Thomson Reuters Reports Fourth-Quarter and Full-Year 2017 Results

Transcription

1 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results TORONTO, February 8, 2018 Thmsn Reuters (TSX/NYSE: TRI) tday reprted results fr the furth quarter and full year ended December 31, As already annunced n January 30, 2018, the cmpany achieved its full-year 2017 Outlk (as updated in August). Our 2017 furth-quarter and full-year results shw cntinued prgress in key areas, said Jim Smith, president and chief executive fficer f Thmsn Reuters. Mving frward, we remain extremely excited abut the future prspects fr F&R thrugh ur strategic partnership with Blackstne, and ur renewed fcus t accelerate grwth in the cre businesses f Thmsn Reuters. Our ability t capitalize n pprtunities at the intersectin f regulatin and cmmerce has never been strnger. Cnslidated Financial Highlights - Three Mnths Ended December 31 (Millins f U.S. dllars, except fr adjusted EBITDA margin and earnings per share (EPS)) 2016 Excluding Q Severance Charges (2) IFRS Financial Measures (1) Change 2016 Change Revenues $2,944 $2,860 3% Operating prfit $445 $294 51% Diluted EPS (includes discntinued peratins (3) ) $0.81 $ % Cash flw frm peratins (includes discntinued peratins (3) ) $755 $998-24% Change at Cnstant Currency Nn-IFRS Financial Measures (1) Revenues $2,944 $2,860 3% $2,860 3% 1% Adjusted EBITDA $874 $635 38% $847 3% 1% Adjusted EBITDA margin 29.7% 22.2% 750bp 29.6% 10bp 10bp Adjusted EPS $0.60 $ % $0.60 0% -5% Free cash flw (includes discntinued peratins (3) ) $506 $755-33% $794-36% Revenues increased 3% due t higher recurring revenues and a psitive impact frm freign currency. At cnstant currency, revenues increased 1%. Operating prfit increased 51%, primarily because the prir year included $212 millin f severance charges. Adjusted EBITDA increased 38% t $874 millin and the margin increased 750 basis pints t 29.7% frm 22.2%. Excluding the severance charges frm the prir-year perid, adjusted EBITDA increased 3% and the margin increased 10 basis pints. Diluted EPS, which includes discntinued peratins, decreased 73% t $0.81, primarily because the prir-year perid included a $2.0 billin gain n the sale f the IP & Science business. The current-year perid reflected $304 millin f tax benefits frm the enactment f the US Tax Cuts and Jbs Act f Adjusted EPS, which excludes the gain and tax benefit, amng ther items, was $0.60 cmpared t $0.31 per share in the prir-year perid. Excluding the severance charges in the prir-year perid, adjusted EPS was unchanged. Currency had a $0.03 favrable impact. Cash flw frm peratins decreased 24%, as the prir-year perid benefited frm a $200 millin tax benefit related t a $500 millin pensin cntributin made in the first quarter f Free cash flw decreased 33% t $506 millin reflecting the same factr. (1) In additin t results reprted in accrdance with Internatinal Financial Reprting Standards (IFRS), the cmpany uses certain nn-ifrs financial measures as supplemental indicatrs f its perating perfrmance and financial psitin. These and ther nn-ifrs financial measures are defined and recnciled t the mst directly cmparable IFRS measures in the tables appended t this news release. (2) Results exclude the impact f $212 millin f furth-quarter 2016 charges frm adjusted EBITDA and adjusted EPS. Free cash flw excludes 2016 cash payments f $39 millin assciated with these charges. Refer t the tables appended t this news release fr a recnciliatin f 2016 adjusted EBITDA, the related margin, adjusted EPS and free cash flw including and excluding the charges. (3) Discntinued peratins are cmprised slely f ur Intellectual Prperty & Science business (IP & Science), which was sld in Octber 2016.

2 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 2 f 14 Highlights by Business Unit Three Mnths Ended December 31 (Millins f U.S. dllars, except fr adjusted EBITDA margins) Three Mnths Ended December 31, Freign Currency Change Cnstant Currency Ttal Revenues Financial & Risk $1,551 $1,508 3% 2% 1% Legal % 1% 1% Tax & Accunting % 0% 6% Crprate & Other (Reuters News) % 2% -5% Eliminatins (6) (5) Revenues $2,944 $2,860 3% 2% 1% Adjusted EBITDA Financial & Risk $481 $289 66% 0% 66% Legal % 1% 5% Tax & Accunting % -1% 20% Crprate & Other (includes Reuters News) (77) (81) n/a n/a n/a Adjusted EBITDA $874 $635 38% 2% 36% Adjusted EBITDA Margin Financial & Risk 31.0% 19.2% 1180bp -30bp 1210bp Legal 35.6% 34.3% 130bp 0bp 130bp Tax & Accunting 35.2% 31.5% 370bp -40bp 410bp Crprate & Other (includes Reuters News) n/a n/a n/a n/a n/a Adjusted EBITDA margin 29.7% 22.2% 750bp -10bp 760bp Excluding 2016 Severance Charges frm Prir-Year Perid Amunts and Margins Adjusted EBITDA Financial & Risk $481 $456 5% 2% 3% Legal % 1% -3% Tax & Accunting % 0% 5% Crprate & Other (includes Reuters News) (77) (80) n/a n/a n/a Adjusted EBITDA $874 $847 3% 2% 1% Adjusted EBITDA margin Financial & Risk 31.0% 30.2% 80bp 0bp 80bp Legal 35.6% 37.3% -170bp -20bp -150bp Tax & Accunting 35.2% 35.8% -60bp -40bp -20bp Crprate & Other (includes Reuters News) n/a n/a n/a n/a n/a Adjusted EBITDA margin 29.7% 29.6% 10bp 0bp 10bp n/a nt applicable Unless therwise nted, all revenue grwth cmparisns by business unit in this news release are at cnstant currency (r exclude the impact f freign currency) as Thmsn Reuters believes this prvides the best basis t measure their perfrmance. Financial & Risk Revenues increased 1% t $1.6 billin. Organic revenues were unchanged and acquisitins cntributed 1%. Revenues by type: Recurring revenues were unchanged (77% f ttal) Transactins revenues grew 7% (16% f ttal) Grwth was due t increased revenue frm Tradeweb and cntributins frm acquisitins, partially ffset by the impact f lwer freign exchange trading revenues. Recveries revenues decreased 6% (7% f ttal)

3 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 3 f 14 Revenues by gegraphy: Revenues were up 2% in the Americas, unchanged in Eurpe, Middle East and Africa (EMEA), and dwn 1% in Asia Pacific. Adjusted EBITDA increased 66% t $481 millin and the margin increased t 31.0% frm 19.2%. The increase was primarily driven by the impact f severance charges incurred in the furth quarter f In cnstant currency and excluding the severance charges frm the prir-year perid, adjusted EBITDA was up 3% and the margin increased 80 basis pints, driven by savings frm the cmpany s simplificatin initiatives. Net sales were psitive in the quarter. Legal Revenues increased 1% t $881 millin. Recurring revenues grew 3% (75% f ttal) US Print revenues declined 7% (14% f ttal) Transactins revenues declined 1% (11% f ttal) Adjusted EBITDA increased 6% t $314 millin and the margin increased t 35.6% frm 34.3% due t the impact f the severance charges incurred in the furth quarter f In cnstant currency and excluding the severance charges frm the prir-year perid, adjusted EBITDA declined 3% and the margin decreased by 150 basis pints. Tax & Accunting Revenues increased 6% t $443 millin. Recurring revenues grew 5% (88% f ttal) Transactins revenues grew 11% (12% f ttal) Adjusted EBITDA increased 19% t $156 millin and the margin increased t 35.2% frm 31.5%, primarily due t the impact f severance charges incurred in the furth quarter f In cnstant currency and excluding the severance charges frm the prir-year perid, adjusted EBITDA was up 5% and the margin decreased 20 basis pints. Crprate & Other (Including Reuters News) Reuters News revenues were $75 millin, dwn 5%. Crprate & Other csts at the adjusted EBITDA level were $77 millin cmpared t $81 millin in the prir-year perid. The reductin was driven by the cmpany s nging simplificatin initiatives, partly ffset by investments relating t imprving custmer experience. Including depreciatin and amrtizatin f sftware, Crprate & Other csts were $84 millin cmpared t $92 millin in the prir-year perid.

4 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 4 f 14 Cnslidated Financial Highlights Full-Year 2017 (Millins f U.S. dllars, except fr adjusted EBITDA margin and EPS) 2016 Excluding Q Severance Charges (2) IFRS Financial Measures (1) Change 2016 Change Revenues $11,333 $11,166 1% Operating prfit $1,755 $1,390 26% Diluted EPS (includes discntinued peratins (3) ) $1.94 $ % Cash flw frm peratins (includes discntinued peratins (3) ) $2,029 $2,984-32% Change at Cnstant Currency Nn-IFRS Financial Measures (1) Revenues $11,333 $11,166 1% $11,166 1% 2% Adjusted EBITDA $3,437 $2,954 16% $3,166 9% 8% Adjusted EBITDA margin 30.3% 26.5% 380bp 28.4% 190bp 170bp Adjusted EPS $2.51 $ % $ % 20% Free cash flw (includes discntinued peratins (3) ) $1,032 $2,022-49% $2,061-50% Revenues increased 1% due t higher recurring revenues, partly ffset by a negative impact frm freign currency. At cnstant currency, revenues increased 2%. Operating prfit increased 26%, primarily because the prir year included $212 millin f severance charges. Higher revenues and lwer perating expenses, reflecting the cmpany s nging simplificatin initiatives, als cntributed, despite the unfavrable impact f fair value adjustments assciated with freign currency derivatives embedded in certain custmer cntracts. Adjusted EBITDA increased 16% t $3.4 billin and the margin increased t 30.3% frm 26.5%. Excluding the severance charges frm the prir year, adjusted EBITDA increased 9% and the margin increased 190 basis pints. Diluted EPS, which includes discntinued peratins, decreased 53% t $1.94 primarily because the prir year included a $2.0 billin gain n the sale f the IP & Science business. The current-year perid reflected $304 millin f tax benefits frm the enactment f the US Tax Cuts and Jbs Act f Adjusted EPS, which excludes the gain and the tax benefits, amng ther items, was $2.51 cmpared t $1.79 per share in the prir year. Excluding the charges frm the prir year, adjusted EPS increased 21%, r $0.44 per share, driven by higher adjusted EBITDA. Currency had a $0.03 favrable impact. Cash flw frm peratins declined 32%, primarily due t a $500 millin pensin cntributin in January 2017, $103 millin f higher payments related t 2016 severance charges, the lss f cash flws frm the IP & Science business, which was sld in Octber 2016 ($140 millin year n year reductin), and higher tax payments. Free cash flw decreased 49% t $1.0 billin reflecting similar factrs as nted abve. (1) In additin t results reprted in accrdance with IFRS, the cmpany uses certain nn-ifrs financial measures as supplemental indicatrs f its perating perfrmance and financial psitin. These and ther nn-ifrs financial measures are defined and recnciled t the mst directly cmparable IFRS measures in the tables appended t this news release. (2) Results exclude the impact f $212 millin f furth-quarter 2016 charges frm adjusted EBITDA and adjusted EPS. Free cash flw excludes 2016 cash payments f $39 millin assciated with these charges. Refer t the tables appended t this news release fr a recnciliatin f 2016 adjusted EBITDA, the related margin, adjusted EPS and free cash flw including and excluding the charges. (3) Discntinued peratins are cmprised slely f ur Intellectual Prperty & Science business (IP & Science), which was sld in Octber 2016.

5 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 5 f 14 Highlights by Business Unit Full-Year 2017 (Millins f U.S. dllars, except fr adjusted EBITDA margins) December 31, Change Freign Currency Cnstant Currency Ttal Revenues Financial & Risk $6,112 $6,057 1% 0% 1% Legal 3,390 3,367 1% 0% 1% Tax & Accunting 1,551 1,452 7% 1% 6% Crprate & Other (Reuters News) % 0% -3% Eliminatins (16) (14) Revenues $11,333 $11,166 1% -1% 2% Adjusted EBITDA Financial & Risk $1,916 $1,629 18% 1% 17% Legal 1,279 1,232 4% 0% 4% Tax & Accunting % 1% 19% Crprate & Other (includes Reuters News) (253) (321) n/a n/a n/a Adjusted EBITDA $3,437 $2,954 16% 0% 16% Adjusted EBITDA Margin Financial & Risk 31.3% 26.9% 440bp 10bp 430bp Legal 37.7% 36.6% 110bp 10bp 100bp Tax & Accunting 31.9% 28.5% 340bp -10bp 350bp Crprate & Other (includes Reuters News) n/a n/a n/a n/a n/a Adjusted EBITDA margin 30.3% 26.5% 380bp 10bp 370bp Excluding 2016 Severance Charges frm Prir-Year Perid Amunts and Margins Adjusted EBITDA Financial & Risk $1,916 $1,796 7% 1% 6% Legal 1,279 1,258 2% 0% 2% Tax & Accunting % 1% 14% Crprate & Other (includes Reuters News) (253) (320) n/a n/a n/a Adjusted EBITDA $3,437 $3,166 9% 1% 8% Adjusted EBITDA margin Financial & Risk 31.3% 29.7% 160bp 20bp 140bp Legal 37.7% 37.4% 30bp 0bp 30bp Tax & Accunting 31.9% 29.8% 210bp -10bp 220bp Crprate & Other (includes Reuters News) n/a n/a n/a n/a n/a Adjusted EBITDA margin 30.3% 28.4% 190bp 20bp 170bp n/a nt applicable Financial & Risk Revenues increased 1% t $6.1 billin. Organic revenues were unchanged and acquisitins cntributed 1%. Revenues by type: Recurring revenues grew 1% (77% f ttal) Transactins revenues grew 6% (16% f ttal) Grwth was due t increased revenue frm Tradeweb and cntributins frm acquisitins, partially ffset by the impact f lwer freign exchange trading revenues. Recveries revenues decreased 6% (7% f ttal)

6 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 6 f 14 Revenues by gegraphy: Revenues were up 3% in the Americas, and were unchanged in EMEA and Asia Pacific. Excluding the impact f lwer recveries, all regins reprted revenue grwth. Adjusted EBITDA increased 18% t $1.9 billin and the margin increased t 31.3% frm 26.9% due t the impact f severance charges incurred in the furth quarter f 2016, savings frm the cmpany s simplificatin initiatives and higher revenues. In cnstant currency and excluding the severance charges frm the prir year, adjusted EBITDA was up 6% and the margin increased 140 basis pints. Net sales fr the full year were psitive. Legal Revenues increased 1% t $3.4 billin. Recurring revenues grew 3% (76% f ttal) US Print revenues declined 6% (13% f ttal) Transactins revenues declined 6% (11% f ttal) Adjusted EBITDA increased 4% t $1.3 billin and the margin increased t 37.7% frm 36.6%. The increase was driven by the impact f severance charges incurred in the furth quarter f 2016, higher revenues and savings frm nging simplificatin initiatives. In cnstant currency and excluding the severance charges frm the prir year, adjusted EBITDA was up 2% and the margin increased 30 basis pints. Tax & Accunting Revenues increased 6% t $1.6 billin. Recurring revenues grew 5% (85% f ttal) Transactins revenues grew 18% (15% f ttal) Adjusted EBITDA increased 20% t $495 millin and the margin increased t 31.9% frm 28.5%. The increase was driven by higher revenues, savings frm the cmpany s simplificatin initiatives and the impact f severance charges incurred in the furth quarter f In cnstant currency and excluding the severance charges frm the prir year, adjusted EBITDA was up 14% and the margin increased 220 basis pints. Crprate & Other (Including Reuters News) Reuters News revenues were $296 millin, dwn 3%. Crprate & Other csts at the adjusted EBITDA level were $253 millin cmpared t $321 millin in the prir year. The reductin was driven by the cmpany s nging simplificatin initiatives, partly ffset by investments relating t imprving custmer experience and csts related t real estate cnslidatin initiatives. Including depreciatin and amrtizatin f sftware, Crprate & Other csts were $289 millin cmpared t $381 millin in the prir year.

7 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 7 f 14 Business Update: Prpsed Financial & Risk Strategic Partnership with Blackstne On January 30, 2018, Thmsn Reuters annunced that it signed a definitive agreement t enter int a strategic partnership with private equity funds managed by Blackstne related t the cmpany's Financial & Risk business. As part f the transactin, Thmsn Reuters has agreed t sell a 55% majrity stake in Financial & Risk and will retain a 45% interest in the business. The transactin values the Financial & Risk business at apprximately $20 billin. Thmsn Reuters will receive apprximately $17 billin in grss prceeds at clsing (subject t purchase price adjustments). Thmsn Reuters will maintain full wnership f its Legal, Tax & Accunting and the Reuters News businesses. The transactin is expected t clse in the secnd half f the year and is subject t specified regulatry apprvals and custmary clsing cnditins. Financial & Risk will be classified as a discntinued peratin fr 2018 reprting purpses. Dividend On January 30, 2018, Thmsn Reuters annunced that its bard f directrs apprved maintaining its dividend at $1.38 per cmmn share. A quarterly dividend f $0.345 per share is payable n March 15, 2018 t cmmn sharehlders f recrd as f February 22, Nte n 2018 Business Outlk As annunced n January 30, 2018, Thmsn Reuters plans t prvide a 2018 Business Outlk when it reprts first-quarter results in early May as a result f the cmpany's recently signed agreement t frm a strategic partnership fr Financial & Risk with Blackstne, and the related allcatin f csts that will need t be made between Thmsn Reuters and the prpsed new partnership. Thmsn Reuters Thmsn Reuters is the wrld s leading surce f news and infrmatin fr prfessinal markets. Our custmers rely n us t deliver the intelligence, technlgy and expertise they need t find trusted answers. The business has perated in mre than 100 cuntries fr mre than 100 years. Thmsn Reuters shares are listed n the Trnt and New Yrk Stck Exchanges (symbl: TRI). Fr mre infrmatin, visit NON-IFRS FINANCIAL MEASURES Thmsn Reuters prepares its financial statements in accrdance with Internatinal Financial Reprting Standards (IFRS), as issued by the Internatinal Accunting Standards Bard (IASB). This news release includes certain nn-ifrs financial measures, such as adjusted EBITDA and the related margin (ther than at the business unit r segment level), free cash flw, adjusted EPS, and selected measures excluding the impact f freign currency and the impact f the furth quarter 2016 severance charges. Thmsn Reuters uses these nn-ifrs financial measures as supplemental indicatrs f its perating perfrmance and financial psitin. These measures d nt have any standardized meanings prescribed by IFRS and therefre are unlikely t be cmparable t the calculatin f similar measures used by ther cmpanies, and shuld nt be viewed as alternatives t measures f financial perfrmance calculated in accrdance with IFRS. Nn-IFRS financial measures are defined and recnciled t the mst directly cmparable IFRS measures in the appended tables. The term rganic refers t Thmsn Reuters existing businesses befre the impact f acquisitins. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL ASSUMPTIONS AND MATERIAL RISKS Certain statements in this news release, including, but nt limited t, Mr. Smith s cmments and statements regarding the prpsed strategic partnership with Blackstne invlving the Financial & Risk business, are frward-lking. As a result, frward-lking statements are subject t a number f risks and uncertainties that culd cause actual results r events t differ materially frm current expectatins. There is n assurance that a transactin invlving all r part f the Financial & Risk business will be cmpleted r that the events described in any ther frward-lking statement will materialize. Yu are cautined nt t place undue reliance n frward-lking statements which reflect expectatins nly as f the date f this news release. Except as may be required by applicable law, Thmsn Reuters disclaims any bligatin t update r revise any frward-lking statements. Sme f the material risk factrs that culd cause actual results r events t differ materially frm thse expressed in r implied by frward-lking statements in this news release include, but are nt limited t, changes in the general ecnmy; actins f cmpetitrs; failure t develp new prducts, services, applicatins and functinalities t meet custmers' needs, attract new custmers and retain existing nes, r expand int new gegraphic markets and identify areas f higher grwth; fraudulent r unpermitted data access r ther

8 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 8 f 14 cyber-security r privacy breaches; failures r disruptins f telecmmunicatins, data centers, netwrk systems r the Internet; increased accessibility t free r relatively inexpensive infrmatin surces; failure t meet the challenges invlved in perating glbally; failure t maintain a high renewal rate fr recurring, subscriptin-based services; dependency n third parties fr data, infrmatin and ther services; changes t law and regulatins; tax matters, including changes t tax laws, regulatins and treaties; fluctuatins in freign currency exchange and interest rates; failure t adapt t rganizatinal changes and effectively implement strategic initiatives; failure t attract, mtivate and retain high quality management and key emplyees; failure t prtect the brands and reputatin f Thmsn Reuters; inadequate prtectin f intellectual prperty rights; threat f legal actins and claims; failure t derive fully the anticipated benefits frm existing r future acquisitins, jint ventures, investments r dispsitins; risk f antitrust/cmpetitin-related claims r investigatins; impairment f gdwill and ther identifiable intangible assets; dwngrading f credit ratings and adverse cnditins in the credit markets; the effect f factrs utside f the cntrl f Thmsn Reuters n funding bligatins in respect f pensin and pstretirement benefit arrangements; and actins r ptential actins that culd be taken by the cmpany s principal sharehlder, The Wdbridge Cmpany Limited. These and ther factrs are discussed in materials that Thmsn Reuters frm time t time files with, r furnishes t, the Canadian securities regulatry authrities and the U.S. Securities and Exchange Cmmissin. Thmsn Reuters annual and quarterly reprts are als available in the Investr Relatins sectin f As previusly annunced, the cmpany will nt webcast a discussin f its furth-quarter and full-year 2017 results tday because it pre-released expectatins fr its results and hsted a cnference call n January 30, 2018 after it annunced that the cmpany had signed a definitive agreement t enter int a strategic partnership with Blackstne invlving its Financial & Risk business. Yu can access an archive f the January 30, 2018 webcast by visiting the "Investr Relatins" sectin f CONTACTS MEDIA David Crundwell Senir Vice President, Crprate Affairs david.crundwell@tr.cm INVESTORS Frank J. Glden Senir Vice President, Investr Relatins frank.glden@tr.cm

9 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 9 f 14 CONTINUING OPERATIONS Thmsn Reuters Crpratin Cnslidated Incme Statement (millins f U.S. dllars, except per share data) Three Mnths Ended December 31, December 31, Revenues $2,944 $2,860 $11,333 $11,166 Operating expenses (2,082) (2,168) (8,079) (8,232) Depreciatin (74) (74) (296) (313) Amrtizatin f cmputer sftware (180) (193) (699) (711) Amrtizatin f ther identifiable intangible assets (114) (140) (468) (528) Other perating (lsses) gains, net (49) 9 (36) 8 Operating prfit ,755 1,390 Finance csts, net: Net interest expense (90) (99) (362) (403) Other finance (csts) incme (27) 78 (203) 50 Incme befre tax and equity methd investments ,190 1,037 Share f pst-tax earnings (lsses) in equity methd investments 1 2 (2) 4 Tax benefit (expense) 266 (1) Earnings frm cntinuing peratins ,462 1,056 (Lss) earnings frm discntinued peratins, net f tax (4) 1,967 (3) 2,093 Net earnings $591 $2,241 $1,459 $3,149 Earnings attributable t: Cmmn sharehlders 576 2,226 1,395 3,098 Nn-cntrlling interests Earnings per share: Basic earnings per share: Frm cntinuing peratins $0.81 $0.35 $1.94 $1.34 Frm discntinued peratins Basic earnings per share $0.81 $3.04 $1.94 $4.14 Diluted earnings per share: Frm cntinuing peratins $0.81 $0.35 $1.94 $1.34 Frm discntinued peratins Diluted earnings per share $0.81 $3.03 $1.94 $4.13 Basic weighted-average cmmn shares 711,543, ,740, ,769, ,328,483 Diluted weighted-average cmmn shares 713,001, ,538, ,193, ,961,494

10 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 10 f 14 Thmsn Reuters Crpratin Cnslidated Statement f Financial Psitin (millins f U.S. dllars) December 31, December 31, Assets Cash and cash equivalents $874 $2,368 Trade and ther receivables 1,457 1,392 Other financial assets Prepaid expenses and ther current assets Current assets 2,977 4,634 Cmputer hardware and ther prperty, net Cmputer sftware, net 1,458 1,394 Other identifiable intangible assets, net 5,315 5,655 Gdwill 15,042 14,485 Other financial assets Other nn-current assets Deferred tax Ttal assets $26,471 $27,852 Liabilities and equity Liabilities Current indebtedness $1,644 $1,111 Payables, accruals and prvisins 2,086 2,448 Deferred revenue Other financial liabilities Current liabilities 4,796 4,562 Lng-term indebtedness 5,382 6,278 Prvisins and ther nn-current liabilities 1,731 2,258 Other financial liabilities Deferred tax 708 1,158 Ttal liabilities 12,896 14,596 Equity Capital 9,549 9,589 Retained earnings 7,201 7,477 Accumulated ther cmprehensive lss (3,673) (4,293) Ttal sharehlders equity 13,077 12,773 Nn-cntrlling interests Ttal equity 13,575 13,256 Ttal liabilities and equity $26,471 $27,852

11 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 11 f 14 Thmsn Reuters Crpratin Cnslidated Statement f Cash Flw (millins f U.S. dllars) Three Mnths Ended December 31, December 31, Cash prvided by (used in): Operating activities Earnings frm cntinuing peratins $595 $274 $1,462 $1,056 Adjustments fr: Depreciatin Amrtizatin f cmputer sftware Amrtizatin f ther identifiable intangible assets Net (gains) lsses n dispsals f businesses and investments (1) 1 (36) (3) Deferred tax (317) 119 (511) (11) Other 172 (66) Pensin cntributin - - (500) - Changes in wrking capital and ther items (60) 362 (566) 18 Operating cash flws frm cntinuing peratins 757 1,097 2,085 2,900 Operating cash flws frm discntinued peratins (2) (99) (56) 84 Net cash prvided by perating activities ,029 2,984 Investing activities Acquisitins, net f cash acquired (1) (1) (185) (112) Prceeds frm dispsals f businesses and investments Capital expenditures, less prceeds frm dispsals (240) (247) (950) (905) Other investing activities Investing cash flws frm cntinuing peratins (234) (230) (1,064) (972) Investing cash flws frm discntinued peratins, net f taxes paid - 3, ,158 Net cash (used in) prvided by investing activities (234) 2,966 (1,047) 2,186 Financing activities Prceeds frm debt Repayments f debt (1,012) - (2,112) (503) Net brrwings (repayments) under shrt-term lan facilities 936 (1,740) 1,641 (1,038) Repurchases f cmmn shares (192) (441) (1,000) (1,673) Dividends paid n preference shares - - (2) (2) Dividends paid n cmmn shares (236) (240) (956) (980) Dividends paid t nn-cntrlling interests (16) (13) (66) (57) Other financing activities (25) Net cash used in financing activities (545) (2,413) (2,490) (3,712) (Decrease) increase in cash and bank verdrafts (24) 1,551 (1,508) 1,458 Translatin adjustments - (10) 9 (13) Cash and bank verdrafts at beginning f perid , Cash and bank verdrafts at end f perid $868 $2,367 $868 $2,367 Cash and bank verdrafts at end f perid cmprised f: Cash and cash equivalents $874 $2,368 $874 $2,368 Bank verdrafts (6) (1) (6) (1) $868 $2,367 $868 $2,367

12 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 12 f 14 Thmsn Reuters Crpratin Recnciliatin f Earnings frm Cntinuing Operatins t Adjusted EBITDA (1) (millins f U.S. dllars, except fr margins) Three Mnths Ended December 31, December 31, Change Change Earnings frm cntinuing peratins $595 $ % $1,462 $1,056 38% Adjustments t remve: Tax (benefit) expense (266) 1 (274) (15) Other finance csts (incme) 27 (78) 203 (50) Net interest expense Amrtizatin f ther identifiable intangible assets Amrtizatin f cmputer sftware Depreciatin EBITDA $814 $703 $3,216 $2,946 Adjustments t remve: Share f pst-tax (earnings) lsses in equity methd investments (1) (2) 2 (4) Other perating lsses (gains), net 49 (9) 36 (8) Fair value adjustments 12 (57) Adjusted EBITDA $874 $635 38% $3,437 $2,954 16% Adjusted EBITDA margin (1) 29.7% 22.2% 750bp 30.3% 26.5% 380bp Thmsn Reuters Crpratin Recnciliatin f Earnings Attributable t Cmmn Sharehlders t Adjusted Earnings (2) (millins f U.S. dllars, except fr share and per share data) Three Mnths Ended December 31, December 31, Change Change Earnings attributable t cmmn sharehlders $576 $2,226-74% $1,395 $3,098-55% Adjustments t remve: Fair value adjustments 12 (57) Amrtizatin f ther identifiable intangible assets Other perating lsses (gains), net 49 (9) 36 (8) Other finance csts (incme) 27 (78) 203 (50) Share f pst-tax (earnings) lsses in equity methd investments (1) (2) 2 (4) Tax n abve items (67) (46) (175) (184) Tax items impacting cmparability (301) 21 (304) 34 Lss (earnings) frm discntinued peratins, net f tax 4 (1,967) 3 (2,093) Interim perid effective tax rate nrmalizatin (3) Dividends declared n preference shares - - (2) (2) Adjusted earnings $428 $228 88% $1,809 $1,339 35% Adjusted EPS $0.60 $ % $2.51 $ % Freign currency (4) 7% 1% Cnstant currency (4) 87% 39% Excluding 2016 Severance Charges frm Prir-Year Perid Amunts Adjusted EPS $0.60 $0.60 0% $2.51 $ % Freign currency (4) 5% 1% Cnstant currency (4) -5% 20% Diluted weighted-average cmmn shares (millins) Refer t page 14 fr ftntes.

13 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 13 f 14 Thmsn Reuters Crpratin Recnciliatin f Net Cash Prvided by Operating Activities t Free Cash Flw (5) (millins f U.S. dllars) Three Mnths Ended December 31, December 31, Net cash prvided by perating activities $755 $998 $2,029 $2,984 Capital expenditures, less prceeds frm dispsals (240) (247) (950) (905) Capital expenditures frm discntinued peratins (38) Other investing activities Dividends paid n preference shares - - (2) (2) Dividends paid t nn-cntrlling interests (16) (13) (66) (57) Free cash flw $506 $755 $1,032 $2,022 Thmsn Reuters Crpratin Recnciliatin f 2016 Adjusted EBITDA (1), Adjusted EPS (2) and Free Cash Flw (5) Excluding the Furth-Quarter 2016 Severance Charges (millins f U.S. dllars, except per share data) Three Mnths Ended December 31, 2016 December 31, 2016 Remve Charges Excluding Charges Remve Charges Excluding Charges Actual Actual Adjusted EBITDA Financial & Risk $289 $167 $456 $1,629 $167 $1,796 Legal , ,258 Tax & Accunting Crprate & Other (includes Reuters News) (81) 1 (80) (321) 1 (320) Adjusted EBITDA $635 $212 $847 $2,954 $212 $3,166 Adjusted EPS $0.31 $0.29 $0.60 $1.79 $0.28 $2.07 Free cash flw (includes discntinued peratins) $755 $39 $794 $2,022 $39 $2,061 Refer t page 14 fr ftntes.

14 Thmsn Reuters Reprts Furth-Quarter and Full-Year 2017 Results Page 14 f 14 Ftntes (1) Thmsn Reuters defines adjusted EBITDA fr its business units as earnings frm cntinuing peratins befre tax expense r benefit, net interest expense, ther finance csts r incme, depreciatin, amrtizatin f sftware and ther identifiable intangible assets, Thmsn Reuters share f pst-tax (earnings) lsses in equity methd investments, ther perating gains and lsses, certain asset impairment charges, fair value adjustments and crprate related items. Cnslidated adjusted EBITDA is cmprised f adjusted EBITDA fr its business units and Crprate & Other. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage f revenues. Thmsn Reuters uses adjusted EBITDA because it prvides a cnsistent basis t evaluate perating prfitability and perfrmance trends by excluding items that the Cmpany des nt cnsider t be cntrllable activities fr this purpse. Adjusted EBITDA als represents a measure cmmnly reprted and widely used by investrs as a valuatin metric. Additinally, this measure is used by Thmsn Reuters and investrs t assess a cmpany s ability t incur and service debt. (2) Adjusted earnings and adjusted EPS include dividends declared n preference shares but exclude the pst-tax impacts f fair value adjustments, amrtizatin f ther identifiable intangible assets, ther perating gains and lsses, certain asset impairment charges, ther finance csts r incme, Thmsn Reuters share f pst-tax (earnings) lsses in equity methd investments, discntinued peratins and ther items affecting cmparability. Thmsn Reuters calculates the pst-tax amunt f each item excluded frm adjusted earnings based n the specific tax rules and tax rates assciated with the nature and jurisdictin f each item. Adjusted EPS is calculated using diluted weighted-average shares and des nt represent actual earnings r lss per share attributable t sharehlders. Thmsn Reuters uses adjusted earnings and adjusted EPS as they prvide a mre cmparable basis t analyze earnings and they are als measures cmmnly used by sharehlders t measure the cmpany's perfrmance. (3) Adjustment t reflect incme taxes based n estimated full-year effective tax rate. Earnings r lsses fr interim perids under IFRS reflect incme taxes based n the estimated effective tax rates f each f the jurisdictins in which Thmsn Reuters perates. The nn-ifrs adjustment reallcates estimated full-year incme taxes between interim perids, but has n effect n full-year incme taxes. (4) The changes in revenues, adjusted EBITDA and the related margins, and adjusted earnings per share befre currency (at cnstant currency r excluding the effects f currency) are determined by cnverting the current and prir-year perid s lcal currency equivalent using the same exchange rates. (5) Free cash flw (includes free cash flw frm cntinuing and discntinued peratins) is net cash prvided by (used in) perating activities, and ther investing activities less capital expenditures, dividends paid n the cmpany s preference shares, and dividends paid t nn-cntrlling interests. Thmsn Reuters uses free cash flw as it helps assess the cmpany's ability, ver the lng term, t create value fr its sharehlders as it represents cash available t repay debt, pay cmmn dividends and fund share repurchases and new acquisitins. Thmsn Reuters Crpratin Depreciatin and Amrtizatin f Cmputer Sftware by Business Segment (millins f U.S. dllars) Three Mnths Ended December 31, December 31, Financial & Risk $147 $150 $581 $585 Legal Tax & Accunting Crprate & Other (includes Reuters News) Ttal depreciatin and amrtizatin f cmputer sftware $254 $267 $995 $1,024 Supplemental