Interim Results Chief Executive Officer Tom Glocer 23 July 2002

H1 overview Real progress despite tough markets Reshaping the business Instinet back on track Underlying financials resilient

Reshaping the business to deliver sustainable, double digit earnings growth First phase: ‘Self Help’ Second phase: Revenue Growth Margin-driven earnings growth - Cost savings - Getting the right products - Getting the right business mix Revenue-driven earnings growth Revenue-driven earnings growth - Segment strategies take hold - Market upturn - Continued margin improvement Strategy and five year plan – October 2001

Differentiated strategy which Meets customer needs Meets customer needs Beats the competition Beats the competition Plays to our core competencies Plays to our core competencies Achieves profitable growth Achieves profitable growth 2002 update Cost savings Cost savings Right products Right products - Win the premium desktop - Next generation architecture - Win the enterprise: sell solutions Right business mix Right business mix - Growing the business outside financial services - Optimise portfolio composition Portfoliocomposition Outside financial services Solutions Next generation PremiumDesktop RIGHT PRODUCTSRIGHT MIX COST SAVINGS

Cost savings Business transformation & other savings £m Business transformation & 2001 restructuring2002 restructuring Portfoliocomposition Outside financial services Solutions Next generation PremiumDesktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX

Right products Market framework Premium Growth : low Power Users 3000 Xtra, BridgeStation Dealing 3000 Mid Tier Growth : high Multiple user segments throughout the enterprise Reuters Plus, RDL, Next Generation Products Lower Tier Growth : high potential Corporate users, retail investors Reuters Investor Web Services Trusted content Openness Integration Standards Differentiation through Portfoliocomposition Outside financial services Solutions Next generation PremiumDesktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX

Right products Win the Premium Desktop Objective: Protect and grow market share Two key initiatives 1) Make 3000 Xtra best value for Power Users 2) Build User Communities Total accessible market: 125,000+ positions H1 02 sales: 67,000 positions H1 02 installs: 44,000 positions Portfoliocomposition Outside financial services Solutions Next generation Premium Desktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX

Progress Customer satisfaction index now established Make 3000 Xtra best value for Power Users Milestones All customers upgraded to Version 4 by year end Right products Win the Premium Desktop Portfoliocomposition Outside financial services Solutions Next generation Premium Desktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX Personalisation Personalisation Customer service Customer service New Customer Segment displays, applications 60 new trainers in place now 120 new client trainers by year end Customer satisfaction improvement

Right products Win the Premium Desktop

60,000 Reuters Messaging users via MindAlign 170 firms signed up for Reuters Messaging beta 175,000 Reuters Messaging users by year end Build User Communities Right products Win the Premium Desktop Portfoliocomposition Outside financial services Solutions Next generation Premium Desktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX ProgressMilestones Instinet and Bridge Institutional Order Entry available on Xtra Introduce trade management and order routing capabilities Introduce trade management and order routing capabilities Launch Reuters Messaging Launch Reuters Messaging

Right products Release new products on next generation architecture New Products Reuters Knowledge Reuters Knowledge - Initial addressable market of 30,000 in corporate finance - Launch Q1 03 Reuters Intelligent Advisor Reuters Intelligent Advisor - Initial addressable market of 175,000 in wealth management - Launch Q2 03 European Securities Product European Securities Product - Under development New products expected to add >£100m in 2004 Portfoliocomposition Outside financial services Solutions Next generationPremiumDesktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX

Scaleable Best of breed Lower cost to deliver Flexible Re-usable Right products Release new products on next generation architecture Portfoliocomposition Outside financial services Solutions Next generationPremiumDesktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX

Right products Release new products on next generation architecture Streamlining the product line Product announcements issued to customers today Product announcements issued to customers today 25% - core product set 25% - core product set 25% - minor enhancements only 25% - minor enhancements only 50% - withdrawn from sale 50% - withdrawn from sale Migration and support plans for customers in place Migration and support plans for customers in place Minimal revenue impact Minimal revenue impact Major benefit is operational efficiency Major benefit is operational efficiency Portfoliocomposition Outside financial services Solutions Next generationPremiumDesktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX

Global consolidation Cost Reduction Differentiation Operational risk Advice vs. product Integrated desktop Outsourcing Trade management Risk management Tools for advisors Customer relationship management Customer trends Customer spending US$m 7,00010,0002,5001,5003,0008,000 Source: TowerGroup, Yankee Group 2002 estimates Right products Win the enterprise: Selling Solutions Portfoliocomposition Outside financial services Solutions Next generation PremiumDesktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX

Right products Win the enterprise: Selling Solutions Tibco Active Enterprise licenses + Kondor risk management$1.6m Tibco Active Enterprise licenses + Kondor risk management$1.6m Maintenance$0.25m p.a. Maintenance$0.25m p.a. Consulting$0.6m Consulting$0.6m 220 x 3000 Xtra$2.1m p.a. 220 x 3000 Xtra$2.1m p.a. Portfoliocomposition Outside financial services Solutions Next generation PremiumDesktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX Goals: Goals: grow outright revenue pull through recurring revenue integrate our products into customers’ workflow. Large global buy side institution Knowledge management portal to share internal and external data Leading US investment bank Cross asset transaction portal to serve institutional clients Tib Portal Builder Licences$1m Tib Portal Builder Licences$1m Consulting$11m Consulting$11m Bespoke system maintenance$2m p.a. Bespoke system maintenance$2m p.a.

£150m revenue business 7% year-on-year growth in TV subscription revenue Media £60m revenue business with growth potential in existing and new markets Key assets Trusted brand High end research companies – Tower & Yankee Global scale and reach Reuters Editorial & data groups Factiva - channel to corporates Instinet - channel to financial services Research £120m revenue business Solutions revenue doubled in H1 02 Interesting opportunities in STP Commodities & Energy Right business mix Building our presence outside the financial markets Portfoliocomposition Outside financial servicesSolutions Next generation PremiumDesktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX

Getting the right business mix Optimising portfolio composition Portfolio composition Outside financial services Solutions Next generation PremiumDesktop COST SAVINGS RIGHT PRODUCTSRIGHT MIX TechnologyCommunications Trading Content

Build a presence outside the financial markets Drive value from the portfolio into Reuters operating lines Improve customer service Improve our competitive position Deliver new products Simplify the product line Introduce performance culture Re-organise the business to improve customer focus and harness global scale Deliver cost savings and headcount reduction Bridge integration Progress We said … Summary

Outlook for Reuters Continued improvement in Margins Margins Competitiveness Competitiveness Operational gearing Operational gearing Recurring revenue Confirm H2 guidance - 5-6% underlying decline Confirm H2 guidance - 5-6% underlying decline Growth in actual terms, driven by Bridge Growth in actual terms, driven by Bridge Outright revenue Likely to be around 2001 levels despite a strong sales pipeline Likely to be around 2001 levels despite a strong sales pipeline Operating margin On track to deliver 12% in 2002 before net impact of restructuring On track to deliver 12% in 2002 before net impact of restructuring Anticipate further margin improvement in 2003 Anticipate further margin improvement in 2003 Assuming market upturn, margin target remains 17-20% Assuming market upturn, margin target remains 17-20%