Thomson Reuters Corporation · TSX:TRI
Thomson Reuters — Q1 2017 Earnings Presentation
20 slides from Thomson Reuters's earnings presentation, Apr 28, 2017
Slide 1: Thomson Reuters 2017 First-Quarter Results
REUTERS / Vasily Fedosenko REUTERS / Mike Blake THOMSON REUTERS 2017 FIRST-QUARTER RESULTS April 28, 2017
Slide 2: Agenda
Agenda Welcome / Introduction Frank Golden First-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: First-Quarter 2017 Highlights
THOMSON REUTERS FIRST-QUARTER 2017 HIGHLIGHTS JIM SMITH PRESIDENT & CEO 4
Slide 5: Consolidated Q1 2017 Results
Consolidated Q1 2017 Results Reported Before Currency Revenues up 1% vs. prior-year period Up 2% Adjusted EBITDA up 17% Up 17% Margin 31.1% vs. 26.8% in Q1 2016 Up 400 bps Adjusted EPS up 37% Up 37% $0.63 vs. $0.46 for Q1 2016 Up $0.17 2017 Outlook Affirmed 5
Slide 6: Q1 2017 Revenue Results by Business
Q1 2017 Revenue Results by Business Financial & Risk Legal Tax & Accounting +1% +1% +6% Financial U.S. Online Legal Information Professional Risk Solutions Businesses Corporate U.S. Print Knowledge Solutions Government Note: Revenue growth rates are before the impact of currency 6
Slide 7: 2017 Priorities
2017 Priorities Accelerating Organic Revenue Growth is Top Priority Continue to Drive Productivity Gains Deliver on Our Commitments 7
Slide 8: Financial Review
FINANCIAL REVIEW STEPHANE BELLO CHIEF FINANCIAL OFFICER 8
Slide 9: Consolidated Results
Consolidated Results ($ millions) First-Quarter Change 2017 2016 Change Before Currency Revenues 2,815 2,793 +1% +2% Adjusted EBITDA 876 748 +17% +17% Adjusted EBITDA Margin 31.1% 26.8% +430 bp +400 bp 9
Slide 10: Legal
Legal ($ millions) First-Quarter Change 2017 2016 Change Before Currency Revenues 824 822 0% +1% Adjusted EBITDA 307 298 +3% +4% Adjusted EBITDA Margin 37.3% 36.3% +100 bp +110 bp 10
Slide 11: Legal Revenue By Segment
Legal Revenue By Segment Solutions Businesses +2% U.S. Print -4% $359 million (44% of Revenue) $111 million (13% of Revenue) Subscription: +5% (79% of revenue) Transactional: -9% (21%% of revenue) First-Quarter Revenues $0.8 billion / +1% (excluding U.S. Print +2%) U.S. Online Legal Information +2%
Slide 12: Tax & Accounting
Tax & Accounting ($ millions) First-Quarter Change 2017 2016 Change Before Currency Revenues 417 389 +7% +6% Adjusted EBITDA 141 114 +24% +24% Adjusted EBITDA Margin 33.8% 29.3% +450 bp +480 bp 12
Slide 13: Tax & Accounting Revenue By Segment
Tax & Accounting Revenue By Segment Professional +13% Corporate +7% $151 million (36% of Revenue) $163 million (39% of Revenue) First-Quarter Revenues $0.4 billion / +6% Knowledge Solutions -1% Government -16% $92 million (22% of Revenue) $11 million (3% of Revenue) 13
Slide 14: Financial & Risk
Financial & Risk ($ millions) First-Quarter Change 2017 2016 Change Before Currency Revenues 1,502 1,509 0% +1% Adjusted EBITDA 463 437 +6% +7% Adjusted EBITDA Margin 30.8% 29.0% +180 bp +160 bp 14
Slide 15: Financial & Risk Revenue By Segment
Financial & Risk Revenue By Segment Desktop -4% (-3% excluding pricing adjustment) Elektron Data Platform & Risk +9% $0.6 billion (38% of Revenue) $0.6 billion (39% of Revenue) First-Quarter Revenues $1.5 billion / +1% (excluding Recoveries +2%) Transactions +4% Recoveries -9% $0.2 billion (15% of R
Slide 16: Adjusted Earnings Per Share; Free Cash Flow
ADJUSTED EARNINGS PER SHARE FREE CASH FLOW 16
Slide 17: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share amounts) First-Quarter 2017 Change % Change Adjusted EBITDA $876 $128 Depreciation & Computer Software Amortization ($252) ($2) Interest Expense ($93) $0 Income Tax(1) ($55) ($12) Other (2) ($18) ($7) Adjusted Earnings(1) $458 $107 Adjus
Slide 18: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) First-Quarter 2017 2016 Change Comparable Free Cash Flow $42 $112 ($70) Payment Related To Fourth-Quarter 2016 Charge ($86) $0 ($86) Pension Contribution ($500) $0 ($500) Free Cash Flow (excluding IP & Science) ($544) $112 ($656) Free Cash Flow - IP & Science
Slide 19: 2017 Outlook Affirmed
2017 Outlook Affirmed 2016 2017 Outlook(1) Excluding Q4 charge Before Currency Revenue Growth $11.2 billion Low single digit Adjusted EBITDA Margin 28.4% 28.8% - 29.8% Free Cash Flow(2) $2.1 billion $0.9 - $1.2 billion Adjusted EPS $2.07 $2.35 Depreciation & Amortization $1.0 billion $950 million -
Slide 20: Q&A
Q&A 20