Total operating expenses | (38) | (53) | |
| Operating profit | (3) | (11) | |
| Income tax | 1 | 6 | |
| Results from operating activities, after | |||
| tax | (2) | (5) | |
| Impairment | (106) | - | |
| Result from discontinuing operations | (108) | (5) |
Full year 2010 revenues and Ordinary EBITA for the pharma business were €245 million and €10 million respectively.
Acquisitions
Total acquisition spending in first half of 2011 was €151 million (2010: €25 million), including acquisition related costs (€4 million) and payments for acquisitions made in previous years (€6 million; e.g. earn-out arrangements).
| Acquisitions | June 30, 2011 |
June 30, 2010 |
|---|---|---|
| Recognized values |
Recognized values |
|
| Total consideration payable | 149 | 7 |
| Non-current assets | 7 | 2 |
| Current assets | 15 | 1 |
| Current liabilities | (17) | (3) |
| Non-current liabilities | 0 | 0 |
| Provisions | (1) | 0 |
| Deferred tax | 2 | 2 |
| Fair value of net identifiable assets/( liabilities) | 6 | 2 |
| Non-controlling interests | - | - |
| Goodwill on acquisitions | 143 | 5 |
| The cash effect of the acquisitions is: | ||
| Total consideration payable | 149 | 7 |
| Acquisition related costs | 4 | - |
| Cash acquired | (5) | 0 |
| Change in payables for deferred considerations | 3 | 18 |
| Acquisition spending | 151 | 25 |
The fair value of the acquirees' identifiable assets and liabilities of some acquisitions could only be determined provisionally and will be subject to change based on the outcome of the purchase price allocation which will be completed within 12 months from the acquisition date.
The goodwill recognized for the acquisitions represents a payment in anticipation of the future economic benefits to be derived by Wolters Kluwer as a result of the acquisition. These future economic benefits relate, for example, to opportunities with regard to cross-selling or cost efficiencies such as sharing of infrastructure.
In the first half of 2011, the following main acquisitions were completed:
On May 27, 2011, the Company acquired 100% of the shares of Lexicomp. Lexicomp is a leading provider of drug information and clinical content for pharmacists, clinicians, and hospitals internationally. Lexicomp is included in the Health & Pharma Solutions division and has 150 employees.
On June 14, 2011, the Company acquired 100% of the shares of Twinfield. Twinfield is a Dutch-based pioneer and market leader in online accounting software, serving professionals in the Netherlands, the United Kingdom, and Scandinavia. Twinfield is included in the Tax & Accounting division and has 75 employees.
Issuances, repurchases, and repayments of debt and equity securities, and dividends paid In 2011, no repurchases of debt securities occurred.
On February 28, 2011, Wolters Kluwer began its previously announced share buy-back program with the intention to execute up to €100 million. By June 30, 2011, the Company had repurchased 2,105,000 ordinary shares under this program, for a total consideration of €35 million.
In the first six months of 2011, 606,975 shares were issued for the vesting of Long-Term Incentive Plan (LTIP) shares, 2,394,480 shares were issued and 2,105,000 treasury shares were used for stock dividend. The annual cash dividend of €127 million was paid in May 2011. Of the 2010 dividend of €0.67 per share, 63.7% was distributed as cash dividend (2009: 59.5%).
The LTIP 2008-10 vested on December 31, 2010. Total Shareholder Return (TSR) ranked tenth relative to its peer group of 15 companies, resulting in a pay-out of 0% of the conditional base number of shares awarded to the Executive Board members and a pay-out of 75% of the conditional number of shares awarded to other senior managers. The shares were released on February 24, 2011, and equaled a total number of 635,475 shares.
Under the 2011-13 LTIP, 1,411,687 shares were conditionally awarded to the Executive Board and other senior managers in the first six months of 2011. In the first six months of 2011, 54,083 shares were forfeited under the long-term incentive plans.
In 2011, 20,000 share options were exercised, for a total value of €0.3 million that was received by the Company. Due to the exercise of this final outstanding number of stock options, all stock option plans are expired.
The Company decided to expand its existing disclosure of the cost incurred for conditional awarded shares of the Executive Board during the year. The required disclosure could be derived from the information provided in the 2010 Annual Report, but was not explicitly disclosed as required by IAS 24 paragraph 16 and section 383c Book 2 Title 9 of the Dutch Civil Code.
Therefore, the required disclosure over 2010 is presented below. As the cost incurred do not reflect the value of the vested shares, the Company also will disclose the value of the vested shares on December 31.
| Remuneration of the Executive Board in thousands of euros |
Salary | Bonus | Pension | Social security |
Other Benefits |
Tax gross up |
2010 | 2009 |
|---|---|---|---|---|---|---|---|---|
| N. McKinstry, Chairman | 1,014 | 1,2041 | 27 | 7 | 291 | 212 | 2,755 | 2,432 |
| B.L.J.M. Beerkens | 604 | 654 | 131 | 8 | 30 | - | 1,427 | 1,341 |
| J.J. Lynch, Jr. | 490 | 433 | 12 | 27 | 27 | 352 | 1,341 | 1,020 |
| Total | 2,108 | 2,291 | 170 | 42 | 348 | 564 | 5,523 | 4,793 |
(1) Ms. McKinstry's compensation is €1,013,599. The bonus is calculated on a dollar denominated equivalent of total salary as: \$1,155,660 x 138.20 (equivalent to €1,204,422).
Social security costs paid by the Company in 2010 on shares that were released under LTIP are included in the remuneration. The tax gross up relates to the tax expense that was paid by the Company in 2010 relating to tax equalization for salary and benefits per the contract between the Company and Ms. McKinstry and Mr. Lynch.
The 2010 bonuses as presented above relate to the performance year 2010 and were paid in 2011. The
2010 pension contributions as presented above reflect the accrued pension cost for the financial year 2010.
The Company's cost of the LTIP is not included in the table above, but it is separately presented in the table below, as it comprises a conditional element of compensation. The table below also provides the value of the shares vested on December 31.
| Incurred costs for conditional |
Incurred costs for conditional |
Value of shares vested on |
Value of shares vested on |
|
|---|---|---|---|---|
| awarded shares | awarded shares | December 31, | December 31, | |
| for the year | for the year | 2010 (LTIP 2008- | 2009 (LTIP 2007- | |
| ended December | ended December | 10) | 09) | |
| in thousands of euros | 31, 2010 | 31, 2009 | ||
| N. McKinstry, Chairman | 2,778 | 2,761 | 0 | 2,094 |
| B.L.J.M. Beerkens | 1,043 | 1,025 | 0 | 757 |
| J.J. Lynch, Jr. | 675 | 625 | 0 | 482 |
| Total | 4,496 | 4,411 | 0 | 3,333 |
The total costs incurred for the remuneration of the Executive Board was €10,019 and €9,204 for the year ended December 31, 2010 and 2009, respectively.
The LTIP 2008-10 vested on December 31, 2010. Total Shareholder Return (TSR) ranked tenth relative to its peer group of 15 companies, resulting in a pay-out of 0% of the conditional base number of shares awarded to the Executive Board members.
The LTIP 2007-09 vested on December 31, 2009. TSR ranked seventh relative to its peer group of 15 companies, resulting in a pay-out of 75% of the conditional base number of shares awarded to the Executive Board members. The shares were released on February 25, 2010. The volume weighted average price of the shares of Wolters Kluwer nv was €14.62 on February 25, 2010, and equaled a total number of 228,000 shares.
| Six months ended June 30 | ||||
|---|---|---|---|---|
| 2011 | 20101) | |||
| Operating profit Amortization of publishing rights and |
206 | 226 | ||
| impairments | 75 | 72 | ||
| EBITA | 281 | 298 | ||
| Non-benchmark costs in operating profit | 44 | 26 | ||
| Ordinary EBITA | 325 | 324 |
1) The 2010 comparative figures have been restated to present the pharma business as discontinuing operations.
| Six months ended June 30 | |||
|---|---|---|---|
| 2011 | 20101) | ||
| Profit for the period attributable to the equity holders of the Company (A) Amortization of publishing rights and impairments (adjusted for non-controlling |
117 | 131 | |
| interests) | 74 | 71 | |
| Tax on amortization and impairments of publishing rights and goodwill Results on disposals (after taxation) |
(25) 1 |
(25) (4) |
|
| Non-benchmark costs in operating profit | |||
| (after taxation) | 29 | 17 | |
| Ordinary net income (B) | 196 | 190 |
Reconciliation between profit for the period and ordinary net income
1) The 2010 comparative figures have been restated to present the pharma business as discontinuing operations.
| Six months ended June 30 | |||
|---|---|---|---|
| 2011 | 20101) | ||
| Net cash from operating activities | 166 | 208 | |
| Net capital expenditure | (54) | (59) | |
| Dividends received | 1 | 1 | |
| Appropriation of Springboard provisions | |||
| (after taxation) | 18 | 21 | |
| Free cash flow (C) | 131 | 171 |
1) The 2010 comparative figures have been restated to present the pharma business as discontinuing operations.
| Six months ended June 30 | |||
|---|---|---|---|
| 2011 | 20101) | ||
| Weighted average number of shares (D)* | 299.0 | 294.2 | |
| Diluted weighted average number of shares (E)* |
302.8 | 298.0 | |
| Ordinary EPS (B/D) (€) | 0.65 | 0.64 | |
| Diluted ordinary EPS (minimum of ordinary EPS and (B/E) (€)) Diluted ordinary EPS in constant currencies |
0.65 | 0.63 | |
| (€) | 0.66 | 0.66 | |
| Basic EPS (A/D) (€) Diluted EPS (minimum of basic EPS and |
0.39 | 0.44 | |
| (A/E)) (€) | 0.39 | 0.44 | |
| Free cash flow per share (C/D) (€) Diluted free cash flow per share (minimum |
0.44 | 0.58 | |
| of free cash flow per share and (C/E) (€)) * in millions of shares |
0.43 | 0.57 |
1) The 2010 comparative figures have been restated to present the pharma business as discontinuing operations.
| Six months ended June 30 | |||
|---|---|---|---|
| 2011 | 20101) | ||
| Personnel related restructuring costs | 14 | 9 | |
| Asset write-offs | 0 | 0 | |
| Third party costs | 13 | 11 | |
| Other exceptional items | 3 | 3 | |
| Subtotal Springboard costs | 30 | 23 | |
| Acquisition integration costs | 10 | 3 | |
| Total Springboard/acquisition integration costs |
40 | 26 | |
| Acquisition related costs | 4 | 0 | |
| Total non-benchmark costs in operating profit |
44 | 26 |
1) The 2010 comparative figures have been restated to present the pharma business as discontinuing operations.
The 2010 comparative figures in the table below have been restated to present the pharma business as discontinuing operations.
| Legal & Regulatory Six months ended June 30 Acquisition/ In millions 2011 2010 Organic Divestment Currency Total Revenues EUR 695 704 (1) 2 (10) (9) Ordinary EBITA EUR 136 131 5 3 (3) 5 Ordinary EBITA margin 19.6% 18.6% Change (in millions) Tax & Accounting Six months ended June 30 Acquisition/ In millions 2011 2010 Organic Divestment Currency Total Revenues EUR 467 474 (4) 2 (5) (7) Ordinary EBITA EUR 129 137 (8) 0 0 (8) Ordinary EBITA margin 27.6% 28.9% Change (in millions) Health & Pharma Solutions Six months ended June 30 Acquisition/ In millions 2011 2010 Organic Divestment Currency Total Revenues EUR 295 284 17 9 (15) 11 Ordinary EBITA EUR 51 47 7 1 (4) 4 Ordinary EBITA margin 17.3% 16.5% Change (in millions) Financial & Compliance Services Six months ended June 30 Acquisition/ In millions 2011 2010 Organic Divestment Currency Total Revenues EUR 162 143 4 20 (5) 19 Ordinary EBITA EUR 29 30 0 0 (1) (1) Ordinary EBITA margin 17.8% 21.0% Change (in millions) Corporate Six months ended June 30 Acquisition/ In millions 2011 2010 Organic Divestment Currency Total Revenues EUR - - - - - - Ordinary EBITA EUR (20) (21) 1 0 0 1 Change (in millions) Total Continuing Operations Wolters Kluwer Six months ended June 30 Acquisition/ In millions 2011 2010 Organic Divestment Currency Total Revenues EUR 1,619 1,605 16 33 (35) 14 |
Change (in millions) | ||||||
|---|---|---|---|---|---|---|---|
| Ordinary EBITA EUR 325 324 5 4 (8) 1 |
Wolters Kluwer is a market-leading global information services company. Professionals in the areas of legal, business, tax, accounting, finance, audit, risk, compliance, and healthcare rely on Wolters Kluwer's leading information-enabled tools and software solutions to manage their business efficiently, deliver results to their clients, and succeed in an ever more dynamic world.
Wolters Kluwer had 2010 annual revenues of €3.6 billion, employs approximately 19,000 people worldwide, and maintains operations across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.
Visit our website, YouTube, follow @Wolters_Kluwer on Twitter, or look up Wolters Kluwer on Facebook for more for information about our customers, market positions, brands, and organization.
Wolters Kluwer Legal & Regulatory provides a wide range of unique, proprietary information, solutions, and services in specialty legal practice areas, including law, health and safety, public administration, and business compliance sectors, and more.
Wolters Kluwer Tax & Accounting is the world's largest provider of tax, accounting, and audit information, software, and services. The division delivers solutions that integrate deep market knowledge with leading technology solutions help professionals worldwide navigate complex regulations and requirements to ensure compliance with accuracy and efficiency.
Wolters Kluwer Health & Pharma Solutions consists of Wolters Kluwer Health, a leading provider of information and business intelligence for students, professionals and institutions in medicine, nursing, allied health and pharmacy and structured in three business units to uniquely serve the information needs of health professionals; and, Wolters Kluwer Pharma Solutions, providing marketing and publications services, business intelligence products, and advanced analytical tools and services to support life sciences professionals from discovery through development and distribution.
Wolters Kluwer Financial & Compliance Services is a leading provider of intelligent audit, risk, and compliance products, services, and solutions that help organizations across a broad range of industries manage risk, ensure compliance in the face of increased amounts of regulation, and increase operational efficiency.
Full calendar overview available at www.wolterskluwer.com.
| Media | Investors/Analysts |
|---|---|
| Caroline Wouters | Jon Teppo |
| t + 31 (0)172 641 459 | t + 31 (0)172 641 407 |
| [email protected] | [email protected] |
Media Roundtable: 11:00 AM CET. This event will be held for members of the press taking place at the Beurs van Berlage, Amsterdam and will be podcasted on the corporate website. Presentation by Senior Management on July 27, 2011 - www.wolterskluwer.com Investor/Analyst meeting: 13:00 PM CET. This event will take place at the Beurs van Berlage, Amsterdam and will be webcast live on the corporate website.
Should you wish to change how you receive information from Wolters Kluwer, please click here.
This press release contains forward-looking statements. These statements may be identified by words such as "expect", "should", "could", "shall", and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets in which Wolters Kluwer is engaged; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer's businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.