Thomson Reuters Corporation · TSX:TRI
Thomson Reuters — Q1 2019 Earnings Presentation
25 slides from Thomson Reuters's earnings presentation, May 8, 2019
Slide 1: Thomson Reuters 2019 First-Quarter Results
REUTERS / Vasily Fedosenko REUTERS REUTERS / Mike / Marcos Blake Brindicci Leonhard Foeger THOMSON REUTERS 2019 FIRST-QUARTER RESULTS May 8, 2019
Slide 2: Agenda
Agenda Welcome / Introduction Frank Golden First-Quarter 2019 Results Jim Smith Financial Review Stephane Bello Q&A 2
Slide 3: Special Note Regarding Forward-Looking Statements
Special Note Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions This presentation consists of these slides and the associated remarks and comments, which are related and intended to be presented and understood together. Certain statements in this presentation
Slide 4: First-Quarter 2019 Highlights
THOMSON REUTERS FIRST-QUARTER 2019 HIGHLIGHTS JIM SMITH PRESIDENT & CEO 4
Slide 5: First Quarter 2019 – Consolidated Results
First Quarter 2019 – Consolidated Results (Excludes Refinitiv) Change at Reported Organic Constant Results Growth Currency Revenues vs prior-year period Up 8% Up 10% Up 3% Adjusted EBITDA Down 8% Down 8% Q1 2019 Margin: 26.7% Down 440 bp Down 520 bp Adjusted EPS Up 29% Up 25% Q1 2019: $0.36 Up $0.08
Slide 6: First-Quarter 2019 Revenue Growth by Segment
First-Quarter 2019 Revenue Growth by Segment Reported Revenues up 8% to $1.5 billion Organic revenues up 3% Tax Corporates Reuters News Global Print Professionals Legal Tax Corporates Reuters News Global Print Professionals Professionals $0.6B $0.4B $0.2B $0.2B $0.2B Reported Revenues +2% +7% +2% +1
Slide 7: On Track Toward Achieving our 2019 – 2020 Outlook
On Track Toward Achieving our 2019 – 2020 Outlook 2019 is off to a solid start • Revenue growth tracking to plan with strong recurring revenue growth • Strong Q1 net sales and building book-of-business • Improving underlying margin trajectory from revenue flow through and efficiency initiatives Buil
Slide 8: Financial Review
FINANCIAL REVIEW STEPHANE BELLO CHIEF FINANCIAL OFFICER 8
Slide 9: Consolidated Results
Consolidated Results (Excludes Refinitiv) ($ millions) First-Quarter Change 2019 2018 Change Before Currency Revenues 1,487 1,379 +8% +10% Recurring 1,137 1,005 +13% +15% Transactions 186 198 -5% -3% Global Print 165 177 -7% -4% Adjusted EBITDA 397 430 -8% -8% Adjusted EBITDA Margin 26.7% 31.1% -440
Slide 10: Organic Revenue Growth Details
First-Quarter 2019 vs. First-Quarter 2018 %oftal93768 Organic Revenue Growth Details Recurring Revenue up 170 bps Total Company organically Organic Revenue up 140 bps 10 3% Legal 3% Sensitivity: Confidential 4% 6% Corporates Total 5% Tax 5% 2% 3% Total TR 3% Legal 6% Legal 5% -9% 7% Recurring 9% Cor
Slide 11: Legal Professionals
Legal Professionals ($ millions) First-Quarter Change 2019 2018 Change Before Currency Revenues 594 585 +2% +3% Recurring 550 533 +3% +4% Transactions 44 52 -15% -13% Adjusted EBITDA 227 191 +19% +19% Adjusted EBITDA Margin 38.2% 32.6% +560 bp +520 bp 11 Sensitivity: Confidential
Slide 12: Legal Professionals Revenues
Legal Professionals Revenues Global +5% Law Firms +1% (17% of Revenue) (68% of Revenue) Government +8% (15% of Revenue) First-Quarter Revenues $0.6 billion / +3% Above chart reflected at constant currency rates 12 Sensitivity: Confidential
Slide 13: Corporates
Corporates ($ millions) First-Quarter Change 2019 2018 Change Before Currency Revenues 352 329 +7% +8% Recurring 269 243 +10% +12% Transactions 83 86 -3% -2% Adjusted EBITDA 118 111 +6% +5% Adjusted EBITDA Margin 33.6% 33.8% -20 bp -90 bp 13 Sensitivity: Confidential
Slide 14: Corporates Revenues
Corporates Revenues Medium Corporates +6% Large Corporates +9% (17% of Revenue) (76% of Revenue) Global +8% (7% of Revenue) First-Quarter Revenues $0.4 billion / +8% Above chart reflected at constant currency rates 14 Sensitivity: Confidential
Slide 15: Tax Professionals
Tax Professionals ($ millions) First-Quarter Change 2019 2018 Change Before Currency Revenues 222 217 +2% +5% Recurring 173 167 +4% +7% Transactions 49 50 -2% +0% Adjusted EBITDA 93 80 +16% +21% Adjusted EBITDA Margin 41.9% 37.1% +480 bp +530 bp 15 Sensitivity: Confidential
Slide 16: Tax Professionals Revenues
Tax Professionals Revenues Global* +15% Small-Mid-Large Accounting Firms +5% (11% of Revenue) (84% of Revenue) Government -4% (5% of Revenue) First-Quarter Revenues $0.2 billion / +5% Above chart reflected at constant currency rates 16 *Global includes Latin America & Asia regions Sensitivity: Confi
Slide 17: Reuters News
Reuters News ($ millions) First-Quarter Change 2019 2018 Change Before Currency Revenues 155 72 +115% +121% Adjusted EBITDA 16 8 +97% +82% Adjusted EBITDA Margin 10.3% 11.3% -100 bp -210 bp 17 Sensitivity: Confidential
Slide 18: Global Print
Global Print ($ millions) First-Quarter Change 2019 2018 Change Before Currency Revenues 165 177 -7% -4% Adjusted EBITDA 74 81 -9% -8% Adjusted EBITDA Margin 44.8% 45.7% -90 bp -180 bp 18 Sensitivity: Confidential
Slide 19: Refinitiv
Refinitiv ($ millions) First-Quarter 2019 2018 Change Change Before (Reported (Reported Currency by Refinitiv) by Thomson Reuters) Revenues 1,567 1,583 -1% +3% Adjusted EBITDA 557 Adjusted EBITDA Margin 35.5% Capital Expenditures $132 Free Cash Flow ($341) Debt Outstanding(1) $12,906 Preferred Equit
Slide 20: Adjusted Earnings Per Share, Free Cash Flow, Corporate Costs
ADJUSTED EARNINGS PER SHARE FREE CASH FLOW CORPORATE COSTS 20
Slide 21: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share amounts & share count) First-Quarter % 2019 Change Change Adjusted EBITDA $397 ($33) Depreciation & Amortization ($139) ($11) Interest Expense ($35) $43 Income Tax ($41) ($15) Dividend declared on preference shares ($1) $0 Adjusted Earni
Slide 22: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) First-Quarter 2019 2018 Change Comparable Free Cash Flow (Continuing Operations) $159 $30 $129 Other Items (Q1-19 pension contribution and F&R separation costs) $279 $1 ($278) Free Cash Flow (Continuing Operations) ($120) $29 ($149) Free Cash Flow – Refinitiv
Slide 23: Corporate Costs
Corporate Costs ~$570M $499M 2019 Full Year Estimate(2): ~$570 Million ~$330M $272M ~$330M ~$140M - $190M $87M ~$100M ~$0 - $50M ~$240M $140M ~$140M ~$140M Q1 $142M* Actuals 2018 (1) 2019 (2) 2020 H1-2019 H2-2019 One-Time Costs Stranded Costs Core Corporate Costs Note: Q1 – Q3 2018 reflects a restat
Slide 24: Reaffirming 2019 & 2020 Outlook
Reaffirming 2019 & 2020 Outlook 2018 2019 Outlook 2020 Outlook Reported Before Currency Before Currency Revenue Growth 4%(1) 7% - 8.5%(2) 3.5% - 4.5% Adjusted EBITDA $1.4 billion $1.4 - $1.5 billion(3) 30.0% - 31.0%(3) ($1.3 billion before currency) Corporate Costs $499 million ~$570 million $140 -
Slide 25: Q&A
Q&A 25