Wolters Kluwer reports Full Year 2001 Results


	Sales EUR 3,837 million, up around 5%; organic sales growth at 2%. Operating income (EBITA), up 3% at EUR 812 million.
	Electronic sales boosted to EUR 1,035 million, up 28% (now 27% of total sales), with Internet sales catapulted to EUR 398 million, up 75%.
	Ordinary net income before amortization of intangible fixed assets at EUR 436 million, up 6% (at constant currencies up 5%), in line with forecast.
	Acquisition of growth accelerators: 29 companies acquired, mainly smart information tool (software and services related) companies. Most of the companies have high growth rates above market average.
	Portfolio review LTB Europe: focus on six core areas. Expansion is aimed at maximum European coverage in these areas. Non-core activities will be managed for cash or divested (e.g. ten Hagen & Stam; Bohn Stafleu van Loghum).
	Portfolio review LTB North America: in addition to the tax, legal, and human resources areas - increasingly focus on legal and transaction compliance for the banking, insurance and securities industries. In a move to further enhance our position in these fields, Bankers Systems Inc. (BSI) was positioned as a separate operating company.
	Portfolio review International Health & Science: focus on 4 medical segments: Pharma; Medical Information Professionals; Practitioner Info; Clinical Tools. The non-health related operations (Kluwer Academic Publishers with EUR 170 million sales and around 600 staff) will be divested. This refocus is aimed at maintaining and expanding our leading position in the medical growth markets.
	Outlook 2002: ordinary net income before amortization of intangible fixed assets 7-9% higher (at constant currencies). Growth will be realized in the second half of the year.

Benchmark figures


*EUR million*	2001	2000 1)	+% Mutatie


Sales	3,837	3,664	5


EBITDA	919	878	5


EBITA	812	789	3


EBITA margin	21.2%	21.5%


Ordinary net income before amortization of intangible fixed assets	436	412	6


Ordinary EPS before amortization of intangible fixed assets and results on divestments 'fully diluted'	€ 1.54	€ 1.47	5


Ordinary free cash flow	328	363


Ordinary free cash flow per share 'fully diluted' 2)	€ 1.17	€ 1.30


FTEs (average)	19,766	19,009

1) The 2000 figures are restated for the amortization of publishing rights and the pro forma amortization of goodwill,based on the new accounting policies. However, these changes did not have an impact on the benchmark figures
2) Based on weighted average number of shares 'fully diluted'

Rob Pieterse, Chairman of the Executive Board of Wolters Kluwer, about 2001:

'Wolters Kluwer can look back with satisfaction on the changes set in motion and partly completed in 2001. It has been the year in which we embarked on the new course charted in 2000.
Wolters Kluwer is on the move. We are undeniably changing from a traditional, mainly print-oriented publisher into a state-of-the-art information services company capable of providing our customers with an advanced combination of content, services and workflow tools.

Immersed in the transformation process, without losing sight of day-to-day operations, Wolters Kluwer achieved notable results in 2001. Electronic sales soared by nearly 30% to more than EUR 1 billion and now account for 27% of total sales. We acquired 29 growth-accelerating businesses - mainly in the United States - of which many were software related. And we delivered on our promise to improve ordinary net income before amortization of intangible fixed assets by 6% (up 5% at constant currencies): EUR 436 million. With a very healthy EBITA margin of 21.2%, we rank as a leading performer in our industry in terms of profitability.

LTB North America, again our strongest performer, put a lot of effort into the successful migration from traditional paper-based products to an electronic (Internet) environment. And the focus on smart information tools for the cluster will continue: in addition to the tax, legal, and human resources areas - LTB North America will increasingly focus on the growth market of legal and transaction compliance for banking, insurance and securities. Bankers Systems Inc.'s (BSI) positioning as a separate operating company reflects that market focus.

Following a review of its portfolio, LTB Europe now focuses on six customer segments, which together account for 75% of cluster sales. This new growth path initiative will lead to better service to our customers. New technology allows us to concentrate on specific customer groups, and we can create new products from cluster-content, software and services. Technology will help us to share the broad knowledge within the cluster and enables us to take full advantage of our resources.
As we previously announced, non-core activities will be managed for cash or sold. Even though the pace of migration to electronic products is slower in Europe than in the United States, a common Internet platform and better knowledge interchange between business units are set to contribute to more growth.

The IH&S cluster is clearly showing improvements following a disappointing first half of the year. The new strategy of this cluster, as announced today, with a clear focus on medical will enable us to further penetrate one of the most profitable growth markets in the world. The non-medical operations, KAP, will be divested.

Education has made a number of important steps towards an electronic future. This cluster will grow in the areas of electronic distance learning, e-publishing, and comparable areas.

It is due to the enthusiastic contribution of our employees, combined with the transition processes we have set in motion, that I am in a position to forecast for 2002 that, despite challenging economic circumstances, Wolters Kluwer will be able to raise its ordinary net income before amortization of intangible fixed assets by 7-9% (at constant currencies), while maintaining a healthy margin of approximately 21%.'

Highlights Full Year 2001

Electronic sales boosted to EUR 1,035 million. Sales related to electronic formats (Internet, other online products and CD-ROMs) showed a 28% increase and surpassed the level of EUR 1 billion. This result mainly came from an enormous growth in Internet sales (+75%). Internet sales (EUR 398 million) accounted for 10% of Wolters Kluwer overall annual sales in 2001, compared to 6% a year ago. Legal, Tax & Business North America continued to generate approximately 48% of all Internet sales.

Additional (Internet) product development program running at full speed. The three year program (2000 - 2002) that calls for investments in additional (Internet) product development of EUR 250 million is well on track. During 2001, spending on this program was further stepped up and impacted EBITA by a total of EUR 105 million (in 2000: EUR 47 million). This amount was in line with our forecast. Many projects developed under this program are progressing well and are expected to contribute at the 2002 sales.

Growth accelerators acquired. The acquisition program was focused on high growth assets in software and services industries, underpinning our strategy. Throughout the year, we completed 29 transactions, mainly in North America. The acquired companies (mostly software and services related) have annual sales of EUR 204 million. Most of these new companies have high growth rates above market average.
The major acquisitions realized during 2001:
- Loislaw (annual sales: EUR 23 million), an American online provider for legal research delivered over the Internet, was integrated into Aspen Publishers.
- OSRA (annual sales: EUR 15 million), a major provider of tax compliance and HR software in Italy.
- CBF Systems (annual sales: EUR 26 million), a leading provider in the US of printed and automated forms and tools for mortgage lenders and commercial banks, was integrated into Bankers Systems Inc.
- SilverPlatter (annual sales EUR 72 million), a global provider of medical and scientific databases, was integrated into Ovid Technologies.
- Medi-Span (annual sales EUR 28 million), a leading US drug and clinical information database, will be integrated into Facts & Comparisons.

New market focus International Health & Science. In the first half 2001, the cluster was confronted with a number of operational setbacks, partly originating from events in 2000. Top management was replaced and a portfolio review was started immediately. As a result, the primary focus will be on medical. Primary customers will be English-reading professionals in the international markets. By the end of 2002, the cluster's resources will be fully aligned by 4 segments: Pharma; Medical Information Professionals; Practitioner Info; Clinical Tools. The non-medical operations (KAP) will be divested. This refocus will be used for maintaining and expanding our leading position in the medical growth markets.

Sharpened portfolio LTB Europe. In August 2001, Wolters Kluwer announced that the cluster will focus on six core customer segments: legal, fiscal/financial, human resources management, public & governmental administration, health, safety & environment (HSE) and transport. These segments represent approximately 75% of total cluster sales (total cluster sales EUR 1.3 billion). The new growth path will improve quality and give better service to our customers. New technology allows us to concentrate on specific customer groups, and we can create new products from cluster-content, software and services. Technology will help us to share the broad knowledge within the cluster and enables us to take full advantage of our resources. Both via own development and acquisitions we will aim for a maximum European coverage.

The non-core activities are to be managed for cash or divested. Stemming from the portfolio, the decision was taken to divest ten Hagen & Stam, our Dutch trade journal publisher with sales of EUR 100 million, and over 600 employees. Recently, Wolters Kluwer announced that it is putting Bohn Stafleu Van Loghum (BSL) up for sale. BSL is a leading healthcare publisher in the Netherlands and generates annual sales of EUR 30 million and employs over 130 staff.

Extended portfolio LTB North America. This cluster also performed a review of its activities, and it was decided that LTB North America will - in addition to the tax, legal, and human resources areas - increasingly focus on legal and transaction compliance for the banking, insurance and securities industries. In a move to further enhance our position in these fields, Bankers Systems Inc. (BSI) was positioned as a separate operating company; ensuring that this growth accelerator will meet our expectations. With the discontinuation of its healthcare administration activities in 2001, Aspen Publishers is now fully focused on legal markets and is positioned to become the leading provider of legal information for small- and medium-sized law firms.

Group financials

Breakdown of Growth 2001

In %
Sales

Sales

EBITA

EBITA

2000

2001

2000

2001

Organic
5%

2%

0%

-1%

Reorganization provisions
--

--

-4%

8%

Additional Internet
0%

0%

-5%

-8%

Sub-total
5%

2%

-9%

-1%

Acquisitions
8%

5%

8%

4%

Divestments
-1%

-3%

-1%

-1%

At constant currencies
12%

4%

-2%

2%

Currency
7%

1%

9%

1%

Total
19%

5%

7%

3%

Sales in the year 2001 increased by approximately 5% to EUR 3,837 million (up 4% at constant currencies). Operating income before amortization of intangible fixed assets (EBITA) increased by some 3% from EUR 789 million to EUR 812 million. Excluding the additional (Internet) product development spending EBITA increased to EUR 917 million (up 10%). Largely as a result of this additional spending, the EBITA margin fell slightly, to a healthy 21.2% (actual 2000: 21.5%).

The benchmark ordinary net income before amortization of intangible fixed assets increased by 6% (at constant currencies 5%) from EUR 412 million in 2000 to EUR 436 million in 2001. Despite some dilution resulting from stock dividend and stock options, cash earnings per share (on a weighted average 'fully diluted' basis) improved from EUR 1.47 in 2000 to EUR 1.54.

Organic sales growth in the full year 2001 was 2%, in line with the growth rate realized in the first half of the year. The third quarter initially showed signs of improvement, but this acceleration trend was reversed following the events of September 11, 2001.

The year 2001 showed a further shift towards electronic sales, which now account for 27% of total sales (22% in 2000). Electronic sales rose by nearly 28%. Internet sales increased by 75% - of which 62% was organic - to a level of EUR 398 million. As a consequence of shifting customer preferences, our paper-based products, showed a slight decline compared to last year and accounted for 72% of total sales in 2001 (2000: 74%). The decline was largely due to lower revenues of loose-leaf publications, which now represent less than 20% of total sales. The shift from print to electronic sales is expected to continue, although the pace will continue to vary both by profession and geographically.


Sales by media


Eur million	2001	In %	2000	In %


Internet sales	398	10%	228	6%


Other online sales	52	2%	75	2%


Subtotal	450	12%	303	8%


CD-ROM	585	15%	507	14%


Total Electronic Sales	1,035	27%	810	22%


Print	2,753	72%	2,722	74%


Training	49	1%	132	4%


Total	3,837	100%	3,664	100%

More than half of our sales is subscription-based. For the Internet, upfront subscriptions represent approximately three quarters of sales. Advertising, which accounts for a mere 5% of total sales (2000: 5%), held up reasonably well in the year, despite the slowdown of the economy in general. It is expected that the share of advertising sales will decline in the future due to the divestment of a number of non-core assets in the cluster Legal, Tax & Business Europe (ten Hagen & Stam and Bohn Stafleu Van Loghum).

Our additional (Internet) product development program - to which a total of approximately EUR 250 million has been allocated for the years 2000, 2001 and 2002 - is running at full speed. During 2001, spending on this program was stepped up further and the impact on EBITA increased from EUR 47 million to EUR 105 million. This spending level was in line with our forecast. Many projects developed under this program are progressing well. About 60% of the investment goes to product development, the remainder is used for migration and database development.

Although most programs are still in their development phase, some successful launches took place in 2001. In the United States, the first release of destination sites for tax and accounting professionals, securities, legal research as well as legal services are now all operational and various integrated software products were developed during the course of 2001. In several European countries (France, the Netherlands and Italy) local versions of Juriforum and Tax-forum were launched, all are or will be based on a single technology platform. In the International Health & Science cluster Ovid@hand, hand-held technology for clinicians, was launched. The Education cluster made good progress with the development of two promising electronic products: Redaktion-D (online and interactive German language learning product developed in a joint-venture with the Goethe Institute) and Vespucci (database of educational materials for higher education).

These product development efforts should gradually start translating into new sales during 2002, especially in the clusters LTB North America and Education.

During the year, we continued to hire specialist talent supporting our strategy of creating sustainable growth through increased focus on product development, particularly software. This contributed to a personnel costs increase of 8%, thereby outpacing the total year 2001 sales increase. For 2002, a cost-control program is in place, aimed at halting the upward trend of personnel costs relative to sales, whilst continuing our efforts to accelerate internal growth.

Goodwill, representing the difference between the purchase prices paid for acquisitions and the fair value of the net tangible assets acquired, increased further, reflecting a continuation of our acquisition program. The reported amortization of goodwill was significantly higher than in the previous year, mainly due to the change in accounting standards issued by the Dutch Council for Annual Reporting and in line with International Accounting Standards (IAS).

The decision was taken to change the amortization period of goodwill from a maximum of 40 to a maximum of 20 years and to commence the amortization of publishing rights. These new accounting standards became effective as of January 1, 2001. The resulting change in the annual amortization charge to the Profit and Loss Account has not affected our benchmark ordinary net income before amortization of intangible fixed assets.

Furthermore, new standards with respect to measuring the value of intangible fixed assets became effective on January 1, 2001. These are stricter than the previous standards.

All intangible fixed assets whose book value gave some rise for concern on the basis of this new and very strict valuation approach, were revalued. As the new standards for valuing intangible fixed assets before 2001 are considered a change in accounting principles, a one-off correction, amounting to EUR 162 million including tax effects, was made to the shareholders' equity of December 31, 2000 and disclosed in August 2001. An additional amount of approximately EUR 51 million was charged to the profit and loss account in the second half of 2001. If any possible future corrections to the valuation of intangible fixed assets are needed, these will also be charged to the profit and loss account through the item amortization. The total book value of the intangible fixed assets was about half of the total value at the end of 2001.

In 2001, the effective tax charge decreased from 32.4% in 2000 to 30.8%. The decline was mainly caused by a restructuring of the intercompany funding.

The cash flow from operating activities, which does not include proceeds from divestments, remained virtually flat in 2001 at EUR 550 million (2000: EUR 552 million). This was mainly due to additional (Internet) product development spending, a strong increase in paid corporate income tax, and higher appropriations of reorganization provisions. In combination with an increased level of capital investment and a higher usage of acquisition provisions ordinary free cash flow declined by 10% to EUR 328 million, providing a figure of EUR 1.17 for the ordinary free cash flow per share (based on the weighted average 'fully diluted' number of shares), compared with EUR 1.30 in 2000. This cash flow benchmark provides an insight into the cash flow from operating activities which is available for dividend payment, debt reduction and acquisitions, after taking account of the required net investments in fixed assets and the usage of acquisition provisions.

Due to strict control, working capital developed much more favorably and contributed EUR 23 million to cash flow in 2001 compared with cash absorption of EUR 54 million in 2000. The level of net investments in fixed assets and in particular acquisitions increased in line with our growth policy. Overall, the balance of cash flow from operating activities and the cash flow investments resulted in a cash flow deficit of EUR 114 million (2000: EUR 42 million). This deficit was mainly financed by long-term debt. In May 2001, we issued a perpetual cumulative subordinated bond loan of EUR 225 million and in November we issued a EUR 700 million convertible bond loan, which was in part used for refinancing. Overall, we ended the year with a net cash inflow of EUR 159 million.

Performance of the clusters in 2001

Legal, Tax & Business Europe - Implementing strategy, preparing for growth


EUR million	2001	2000	% change	Organic growth	Acquisitions	Divestments	Currencies


Sales	1,345	1,313	2%	1%	2%	-1%	0%


of wich electronic products	311	248	25%


EBITDA	278	271


EBITA	240	237	1%	0%*	2%	-1%	0%


EBITA margin %	17.80%	17.90%


CAPEX	55	49	12%


FTEs (average)	8,335	7,829	6%

* Including impact of additional (Internet) product development and (2000) reorganization provisions

The year 2001 was marked by several important events. Firstly, the decision to focus on six core customer segments. The so-called non-core activities will be managed for cash or divested. Several assets within these businesses are momentarily being prepared for divestment. Separate management was recently installed for these non-core businesses. As announced in 2000, several reorganization operations are underway in a number of countries. For example, in the Dutch, Belgian and British operations, actions are underway to create a more customer focused approach.
Another important development was the initial rollout of our European technology platform. This platform reduces the time-to-market cycle and establishes technical standardization among all operating companies within LTB Europe. It deploys online services, targeting initially the legal, tax and human resources markets.

Results of the cluster, in terms of sales and EBITA, were affected by the economic slowdown of 2001. About 15% of the cluster's activities felt the impact of this development to a certain extent, mainly in the advertising business (the Netherlands), in freight exchange (Teleroute.com), and in some seminar activities in several operations. Despite strict cost control measures, the bottom-line impact of volume declines in these businesses could not be fully eliminated.
Organic sales development of the cluster was further influenced by the continued decline of loose-leaf publications - traditionally important products in a number of countries. This was not fully compensated for by increased electronic sales. The general pattern across Europe is that migration to online services is occurring at a slower pace than expected.

Software activity within LTB Europe showed good progress in 2001. In Italy, Spain, the United Kingdom, and the Netherlands software related operations showed healthy growth rates. In Italy, the position of Wolters Kluwer in the software sector was further strengthened with the acquisition of OSRA (a provider of tax compliance and human resources software) and Artel (a provider of workflow tools for the fiscal and financial market; Artel was acquired in March 2002).

Growth of Croner.CCH, based in the UK, was primarily driven by IRPC, a provider of products and services in the fields of employment, and health and safety regulations, which showed a strong increase of 15%. Its professional publishing and business consulting activities were particularly strong. At the beginning of 2002, Wolters Kluwer acquired ABG Professional Information, the commercial publishing arm of the Institute of Chartered Accountants in England and Wales, Europe's largest accounting institute. This purchase made Croner.CCH a leading player in the UK financial and fiscal information market.

Legal, Tax & Business North America - Focus on Smart Tools


EUR million	2001	2000	% change	Organic growth	Acquisitions	Currencies


Sales	1,225	1,093	12%	3%	7%	3%


of wich electronic products	495	416	19%


EBITDA	378	364


EBITA	343	333	3%	-5%*	5%	3%


EBITA margin %	28.00%	30.40%


CAPEX	51	39	31%


FTEs (average)	6,217	5,731	8%

* Including impact of additional (Internet) product development

This cluster also performed a review of its activities, and it was decided that LTB North America will - in addition to the tax, legal, and human resources areas - increasingly focus on legal and transaction compliance for the banking, insurance and securities industries. In a move to further enhance our position in these fields, Bankers Systems Inc. (BSI) was positioned as a separate operating company. With the acquisition of CBF Systems (market leader in the American information market for mortgage lenders and commercial banks) and TSoft Financial Software (developer of small business lending software for lenders), the leading position of BSI in the banking compliance market was further strengthened. With the discontinuation of most of its healthcare administration activities in 2001, Aspen Publishers is now fully focused on legal markets. Aspen Publishers is positioned to become the leading provider of legal information for small- and medium-sized law firms.

LTB North America significantly expanded its position in the legal online research market through the acquisition of Loislaw (a fully web-enabled provider of US case law and source material for legal markets, delivered on a subscription basis) by Aspen Publishers (as forecasted Loislaw did meet the full year 2001 EBITA break-even target). Over the year, the company was integrated into Aspen Publishers and developed a series of new products integrating statutory materials and case law from Loislaw with expert analytical content from Aspen. Aspen also revamped the Loislaw sales force, increased revenues in line with our expectations, and expanded the range of content in the Loislaw system.

Good progress was made through the development of online services for specific groups of professionals such as lawyers, accountants and legal counsels. We further succeed in our drive to seamlessly integrate proprietary content databases, compliance software, practice management software, and electronic research tools to provide end-to-end solutions to our customers. For example, in the autumn of 2001, we launched Client Relate, a product that leverages the combined strength of CCH INCORPORATED's tax research products and the tax compliance product suite of CCH Tax Compliance. This product helps accountants and other tax professionals identify specific clients that are affected by new tax law developments. It allows them to pinpoint clients who may benefit from additional services, and it identifies new service areas. Another important product launch was the release of Tax Notebook, an online tax organizer. This product allows for a secure and efficient transfer of information between the accounting firm and its clients.

CCH Legal Information Services (CCH LIS) launched two software tools to automate legal compliance processes this year: iLienOnline and a major upgrade to ctadvantage.com. ILienOnline is a web based application which allows customers to search public lending records, retrieve and view their portfolio of UCC filings, and prepare new filings.

Despite the economic slow-down in 2001 that curtailed the performance of CCH LIS's new representation business, corporate filings and trademark search business, the company remains one of the fastest growing assets in the cluster. CCH LIS made significant investments in technology infrastructure and new software that will enable it to become a web-enabled service provider, and further strengthen its market leading position.

Tax research material is increasingly being accessed online, and CCH INCORPORATED has rapidly developed its online services in line with that trend. Online products now represent almost 50% of total sales of CCH INCORPORATED. The company is also increasingly reallocating resources to growth areas such as financial planning, sales and use tax, corporate human resources and securities.

Legal, Tax & Business Asia Pacific - a one-stop shop (website) for all core areas


EUR million	2001	2000	% change	Organic growth	Acquisitions	Currencies


Sales	59	60	-2%	1%	5%	-8%


of wich electronic products	18	11	64%


EBITDA	12	14


EBITA	10	12	-17%	-11%*	1%	-7%


EBITA margin %	15.9%	19.9%


CAPEX	3	2	50%


FTE's (average)	546	478	14%

* Including impact of additional (Internet) product development

Sales showed a positive note at year-end, despite most of this region's countries being in or close to a recession. Another year of strong sales growth at CCH Asia more than compensated for a shortfall at CCH Australia that stemmed from a Federal election late in the year, new product delays and subscription cancellations. A new CCH website was launched as a one-stop shop for all core topic areas. It provides improved user (paid) access and makes key titles available on the Internet, thereby greatly improving the efficiency of producing print publications. The emphasis on Internet solutions translated into an impressive growth; in one year Internet sales have risen to 13% of cluster sales.

International Health & Science - Strong online sales


EUR million	2001	2000	% change	Organic growth	Acquisitions	Currencies


Sales	851	752	13%	2%	9%	2%


of wich electronic products	195	123	59%


EBITDA	206	194


EBITA	183	179	2%	-5%*	5%	2%


EBITA margin %	21.50%	23.80%


CAPEX	33	24	38%


FTEs (average)	2,881	2,639	9%

* Including impact of additional (Internet) product development and (2000) reorganization provisions

In the first half 2001, the cluster was confronted with a number of operational setbacks, partly originating from events in 2000. Top management was replaced and a portfolio review was started immediately. Within four months an in depth-analysis was completed: the primary focus will be on medical segments. The non-medical operations (KAP) will be divested. Primary customers will be English-reading professionals in the international markets. By the end of 2002, the cluster's resources will be fully aligned by 4 medical segments: Pharma; Medical Information Professionals; Practitioner Info; Clinical Tools. This refocus is aimed at maintaining and expanding our leading position in the medical growth markets.

The cluster aims to offer integrated, open, inclusive solutions to its customers. As much relevant, independent, multi-source information as possible will be channeled through Ovid Technologies, which will play an increasingly important role within the cluster in becoming the primary online platform.

In 2001, several important steps were taken to strengthen the position as leading provider of research tools. First of all, two strategic acquisitions were completed: SilverPlatter and Medi-Span. With the acquisition of SilverPlatter Ovid Technologies' position as leading provider of databases and research tools for the medical and academic markets was strengthened. The acquisition by Facts & Comparisons of Medi-Span was an important step in realizing our cluster and corporate vision of seeking growth as a supplier of solution based products and services for health professionals.

In 2001, efforts were started to explore a single channel approach for the medical markets. The single channel initiative explores the viability of a single sales approach and single electronic delivery model for medical.

During 2001, Ovid Technologies saw a further increase of its Internet sales. Its merger with SilverPlatter doubled the size of the business, while an expansion outside the US was achieved. The content offering of Ovid Technologies was further expanded with the uploading of a significant number of titles from Lippincott, Williams & Wilkins (LWW), KAP, and a significant number of third party titles.

After a challenging start of the year, caused by the bankruptcy of an important wholesaler, the performance of LWW improved in the second half of the year. Particularly good performance was shown by its activities in the nursing sector. LWW invested in the further development of key online products such as LWWONCOLOGY, targeting cancer treatment centers and specialists, and LWWMEDICINE, a clinical solution targeted at physicians. Furthermore, several hand-held clinical information solutions (PDA) were launched in the course of 2001.

Education - Fit for the future


EUR million	2001	2000	% change	Organic growth	Acquisitions	Divestments	Currencies


Sales	308	319	-3%	0%		-1%	-2%


of wich electronic products	16	12	33%


EBITDA	68	60


EBITA	61	55	11%	12%*			-1%


EBITA margin %	19.90%	17.20%


CAPEX	10	8	25%


FTEs (average)	1,441	1,477	-2%

* Including impact of additional (Internet) product development and (2000) reorganization provisions

The bulk of sales of Wolters Kluwer Education still relate to books (approximately 90% of total sales) but the electronic sales part steadily increases to approximately 5% in 2001 (up 33%). In 2001, the cluster was partly affected by delays of curricula in Belgium and tough market conditions in Germany. Although organic sales were flat, operating income was improved significantly mainly due to non-recurrence of provisions in 2000. The operations in the Netherlands performed very well, benefiting from the peak of the curriculum cycle.

Key issues for 2001 were reorganizations to improve profitability. The business improvement plans for the Netherlands, Sweden, Germany and the United Kingdom are almost finalized. Sweden - Liber is by far the market leader - showed a reversal of the downward market trend.

The cluster expects to be able to deliver organic growth above the industry average by increasing its focus on (Internet) product development for a wider group of customers based on better customer and market insight. This product development process will become streamlined and will be based on early market commitments to new product ideas as well as strict financial and market acceptance hurdle rates for 'go and no go' decisions as products move along their development path.

The expenditure on additional Internet (related) projects increased. Sales of the Internet project Vespucci, the first spin-off for e-publishing projects within Wolters Kluwer Education, were promising. Vespucci is a database of educational materials for higher education, which contains study material by course, such as case studies, assignments as well as syllabi. It enables students to compose their own study material and to determine their own study plan and focus.

WKE Online evolved to a pan-European competence center for the cluster in terms of technology and functionality issues related to all new product development.

Another promising new product is the Redaktion-D online project, developed in 2001 by Wolters Kluwer and the German Goethe Institute, and to be launched in the first half year of 2002. Redaktion-D brings a fully online and interactive German language-learning product on the market. The Goethe Institute is a well-known language institute with offices throughout the world and a large customer database of 120,000 students. Goethe is a very strong brand in the market for German language learning. Wolters Kluwer owns the technology and therefore can develop other educational services using the same platform thus lowering costs and increasing speed of development.

Professional Training
In line with the strategy to concentrate on exploiting the growth opportunities of Legal & Regulatory, International Health & Science, and Education, Wolters Kluwer continued with the divestment of Professional Training activities. In 2001, Wolters Kluwer sold its Dutch training company ROVC Technische Opleidingen (sales approximately EUR 8 million); the UK based Financial Training Company with sales of approximately EUR 47 million, and the American training company Blessing White (sales approximately EUR 17 million). The sale of the cluster Professional Training is now almost completed, with only the Dutch training company ISBW left to be sold. In line with Wolters Kluwer's general policy, the result on the divestments will be accounted for under 'Results on Divestments'.

Dividend

In line with previous years, we have decided to maintain the opportunity for shareholders to re-invest their dividend. On the basis of a pay-out ratio of approximately 34% - expressed as a percentage of the benchmark ordinary net income before amortization of intangible fixed assets and results on divestments - we propose to distribute a dividend of EUR 0.53 (2000: EUR 0.50) in cash per share for the financial year 2001, indicating our strong believe in the future of the company.

The cash dividend will be put before the Annual General Meeting of Shareholders on April 23, 2002 as well as the proposal for the stock dividend option. Shareholders can make their choice known not later than May 1. The stock dividend will be determined on May 2 (after close of trading). Dividend will be payable as from May 6.

Outlook

Wolters Kluwer will continue to strike a balance between investing for the future and the short-term profit performance. We expect to keep the overall return on sales (EBITA) margin at the current level, also beyond 2002. In 2002, again we will invest significantly in product development but we also expect to grow our benchmark profit, ordinary net income before amortization of intangibles, by 7-9%, measured at constant currencies. Growth will be realized in the second half of the year due to product launches and loading of expenses.

Forward-Looking Statements:
This press release contains forward-looking statements. These statements may be identified by words such as 'expect', 'should', 'could', 'shall', and similar expressions. These statements are subject to risks and uncertainties, and actual results and events could differ materially from what is expected presently.
Factors leading thereto may include without limitations general economic conditions, conditions in the markets in which Wolters Kluwer is engaged, behavior of customers, suppliers and competitors, technological developments, as well as legal and regulatory rules affecting Wolters Kluwer's businesses.

Click here for the full press release including annexes

Note for the editor:

Wolters Kluwer is a multinational information services company with annual sales of more than EUR 3.8 billion, employing approximately 20,000 people in Europe, North America, and Asia Pacific. The company's core activities are Legal & Regulatory, International Health & Science, and Education. The Wolters Kluwer shares are quoted on the Euronext Amsterdam. The annual report 2001 of Wolters Kluwer will be released on April 8, 2002. The Annual General Meeting of Shareholders will take place on April 23, 2002. The financial results for the first half 2002 will be announced on August 13, 2002.

Internet: www.wolterskluwer.com

For more information, please contact:
Press:
Eric Heres, tel. +31 20 6070 335
e-mail: press@wolterskluwer.com (press)

Analysts/Investors:
Annie Hull-Bom, tel. +31 20 6070 407
e-mail: ir@wolterskluwer.com (investor relations)

Wolters Kluwer nv,
P.O. Box 75248
1070 AE Amsterdam
The Netherlands