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Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
Thomson Remake 07
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Thomson Remake 07

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  • 1. This is a presentation “makeover”. It is intended to give potential clients an idea of what my presentation work might look like. The original content for this presentation belongs to The Thompson Corporation. I have redesigned the presentation, but I have not altered the content.
  • 2. The original presentation (for comparison) can be found at: http://tinyurl.com/27nrvw The presentation was given June 7th, 2007 at the Merrill Lynch U.S. Media Conference
  • 3. I kept the show stark, clean, and a little web2.0-ish. Thomson is a truly modern information company. The audience is primarily investors and analysts - expecting clean information, not entertainment.
  • 4. Visit my websites at: www.i3mm.com www. linux group of rochester .com
  • 5. The Thomson Corporation – Legal Segment Merrill Lynch Conference, London, June 7th, 2007
  • 6. Safe Harbor
  • 7. Agenda Introduction Frank Golden Legal Segment Peter Warwick Overview Market Trends Strategy Objective and Revenue Growth Drivers Summary
  • 8. Thomson-Reuters Creates Meets Positioned Combination a global leader in customers’ for growth in two of two strong, electronic growing demand business experienced information for broader, faster segments – management services, trading and more deeply Financial Services teams and a well systems and news integrated and Professional capitalized for professionals information and Services industry leader in knowledge solutions ($35B market cap) based industries
  • 9. Thomson-Reuters Creates a Diversified $11B+ Company 2006 Pro Forma Revenue by Division Financial Professional $6.7B – 59% $4.6B – 41% 2006 Pro Forma Revenue by Region Americas EMEA Asia-Pacific $6.9B – 60% $3.5B – 31% $1.0B – 9% 88% - Electronic, Software & Services 86% - Recurring Source: Public filings and investor presentations. Refer to Special Note for a more detailed explanation of pro forma financial information provided throughout this presentation. Reuters results converted into US dollars at 2006 average USD/GBP exchange ratio of 1.84
  • 10. Thomson-Reuters Pro-Forma 2006 Revenue $11.343B Scientific Healthcare 5% 4% Tax & Acct. 5% Legal 27% Financial 59% Source: Public filings and “Thomson-Reuters” presentation 5/15/2007. Reuters results converted into US dollars at 2006 average USD/GBP exchange ratio of 1.84 Assumes all Reuters 2006 EBITA is combined with Thomson Financial to form “Financial” *Percentages exclude Thomson corporate and other costs
  • 11. Thomson-Reuters Pro-Forma 2006 Adjusted EBITA $2.144B Scientific Healthcare 5% 4% Tax & Acct. 5% Financial 59% Legal 27% Source: Public filings and “Thomson-Reuters” presentation 5/15/2007. Reuters results converted into US dollars at 2006 average USD/GBP exchange ratio of 1.84 Assumes all Reuters 2006 EBITA is combined with Thomson Financial to form “Financial” *Percentages exclude Thomson corporate and other costs
  • 12. Agenda Introduction Frank Golden Legal Segment Peter Warwick Overview Market Trends Strategy Objective and Revenue Growth Drivers Summary
  • 13. Professional Revenue Composition Professional Group 2006 Revenue: $4.6B Legal $3.0B – 66% Scientific $0.6B – 13% Tax & Acct. $0.6B – 13% Healthcare $0.4B – 8%
  • 14. Legal Operating Structure Thomson Legal 2006 Revenue: $3.0B Consulting West FindLaw Elite International Services • Law Firms • Elite • Hildebrandt • Sweet & Maxwell (UK) • Corporate, Govt. • Hubbard One • Baker Robbins & Academic • Aranzandi • ProLaw (Spain) • GSI • TLR Australia / • West Education NZ Group • Carswell
  • 15. Legal Segment Highlights • Strong Financial Results • Global Market ~$21B – 4 Year Revenue CAGR = • #1 in North America 7% • Market Growing ~5% per – Segment Operating Profit Margin Up 170bps in 3 years Year • Driving Growth through • Key Competition: Reed Organic Initiatives Elsevier (LexisNexis) and Wolters Kluwer • Major Brands
  • 16. Thomson Legal 2006 Revenue Composition Revenue by Geography International 17% North America 83%
  • 17. Thomson Legal 2006 Revenue Composition Revenue by Format Print 34% Electronic / Software / Services 66%
  • 18. Legal Segment Highlights Segment Operating Profit Margin Revenue Growth $3.0B 7% 31.3% 2.8B $2.7B 6% 30.4% 9% $2.5B 29.6% 6% 29.4% 8% 4% 5% 2% $2.2B 28% 2003 2004 2005 2006 2003 2004 2005 2006 % Organic Other Total Revenue Growth • Westlaw ($1.2B) organic growth of at least 8.5% for eight consecutive quarters • Past tipping point in North America – growing both print and electronic
  • 19. Changing Revenue Dynamics $2.5B North American Legal Print/CD Electronic/Software/Services $1.7 $1.0B 67% $0.8 $0.6 33% 65% $0.4 35% 2006 1995 2000 Print Dynamics Online Dynamics • Enables rapid access to new information • Migration from print to online has stabilized • Ideal environment for researching case law • Younger attorneys primarily trained in online legal research • Loading and linking facilitates usage growth • Some areas of law are still better served by print – • Enables integration of content with workflow e.g. analytical law applications • Combining online and print resources is very • We can quickly and effectively add components compelling value proposition that deliver additional value
  • 20. Agenda Introduction Frank Golden Legal Segment Peter Warwick Overview Market Trends Strategy Objective and Revenue Growth Drivers Summary
  • 21. Changing Revenue Dynamics Market Trends Competitor Trends • Legal market growing at estimated 5% • Large US law firms have healthy • LexisNexis’ growth has focused revenue growth of 8-10% outside core legal information in public records, services and software • Expense management becoming more important • Wolters Kluwer is a smaller player with niche positions • “Boomers” reaching retirement is increasing the pressure on talent
  • 22. Growth of US Law Firms Average and Total Lawyers The size of the top 250 in NLJ 250 Firms law firms has increased 116,671 dramatically over the 109,495 last 20 years 104,360 270% increase 75,465 Total Lawyers 68,139 66,890 Average Lawyers per Firm 58,283 43,330 467 438 386 302 273 268 233 173 1985 1988 1991 1994 1997 2000 2003 2005 Source: The National Law Journal
  • 23. U.S. Law School Enrollments The talent pool is U.S. Law School Enrollment constrained as law school enrollments + 0.5% - 0.2% - 0.1% flatten + 1.6% + 2.1% + 0.1% + 3.2% Actual Projected + 4.1% 151,414 151,042 150,870 150,603 148,273 148,169 + 2.0% 145,088 140,612 135,091 125,000 2002 2003 2004 2005 2006 2007 2008 2009 2010
  • 24. Impact of Key Trends Client Relationships Law Firms Opportunities for Thomson • Practice of Law • Shift to “buyer’s market” • Increased emphasis on opportunity: from “seller’s market” client development/client –Demand for workflow teams • Clients demand cost solutions that increase effectiveness from law • Continued “talent war” efficiency and success firms • More aggressively • Business of Law • Increasing use of managing cost structure opportunity: competitive firm to maintain per partner –Client development assessment/selection profits –Talent management
  • 25. Key Competitor Comparison (2006) Thompson NA Legal LexisNexis Wolters Kluwer Revenue (MM) $2,476 $2,147 $260 Revenue Growth Legal Information 6.9% 2.4% 2.4% Other 8.1% 12.5% 4.0% 2005 2006 2005 2006 2005 2006 Total 6.6% 7.1% 14.8% 7.7% 1.9% 4.5%* Strong OI and healthy Slowing growth driven Competitive threat growth by non-legal information only in niches OI (MM) $878 $507 $40 OI Margin 35.5% 23.6% 15.2% * Includes acquisition of Best Case Solutions Bankruptcy Software NOTE: Data for LexisNexis and Wolters Kluwer based on publicly reported information, as adjusted to reflect our assumptions for comparative purposes and conversion into US$
  • 26. Agenda Introduction Frank Golden Legal Segment Peter Warwick Overview Market Trends Strategy Objective and Revenue Growth Drivers Summary
  • 27. Strategic Objectives - Overview Total Estimated US Law Firm Billings is $200B* Practice of Law Business of Law Advisory 11% Litigation Client Development Transactions Litigation 24% Transaction Law Talent Management 65% Advisory / Compliance Other C-Level Solutions Source: Company Estimates.
  • 28. Practice of Law Growth Strategy US Law Firm Billings All areas share consistent $200B* growth phases 3 Phase 2 Phase 1 Advisory Phase Enable the Enable the 11% Process Practitioner’s Acquire/Build Workflow Information Leverage Assets Transactions Platform Litigation Develop 24% Software Tools Consolidate 65% Information (Load & Link) Source: Company Estimates.
  • 29. Litigation Workflow The litigation process follows six broad stages 1 2 3 4 5 6 Value Case Negotiate/ Conduct and Capture Plead Prepare for Conduct Trial Appeal Discovery Client Trial
  • 30. Litigation Workflow – Core Assets Market leading Strong market share in Superior technology that will comprehensive set of overall legal information help link content to the larger litigation content and space litigation platform workflow tools ~$2,400M $50M ~$50M ~$2,100M Investigate & Compile Facts Analyze, File & Intake Negotiate, Present Draft Research Law / Info $3,900M Current Presence Growth Opportunity Significant growth opportunities still ahead Source: Company Estimates.
  • 31. Westlaw Litigator Revenue Growth Expanding share of wallet and driving $110M organic revenue $77M $43M $12M 2003 2004 2005 2006
  • 32. Transactional Law – Market Overview Complex, high-value business transactions and associated legal disclosures create significant legal opportunity Workflow Perspective of Customers Business Transactions Legal Activity Business Transactions: High Securities & Mergers & Business & Investment & Offerings Finance Private Equity Advisory Acquisitions 11% Restructuring & Real Estate Business Bankruptcy Finance Entities Intellectual Tax Litigation Property Transactions Antitrust & Trade 65% 24% Value Labor & Insurance Employment Personal Bankruptcy Estates & Trusts Family Law Immigration US Law Firm Billings $200B* Low High Complexity Source: Company Estimates.
  • 33. Advisory/Compliance Customer Workflow Customers work to assure corporations act in accordance with complex statutory and regulatory requirements Corporate Counsel (35% in-house activity) Compliance Workflow 1 2 3 4 5 6 Keeping Assessing Setting Policy Reporting & Litigating & Lobbying Current Risk & Process Monitoring Investigating Litigation 65% Advisory Workflow Pain Points: 11% Understanding compliance requirements Transactions 24% Assessing greatest risk areas Establishing appropriate policies and processes Interpreting important changes US Law Firm Billings Assuring filings and record keeping are complete $200B* Source: Company Estimates.
  • 34. Business of Law Solutions ($250M and growing) Assembling an array of industry leading solutions addressing the most significant C-level focus areas Strategy Profitability Client Talent Technology Workflows: Management Management Development Management Management Managing CFOs, CMOs, Chief Partner, Executive Competitive Practice Heads, Target Users: Technology Executive Directors, Intelligence, Billing Partners Officers Committee Analysts Analysts • Findlaw • Baker Robbins • Hildebrandt • Elite • LegalEd Center Thomson • Hubbard One • Managed Solutions: • Peer Monitor • ProLaw • Legalworks Technology • Litigator Services Monitor
  • 35. Agenda Introduction Frank Golden Legal Segment Peter Warwick Overview Market Trends Strategy Objective and Revenue Growth Drivers Summary
  • 36. Thomson-Reuters Strong Leveraging Accelerated Stable market unrivalled organic growth capital conditions with scale, requirements new growth reputation, opportunities brand power and domain expertise Focused on driving organic growth, margins and free cash flow
  • 37. Questions & Answers
  • 38. Visit my websites at: www.i3mm.com www. linux group of rochester .com

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