Thomson Reuters Corporation · TSX:TRI
Thomson Reuters — Q3 2022 Earnings Presentation
26 slides from Thomson Reuters's earnings presentation, Nov 1, 2022
Slide 1: Thomson Reuters 2022 Third-Quarter Results
REUTERS / Mike Hutchings REUTERS/Mike Segar Thomson Reuters 2022 THIRD-QUARTER RESULTS November 1, 2022 THOMSON REUTERS ?
Slide 2: Agenda
Agenda • Welcome / Introduction Gary Bisbee • Third-Quarter 2022 Highlights Steve Hasker Westlaw Precision Launch Update • Financial Review Mike Eastwood Third-Quarter 2022 Results 2022-2023 Full-Year Outlook Update • Q&A 2 THOMSON REUTERS ?
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: Third-Quarter 2022 Highlights
THOMSON REUTERS Third-Quarter 2022 Highlights Steve Hasker President & CEO 4 THOMSON REUTERS
Slide 5: Third-Quarter 2022 & Nine-Months 2022 Highlights
Third-Quarter 2022 & Nine-Months 2022 Highlights 1. Strong revenue momentum continued in Q3 2022 • Total revenue grew 6% organically, driven by a third consecutive quarter of 7% recurring revenue growth • “Big 3” Business Segments (Legal, Corporates and Tax & Accounting) revenues grew 6% organically
Slide 6: Third-Quarter 2022 Consolidated Results
Third-Quarter 2022 Consolidated Results IFRS Financial Measures ($ millions) 2022 2021 Change Revenues $1,574 $1,526 Up 3% Operating profit $398 $282 Up 41% Diluted (loss) earnings per share (EPS) $0.47 $(0.49) n/m Net cash provided by operating activities $531 $534 0% Change at Constant Organic Non
Slide 7: Third-Quarter 2022 Revenue Growth by Segment
Third-Quarter 2022 Revenue Growth by Segment Reported revenues up 3% to $1.6 billion Organic revenues up 6% 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 $0.2
Slide 8: Westlaw Precision Launch Update
Westlaw Precision Launch Update 8 THOMSON REUTERS
Slide 9: Westlaw Precision Overview
Westlaw Precision Overview ACM-100visdory WESTLAWPRECISION Folders Notifcati Westlaw Ener ,ta ÿ, rmything AlSte&Fedeal eachTip) dencads Precision ÿ Precision Research Federalmaterials StatematerialsPractice areas Mycontent Tools PrecisionResearch Use Precision Search to Siod a core Search by topic T
Slide 10: Westlaw Precision Solves the Big Issues of Legal Research
Westlaw Precision Solves the Big Issues of Legal Research Westlaw Precision Research Traditional legal searching is inexact Cases tagged for law, facts, • We added 250 attorneys and outcomes by topic • Important cases can be c.CausalLink 4546TheCourtthusmustdeterminewhetherPlaintiffhasraiseda triabl
Slide 11: Performance Testing with Attorneys
Performance Testing with Attorneys Quality & Speed Differences • • 97% 90% • Helpedthemget Foundcasesthey totheimportant mightnothave casesfaster foundotherwise • Speed Quality 11 THOMSON REUTERS ?
Slide 12: Real-World Example
Real-World Example Normally you cannot serve a complaint by email, but sometimes email can be sufficient, even if the defendant does not consent to it. Attorney needs to find cases where service of process by email was found to be sufficient. Traditional Research Precision Research 4.75 Hours 1.75 H
Slide 13: Customer Testimonials – What early adopters are saying
Customer Testimonials – What early adopters are saying “ “ It's like the Westlaw team was in my head and reading my mind when developing Precision. “ - Law Firm Associate Precision Research is genuinely useful. It steers you quickly to some responsive material, and from there you can follow the thre
Slide 14: Financial Review
Financial Review Third-Quarter 2022 Results 2022-2023 Outlook Mike Eastwood Chief Financial Officer 14 THOMSON REUTERS
Slide 15: Legal Professionals, Corporates, Tax & Accounting Professionals Revenues
Third-Quarter 2022 & Nine-Months 2022 Legal Professionals, Corporates, Tax & Accounting Professionals Revenues ($ millions) Third Quarter Nine Months Constant Constant Revenues 2022 2021 Total Currency Organic 2022 2021 Total Currency Organic Legal Professionals 701 682 +3% +5% +6% 2,099 2,023 +4% +
Slide 16: Consolidated Revenues
Third-Quarter 2022 & Nine-Months 2022 Consolidated Revenues ($ millions) Third Quarter Nine Months Constant Constant Revenues 2022 2021 Total Currency Organic 2022 2021 Total Currency Organic Reuters News 171 169 +1% +5% +5% 535 507 +5% +9% +9% Global Print 146 149 -3% - - 430 439 -2% -1% -1% Elimin
Slide 17: Consolidated Adjusted EBITDA
Third-Quarter 2022 & Nine-Months 2022 Consolidated Adjusted EBITDA ($ millions) Third Quarter Nine Months Constant Constant Adjusted EBITDA 2022 2021 Total Currency 2022 2021 Total Currency Legal Professionals 324 288 +13% +14% 933 852 +9% +11% Margin 46.2% 42.3% 44.5% 42.1% Corporates 147 130 +13%
Slide 18: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share amounts & share count) Third Quarter Nine Months % % 2022 Change 2022 Change Change Change Adjusted EBITDA $535 $77 $1,696 $178 Depreciation & Amortization ($153) $6 ($464) $20 Interest Expense ($48) ($2) ($145) $1 Income Tax ($59) ($34)
Slide 19: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) Third Quarter Nine Months 2022 2021 Change 2022 2021 Change Comparable Free Cash Flow (Continuing Operations) $470 $475 ($5) $1,155 $1,167 ($12) Other Items (Change Program Costs) ($89) ($66) ($23) ($275) ($94) ($181) Free Cash Flow (Continuing Operations) $3
Slide 20: Change Program Investments & Savings
Change Program Investments & Savings 20 THOMSON REUTERS
Slide 21: 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 $410M as of September 30, 2022 FY 2022 Annualized Run-Rate Savings Forecast of ~$500M ~$500M $410M $369M $305M $217M FY-2021 Q1-2022 Q2-2022 Q3-2022 FY-2022 Cumulative Cumulative C
Slide 22: 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 ~60% Operating Expenditures (OpEx) ~$95M $79M $62M $67M ~60% ~40% $30M $47M $34M Capital Expenditures $37M ~40% $28M $32M (Capex) Q1-
Slide 23: 2022 Outlook Update
2022 Outlook Update 23 THOMSON REUTERS
Slide 24: 2022 Outlook Maintained
2022 Outlook Maintained FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 FY 2021 Total Thomson Reuters Outlook(2) Outlook(2) Outlook(2) Outlook(2) Outlook(2) Reported 2/23/21 2/8/22 5/3/22 8/4/22 11/1/22 Total Revenue Growth 6.1% 4.0% - 5.0% ~ 5% ~5.5% ~6.0% Unchanged Organic Revenue Growth (1) 5.2% 4.0% - 5
Slide 25: Additional Financial Updates
Additional Financial Updates Portfolio • Two non-core divestitures closed in Q3 2022 and three more are expected for Q4 2022 Optimization • Total annualized revenue impact of ~$165M and Adjusted EBITDA of ~$40M • 82% of revenue and 67% of costs are USD denominated Foreign • Year-to-date USD strength
Slide 26: Q&A
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