Thomson Reuters Corporation · TSX:TRI
Thomson Reuters — Q1 2023 Earnings Presentation
22 slides from Thomson Reuters's earnings presentation, May 2, 2023
Slide 1: Thomson Reuters 2023 First-Quarter Results
Aude Guerrucci Thomson Reuters 2023 First-Quarter Results May 2, 2023
Slide 2: Agenda
Agenda • Welcome / Introduction Gary Bisbee • First-Quarter 2023 Highlights Steve Hasker Artificial Intelligence at TR • Financial Review Mike Eastwood First-Quarter 2023 Results 2023 Full-Year Outlook Update • Q&A 2
Slide 3: Special Note
Special Note Special Note Regarding Forward-Looking Statements, Material Assumptions and Material Risks 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 2023 Highlights
THOMSON REUTERS First-Quarter 2023 Highlights Steve Hasker President & CEO
Slide 5: First-Quarter 2023 Highlights
First-Quarter 2023 Highlights 1. Broad revenue momentum continued in Q1 2023 • Q1 organic revenue growth of 6%, driven by 6% recurring revenue growth • “Big 3” Business Segments (Legal, Corporates and Tax & Accounting) revenues grew 7% organically 2. Based on Q1 performance, maintained FY 2023 organ
Slide 6: First-Quarter 2023 Consolidated Results
First-Quarter 2023 Consolidated Results IFRS Financial Measures ($ millions) 2023 2022 Change Revenues $1,738 $1,674 Up 4% Operating profit $508 $414 Up 23% Diluted earnings per share (EPS) $1.59 $2.06 Down 23% Cash flow from operations $267 $275 Down 2% Change at Constant Organic Non-IFRS Financial
Slide 7: First-Quarter 2023 Revenue Growth by Segment
First-Quarter 2023 Revenue Growth by Segment Reported revenues up 4% to $1.7 billion Organic revenues up 6% Organic recurring revenues up 6% Tax Corporates Reuters News Global Print Professionals Tax & Legal Corporates Accounting Reuters News Global Print Professionals Professionals $0.7B $0.4B $0.3
Slide 8: Artificial Intelligence at TR
Artificial Intelligence at TR
Slide 9: Thomson Reuters boasts a rich history in applied Artificial Intelligence (AI)
Thomson Reuters boasts a rich history in applied Artificial Intelligence (AI) 1991 1996 2003 – 2005 2010 Howard Turtle, Chief History assistant, a large- ResultsPlus (document recommendation) Westlaw Next leverages a Scientist, helps found scale NLP1 that analyzed case Firm360 (judge/attorney name l
Slide 10: Well Positioned for Generative AI Leadership
Well Positioned for Generative AI Leadership Competitive Advantages for Success Our Focus Authoritative Content for core search and verification of Introduce AI assistant chat and Generative AI conversational experiences in our Research and Workflow software products Structured Content to fine tune
Slide 11: Financial Review
Financial Review First-Quarter 2023 Results Updated 2023 Outlook Mike Eastwood Chief Financial Officer
Slide 12: Legal, Corporates, Tax & Accounting Professionals Revenues
First-Quarter 2023 Legal, Corporates, Tax & Accounting Professionals Revenues ($ millions) First Quarter Constant Revenues 2023 2022 Total Currency Organic Legal Professionals 714 698 +2% +4% +5% Corporates 435 411 +6% +7% +8% Tax & Accounting Professionals 282 253 +11% +13% +11% Big 3 Revenues 1,43
Slide 13: First-Quarter 2023 Consolidated Revenues
First-Quarter 2023 Consolidated Revenues ($ millions) First Quarter Constant Revenues 2023 2022 Total Currency Organic Legal Professionals 714 698 +2% +4% +5% Corporates 435 411 +6% +7% +8% Tax & Accounting Professionals 282 253 +11% +13% +11% Big3 Revenues 1,431 1,362 +5% +6% +7% Reuters News 175 1
Slide 14: First-Quarter 2023 Consolidated Adjusted EBITDA
First-Quarter 2023 Consolidated Adjusted EBITDA ($ millions) First Quarter Constant Adjusted EBITDA 2023 2022 Total Currency Legal Professionals 318 305 +4% +4% Margin 44.6% 43.7% Corporates 154 157 -2% -1% Margin 35.1% 38.1% Tax & Accounting Professionals 149 122 +22% +22% Margin 51.4% 48.3% Big 3
Slide 15: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share amounts & share count) First Quarter 2023 Change % Change Adjusted EBITDA $677 $77 Depreciation & Amortization (148) 4 Interest Expense (55) (7) Income Tax (82) (5) Dividend declared on preference shares (1) - Adjusted Earnings $391 $69
Slide 16: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) First Quarter 2023 2022 Change Comparable Free Cash Flow (Continuing Operations) $194 $259 ($65) Other Items (Change Program Costs) (63) (114) 51 Free Cash Flow (Continuing Operations) 131 145 (14) Free Cash Flow – Discontinued Operations 2 (59) 61 Free Cash
Slide 17: Return on Invested Capital
Return on Invested Capital Return On Invested Capital has improved steadily in recent years, benefitting from the 2018 F&R separation and Change Program profitability and streamlining benefits 14.7% 11.4% 10.3% 13.3% 9.8% 10.6% 9.9% 7.7% 6.7% 6.7% 5.1% 2015 2016 2017 2018 2019 2020 2021 2022 ROIC ex
Slide 18: London Stock Exchange Group Stake – 47.5M Shares Remain
London Stock Exchange Group Stake – 47.5M Shares Remain Thomson Reuters sold 10.5M LSEG shares to Microsoft in January and 13.6M shares in a March offering; Of remaining 47.5M shares, ~17M are eligible for monetization in 2023 • 10.5M Sold to Microsoft • 13.6M Sold in early March offering • 0.4M Sol
Slide 19: Return of Capital Update
Return of Capital Update As detailed in the proxy filed on April 26, Thomson Reuters plans to execute a $2.2B return of capital transaction with a concurrent share consolidation by the end of June Illustrative Example Process Updates (from April 4 press release) Starting Position Ending Position(4)
Slide 20: 2023 Outlook Update
2023 Outlook Update THOMSON REUTERS*
Slide 21: 2023 Updated Outlook
2023 Updated Outlook FY 2023 FY 2023 FY 2023 FY 2023 FY 2022 Total Thomson Reuters Outlook(3) Outlook(3) Outlook(3) Outlook(3) Reported 2/23/21 2/8/22 2/9/23 5/2/23 Total Revenue Growth 4% 5.0% - 6.0% 5.5% - 6.0% 4.5% - 5.0% 3.0% - 3.5% Organic Revenue Growth (1) 6% 5.0% - 6.0% 5.5% - 6.0% 5.5% - 6.
Slide 22: Q&A
Q&A THOMSON REUTERS*