Legal, Tax & Business North AmericaLegal, Tax & Business North AmericaCEO Nancy McKinstryCEO Nancy McKinstry

Analysts & Investors, March/April 2001Analysts & Investors, March/April 2001

TABLE OF CONTENTSTABLE OF CONTENTS

• Overview of Wolters Kluwer LTB-NAOverview of Wolters Kluwer LTB-NA

• Core Market PositioningCore Market Positioning

• Current MarketsCurrent Markets

• Media Migration and GrowthMedia Migration and Growth

• Strategy and OpportunitiesStrategy and Opportunities

• SummarySummary

CCH Canadian

4%

CCH Legal Information

Services27%

Aspen Publishers

15%

CCH Tax Compliance

13%CCH US

Publishing41%

OVERVIEW OF WOLTERS KLUWER LTB-NAOVERVIEW OF WOLTERS KLUWER LTB-NA Operating CompaniesOperating Companies

2000 Sales 2000 Sales

30.4%30.4% — — 32.2%32.2%EBITA MarginEBITA Margin

1,0931,093 38%38%789789Total SalesTotal Sales 7%7% 16%16%

345345255255Total EBITATotal EBITA

(12)(12)——Additional Internet Investment*Additional Internet Investment* ———— ——

333333255255Total EBITA After InternetTotal EBITA After Internet 8%8% 12%12%31%31%

20002000(in EUR Millions)(in EUR Millions)

% Change % Change ’99/’00’99/’00

19991999(in EUR Millions)(in EUR Millions)

OVERVIEW OF WOLTERS KLUWER LTB-NA OVERVIEW OF WOLTERS KLUWER LTB-NA Consolidated ResultsConsolidated Results

OrganicOrganic AcquisitionAcquisition

* * Linked to EUR 250 Million additional (Internet) product development Linked to EUR 250 Million additional (Internet) product development spendingspending

—— —— ——

— — — —

• Leading provider of information and productivity tools to tax, legal, and regulatory markets.

• Key Products: Tax, securities, human resources, and financial information, and compliance software tools.

• Products delivered in print, CD-ROM, and online (Internet).• Number of products: 1,500

• Leading provider of software tools for tax and accounting practices targeted at medium to large size firms.

• Key Products: Tax preparation software, audit and practice management software.• Number of products: 310

• Premier provider of corporate and UCC software and services.• Key Products: Representation, Corporate Filings/M&A, Financial Search and Filing

services.• Number of Products/Services: 35

• Leading provider of expert-authored secondary source material in a wide variety of legal specialties.

• Key Products: Treatises and periodicals for legal practitioners and professionals in pensions, benefits, human resources, tax, accounting, and health care. Educational materials for law students.

• Number of Products: 1,500

CCH Tax Compliance

Aspen Publishers

CCH US Publishing & CCH Canadian

Lines of Business

CORE MARKET POSITIONINGCORE MARKET POSITIONINGProvide Information, Software Productivity Tools, and Provide Information, Software Productivity Tools, and Services to ProfessionalsServices to Professionals

CCH Legal Information Services

Tax SoftwareTax Software(e.g. CCH Prosystem fx)(e.g. CCH Prosystem fx)

Transaction Transaction (e.g.(e.g.CT Insurance AdvantageCT Insurance Advantage))

Online TrainingOnline Training(e.g. Learning @ CT)(e.g. Learning @ CT)

Software Tools & Software Tools & Compliance ServicesCompliance Services(e.g. (e.g. ctadvantagectadvantage.com, Tax .com, Tax Notebook)Notebook)

ServicesSoftwareSoftware

ToolsTools

ContentContent

CORE MARKET POSITIONINGCORE MARKET POSITIONINGLeverage Key Proprietary Assets in Areas of Content, Leverage Key Proprietary Assets in Areas of Content, Software, and Services Particularly in Areas of IntersectionSoftware, and Services Particularly in Areas of Intersection

Addition of hyperlinksAddition of hyperlinks Integration of workflow Integration of workflow

toolstools Libraries of integrated Libraries of integrated

contentcontent

Primary SourcePrimary SourceMaterialMaterial

SecondarySecondaryMaterialMaterial

TertiaryTertiaryMaterialMaterial

Addition of indexesAddition of indexesCommentaries Commentaries Expert analysisExpert analysisAuthored periodicalsAuthored periodicals

Public Domain Public Domain InformationInformation

Content for Content for basic basic researchresearch

HighHigh

LowLow

ValueValueAddedAdded

NILS Captive NILS Captive Insurance ManualInsurance Manual

CCH Employment CCH Employment Practices GuidePractices Guide

Delaware Law of Delaware Law of CorporationCorporation

Loss on Securities Loss on Securities RegulationRegulation

Areeda on AntitrustAreeda on Antitrust

Tax Court ReportsTax Court Reports IRS Code and Regulations IRS Code and Regulations IRS PublicationsIRS Publications Case Law, Statues and Case Law, Statues and

Regulations for all 50 states Regulations for all 50 states plus the District of Columbia plus the District of Columbia and 18 federal law librariesand 18 federal law libraries

ProSystem fxProSystem fx SEC Compliance DesktopSEC Compliance Desktop ctadvantage.comctadvantage.com CCH Enteract Financial CCH Enteract Financial

PlanningPlanning Election and Compliance Election and Compliance

Statement ToolkitStatement Toolkit Actuarial Factor Lookup ToolActuarial Factor Lookup Tool HRTools.comHRTools.com

CCH Solutions for CCH Solutions for Financial PlanningFinancial Planning

Wismore on EvidenceWismore on Evidence Ginsberg & Levin on Ginsberg & Levin on

Mergers & AcquisitionsMergers & Acquisitions CCH Standard Federal CCH Standard Federal

Tax ReportsTax Reports CCH Federal Securities CCH Federal Securities

Law ReportsLaw Reports

Epace EngagementEpace Engagement Corporation Service Online Corporation Service Online

(forms, statues, annotations)(forms, statues, annotations) Elderlaw Document AssemblyElderlaw Document Assembly ALWD Citation & Interactive ALWD Citation & Interactive

WebsiteWebsite Securities Library OnlineSecurities Library Online Aspen Law DirectAspen Law Direct UCC DirectUCC Direct Zip SalesZip Sales

CORE MARKET POSITIONINGCORE MARKET POSITIONINGWell Positioned in All Segments and Ahead Well Positioned in All Segments and Ahead of Competitors in Providing Tertiary Materialof Competitors in Providing Tertiary Material

Key Customers• Accountants• Attorneys• Corporate professionals• Banking and financial institutions institutions

• Accountants, primarily large and medium-sized firms

• Attorneys• Accountants• Law students• Health administrators• Pension advisors and other specialized practitioners

• In-house corporate attorneys• Lawyers and law firms• Paralegals

CCH Tax Compliance

CCH Legal Information Services

Aspen Publishers

CCH US Publishing & CCH Canadian

CURRENT MARKETSCURRENT MARKETSServing Legal,Tax and Regulatory MarketsServing Legal,Tax and Regulatory Markets

CURRENT MARKETS CURRENT MARKETS Accountants, Attorneys, Corporations, Financial InstitutionsAccountants, Attorneys, Corporations, Financial Institutions

Sales by CustomersSales by Customers

CCH USPublishing

CCH (BSI)

CCHLegal Information

Services

CCH USPublishing

CCHTax Compliance

AspenPublishers

AspenPublishers

CCH USPublishing

BNAHuman Resources

Banking Compliance

Lexis Document Services

CSCCorporate and Legal Compliance

WestSecurities Law

CSI (Thomson)Lacerte Tax Compliance

BNARIA (Thomson)Tax Research

#3#2#1Market Position

Harland Financial Solutions

Fragmented among local law firms

CURRENT MARKETSCURRENT MARKETSLeading Positions Within the $ 4.5 Billion US Legal MarketLeading Positions Within the $ 4.5 Billion US Legal Market

MEDIA MIGRATION AND GROWTH MEDIA MIGRATION AND GROWTH Electronic Sales Is a Significant Part of Today’s BusinessElectronic Sales Is a Significant Part of Today’s Business

CAGR CAGR 1997 - 20001997 - 2000

32.6%32.6%

46.2%46.2%

11.6%11.6%

20.5%20.5%

128.0%128.0%

24.2%24.2%

CCH US PublishingCCH US Publishing% of total sales% of total sales

CCH CanadianCCH Canadian% of total sales% of total sales

CCH Tax ComplianceCCH Tax Compliance% of total sales% of total sales

CCH Legal Information ServicesCCH Legal Information Services% of total sales% of total sales

Aspen PublishersAspen Publishers% of total sales% of total sales

TOTALTOTAL% of total sales% of total sales

Actual 1997Actual 1997

$81$8130%30%

$8$827%27%

$91$91100%100%

$20$2011%11%

$1$11%1%

$200$20030.5%30.5%

Actual Actual 20002000

$189$18945%45%

$25$2561%61%

$126$126100%100%

$35$3513%13%

$8$85%5%

$383$38338%38%

MEDIA MIGRATION AND GROWTH MEDIA MIGRATION AND GROWTH Electronic Sales Are Growing RapidlyElectronic Sales Are Growing Rapidly

MillionsMillions

48

98

141

184

238

0

50

100

150

200

250

Millions $

1999A 2000A 2001E 2002E 2003E

Internet Sales

MEDIA MIGRATION AND GROWTH MEDIA MIGRATION AND GROWTH Strong Growth in Internet Sales Will Continue Throughout Strong Growth in Internet Sales Will Continue Throughout the Decadethe Decade

STRATEGY AND OPPORTUNITIESSTRATEGY AND OPPORTUNITIESLTB-NA’s Strategy Is Focused on GrowthLTB-NA’s Strategy Is Focused on Growth

• Growth strategy targeted in four areas:Growth strategy targeted in four areas:– Extend leading positions in proprietary content to software Extend leading positions in proprietary content to software

productivity tools and services within existing market productivity tools and services within existing market segments (e.g. tax compliance, banking, human resources)segments (e.g. tax compliance, banking, human resources)

– Leverage current positions in growing markets to expand Leverage current positions in growing markets to expand product line and market share (e.g. financial services, product line and market share (e.g. financial services, retirement planning software and services)retirement planning software and services)

– Enter new markets that fit strategic requirements Enter new markets that fit strategic requirements (i.e...“must have” information, markets that are compliance (i.e...“must have” information, markets that are compliance and regulatory driven, with state and federal components)and regulatory driven, with state and federal components)

– Pursue strategic acquisitions that support growth.Pursue strategic acquisitions that support growth.

STRATEGY AND OPPORTUNITIES STRATEGY AND OPPORTUNITIES LTB-NA’s Strategy Is Focused on GrowthLTB-NA’s Strategy Is Focused on Growth

• Market trends support LTB-NA’ s growth strategyMarket trends support LTB-NA’ s growth strategy– Accounting and law firms, corporations, and financial Accounting and law firms, corporations, and financial

institutions have focused attention on workflow and institutions have focused attention on workflow and compliance tools and automation, where LTB-NA is already compliance tools and automation, where LTB-NA is already better positioned than competitors.better positioned than competitors.

– LTB-NA’s “knowledge expertise” is valued more highly as LTB-NA’s “knowledge expertise” is valued more highly as customers face labor productivity issues.customers face labor productivity issues.

– LTB-NA’s scale and product depth is critical as customers LTB-NA’s scale and product depth is critical as customers look for integrated solutions and one-stop-shopping.look for integrated solutions and one-stop-shopping.

Provides tools for estate and financial planning Provides tools for estate and financial planning services.services.

Offers tax compliance and planning software Offers tax compliance and planning software and services.and services.

Offers state and local tax rate information and Offers state and local tax rate information and software to accounting and corporate markets.software to accounting and corporate markets.

Extends CCH into management software, and Extends CCH into management software, and tools for the HR market.tools for the HR market.

Extends position for providing software tools for Extends position for providing software tools for financial services market (SBA lending).financial services market (SBA lending).

Automates audit workflow, providing platform Automates audit workflow, providing platform for paperless engagements.for paperless engagements.

Extend content to Extend content to software software productivity tools productivity tools and servicesand services

• View Plan, 1997; View Plan, 1997; Life Goals, 2000Life Goals, 2000(CCH US Publishing)(CCH US Publishing)

• SoftKey, 1998; SoftKey, 1998; Portfolio Publishing, 2000Portfolio Publishing, 2000(CCH Canadian)(CCH Canadian)

• DPC Computer, Inc., 2000DPC Computer, Inc., 2000(CCH US Publishing)(CCH US Publishing)

• Knowledge Point, 2000Knowledge Point, 2000(CCH US Publishing)(CCH US Publishing)

• Tsoft, 2000Tsoft, 2000(CCH US Publishing)(CCH US Publishing)

• ePace, 2000ePace, 2000(CCH Tax Compliance)(CCH Tax Compliance)

StrategyStrategy Acquisitions, YearAcquisitions, Year OpportunityOpportunity

STRATEGY AND OPPORTUNITIES STRATEGY AND OPPORTUNITIES Recent Acquisitions Support Growth Strategy and Provide Recent Acquisitions Support Growth Strategy and Provide Platforms for Expanding Electronic Sales (1)Platforms for Expanding Electronic Sales (1)

Leverage current Leverage current position to expand position to expand product line in product line in growing marketsgrowing markets

• Corsearch, 1999Corsearch, 1999(CCH Legal Information Services)(CCH Legal Information Services)

• AccuSearch and AccuSearch and Information America, 1999Information America, 1999(CCH Legal Information Services)(CCH Legal Information Services)

• PACS Software, 1999PACS Software, 1999(CCH Tax Compliance)(CCH Tax Compliance)

• A Plus Tax Software, 2000A Plus Tax Software, 2000(CCH Tax Compliance)(CCH Tax Compliance)

• HBJ Professional HBJ Professional Publishing, 2000Publishing, 2000(Aspen Publishers, Inc.)(Aspen Publishers, Inc.)

• IHS Financial IHS Financial Information, 2000Information, 2000(CCH US Publishing)(CCH US Publishing)

• CBF Systems, 2001CBF Systems, 2001(CCH US Publishing)(CCH US Publishing)

• Loislaw, 2001Loislaw, 2001(Aspen Publishers, Inc.)(Aspen Publishers, Inc.)

Extends position in intellectual property research software and services.

Provides integrated UCC software and services, including images, to financial institutions.

Extends tax compliance position into practice management software.

Extends tax compliance position.

Extends position in accounting and tax markets.

Provides information and tools for compliance to financial services industry.

Extends position in mortgage documentation and software tools for financial services industry.

Internet provider of comprehensive legal information targeted at smaller firms in the legal market.

StrategyStrategy Acquisitions, YearAcquisitions, Year OpportunityOpportunity

STRATEGY AND OPPORTUNITIES STRATEGY AND OPPORTUNITIES Recent Acquisitions Support Growth Strategy and Provide Recent Acquisitions Support Growth Strategy and Provide Platforms for Expanding Electronic Sales (2)Platforms for Expanding Electronic Sales (2)

Enter new markets which fit strategic criteria

• NILS Publishing, 1997NILS Publishing, 1997(CCH US Publishing)(CCH US Publishing)

• Bankers Systems, Inc., 1999Bankers Systems, Inc., 1999(CCH US Publishing)(CCH US Publishing)

• Summers Press, 1999Summers Press, 1999(Aspen Publishers, Inc.)(Aspen Publishers, Inc.)

• Telecommunications Telecommunications Reports International, 1999Reports International, 1999(CCH US Publishing)(CCH US Publishing)

Provides insurance law information and tools.Provides insurance law information and tools.

Integrates regulatory content and compliance Integrates regulatory content and compliance tools to provide end-to-end solutions for tools to provide end-to-end solutions for lending transactions.lending transactions.

Provides information regarding environmental Provides information regarding environmental issues for HR and legal markets.issues for HR and legal markets.

Provides information about highly regulated Provides information about highly regulated telecommunications market.telecommunications market.

StrategyStrategy Acquisitions, YearAcquisitions, Year OpportunityOpportunity

Total Combined Sales at Time of Acquisition: $ 274 MillionTotal Combined Sales at Time of Acquisition: $ 274 Million

STRATEGY AND OPPORTUNITIES STRATEGY AND OPPORTUNITIES Recent Acquisitions Support Growth Strategy and Provide Recent Acquisitions Support Growth Strategy and Provide Platforms for Expanding Electronic Sales (3)Platforms for Expanding Electronic Sales (3)

STRATEGY AND OPPORTUNITIES STRATEGY AND OPPORTUNITIES The Internet as a Platform Provides Significant The Internet as a Platform Provides Significant Opportunities to Expand Our BusinessOpportunities to Expand Our Business

• Extend product development leveraging unique Extend product development leveraging unique capabilities of the Internet:capabilities of the Internet:– Develop customer oriented destination sites to achieve Develop customer oriented destination sites to achieve

$141 Million in Internet sales in 2001$141 Million in Internet sales in 2001

– Create new products through integration and data miningCreate new products through integration and data mining

– Cross-sell related products by using Internet capabilities to Cross-sell related products by using Internet capabilities to identify needs and personalization optionsidentify needs and personalization options

– Syndicate and offer private labeling of our products to core Syndicate and offer private labeling of our products to core customers for use in building their own web sites, intranets, customers for use in building their own web sites, intranets, and other client development initiatives.and other client development initiatives.

STRATEGY AND OPPORTUNITIES STRATEGY AND OPPORTUNITIES Internet Opportunities…ContinuedInternet Opportunities…Continued

• Expand distribution by building alliances in non-core Expand distribution by building alliances in non-core markets and extending brand through data markets and extending brand through data distribution, licensing, and ASP offerings.distribution, licensing, and ASP offerings.

• Increase share of “work time” with LTB-NA products Increase share of “work time” with LTB-NA products and services by embedding our tools into our and services by embedding our tools into our customers’ infrastructure.customers’ infrastructure.

• Standardize technology to achieve competitive Standardize technology to achieve competitive advantage, reinforce one-to-one marketing and advantage, reinforce one-to-one marketing and increase efficiencies.increase efficiencies.

STRATEGY AND OPPORTUNITIES STRATEGY AND OPPORTUNITIES Building Destination Sites Is a Top PriorityBuilding Destination Sites Is a Top Priority

• Customer focused on core markets:Customer focused on core markets:– Tax and AccountingTax and Accounting– Legal Compliance Services Legal Compliance Services – Legal Research (i.e. Loislaw)Legal Research (i.e. Loislaw)– Human Resources Human Resources – Banking Compliance.Banking Compliance.

• Same basic technology, framework, and strategy used Same basic technology, framework, and strategy used across sites.across sites.

• Designed to leverage product integration and customer Designed to leverage product integration and customer interaction across sites.interaction across sites.

• Provides for third party, ASP, syndication, and private Provides for third party, ASP, syndication, and private label offerings.label offerings.

• Leverages existing product brands, while creating Leverages existing product brands, while creating common look and feel.common look and feel.

Wolters Kluwer LTB-NADestination Site Design

Destination SiteVertical Entry Layer

Customers can enter the Destination Site from the Umbrella site or by surfing

or typing the appropriate URL. This Layer is designed to entice customers with free content, trials and tools and allow them to purchase Site products.

CCH Customer Web Site(e.g. CPA or Law firm Site)

WK LTB-NA Umbrella Site

Working Layer

Customers will use the personalized working layer as their desktop to control and monitor a significant portion of their business from within this Internet space, which is customized to fit the customer’s

working style and needs.

Applications Layer Customers use specific applications,

primarily web-enabled, to solve problems, such as doing tax research; creating a tax return, a financial plan or

an estate plan; initiating an audit or performing client management.

Access to CCH content/tools created for use by non-professionals and licensed:

•CCH Customer Sites

•Other consumer-oriented Sites

Third-party Consumer Sites

STRATEGY AND OPPORTUNITIES:

Wolters Kluwer LTB-NADestination Site Design

Tax & Accounting Destination Site

Third-party Consumer

Sites

B2B

B2C

ApplicationsLayer

(Performing Tasks)

CompleteTaxRetail

ConsumerCalculators

Client Specific Tax News

Financial PlanEng. Kit

CPA Web Site

My Tax News

Tax Return Status

Client Data Mining

My Tax Return

Due Dates

Search MyCCH Publications

Vertical Entry Layer (Initiate…Engage…Act)

Working Layer

(Personalized)

Loislaw (Legal Research)

Human Resources

Legal Compliance Services

CPA Tools

CPE

User Forum

Free Content

Product Demos

Tax News Highlights

CPA FirmWEB Page

Private ClientServices

WK LTB-NA Umbrella SiteCommon Catalog

STRATEGY AND OPPORTUNITIES:

SUMMARY SUMMARY LTB-NA Is Well Positioned to GrowLTB-NA Is Well Positioned to Grow

• Overall strategy focused on extending leading market Overall strategy focused on extending leading market position into software tools and services.position into software tools and services.

• Excellent brands and market position.Excellent brands and market position.• Strong electronic business with significant growthStrong electronic business with significant growth• Internet strategy which leverages market position, and Internet strategy which leverages market position, and

technology investmentstechnology investments– Customer Destination SitesCustomer Destination Sites

– Expanded distributionExpanded distribution

– Increased share of work timeIncreased share of work time

– Better profitability.Better profitability.