Interim Results Chief Financial Officer David Grigson 23 July 2002 Financial Highlights

Financial headlines Resilient financial performance in Reuters recurring revenue down 2.7% recurring revenue down 2.7% previous cost saving initiatives delivering. Further actions taken in H1 previous cost saving initiatives delivering. Further actions taken in H1 op margin increases to 12.6% (pre-charge) op margin increases to 12.6% (pre-charge) tradition of strong cash conversion maintained tradition of strong cash conversion maintained dividend held at 3.85p dividend held at 3.85p Good progress in Instinet fixed costs down 23% fixed costs down 23% Improvement in share of Nasdaq trading Improvement in share of Nasdaq trading

*Numbers stated before amortisation and net gains/(losses) on investments Revenue Op costs Op profit (ex restructuring)* Restructuring Op profit* Affiliates / investment income Net interest Profit before Taxation* Op margin (ex restructuring)* Tax Rate* EPS*Dividend Reuters - financial performance 1,542 (1,347) 195 (100) 95 (30) (18) % 34% 2.2p3.85p1,463 (1,315) (25) (11) % 27% 6.4p3.85p5%3%32% (36%) (59%) H1H1Actual £m Growth

Affiliates / investment income Share of profit / (loss) H1H1 £m Factiva2 2 Radianz(12)(10) Tibco Software(21)(10) Others /Investment income1 (7) Total(30)(25)

Recurring decline of 2.7% in line with previous guidanceRecurring decline of 2.7% in line with previous guidance High tier recurring revenues down 1%High tier recurring revenues down 1% Outright – better in Q2 but still impacted by cutbacks in IT spendOutright – better in Q2 but still impacted by cutbacks in IT spend Usage revenue – now including Bridge TradingUsage revenue – now including Bridge Trading Reuters - revenue by type Recurring1,4054%(3%) Outright71(11%)(10%) Usage6693%(4%) Total1,5425%(3%) H1 Growth 2002ActualUnderlying£m

Reuters - revenue by customer segment Treasury513(1%)(1%) Investment Banking & Brokerage44710%(10%) Asset Management34913%(2%) Corporates & Media233 0%2% Total1,5425%(3%) H1 Growth 2002ActualUnderlying£m

Recurring - good growth in information products offsets decline in conversational dealingRecurring - good growth in information products offsets decline in conversational dealing Outright - strong sales of trade and risk management solutionsOutright - strong sales of trade and risk management solutions Usage – matching revenue down in quiet Forex marketsUsage – matching revenue down in quiet Forex markets Recurring458(1%)(1%) Outright272%3% Usage28(2%)(2%) Total513(1%)(1%) Treasury H1 Growth 2002ActualUnderlying£m

Actual revenue up 10% due to inclusion of BridgeActual revenue up 10% due to inclusion of Bridge Underlying revenue declines reflect headcount reductions and IT cutbacksUnderlying revenue declines reflect headcount reductions and IT cutbacks Bridge Trading revenues up 52%Bridge Trading revenues up 52% Recurring3935%(9%) Outright20(33%)(32%) Usage34 Total44710%(10%) Investment banking & brokerage H1 Growth 2002ActualUnderlying n/an/a £m

Actual revenue growth of 13% reflects inclusion of BridgeActual revenue growth of 13% reflects inclusion of Bridge Cancellations from traditional Fund Managers offset by growth in Private Wealth Management sectorCancellations from traditional Fund Managers offset by growth in Private Wealth Management sector Usage revenue arises through use of Bridge trading technologiesUsage revenue arises through use of Bridge trading technologies Recurring33415%0% Outright13(28%)(27%) Usage2 Total34913%(2%) Asset management n/an/a H1 Growth 2002ActualUnderlying£m

Media – good growth in traditional media partially offsets continuing decline in online revenue C&E –strong outright sales Research–revenue declines mitigated by tight cost control Media75(5%)(5%) Commodities & Energy / Corporates12013%10% Research / Other38(22%)(5%) Total2330%2% Corporates & media H1 Growth 2002ActualUnderlying£m

Reuters - operating costs BSS  19% Corp  13% Segments  15% BTG   9% Channels  3% Editorial 0% Percentages represent reduction in spend in H £m H , initiatives(65) Reduction in BT costs(40) Operational gearing(7) New development spend18 Other net efficiencies(12) 1,209 Bridge138 H ,347  7%

Reuters operating costs – looking ahead Savings still to come from BT and other actions taken last year Savings still to come from BT and other actions taken last year £20m this year and additional £80m next year from recent headcount reductions £20m this year and additional £80m next year from recent headcount reductions BT costs continue to come down BT costs continue to come down Bridge integration benefits Bridge integration benefits Continuing to address the key drivers of costs: Continuing to address the key drivers of costs: - Complexity and diversity of product architecture - Number of products - Location and cost of development centres

Other factors - impact on Reuters Exchange rates impact on full year Exchange rates impact on full year - Small negative (c.2%) impact on revenue - Very limited impact on profits FRS17 - minimal impact FRS17 - minimal impact Affiliates financing Affiliates financing - TIBCO and Radianz well funded

*Numbers stated before amortisation and net gains/(losses) on investments Instinet - financial performance Revenue (38%) Op costs(306)(374)18% Op profit (ex restructuring)*(5)108 Restructuring(56)- Op profit*(61)108(156%) Net interest47 Profit before Taxation*(57)115(150%) H1H1Actual £m Growth

Instinet Q2 highlights Share of Nasdaq trading up to 15.9% in June Share of Nasdaq trading up to 15.9% in June Fixed costs down 23% vs Q Fixed costs down 23% vs Q Headcount down 31% from a year ago Headcount down 31% from a year ago Product rollouts on plan Product rollouts on plan “… Instinet continued to position itself for long term growth and profitability.”

* Numbers stated before amortisation and net gains/(losses) on investments Revenue1,838 1,940 (5%) Op costs(1,648)(1,684)2% Op profit (ex restructuring)* (26%) Restructuring(156)- Op profit* (87%) Affiliates / Investment income(30)(25) Net interest(14)(4) Profit before Tax*(10)227 (105%) Reuters Group - financial performance H1H1Actual £m Growth

* Numbers stated before amortisation and net gains/(losses) on investments Profit before Tax*(10)227 (105%) Amortisation(65)(40) Net gains / (losses) on investments(13)170 Reported Profit before Tax(88)357 (125%) Reuters Group - financial performance H1H1Actual £m Growth Tax rate* 38% 35% EPS* (0.5p)10.4p Dividend 3.85p 3.85p

Cash flow movement Operating profit/(loss)* DepreciationCapex Working capital Operating cash flow (Acquisitions) / disposals Taxation / other Dividends / share purchases Movements Net (debt)/cash 12 month rolling cash conversion * Before amortisation £m H Reuters H Instinet H Reuters Group 9590(53)(60)729(48)(151) (118) (820) 132% (61)23(9)(129)(176)(8)(39)- (223) (62)(189)(104)1(87)(151) (341) (203)

Summary Resilience in tough conditions Resilience in tough conditions Addressing the cost base Addressing the cost base Unaffected by currency and FRS17 exposures Unaffected by currency and FRS17 exposures Investing selectively Investing selectively Protecting a strong balance sheet Protecting a strong balance sheet