Thomson Reuters Corporation · TSX:TRI
Thomson Reuters — Q2 2022 Earnings Presentation
24 slides from Thomson Reuters's earnings presentation, Aug 4, 2022
Slide 1: Thomson Reuters 2022 Second-Quarter Results
REUTERS / Mike Hutchings REUTERS / Mike Hutchings REUTERS / Mike Hutchings Thomson Reuters 2022 SECOND-QUARTER RESULTS August 4, 2022 THOMSON REUTERS ?
Slide 2: Agenda
Agenda • Welcome / Introduction Gary Bisbee • Second-Quarter 2022 Highlights Steve Hasker Corporates Segment and Risk, Fraud & Compliance Discussion • Financial Review Mike Eastwood Second-Quarter 2022 Results 2022 Full-Year Outlook Update • Q&A 2 THOMSON REUTERS ?
Slide 3: Special Note Regarding Forward-Looking Statements
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: Second-Quarter 2022 Highlights
THOMSON REUTERS Second-Quarter 2022 Highlights Steve Hasker President & CEO 4 THOMSON REUTERS
Slide 5: Second-Quarter 2022 & Six-Months 2022 Highlights
Second-Quarter 2022 & Six-Months 2022 Highlights 1. Strong organic revenue & sales growth continued in Q2 2022 • Four of five Business Segments grew 6%+ organically • “Big 3” Business Segments (Legal, Corporates and Tax & Accounting) revenues grew 7% organically • Rising complexity of regulation/com
Slide 6: Second-Quarter 2022 Consolidated Results
Second-Quarter 2022 Consolidated Results IFRS Financial Measures ($ millions) 2022 2021 Change Revenues $1,614 $1,532 Up 5% Operating profit $391 $316 Up 24% Diluted (loss) earnings per share (EPS) $(0.24) $2.15 n/m Net cash provided by operating activities $433 $462 Down 6% Change at Constant Organ
Slide 7: Second-Quarter 2022 Revenue Growth by Segment
Second-Quarter 2022 Revenue Growth by Segment Reported revenues up 5% to $1.6 billion Organic revenues up 7% Organic recurring revenues up 7% Tax Corporates Reuters News Global Print Professionals Legal Tax & Accounting Corporates Reuters News Global Print Professionals Professionals $0.7B $0.4B $0.
Slide 8: Corporates Segment and Risk, Fraud & Compliance Discussion
Corporates Segment and Risk, Fraud & Compliance Discussion 8 THOMSON REUTERS
Slide 9: FY 2021 Corporates Segment Revenue Mix
FY 2021 Corporates Segment Revenue Mix Corporates organic revenue growth has accelerated from 4% in H1 2021 to 8% in H1 2022 Drivers of acceleration: sales execution, product investments and price realization Legal Products Corporates Organic Growth Tax Products THOMSONREUTERS 8% Practical Law? 6% T
Slide 10: Risk, Fraud & Compliance Overview
Risk, Fraud & Compliance Overview Investigative and Revenue Growth 2016 - 2021 THOMSONREUTERS Fraud Prevention ~$300M CLEAR Data analytics solution powered by proprietary technology and a highly unique +16% CAGR Corporates 42% dataset supports investigations, KYC/AML compliance, and other use cases
Slide 11: CLEAR Overview
CLEAR Overview CLEAR delivers a unique value proposition by providing federated search Customers use CLEAR every day to help make technology bringing proprietary and third-party information together in a critical decisions that keep communities, single, seamless experience. organizations, and people
Slide 12: CLEAR Customer Workflow
CLEAR Customer Workflow O ÿ 12 THOMSON REUTERS ?
Slide 13: Financial Review
Financial Review Second-Quarter 2022 Results Updated 2022 Outlook Mike Eastwood Chief Financial Officer 13 THOMSON REUTERS
Slide 14: Legal Professionals, Corporates, Tax & Accounting Professionals Revenues
Second-Quarter 2022 & Six-Months 2022 Legal Professionals, Corporates, Tax & Accounting Professionals Revenues ($ millions) Second Quarter Six Months Constant Constant Revenues 2022 2021 Total Currency Organic 2022 2021 Total Currency Organic Legal Professionals 700 673 +4% +6% +6% 1,398 1,341 +4% +
Slide 15: Consolidated Revenues
Second-Quarter 2022 & Six-Months 2022 Consolidated Revenues ($ millions) Second Quarter Six Months Constant Constant Revenues 2022 2021 Total Currency Organic 2022 2021 Total Currency Organic Reuters News 188 173 +9% +12% +12% 364 338 +8% +11% +11% Global Print 142 147 -3% -1% -1% 284 290 -2% -1% -1
Slide 16: Consolidated Adjusted EBITDA
Second-Quarter 2022 & Six-Months 2022 Consolidated Adjusted EBITDA ($ millions) Second Quarter Six Months Constant Constant Adjusted EBITDA 2022 2021 Total Currency 2022 2021 Total Currency Legal Professionals 304 285 +7% +8% 609 564 +8% +9% Margin 43.4% 42.3% 43.6% 42.1% Corporates 139 128 +9% +8%
Slide 17: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share amounts & share count) Second Quarter Six Months % % 2022 Change 2022 Change Change Change Adjusted EBITDA $561 $59 $1,161 $101 Depreciation & Amortization ($159) $5 ($311) $14 Interest Expense ($49) - ($97) $3 Income Tax ($62) ($13) ($1
Slide 18: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) Second Quarter Six Months 2022 2021 Change 2022 2021 Change Comparable Free Cash Flow (Continuing Operations) $426 $404 $22 $685 $692 ($7) Other Items (Change Program Costs) ($72) ($16) ($56) ($186) ($28) ($158) Free Cash Flow (Continuing Operations) $354 $38
Slide 19: Change Program Investments & Savings
Change Program Investments & Savings 19 THOMSON REUTERS
Slide 20: Change Program FY 2022 Forecast & Cumulative Run-Rate Savings
Change Program FY 2022 Forecast & Cumulative Run-Rate Savings Achieved Annualized Run-Rate Operating Expense Savings of $369M as of June 30, 2022 FY 2022 Annualized Run-Rate Savings Forecast of ~$500M ~$500M $369M $305M $217M FY-2021 Q1-2022 Q2-2022 FY-2022 Cumulative Cumulative Cumulative Cumulativ
Slide 21: Change Program Investments
Change Program Investments Forecast ~$305M of Change Program Investments in 2022; ~$600M of cumulative Change Program investments over 2021 - 2022 2022 Phasing ~$305M Operating Expenditures H1-2022: ~60% (OpEx) $129M ~$175M ~60% $62M $67M ~40% Capital Expenditures $30M $34M (Capex) ~40% $28M $37M Q1
Slide 22: 2022 Outlook Update
2022 Outlook Update 22 THOMSON REUTERS
Slide 23: 2022 Updated Outlook
2022 Updated Outlook FY 2021 FY 2022 Outlook(2) FY 2022 Outlook(2) FY 2022 Outlook(2) FY 2022 Outlook(2) Total Thomson Reuters Reported 2/23/21 2/8/22 5/3/22 8/4/22 Total Revenue Growth 6.1% 4.0% - 5.0% ~ 5% ~5.5% ~6.0% Organic Revenue Growth (1) 5.2% 4.0% - 5.0% ~ 5% ~5.5% ~6.0% Adjusted EBITDA Mar
Slide 24: Q&A
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