Pat McMahon 3/19/12 Thomson Reuters Corporation

Products Business data provider Enormous variety of professional products and software Five major divisions: Markets Legal Intellectual property and science Tax and accounting Global growth organization

Financials

Market value: $24.5 billion Revenue: $13.8 billion Net income: $1.4 billion 55,000 employees worldwide

History Began as two separate companies The Thomson Corporation Reuters Group April Thomson Corporation bought Reuters Merger valued at $17.2 billion Merger had anti-trust review and proceedings for “potential of abuse on the dominant market position”

History Thomson Corporation Began in 1950s as a small Canadian newspaper, founded by Roy Thomson Grew in the 1960s to become one of the largest newspaper conglomerate and publisher in Canada In 1978, acquired Wadsworth publishing became one of the largest publishers of educational texts

History Thomson Corporation In early 90s, transitioned to specialized information services Owns hundreds of well-known brands, such as: Physician’s Desk Reference EndNote Micropatent Wadsworth Cengage

History Reuters Multinational media group founded in 1851 thanks to electric telegraph by Paul Julius Reuter Largely known as a media group/news agency, but comprises less than 10% of their enterprise Owns many companies for the provision of market data and analysis IPO in 1984

Corporate culture Strong culture of ethics Developed a constitution and decisions are made by the board – not shareholders Huge effort to present impartial data and information

What’s hot hot hot Diversification and acquisitions Recently went from two divisions (market and professional) to the five listed earlier Many large, recent acquisitions to become the premier source of data in markets such as science, pharmacology, intellectual property, tax, and accounting

Recent major acquisitions July 2009 – Streamlogics: real time data mining and analysis November 2009 – Sabrix: leading provider of enterprise accounting and tax software February 2010 – Aegisoft: electronic trading October 2010 – Serengeti law: matter management and ebilling November 2010 – Highline financial: banking data and analytics November 2010 – GeneGo: leading provider of databases for biology software December 2011 – Emochilla: cloud web development

Secret sauce Continuing diversification – become the leader in data for everything Continually impartial and reliable data source Regular income from established markets already dominated

Competition Bloomberg: $6.9 billion annual revenue Morningstar: $600 million annual revenue Markit group: Private company, 2300 employees

Prediction Solid growth potential Continues to be successful in old business while adapting new business and technology Adapts very well to changes

Questions Comments? Questions?