Thomson Reuters Corporation · TSX:TRI
Thomson Reuters — Q2 2017 Earnings Presentation
21 slides from Thomson Reuters's earnings presentation, Aug 1, 2017
Slide 1: Thomson Reuters 2017 Second-Quarter Results
THOMSON REUTERS 2017 SECOND-QUARTER RESULTS August 1, 2017
Slide 2: Agenda
Agenda Welcome / Introduction Frank Golden Second-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: Second-Quarter 2017 Highlights
THOMSON REUTERS SECOND-QUARTER 2017 HIGHLIGHTS JIM SMITH PRESIDENT & CEO 4
Slide 5: Q2 2017 Consolidated Results; 2017 Outlook Raised
Q2 2017 Consolidated Results Change at Constant Reported Currency Revenues slightly higher vs. prior-year period Up 2% Adjusted EBITDA up 11% Up 11% Margin 30.1% vs. 27.3% in Q2 2016 Up 230 bps Adjusted EPS up 28% Up 28% $0.60 vs. $0.47 for Q2 2016 Up $0.13 2017 Outlook Raised 5
Slide 6: Q2 2017 Revenues by Business
Q2 2017 Revenues by Business Financial & Risk Legal Tax & Accounting +2% +1% +8% 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 Raised
2017 Outlook Raised FY 2017 FY 2017 2016(1) Outlook(2) Revised Outlook(2) Excludes Q4 Charge February 2017 August 2017 At Constant Currency At Constant Currency Revenue Growth $11.2 billion Low single digit No change to original Adjusted EBITDA Margin 28.4% 28.8% - 29.8% 29.3% - 30.3% Free Cash Flow
Slide 8: Financial Review
FINANCIAL REVIEW STEPHANE BELLO CHIEF FINANCIAL OFFICER 8
Slide 9: Consolidated Results
Consolidated Results ($ millions) Second-Quarter Six-Months Change at Change at 2017 2016 Change Constant 2017 2016 Change Constant Currency Currency Revenues 2,782 2,769 +0% +2% 5,597 5,562 +1% +2% Adjusted EBITDA 838 757 +11% +11% 1,714 1,505 +14% +14% Adjusted EBITDA Margin 30.1% 27.3% +280bp +23
Slide 10: Legal
Legal ($ millions) Second-Quarter Six-Months Change at Change at 2017 2016 Change Constant 2017 2016 Change Constant Currency Currency Revenues 842 846 +0% +1% 1,666 1,668 +0% +1% Adjusted EBITDA 320 310 +3% +4% 627 608 +3% +4% Adjusted EBITDA Margin 38.0% 36.6% +140bp +110 bp 37.6% 36.5% +110bp +11
Slide 11: Legal Revenue Growth By Type
Legal Revenue Growth By Type $400 +2% +2% +2% +3% Legal Solutions Revenues $350 $300 +5% +5% +5% +5% $250 Q3-16 $200 Q4-16 Q1-17 $150 -7% -8% -4% -8% Q2-17 $100 -9% -10% -9% -9% $50 $- U.S. Online Legal Info Solutions Recurring Solutions Transactions U.S. Print % of Revenues 42% 35% 9% 14% 11
Slide 12: Tax & Accounting
Tax & Accounting ($ millions) Second-Quarter Six-Months Change at Change at 2017 2016 Change Constant 2017 2016 Change Constant Currency Currency Revenues 350 324 +8% +8% 767 713 +8% +7% Adjusted EBITDA 103 82 +26% +24% 244 196 +24% +24% Adjusted EBITDA Margin 29.4% 25.3% +410bp +390 bp 31.8% 27.5%
Slide 13: Tax & Accounting Revenue By Segment
Tax & Accounting Revenue By Segment Professional +7% Corporate +12% $108 million (31% of Revenue) $137 million (39% of Revenue) Second-Quarter Revenues $0.4 billion / +8% Knowledge Solutions -2% Government +117% $94 million (27% of Revenue) $11 million (3% of Revenue) 13
Slide 14: Financial & Risk
Financial & Risk ($ millions) Second-Quarter Six-Months Change at Change at 2017 2016 Change Constant 2017 2016 Change Constant Currency Currency Revenues 1,517 1,524 +0% +2% 3,019 3,033 +0% +1% Adjusted EBITDA 477 443 +8% +8% 940 880 +7% +7% Adjusted EBITDA Margin 31.4% 29.1% +230bp +180 bp 31.1% 2
Slide 15: Financial & Risk Revenue By Segment
Financial & Risk Revenue By Segment Desktop -5% (-3% excluding pricing adjustment) Elektron Data Platform & Risk +8% $0.6 billion (37% of Revenue) $0.6 billion (40% of Revenue) Second-Quarter Revenues $1.5 billion / +2% Transactions +8% Recoveries -5% $0.2 billion (15% of Revenue) $0.1 billion (8% o
Slide 16: Free Cash Flow; Adjusted Earnings Per Share
FREE CASH FLOW ADJUSTED EARNINGS PER SHARE 16
Slide 17: Adjusted Earnings Per Share (EPS)
Adjusted Earnings Per Share (EPS) ($ millions except per share Second-Quarter Six-Months amounts) 2017 Change 2017 Change Adjusted EBITDA $838 $81 $1,714 $209 Depreciation & Computer ($245) $7 ($497) $5 Software Amortization Interest Expense ($95) $8 ($188) $8 Income Tax(1) ($48) ($16) ($103) ($28)
Slide 18: Consolidated Free Cash Flow
Consolidated Free Cash Flow ($ millions) Second- Quarter Six-Months 2017 2016 Change 2017 2016 Change Comparable Free Cash Flow $618 $467 $151 $660 $579 $81 Payment Related To Fourth- ($30) $0 ($30) ($116) $0 ($116) Quarter 2016 Charge Pension Contribution $0 $0 $0 ($500) $0 ($500) Free Cash Flow (e
Slide 19: Returning Capital To Shareholders
Returning Capital To Shareholders $2.7B $2.4B $2.1B $1.5B $1.4B $1.7B $1.0B $0.4B $1.1B $0.6 $1.1B $1.1B $1.0B $1.0B $0.5 2013 2014 2015 2016 H1-2017 Dividends Share Buyback Shares Repurchased (millions) 10.9 28.3 35.9 41.9 13.5 19
Slide 20: 2017 Outlook Raised
2017 Outlook Raised FY 2017 FY 2017 Outlook(2) Revised Outlook(2) 2016(1) February 2017 Excluding Q4 charge August 2017 At Constant Currency At Constant Currency Revenue Growth $11.2 billion Low single digit No change to original Adjusted EBITDA Margin 28.4% 28.8% - 29.8% 29.3% - 30.3% Free Cash Flo
Slide 21: Q&A
21 Q&A the answer company~ THOMSON REUTERS®