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Thomson Reuters Corporation Business Segment Information (millions of U.S. dollars) (unaudited) Three Months Ended September 30, Change ------------------- -------------------------- Before 2012 2011 (1) Total Currency Organic ------- ---------- ------ -------- --------Revenues Trading $ 816 $ 887 -8% -4% -4% Investors 604 616 -2% 0% -1% Marketplaces 303 289 5% 7% -2% Governance, Risk & Compliance 55 47 17% 17% 17% ------- ----------Financial & Risk 1,778 1,839 -3% 0% -2%Legal 830 821 1% 2% 1%Tax & Accounting 262 242 8% 10% 3%Intellectual Property & Science 219 215 2% 3% 0%Corporate & Other (includes Media) 79 83 -5% 1% 1%Eliminations (3) (3) ------- ----------Revenues from ongoing businesses(2) 3,165 3,197 -1% 1% -1%Other businesses (3) 51 256 ------- ----------Revenues $ 3,216 $ 3,453 -7% ======= ========== Change Margin ---------------- ----------------Adjusted EBITDA (4) Before Total Currency 2012 2011 ------ -------- -------- ------Financial & Risk $ 440 $ 523 -16% -13% 24.7% 28.4%Legal 327 323 1% 1% 39.4% 39.3%Tax & Accounting 65 63 3% 3% 24.8% 26.0%Intellectual Property & Science 72 79 -9% -8% 32.9% 36.7%Corporate & Other (includes Media) (40) (38)Integration programs expenses - (39) ------- ----------Adjusted EBITDA $ 864 $ 911 -5% -4% 27.3% 28.5% ======= ==========Underlying Operating Profit (5)Financial & Risk $ 283 $ 380 -26% -22% 15.9% 20.7%Legal 256 257 0% -1% 30.8% 31.3%Tax & Accounting 34 37 -8% -8% 13.0% 15.3%Intellectual Property & Science 55 64 -14% -14% 25.1% 29.8%Corporate & Other (includes Media) (43) (48) ------- ----------Underlying operating profit $ 585 $ 690 -15% -14% 18.5% 21.6% ======= ========== Thomson Reuters Corporation Business Segment Information (millions of U.S. dollars) (unaudited) Nine Months Ended September 30, Change ------------------- -------------------------- Before 2012 2011 (1) Total Currency Organic ------- ---------- ------ -------- --------Revenues Trading $ 2,515 $ 2,668 -6% -3% -3% Investors 1,815 1,866 -3% -1% -2% Marketplaces 893 844 6% 8% 1% Governance, Risk & Compliance 158 104 52% 53% 17% ------- ----------Financial & Risk 5,381 5,482 -2% 1% -1%Legal 2,425 2,378 2% 3% 1%Tax & Accounting 855 709 21% 22% 6%Intellectual Property & Science 644 627 3% 4% 2%Corporate & Other (includes Media) 244 249 -2% 1% 1%Eliminations (8) (10) ------- ----------Revenues from ongoing businesses(2) 9,541 9,435 1% 3% 0%Other businesses (3) 338 795 ------- ----------Revenues $ 9,879 $ 10,230 -3% ======= ========== Change Margin ---------------- ----------------Adjusted EBITDA(4) Before Total Currency 2012 2011 ------ -------- -------- ------Financial & Risk $ 1,359 $ 1,514 -10% -7% 25.3% 27.6%Legal 916 898 2% 2% 37.8% 37.8%Tax & Accounting 245 196 25% 26% 28.7% 27.6%Intellectual Property & Science 219 216 1% 2% 34.0% 34.4%Corporate & Other (includes Media) (158) (157)Integration programs expenses - (151) ------- ----------Adjusted EBITDA $ 2,581 $ 2,516 3% 4% 27.1% 26.7% ======= ==========Underlying Operating Profit(5)Financial & Risk $ 891 $ 1,084 -18% -14% 16.6% 19.8%Legal 707 697 1% 1% 29.2% 29.3%Tax & Accounting 158 127 24% 25% 18.5% 17.9%Intellectual Property & Science 169 173 -2% -2% 26.2% 27.6%Corporate & Other (includes Media) (178) (186) ------- ----------Underlying operating profit $ 1,747 $ 1,895 -8% -6% 18.3% 20.1% ======= ========== Thomson Reuters Corporation Reconciliation of Operating Profit to Adjusted EBITDA(4) (millions of U.S. dollars) (unaudited) Three Months Nine Months Ended Ended September 30, September 30, ------------------------ ------------------------ 2012 2011 Change 2012 2011 Change ------- ------- ------ ------- ------- ------Operating profit $ 390 $ 659 -41% $ 2,094 $ 1,888 11%Adjustments: Amortization of other identifiable intangible assets 158 152 459 446 Integration programs expenses - 39 - 151 Fair value adjustments 34 (102) 21 (112) Other operating losses (gains), net 18 17 (802) (302) Operating profit from Other businesses (1), (3) (15) (75) (25) (176) ------- ------- ------- -------Underlying operating profit (1) $ 585 $ 690 -15% $ 1,747 $ 1,895 -8%Adjustments: Integration programs expenses - (39) - (151) Depreciation and amortization of computer software (excluding Other businesses (1), (3)) 279 260 834 772 ------- ------- ------- -------Adjusted EBITDA (1) $ 864 $ 911 -5% $ 2,581 $ 2,516 3% ======= ======= ======= =======Underlying operating profit margin 18.5% 21.6% -310bp 18.3% 20.1% -180bp ======= ======= ======= =======Adjusted EBITDA margin 27.3% 28.5% -120bp 27.1% 26.7% 40bp ======= ======= ======= ======= Thomson Reuters Corporation Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA (4) (millions of U.S. dollars) (unaudited) Three Months Nine Months Ended Ended September 30, September 30, ------------------------ ------------------------ 2012 2011 Change 2012 2011 Change ------- ------- ------ ------- ------- ------Earnings from continuing operations $ 472 $ 381 24% $ 1,736 $ 1,208 44%Adjustments: Tax (benefit) expense (140) 145 106 371 Other finance (income) costs (30) 35 (44) 19 Net interest expense 90 102 295 301 Amortization of other identifiable intangible assets 158 152 459 446 Amortization of computer software 175 155 516 481 Depreciation 104 107 323 324 ------- ------- ------- -------EBITDA $ 829 $ 1,077 -23% $ 3,391 $ 3,150 8%Adjustments: Share of post tax (earnings) losses in equity method investees (2) (4) 1 (11) Other operating losses (gains), net 18 17 (802) (302) Fair value adjustments 34 (102) 21 (112) EBITDA from Other businesses (1), (3) (15) (77) (30) (209) ------- ------- ------- -------Adjusted EBITDA (1) $ 864 $ 911 -5% $ 2,581 $ 2,516 3% ======= ======= ======= ======= Thomson Reuters Corporation Reconciliation of Underlying Operating Profit (5) to Adjusted EBITDA (4) by Business Segment (millions of U.S. dollars) (unaudited) Three Months Ended Three Months Ended September 30, 2012 September 30, 2011 (1) --------------------------------- --------------------------------- Add: Add: Depreciation Depreciation and and Underlying Amortization Underlying Amortization Operating of Computer Adjusted Operating of Computer Adjusted Profit Software** EBITDA Profit Software ** EBITDA --------------------------------- ---------------------------------Financial & Risk $283 $157 $440 $380 $143 $523Legal 256 71 327 257 66 323Tax & Accounting 34 31 65 37 26 63Intellectual Property & Science 55 17 72 64 15 79Corporate & Other (includes Media) (43) 3 (40) (48) 10 (38)Integration programs expenses na na - na na (39) --------------------------------- --------------------------------- $585 $279 $864 $690 $260 $911 ================================= ================================= Nine Months Ended Nine Months Ended September 30, 2012 September 30, 2011 (1) --------------------------------- --------------------------------- Add: Add: Depreciation Depreciation and and Underlying Amortization Underlying Amortization Operating of Computer Adjusted Operating of Computer Adjusted Profit Software** EBITDA Profit Software ** EBITDA --------------------------------- ---------------------------------Financial & Risk $891 $468 $1,359 $1,084 $430 $1,514Legal 707 209 916 697 201 898Tax & Accounting 158 87 245 127 69 196Intellectual Property & Science 169 50 219 173 43 216Corporate & Other (includes Media) (178) 20 (158) (186) 29 (157)Integration programs expenses na na - na na (151) --------------------------------- --------------------------------- $1,747 $834 $2,581 $1,895 $772 $2,516 ================================= =================================** excludes Other businesses (1), (3)na = not applicable Thomson Reuters Corporation Reconciliation of Earnings Attributable to Common Shareholders to Adjusted Earnings from Continuing Operations (6)(millions of U.S. dollars, except as otherwise indicated and except for per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2012 2011 2012 2011 -------- -------- -------- --------Earnings attributable to common shareholders $ 462 $ 369 $ 1,698 $ 1,182Adjustments: Operating profit from Other businesses (1), (3) (15) (75) (25) (176) Fair value adjustments 34 (102) 21 (112) Other operating losses (gains), net 18 17 (802) (302) Other finance (income) costs (30) 35 (44) 19 Share of post tax (earnings) losses in equity method investees (2) (4) 1 (11) Tax on above items (3) 63 184 190Interim period effective tax rate normalization (7) (60) (15) (8) (10)Discrete tax items (115) 13 (224) (33)Amortization of other identifiable intangible assets 158 152 459 446Discontinued operations (2) - 1 (2)Dividends declared on preference shares - - (2) (2) -------- -------- -------- --------Adjusted earnings from continuing operations (1) $ 445 $ 453 $ 1,259 $ 1,189 ======== ======== ======== ========Adjusted earnings per share from continuing operations (1) $ 0.54 $ 0.54 $ 1.52 $ 1.42 ======== ======== ======== ======== ======== ======== ======== ========Diluted weighted average common shares (in millions) 828.4 836.7 829.7 838.2 ======== ======== ======== ======== Thomson Reuters Corporation Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow from Ongoing Operations (8) (millions of U.S. dollars) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2012 2011 2012 2011 -------- -------- -------- --------Net cash provided by operating activities $ 607 $ 576 $ 1,750 $ 1,655Capital expenditures, less proceeds from disposals (232) (218) (726) (759)Other investing activities 1 2 8 39Dividends paid on preference shares - - (2) (2) -------- -------- -------- --------Free cash flow 376 360 1,030 933Remove: Other businesses (7) (41) (61) (148) -------- -------- -------- --------Free cash flow from ongoing operations $ 369 $ 319 $ 969 $ 785 ======== ======== ======== ========
