Thomson Reuters Corporation · TSX:TRI
Thomson Reuters — Q2 2021 Earnings Presentation
23 slides from Thomson Reuters's earnings presentation, Aug 5, 2021
Slide 1: 2021 Second-Quarter Results
REUTERS/Benoit REUTERS / PascalTessier Rossignol Thomson Reuters 2021 SECOND-QUARTER RESULTS August 5, 2021 THOMSON REUTERS ?
Slide 2: Agenda
Agenda • Welcome / Introduction Frank Golden • Second-Quarter 2021 Results Steve Hasker • Financial Review Mike Eastwood Second-Quarter 2021 Third-Quarter 2021 Outlook / Full-Year 2021 Outlook Update • Q&A 2 THOMSON REUTERS ?
Slide 3: Special Note Regarding Forward-Looking Statements
Special Note Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions 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 2021 Highlights
THOMSON REUTERS Second-Quarter 2021 Highlights Steve Hasker President & CEO 4 THOMSON REUTERS
Slide 5: Strong Second-Quarter & First-Half 2021 Results
Strong Second-Quarter & First-Half 2021 Results Prevailing Tailwinds Play to Our Strengths Contributing to Strong Revenue & Sales Growth 1. Second-Quarter Organic Revenue Growth Highest in Over a Decade • Total TR organic revenue growth = 7% • Big 3 organic revenue growth = 7% 2. Second-Quarter & Fi
Slide 6: Second-Quarter 2021 Consolidated Results
Second-Quarter 2021 Consolidated Results IFRS Financial Measures ($ millions) 2021 2020 Change Revenues $1,532 $1,405 Up 9% Operating profit $316 $365 Down 14% Diluted earnings per share (EPS) $2.15 $0.25 n/m Cash flow from operations $462 $422 Up 10% Change at Constant Organic Non-IFRS Financial Me
Slide 7: Second-Quarter 2021 Revenue Growth by Segment
Second-Quarter 2021 Revenue Growth by Segment Reported revenues up 9% to $1.5 billion Organic revenues up 7% Organic recurring revenues up 5% Tax Corporates Reuters News Global Print Professionals Legal Tax & Accounting Corporates Reuters News Global Print Professionals Professionals $0.7B $0.3B $0.
Slide 8: Total TR and Big 3 Organic Revenue Growth Forecast to Exceed 2019 Levels
Total TR and Big 3 Organic Revenue Growth Forecast to Exceed 2019 Levels 4.0% - 4.5% 3.7% Total TR Organic Revenue 1.2% Growth 2019 2020 2021E (Aug 5th) 5.5% - 6.0% 5.1% 3.8% Big 3 Organic Revenue Growth (~80% of Total Revenues) 2019 2020 2021E (Aug 5th) *2019 included the permanent acceleration of
Slide 9: Financial Review
Financial Review Mike Eastwood Chief Financial Officer 9 THOMSON REUTERS
Slide 10: Big 3 - Legal, Corporates, and Tax & Accounting Revenues
Second-Quarter & Six-Months 2021 “Big 3” - Legal, Corporates, and Tax & Accounting Revenues ($ millions) Second Quarter Six Months Constant Constant Revenues 2021 2020 Total Currency Organic 2021 2020 Total Currency Organic Legal Professionals 673 620 +9% +7% +6% 1,341 1,246 +8% +6% +6% Corporates 3
Slide 11: Second-Quarter & Six-Months 2021 Consolidated Revenues
Second-Quarter & Six-Months 2021 Consolidated Revenues ($ millions) Second Quarter Six Months Constant Constant Revenues 2021 2020 Total Currency Organic 2021 2020 Total Currency Organic Reuters News 168 155 +9% +6% +6% 328 310 +6% +4% +4% Global Print 147 134 +9% +6% +6% 290 289 0% -2% -2% Eliminat
Slide 12: Second-Quarter 2021 vs. Second-Quarter 2020 Organic Revenue Growth
Second-Quarter 2021 vs. Second-Quarter 2020 Recurring Revenue Organic Revenue Growth Recurring up 210 bps organically 9% Big 3 Total TR Organic Revenue Organic Revenue 7% 6% 6% up 500 bps up 870 bps 5% 5% 4% Total 4% 3% 3% 15% Legal Prof. Corporates Tax & Acct. Big 3 Total TR 7% 7% Prof. 6% 5% % of
Slide 13: Thomson Reuters Third-Quarter 2021 Forecast
Thomson Reuters Third-Quarter 2021 Forecast 2020 FY 2020 FY Total Thomson Reuters Organic = 1.2% Big 3 Segments Organic = 3.8% 7% 7% 7% 3.5% - 4% 4% - 4.5% 5% - 5.5% 5.5% - 6% 3% 3% 3% 5% 7% 2% 5% 5% 5% 0% 3.5% - 4% 4% - 4.5% 5.5% - 6% 3% 3% 5% - 5.5% 2% 2% 2% 5% 5% 5% 4% (2%) 2% Q1-2020 Q2-2020 Q3-
Slide 14: Big 3 Adjusted EBITDA
Second-Quarter & Six-Months 2021 “Big 3” - Legal, Corporates, Tax & Accounting Adjusted EBITDA ($ millions) Second Quarter Six Months Constant Constant Adjusted EBITDA 2021 2020 Total Currency 2021 2020 Total Currency Legal Professionals 285 254 +12% +10% 564 484 +17% +14% Margin 42.3% 40.9% 42.1% 3
Slide 15: Second-Quarter & Six-Months 2021 Consolidated Adjusted EBITDA
Second-Quarter & Six-Months 2021 Consolidated Adjusted EBITDA ($ millions) Second Quarter Six Months Constant Constant Adjusted EBITDA 2021 2020 Total Currency 2021 2020 Total Currency Reuters News 35 25 +45% +66% 63 44 +45% +65% Margin 20.8% 15.6% 19.2% 14.1% Global Print 56 54 +2% -1% 113 117 -4%
Slide 16: H1 2021 Actuals to FY 2021 Updated Guidance Adjusted EBITDA Margin
H1 2021 Actuals to FY 2021 Updated Guidance Adjusted EBITDA Margin (1.5%) – (2.5%) (1.5%) – (2.0%) 1.0% - 1.5% 34.1% Total TR 31% - 32% Underlying Underlying 35.7% 34% - 35% H1 2021 Actuals Change Program Incremental BAU Change Program FY 2021 Investments Investments Savings Updated Guidance (2.0%)
Slide 17: Adjusted Earnings Per Share, Free Cash Flow, Change Program Costs
Adjusted Earnings Per Share Free Cash Flow Change Program Costs 17 THOMSON REUTERS
Slide 18: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share amounts & share count) Second Quarter Six Months % % 2021 Change 2021 Change Change Change Adjusted EBITDA $502 $23 $1,060 $101 Depreciation & Amortization ($164) ($3) ($325) ($13) Interest Expense ($49) $3 ($100) ($3) Income Tax ($49) (
Slide 19: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) Second Quarter Six Months 2021 2020 Change 2021 2020 Change Comparable Free Cash Flow (Continuing Operations) $404 $268 $136 $692 $381 $311 Other Items (Refinitiv separation costs & Change Program costs) ($16) $32 ($48) ($28) ($31) $3 Free Cash Flow (Continui
Slide 20: Change Program Investments
Change Program Investments Forecast More Than 50% of Change Program Costs Will Be Incurred in 2021 2021 Phasing ~$300M - $350M ~$210M - $260M ~60% ~60% $91M $71M OpEx $52M ~40% $41M ~40% $20M Capital $11M $29M $39M $9M Q1-2021 Q2-2021 H1-2021 H2-2021 FY 2021 20 Note: Capital spend on accrual basis
Slide 21: Change Program Run-Rate Savings
Change Program Run-Rate Savings Achieved Run-Rate Operating Expense Savings of $90M in H1 2021 $90M $71M $19M Q1-2021 Q2-2021 H1-2021 21 THOMSON REUTERS ?
Slide 22: Increased FY 2021 Outlook for Total Company & Big 3
Increased FY 2021 Outlook for Total Company & Big 3 Q3 2021 Feb. 23, 2021 May 4, 2021 August 5, 2021 Total Thomson Reuters Outlook FY Outlook(1) FY Outlook(1) FY Outlook(1) Total Revenue Growth 3.5% - 4.0% 3.0% - 4.0% 3.5% - 4.0% 4.0% - 4.5% Organic Revenue Growth 3.5% - 4.0% 3.0% - 4.0% 3.5% - 4.0%
Slide 23: Q&A
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