Thomson Reuters is the worlds leading source of intelligent information for businesses and professionals.

We provide intelligent information to the worlds businesses and professionals, serving four primary customer groups. We have a leading market position, with well recognized and respected brands in each of our principal markets.

At Thomson Reuters, we're in the business of turning change into opportunity.

Balanced Portfolio of Business

We believe our portfolio of assets is well diversified by product and customer. This chart illustrates the diversity of our business.

CASH FLOW In Millions of U.S. Dollars (Unaudited)

2011

2012

REVENUE PROFILE

(Unaudited)

BUSINESS SEGMENT REVENUE In Millions of U.S. Dollars (Unaudited) Twelve Months Ended December 31,

Revenues Trading Investors Marketplaces Governance, Risk & Compliance Financial & Risk Legal Tax & Accounting Intellectual Property & Science Corporate & Other (includes Media) Eliminations Revenues from Ongoing Businesses (2) Before Currency Other Businesses (3) Revenues

2012

2011 (1)

Change

Organic

$ 3,345 $ 3,537 2,416 1,213 219 7,193 3,286 1,206 894 331 (11) 2,472 1,134 154 7,297 3,221 1,050 852 336 (13)

-5% -2% 7% 42% -1% 2% 15% 5% -1%

-3% -2% 1% 17% -1% 1% 5% 3% 1%

12,899 12,743 379 1,064

1% 3%

0%

$ 13,278 $ 13,807

-4%

1 Footnotes 1Prior-period amounts have been reclassified to reflect the current presentation. 2Revenues from ongoing businesses are revenues from reportable segments and Corporate & Other (which includes the Media business) less eliminations. Other businesses (see note (3) below) are excluded. To facilitate comparison of actual results to the 2012 business outlook, ongoing businesses include the Financial & Risk segment's Investor Relations, Public Relations and Multimedia businesses (Corporate Services), which were announced for sale in December 2012. 3Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification, except for Corporate Services (see note (2) above). Twelve Months Ended December 31, (Millions of U.S. dollars) Other Businesses Revenues Operating Profit Depreciation and Amortization of Computer Software EBITDA Capital Expenditures Less Proceeds from Disposals $ 379 18 $1,064 238 2012 2011

5 23

55 293

$ 15

$ 75

4Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expenses. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses. Capital expenditures less proceeds from disposals (excluding Other businesses (see note (3) above) are also removed to arrive at adjusted EBITDA less capital expenditures. 5Underlying operating profit is operating profit from reportable segments and Corporate & Other (includes Media). Underlying operating profit margin is the underlying operating profit expressed as a percentage of revenues from ongoing businesses. 6Adjusted earnings and adjusted earnings per share include dividends declared on preference shares and integration programs expenses, but exclude the pre-tax impacts of amortization of

other identifiable intangible assets as well as the post-tax impacts of fair value adjustments, other operating (gains) and losses, certain impairment charges, the results of Other businesses (see note (3) above), other finance (income) costs, Thomson Reuters share of post-tax earnings and impairment in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share is calculated using diluted weighted average shares and does not represent actual earnings or loss per share attributable to shareholders. 7Free cash flow is net cash provided by operating activities less capital expenditures, other investing activities and dividends paid on the company's preference shares. Other businesses (see note (3) above) are also removed to arrive at free cash flow from ongoing businesses 2 Footnotes 1Prior-period amounts have been reclassified to reflect the current presentation. 2Revenues from ongoing businesses are revenues from reportable segments and Corporate & Other (which includes the Media business) less eliminations. Other businesses (see note (3) below) are excluded. To facilitate comparison of actual results to the 2012 business outlook, ongoing businesses include the Financial & Risk segment's Investor Relations, Public Relations and Multimedia businesses (Corporate Services), which were announced for sale in December 2012. 3Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification, except for Corporate Services (see note (2) above). Twelve Months Ended December 31, (Millions of U.S. dollars) Other Businesses Revenues Operating Profit $ 379 18 $1,064 238 2012 2011

Depreciation and Amortization of Computer Software 5 EBITDA Capital Expenditures Less Proceeds from Disposals 23

55 293

$ 15

$ 75

4Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expenses. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses. Capital expenditures less proceeds from disposals (excluding Other businesses (see note (3) above) are also removed to arrive at adjusted EBITDA less capital expenditures. 5Underlying operating profit is operating profit from reportable segments and Corporate & Other (includes Media). Underlying operating profit margin is the underlying operating profit expressed as a percentage of revenues from ongoing businesses. 6Adjusted earnings and adjusted earnings per share include dividends declared on preference shares and integration programs expenses, but exclude the pre-tax impacts of amortization of other identifiable intangible assets as well as the post-tax impacts of fair value adjustments, other operating (gains) and losses, certain impairment charges, the results of Other businesses (see note (3) above), other finance (income) costs, Thomson Reuters share of post-tax earnings and impairment in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share is calculated using diluted weighted average shares and does not represent actual earnings or loss per share attributable to shareholders. 7Free cash flow is net cash provided by operating activities less capital expenditures, other investing activities and dividends paid on the company's preference shares. Other businesses (see note (3) above) are also removed to arrive at free cash flow from ongoing businesses.

BUSINESS SEGMENT ADJ USTED EBITDA (4) In Millions of U.S. Dollars (Unaudited) Twelve Months Ended December 31,

Adjusted EBITDA Financial & Risk Legal Tax & Accounting Intellectual Property & Science Corporate & Other (includes Media) Integration programs expenses Adjusted EBITDA

2012

2011 (1)

Change

$ 1,842 $ 1,972 1,243 376 303 (235) 1,210 332 296 (227) (215)

-7% 3% 13% 2%

$ 3,529 $ 3,368

5%

BUSINESS SEGMENT UNDERLYING OPERATING PROFIT (5) In Millions of U.S. Dollars (Unaudited) Twelve Months Ended December 31,

Underlying Operating Profit Financial & Risk Legal Tax & Accounting Intellectual Property & Science Corporate & Other (includes Media) Underlying Operating Profit

2012

2011 (1)

Change

$ 1,215 $ 1,396 964 261 235 (270) 941 237 237 (270)

-13% 2% 10% -1%

$ 2,405 $ 2,541

-5%

BUSINESS SEGMENT ADJ USTED EBITDA (4) AND ADJUSTED EBITDA LESS CAPITAL EXPENDITURES In Millions of U.S. Dollars (Unaudited) Twelve Months Ended December 31,

Adjusted EBITDA Financial & Risk Legal Tax & Accounting Intellectual Property & Science Corporate & Other (includes Media) Integration programs expenses Adjusted EBITDA Less: Capital expenditures, less proceeds from disposals (excluding Other businesses) (3)

2012

2011 (1)

Change

$ 1,842 $ 1,972 1,243 376 303 (235) 3,529 1,210 332 296 (227) (215) 3,368

-7% 3% 13% 2%

5%

962

966

0%

Adjusted EBITDA less capital expenditures (4)

$ 2,567 $ 2,402

7%

CONSOLIDATED INCOME STATEMENT Twelve Months Ended December 31, 2012 2011

Revenues Operating Expenses Depreciation Amortization of Computer Software Amortization of Other Identifiable Intangible Assets Goodwill Impairment Other Operating Gains, Net Operating Profit (Loss) Finance Costs, Net: Net Interest Expense Other Finance Income (Costs) Income (Loss) Before Tax and Equity Method Investees Share of Post-Tax Earnings and Impairment in Equity Method Investees Tax Expense Earnings (Loss) from Continuing Operations Earnings from Discontinued Operations, Net of Tax Net Earnings (Loss)

$ 13,278 (9,762) (429) (700) (619) 883 2,651

$ 13,807 (9,997) (438) (659) (612) (3,010) 204 (705)

(390) 40 2,301

(396) (15) (1,116)

(23) (157) 2,121 2 2,123

13 (293) (1,396) 4 (1,392)

Earnings (Loss) Attributable to: Common Shareholders Non-Controlling Interests

In Millions of U.S. Dollars, except per share amounts

2,070 53

(1,390) (2)

Earnings (Loss) Per Share Basic Earnings (Loss) Per Share: From Continuing Operations From Discontinued Operations Basic Earnings (Loss) Per Share Diluted Earnings (Loss) Per Share: From Continuing Operations From Discontinued Operations Diluted Earnings (Loss) Per Share $ 2.49 $ 2.49 $ (1.68) 0.01 $ (1.67) $ 2.50 $ 2.50 $ (1.68) 0.01 $ (1.67)

CONSOLIDATED STATEME NT OF FINANCIAL POSI TION In Millions of U.S. Dollars Twelve Months Ended December 31,

Assets Cash and Cash Equivalents Trade and Other Receivables Other Financial Assets Prepaid Expenses and Other Current Assets Current Assets Excluding Assets Held for Sale Assets Held for Sale

2012

2011

$ 1,301 1,835 72 641 3,849 302

$ 422 1,984 100 641 3,147 767

Current Assets Computer Hardware and Other Property, Net Computer Software, Net Other Identifiable Intangible Assets, Net Goodwill Other Financial Assets Other Non-Current Assets Deferred Tax Total Assets

4,151 1,423 1,682 8,135 16,256 360 515 50 $ 32,572

3,914 1,509 1,640 8,471 15,932 425 535 50 $ 32,476

Liabilities and Equity Liabilities Current Indebtedness Payables, Accruals and Provisions Deferred Revenue Other Financial Liabilities Current Liabilities Excluding Liabilities Associated with Assets Held for Sale Liabilities Associated with Assets Held for Sale Current Liabilities Long-Term Indebtedness Provisions and Other Non-Current Liabilities Other Financial Liabilities $ 1,008 2,633 1,224 95 $ 434 2,675 1,379 81

4,960 35 4,995 6,223 2,514 37

4,569 35 4,604 7,160 2,513 27

Deferred Tax Total Liabilities Equity Capital Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders Equity Non-Controlling Interests Total Equity Total Liabilities and Equity

1,305 $ 15,074

1,422 $ 15,726

10,371 8,311 (1,537) 17,145 353 17,498 $ 32,572

10,288 7,633 (1,516) 16,405 345 16,750 $ 32,476

In Millions of U.S. Dollars Twelve Months Ended December 31,

Cash Provided By (Used In): Operating Activities Net Earnings (Loss) Adjustments for: Depreciation Amortization of Computer Software Amortization of Other Identifiable Intangible Assets Goodwill Impairment

2012

2011

$ 2,123

$ (1,392)

429 700 619 -

438 659 612 3,010

Net Gains on Disposals of Businesses and Investments Deferred Tax Other Changes in Working Capital and Other Items Net Cash Provided by Operating Activities Investing Activities Acquisitions, Net of Cash Acquired Proceeds from Other Disposals, Net of Taxes Paid Capital Expenditures, Less Proceeds from Disposals Other Investing Activities Investing Cash Flows from Continuing Operations Investing Cash Flows from Discontinued Operations Net Cash Used in Investing Activities Financing Activities Proceeds from Debt Repayments of Debt Net (Repayments) Borrowings Under Short-Term Loan Facilities Repurchases of Common Shares

(829) (118) (61) (159) 2,704

(388) (202) 139 (279) 2,597

(1,301) 1,901 (977) 13 (364) 90 (274)

(1,286) 415 (1,041) 49 (1,863) 56 (1,807)

(2) (422) (168)

349 (648) 400 (326)

Dividends Paid on Preference Shares Dividends Paid on Common Shares Other Financing Activities Net Cash Used in Financing Activities Translation Adjustments on Cash and Cash Equivalents Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period

(3) (1,021) 65 (1,551)

(3) (960) (39) (1,227)

(5)

879 422 $ 1,301

(442) 864 $ 422

DIVIDEND HISTORY U.S. Dollars Per Share (Unaudited)

Thomson Reuters Corporation is a multinational media and information firm based in New [3] York City. It was created by the Thomson Corporation's purchase of British-based Reuters [4] Group on 17 April 2008. The Woodbridge Company, a holding company for the Thomson [5] family of Canada, owns 53% of the group, which operates in more than 100 countries, and has [2] more than 60,000 employees. Thomson Reuters was ranked as Canada's "leading corporate [6] brand" in the 2010 Interbrand Best Canadian Brands ranking. It is headquartered at 3 Times Square, Manhattan, New York City.
Contents
[hide]

1 History

o o o

1.1 The Thomson Corporation 1.2 Reuters Group 1.3 Post acquisition

2 Operations 3 Market position and antitrust review 4 Purchase process 5 Acquisitions 6 Sponsorships 7 See also 8 References 9 Further reading 10 External links

History[edit source | editbeta]

The Thomson Corporation[edit source | editbeta]
Main article: The Thomson Corporation The Company was founded by Roy Thomson in 1934 in Ontario as the publisher of The Timmins Daily Press. In 1953 Thomson acquired theScotsman newspaper and moved to Scotland the following year. He consolidated his media position in Scotland in 1957 when he won the franchise forScottish Television. In 1959 he bought the Kemsley Group, a purchase that eventually gave him control of the Sunday Times. He separately acquired the Times in 1967. He moved into the airline business in 1965, when he acquired Britannia Airways and into oil and gas exploration in 1971 when he participated in a consortium to exploit reserves in the North Sea. In the 1970s, following the death of Lord Thomson, the Company withdrew from media selling the Times, the Sunday Times and Scottish Television and instead moved into publishing, buying Sweet & Maxwell in 1988. In 1989, Thomson Newspapers was merged with The Thomson Corporation. In 1996 The Thomson Corporation effectively doubled its size and ensured future profitability by purchasing West Publishing, a purveyor of legal research and [7] solutions including Westlaw.

Reuters Group[edit source | editbeta]

Main article: Reuters Group The Company was founded by Paul Julius Reuter in 1851 in London as a business transmitting [7] stock market quotations. Reuter set up his "Submarine Telegraph" office in October 1851 and negotiated a contract with the London Stock Exchange to provide stock prices from the continental exchanges in return for access to London prices, which he then supplied to [7] stockbrokers in Paris, France. In 1865, Reuters in London was the first organization to report [7] the assassination of Abraham Lincoln. The company was involved in developing the use [7] of radio in 1923. It was acquired by the British National & Provincial Press in 1941 and first [7] listed on the London Stock Exchange in 1984. Reuters began to grow rapidly in the 1980s, widening the range of its business products and expanding its global reporting network for media, financial and economic services: key product launches included Equities 2000 (1987), Dealing 2000-2 (1992), Business Briefing (1994), Reuters Television for the financial markets (1994), 3000 Series (1996) and the Reuters 3000 Xtra service (1999)and Thomson [7] Reuters Eikon (2011).

Post acquisition[edit source | editbeta]

The Thomson Corporation acquired Reuters Group PLC to form Thomson Reuters on April 17, [8] 2008. Thomson Reuters operated under a dual-listed company (DLC) structure and had two parent companies, both of which were publicly listed Thomson Reuters Corporation and Thomson Reuters PLC. In 2009, it unified its dual listed company structure and stopped its listing on the London Stock Exchange and NASDAQ. It is now listed only as Thomson Reuters [9][10] Corporation on the New York Stock Exchange and Toronto Stock Exchange (symbol: TRI). In June 2008, it was reported that it would be launching a news channel to [11] rival Bloomberg and CNBC. This turned out to be false. On February 13, 2013, Thomson Reuters announced it will cut 2,500 jobs to cut cost in its Legal, [12] Financial and Risk division.

Operations[edit source | editbeta]

The Chief executive of the combined company is Jim Smith, who was the chief executive for the Professional Division, and the chairman is David Thomson, who was the chairman of [13][14][15] Thomson. In late 2011, The company announced a new organizational structure with five divisions: Financial and Risk Operation: Financial Professionals & Marketplaces Enterprise Solutions Media
[16]

Legal: Formerly North American Legal and Legal & Regulatory; including West, makers of Westlaw, and Carswell

Intellectual Property & Science: Formerly Thomson Healthcare and Thomson Scientific

Thomson Healthcare and Thomson Scientific were merged, then sold in 2012, and is now Truven Health Analytics.

Tax & Accounting: Formerly Thomson Tax & Accounting

Thomson Reuters shares are listed on the Toronto Stock Exchange (TSX: TRI) and the New York Stock Exchange (NYSE: TRI).

Market position and antitrust review[edit source | editbeta]

Thomson Reuters Building as seen from 8th Avenue.

The transaction was reviewed by the U.S. Department of Justice and by the European Commission. On February 19, 2008, both the Department of Justice and the Commission [17] cleared the transaction subject to minor divestments. The Department of Justice required the parties to sell copies of the data contained in the following products: Thomson's WorldScope, a global fundamentals product; Reuters Estimates, an earnings estimates product; and Reuters Aftermarket (Embargoed) Research Database, an analyst research distribution product. The proposed settlement further requires the licensing of related intellectual property, access to personnel, and transitional support to ensure that the buyer of each set of data can continue to [18] update its database so as to continue to offer users a viable and competitive product. The European Commission imposed similar divestments: according to the Commission's press release, "the parties committed to divest the databases containing the content sets of such financial information products, together with relevant assets, personnel and customer base as appropriate to allow purchasers of the databases and assets to quickly establish themselves as a credible competitive force in the marketplace in competition with the merged entity, re[19] establishing the pre-merger rivalry in the respective fields."

Thomson Reuters Building in Canary Wharf, London

These remedies are viewed as very minor given the scope of the transaction. According to the Financial Times, "the remedy proposed by the competition authorities will affect no more than [20] $25m of the new Thomson Reuters groups $13bn-plus combined revenues." The transaction was cleared by the Canadian Competition Bureau.
[21] [22]

In November 2009, The European Commission opened formal anti-trust proceedings against Thomson Reuters concerning a potential infringement of the EC Treaty's rules on abuse of a dominant market position (Article 82). The Commission investigated Thomson Reuters' practices in the area of real-time market datafeeds, and in particular whether customers or competitors were prevented from translating Reuters Instrument Codes (RICs) to alternative identification codes of other datafeed suppliers (so-called 'mapping') to the detriment of competition. In December 2012, the European Commission adopted a decision that renders legally binding the commitments offered by Thomson Reuters to create a new licence ("ERL") allowing customers, for a monthly fee, to use Reuters Instrument Codes (RICs) in applications for data sourced from [23] Thomson Reuters' real time consolidated datafeed competitors to which they have moved.

Purchase process[edit source | editbeta]

Historically, no single individual has been permitted to own more than 15% of Reuters, under the first of the Reuters Principles, which states, "Reuters shall at no time pass into the hands of any [24] one interest, group or faction." However, that restriction was waived for the purchase by Thomson, whose family holding company, the Woodbridge Company currently owns 53% of the enlarged business. Robert Peston, business editor at BBC News, stated that this has worried Reuters journalists, both because they are concerned that Reuters' journalism business will be marginalized by the financial data provision business of the combined company, and because of the threat to Reuters's reputation for unbiased journalism by the appearance of one majority shareholder. Pehr Gyllenhammar, chairman of the Reuters Founders Share Company, explained that the Reuters Trust's First Principle had been waived for the Thomson family because of the poor financial circumstances that Reuters had been in, stating, "The future of Reuters takes precedence over the principles. If Reuters were not strong enough to continue on its own, the principles would have no meaning." He stated, not having met David Thomson but having discussed the matter with Geoff Beattie, the president of Woodbridge, that the Thomson family had agreed to vote as directed by the Reuters Founders Share Company on any matter that the trustees might deem to threaten the five principles of the Reuters Trust. Woodbridge will be allowed an exemption from the First Principle as long as it remains controlled by the Thomson [25][26][27][28] family.

Acquisitions[edit source | editbeta]

In July 2009 Thomson Reuters acquired Streamlogics. Founded in 1999, Streamlogics is a [30] provider of customizable, high volume, real time data mining solutions for hundreds of enterprises across several verticals including financial services, technology and health care/life sciences. Streamlogics' webcasting solutions are used for training and certification, marketing [31] and lead generation, and corporate communications. In August 2009 Thomson Reuters bought Vhayu Technologies. Vhayu is a provider of tick data services, and Thomson Reuters had been distributing its Velocity product under the Reuters Tick [32] Capture Engine label for the four years prior to the acquisition. On September 21, 2009, Thomson Reuters bought Hugin Group, the European IR and PR distribution group, from NYSE Euronext. Terms have not been disclosed, but it has been reported in Danish newspapers that the price was between 40 million and [33] 42m. In September 2009, Thomson Reuters bought the Abacus software business from Deloitte, a provider of corporate taxation software for the U.K., Ireland, the Netherlands, New Zealand, and Hong Kong, as well as Indirect Tax Reporting software for 20 E.U. countries. Terms of the [34] transaction were not disclosed. In November 2009 The Tax & Accounting business acquired Sabrix, Inc, a global provider of [35] transaction tax management software applications and related services. In February 2010 Thomson Reuters acquired Aegisoft LLC to improve their electronic trading [36] capabilities by offering direct market access. In May 2010 Thomson Reuters acquired Point Carbon A/S, a Norwegian company that provides [37] news and trading analytics for the energy and environmental markets. In October 2010, Thomson Reuters acquired Serengeti Law, a matter management and ebilling system. In November 2010, Thomson Reuters acquired the legal process outsourcing (LPO) provider Pangea3. Pangea3 serves corporate legal departments and law firms worldwide. [38] Financial Terms of the deal were not disclosed. In November 2010, Thomson Reuters acquired the banking data and analytic provider Highline [39] Financial, and GeneGo, a supplier of systems biology databases, software and services. In 20 June 2011, Thomson Reuters acquired CorpSmart from Deloitte. In August 2011, Thomson Reuters acquired GFMS.
[41] [40] [29]

In December 2011, Thomson Reuters acquired Emochila, a website development firm in the tax and accounting space, in order to further integrate its CS suite of products onto a cloud-based [42] platform. In January 2012, Thomson Reuters acquired Dr Tax, Canadas largest independently owned [43] [44] developer of income tax software for accounting firms and consumers. In February 2012, Thomson Reuters acquired RedEgg, a provider of media intelligence solutions [45] for public relations and marketing professionals. On 8 June 2012, Thomson Reuters acquired Apsmart, a London-based company specializing in [46] design and development of mobile solutions.

On 25 June 2012, Thomson Reuters acquired Zawya Limited, a regional provider of business [47] intelligence and unique tools for financial professionals in the Middle East and North Africa . On 10 July 2012, Thomson Reuters acquired FX Alliance Inc, an independent provider of [48] electronic foreign exchange trading solutions to corporations and asset managers. On 26 July 2012, Thomson Reuters announced acquisition of MarkMonitor, a San Francisco[49] based company specializing in internet brand protection software and services. In 16 April 2013, Thomson Reuters acquired Select TaxWorks Assets of RedGear [50] Technologies. In 6 June 2013, Thomson Reuters acquired Pricing Partners, a provider of OTC Derivatives [51] Pricing Analytics and independent valuation. In 2 July 2013, Thomson Reuters acquired the foreign exchange options business of [52] Tradeweb.

Sponsorships