Slide 1: 2023 Second-Quarter Results
Aude Guerrucci Thomson Reuters 2023 Second-Quarter Results August 2, 2023
Slide 2: Agenda
Agenda • Welcome / Introduction Gary Bisbee • Second-Quarter 2023 Highlights Steve Hasker Generative AI Update, TR Labs Review • Financial Review Mike Eastwood Second-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: Second-Quarter 2023 Highlights
THOMSON REUTERS Second-Quarter 2023 Highlights Steve Hasker President & CEO
Slide 5: Second-Quarter 2023 Highlights
Second-Quarter 2023 Highlights 1. Solid Q2 broadly meets expectations • Q2 organic revenue growth of 5%, driven by 6% recurring revenue growth; “Big 3” Business Segments (Legal, Corporates and Tax & Accounting) revenues grew 7% organically • Q2 adjusted EBITDA margin upside largely driven by expense
Slide 6: Second-Quarter 2023 Consolidated Results
Second-Quarter 2023 Consolidated Results IFRS Financial Measures ($ millions) 2023 2022 Change Revenues $1,647 $1,614 Up 2% Operating profit $825 $391 Up 111% Diluted earnings per share (EPS) $1.90 $(0.24) n/m Cash flow from operations $695 $433 Up 59% Change at Constant Organic Non-IFRS Financial M
Slide 7: Second-Quarter 2023 Revenue Growth by Segment
Second-Quarter 2023 Revenue Growth by Segment Reported revenues up 2% to $1.6 billion Organic revenues up 5% 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 $0.
Slide 8: Generative AI Update, TR Labs Review
Generative AI Update, TR Labs Review
Slide 9: Generative AI Strategy at Thomson Reuters
Generative AI Strategy at Thomson Reuters Redefining Work With Generative AI: Provide Transformative Value Increase Customer Efficiency Deliver Exceptional Customer Experiences 1 2 3 Build Partner Buy Embed Generative AI in TR solutions Work with trusted companies to advance Acquire leading AI-power
Slide 10: TR Labs – AI Ingenuity by Thomson Reuters
TR Labs – AI Ingenuity by Thomson Reuters TR Labs - Who we are & what we do: Who AI and Emerging Technology Innovation Accelerator for Thomson Reuters What Center of expertise for R&D, evaluation and implementation of AI Solutions Help our customers, stay ahead in an ever-changing world with tools a
Slide 11: Thomson Reuters boasts a rich history in applied AI
Thomson Reuters boasts a rich history in applied Artificial Intelligence (AI) 1991 1996 2003 – 2005 2010 Howard Turtle, Chief History assistant, a large- ResultsPlus (document recommendation) Westlaw Next leverages a Scientist, helps found scale NLP1 that analyzed case Firm360 (judge/attorney name l
Slide 12: Financial Review
Financial Review Second-Quarter 2023 Results Updated 2023 Outlook Mike Eastwood Chief Financial Officer
Slide 13: Second-Quarter 2023 Legal, Corporates, Tax & Accounting Professionals Revenues
Second-Quarter 2023 Legal, Corporates, Tax & Accounting Professionals Revenues ($ millions) Second Quarter Six Months Constant Constant Revenues 2023 2022 Total Currency Organic 2023 2022 Total Currency Organic Legal Professionals 705 700 +1% +1% +6% 1,419 1,398 +2% +2% +6% Corporates 392 373 +5% +5
Slide 14: Second-Quarter 2023 Consolidated Revenues
Second-Quarter 2023 Consolidated Revenues ($ millions) Second Quarter Six Months Constant Constant Revenues 2023 2022 Total Currency Organic 2023 2022 Total Currency Organic Reuters News 194 188 +3% +2% +1% 369 364 +1% +1% +1% Global Print 133 142 -6% -5% -4% 271 284 -5% -3% -2% Eliminations / Round
Slide 15: Second-Quarter 2023 Consolidated Adjusted EBITDA
Second-Quarter 2023 Consolidated Adjusted EBITDA ($ millions) Second Quarter Six Months Constant Constant Adjusted EBITDA 2023 2022 Total Currency 2023 2022 Total Currency Legal Professionals 345 304 +14% +14% 663 609 +9% +9% Margin 48.9% 43.4% 46.7% 43.6% Corporates 163 139 +17% +17% 317 296 +7% +7
Slide 16: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share amounts & share count) Second Quarter Six Months % % 2023 Change 2023 Change Change Change Adjusted EBITDA $662 $101 $1,339 $178 Depreciation & Amortization ($156) $3 ($304) $7 Interest Expense ($34) $15 ($89) $8 Income Tax ($73) ($11) (
Slide 17: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) Second Quarter Six Months 2023 2022 Change 2023 2022 Change Comparable Free Cash Flow (Continuing Operations) $609 $426 $183 $802 $685 $117 Other Items (Change Program Costs) ($12) ($72) $60 ($74) ($186) $112 Free Cash Flow (Continuing Operations) $597 $354 $
Slide 18: London Stock Exchange Group Stake – 31.9M Shares Remain
London Stock Exchange Group Stake – 31.9M Shares Remain Thomson Reuters sold 15.3M LSEG shares in May; 40.1M LSEG shares have been sold to date 31.9M shares remain with approximately 2M eligible to be sold in 2023 • 10.5M Sold to Microsoft • 13.6M Sold in March offering • 0.7M Sold as part of LSEG s
Slide 19: 2023 Outlook Update
2023 Outlook Update
Slide 20: 2023 Updated Outlook
2023 Updated Outlook FY 2023 FY 2023 FY 2023 FY 2023 FY 2023 FY 2022 Total Thomson Reuters Outlook(3) Outlook(3) Outlook(3) Outlook(3) Outlook(3) Reported 2/23/21 2/8/22 2/9/23 5/2/23 8/2/23 Total Revenue Growth 4% 5.0% - 6.0% 5.5% - 6.0% 4.5% - 5.0% 3.0% - 3.5% Unchanged Organic Revenue Growth (1)
Slide 21: Q&A
Q&A