Slide 1: Thomson Reuters 2017 Third-Quarter Results
REUTERS / Vasily Fedosenko REUTERS / Mike Blake THOMSON REUTERS 2017 THIRD-QUARTER RESULTS November 1, 2017
Slide 2: Agenda
Agenda Welcome / Introduction Frank Golden Third-Quarter 2017 Highlights Jim Smith Financial Review Stephane Bello Q&A 2
Slide 3: Special Note: Safe Harbor / Forward-Looking Statements
Special Note Safe Harbor / Forward-Looking Statements 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 and discussion, including, but not limited to, the
Slide 4: Third-Quarter 2017 Highlights
THOMSON REUTERS THIRD-QUARTER 2017 HIGHLIGHTS JIM SMITH PRESIDENT & CEO 4
Slide 5: Full-Year 2017 Outlook Re-affirmed
Q3 2017 Consolidated Results Change at Constant Reported Currency Revenues Up 2% Up 1% Adjusted EBITDA Up 4% Up 4% Margin 30.4% vs. 29.7% in Q3 2016 Up 70 bps Up 70 bps Adjusted EPS Up 26% Up 24% $0.68 vs. $0.54 in Q3 2016 Up $0.14 Up $0.13 Full-Year 2017 Outlook Re-affirmed Expect to be at top end
Slide 6: Q3 2017 Revenues by Business
Q3 2017 Revenues by Business Financial & Risk Legal Tax & Accounting +1% +1% +5% Financial U.S. Online Legal Information Professional Risk Solutions Businesses Corporate U.S. Print Knowledge Solutions Government Note: Revenue growth rates are at constant currency 6
Slide 7: 2017 Outlook
2017 Outlook FY 2017 FY 2017 2016(1) Revised Outlook(2) Reaffirm Outlook(2) Excludes Q4 Charge August 2017 November 2017 At Constant Currency At Constant Currency Revenue Growth $11.2 billion Low single digit No change Adjusted EBITDA Margin 28.4% 29.3% - 30.3% No change Free Cash Flow $2.1 billion
Slide 8: Financial Review
FINANCIAL REVIEW STEPHANE BELLO CHIEF FINANCIAL OFFICER 8
Slide 9: Consolidated Results
Consolidated Results ($ millions) Third-Quarter Nine-Months Change at Change at 2017 2016 Change Constant 2017 2016 Change Constant Currency Currency Revenues 2,792 2,744 +2% +1% 8,389 8,306 +1% +2% Adjusted EBITDA 849 814 +4% +4% 2,563 2,319 +11% +10% Adjusted EBITDA Margin 30.4% 29.7% +70bp +70 bp
Slide 10: Legal
Legal ($ millions) Third-Quarter Nine-Months Change at Change at 2017 2016 Change Constant 2017 2016 Change Constant Currency Currency Revenues 843 835 +1% +1% 2,509 2,503 +0% +1% Adjusted EBITDA 338 328 +3% +2% 965 936 +3% +3% Adjusted EBITDA Margin 40.1% 39.3% +80bp +70 bp 38.5% 37.4% +110bp +90 b
Slide 11: Legal Revenue Growth By Type
Legal Revenue Growth By Type $400 +2% +2% +3% +3% Legal Solutions Revenues $350 +5% +4% +5% $300 +5% $250 Q4-16 $200 Q1-17 Q2-17 $150 -7% -4% -8% -7% Q3-17 $100 -10% -9% -9% -9% $50 $- U.S. Online Legal Info Solutions Recurring Solutions Transactions U.S. Print % of Revenues 42% 36% 9% 13% 11
Slide 12: Tax & Accounting
Tax & Accounting ($ millions) Third-Quarter Nine-Months Change at Change at 2017 2016 Change Constant 2017 2016 Change Constant Currency Currency Revenues 341 323 +6% +5% 1,108 1,036 +7% +6% Adjusted EBITDA 95 87 +9% +8% 339 283 +20% +19% Adjusted EBITDA Margin 27.9% 26.9% +100bp +70 bp 30.6% 27.3%
Slide 13: Tax & Accounting Revenue By Segment
Tax & Accounting Revenue By Segment Professional +7% Corporate +8% $87 million (26% of Revenue) $139 million (41% of Revenue) Third-Quarter Revenues $0.3 billion / +5% Knowledge Solutions -2% Government +44% $104 million (30% of Revenue) $11 million (3% of Revenue) 13
Slide 14: Financial & Risk
Financial & Risk ($ millions) Third-Quarter Nine-Months Change at Change at 2017 2016 Change Constant 2017 2016 Change Constant Currency Currency Revenues 1,542 1,516 +2% +1% 4,561 4,549 +0% +1% Adjusted EBITDA 495 460 +8% +6% 1,435 1,340 +7% +7% Adjusted EBITDA Margin 32.1% 30.3% +180bp +150 bp 31.
Slide 15: Financial & Risk Revenue By Segment
Financial & Risk Revenue By Segment Desktop -4% (-3% excluding pricing adjustment) Elektron Data Platform & Risk +5% $0.6 billion (37% of Revenue) $0.6 billion (40% of Revenue) Third-Quarter Revenues $1.5 billion / +1% Transactions +7% Recoveries -4% $0.2 billion (15% of Revenue) $0.1 billion (8% of
Slide 16: Free Cash Flow; Adjusted Earnings Per Share
FREE CASH FLOW ADJUSTED EARNINGS PER SHARE 16
Slide 17: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share Third-Quarter Nine-Months amounts) 2017 Change 2017 Change Adjusted EBITDA $849 $35 $2,563 $244 Depreciation & Computer ($244) $11 ($741) $16 Software Amortization Interest Expense ($84) $24 ($272) $32 Income Tax ($15) $19 ($118) ($9) Ot
Slide 18: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) Third-Quarter Nine-Months % % 2017 2016 Change 2017 2016 Change Change Change Comparable Free Cash Flow $557 $543 $14 3% $1,217 $1,122 $95 8% Payment Related To Fourth- ($21) $0 ($21) ($137) $0 ($137) Quarter 2016 Charge Pension Contribution $0 $0 $0 ($500) $
Slide 19: Positive Return on Invested Capital Trend
Positive Return on Invested Capital Trend 7.5% - 8.0% 7.4% 0.7% 7.4% 6.7% 6.7% 5.3% 5.8% 2013 2014 2015 2016 2017 Estimate WACC Reported ROIC Excluding Charges 19
Slide 20: Q&A
20 Q&A the answer company~ THOMSON REUTERS®