1. Batting in the 6th Inning of a Turnaround Match
Thomson Reuters (NYSE:TRI)
University of Toronto, St. George Campus

2.  Tepid market in F&R
and Legal segments
 Losing market share to
competitors
DownsideDriversUpsideSupport
 Solid free cash flows
 Stable annual dividends
 Low treasury bond yields
Stock Price DriversValuation
HOLD
RECOMMENDATION
ONE-YEAR PRICE TARGET: US$42.00
ONE-YEAR RETURN (INCL. YIELD): 9.50%
Buy Hold Sell
$35.84 $48.50
PRICE AS OF FEB 23, 2015: $39.75
Investment Highlight
2

3. TRI Will Not Hit 2013 EPS Guidance
$0.25-$0.35
$0.55
$0.05-$0.20
Capital
Strategy
Cost Revenue
AdjustedEPS
 
$1.76
$2.12
$1.85
$1.83
$1.98
$2.80
2010 2011 2012 2013 2014 2017
Management Guidance
Investment
Highlight
Thesis
Financial
Analysis
Valuation Risks Conclusion
3

4. 2013 2014 2017
$0.55
COST
REPURCHASE
REVENUES
COST TARGET:
$0.55/share or $400 million
 Complex organization resulting from past acquisitions
 20% of head count synergies realized
0
5000
10000
15000
20000
25000
2012 2013 2014 2015E 2016E 2017E 2018E
F&R Full-time Employees Estimated
20%
Headcount
Platform Simplification
 Multiple platforms and data delivery systems
 Migrating to 1 unified service platform and product
front end
 Savings of $200 million
COSTS: Hitting a Home Run, 75% Achieved
Investment
Highlight
Thesis
Financial
Analysis
Valuation Risks Conclusion
4

5. 2013 2014 2017
COSTS
REPURCHASE
REVENUES
REPURCHASE TARGET:
$.05-$0.20/share or $900 - $3,800 Million
$0.05-
$0.20
Repurchases
 Model forecasts $4.8Bn cash after paying dividends
and meeting Net Debt to EBITDA target of 2.5
 $1.0 Billion purchase completed in FTY2014
$887
$1,824
$2,818
$3,872
$4,994
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$0.05 $0.10 $0.15 $0.20 $0.25
FREECASHFLOW
EPS TARGET
Cash Required to Meet EPS Target
REPURCHASES: Sauntering to Home Plate; Enough Cash to Meet Target
Investment
Highlight
Thesis
Financial
Analysis
Valuation Risks Conclusion
5

6.  Americas comprise 86% of revenues
 US legal segment only growing at 1.4%
 Secular shifts away from print
Historical CAGR: 1.3%
Forecast Period CAGR: 1.2%
Legal: 30% of Revenues
Financial & Risk: 50% of Revenues
 Oligopolistic industry, high fixed costs
 Desktop 45% of F&R revenue; Eikon key product
 Eikon has lost 2.5% market share in 4 years
 Thorough analysis of banks and asset managers
shows industry growth of 1.7%
Historical CAGR: -1.3%
Forecast Period CAGR: 1.20%
REVENUES: TRI Will Strike-Out on Revenue Targets
2013 2014 2017
COSTS
REPURCHASE
REVENUES
$0.25-$0.35
REVENUE TARGET:
$.25-$0.35/share or CAGR 4.0% - 5.7%
Investment
Highlight
Thesis
Financial
Analysis
Valuation Risks Conclusion
6

7. Overall Forecasted Revenue Growth
REVENUES: TRI Will Strike-Out on Revenue Targets
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
CAGR 2%
2013 2014 2017
COSTS
REPURCHASE
REVENUES
$0.25-$0.35
REVENUE TARGET:
$.25-$0.35/share or CAGR 4.0% - 5.7%
 Strong growth in Corporate and Professional
 Complexity of tax laws to drive future growth
Historical CAGR: 5.8%
Forecast Period CAGR: 4.6%
Tax & Accounting: 10% of Revenues
REVENUES: TRI Will Strike-Out on Revenue Targets
Investment
Highlight
Thesis
Financial
Analysis
Valuation Risks Conclusion
7

8. REVENUES: TRI Will Strike-Out on Revenue TargetsFinancial Analysis
Investment
Highlight
Thesis
Financial
Analysis
Valuation Risks Conclusion
Low Profitability
0%
10%
20%
30%
40%
50%
60%
EBITDA Margin
 EBITDA Margin is lower than industry average
0.0%
10.0%
20.0%
30.0%
40.0%
2013 2014 2015E 2016E 2017E 2018E 2019E
EBITDA Margin
Industry Average EBITDA Margin
8

9. ROE Driven by Financial Leverage & Asset Turnover ROIC Close to WACC
1.50x
2.00x
2.50x
3.00x
5.50%
6.00%
6.50%
7.00%
7.50%
8.00%
8.50%
9.00%
9.50%
2013 2014 2015E 2016E 2017E 2018E 2019E
DuPont Analysis
ROE Net Income Margin Assets/Equity
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
5.50%
6.00%
6.50%
7.00%
7.50%
8.00%
8.50%
9.00%
9.50%
2013 2014 2015E 2016E 2017E 2018E 2019E
ROE Sales/Assets
6.0%
6.9%
6.5%
5.3%
6.0%
7.1%
6.4%
6.9%
7.2% 7.4% 7.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2010 2011 2012 2013 2014 WACC 2015E 2016E 2017E 2018E 2019E
ROIC
 TRI is on the cusp of creating or destroying value
Profitability Analysis
Investment
Highlight
Thesis
Financial
Analysis
Valuation Risks Conclusion
9

10. Result Summary
 Three Scenarios: Base, Bull and Bear
 Perpetual Growth Rate: 2%
 Exit EBITDA Multiple: 11.0x
DCF
 American and European Comparables
 Two Multiples: EV/EBITDA and EV/Revenue
Comparables
6.40x
2.65x
11.20x
2.49x
0.00x
2.00x
4.00x
6.00x
8.00x
10.00x
12.00x
14.00x
American
Median
European
Median
High Low
EV/Revenue
14.30x
11.30x
21.90x
10.84x
0.00x
5.00x
10.00x
15.00x
20.00x
25.00x
American
Median
European
Median
High Low
EV/EBITDA
$44.2
$42.7
$38.3
$42.3
DCF - Perpetuity Growth
DCF - EBITDA Multiple
Comparables - EV/Revenue
Comparables - EV/EBITDA
Valuation Results Valuation Methodology Weight
Fair Value
Per Share
Comparables Using EV/EBITDA 20% $42.3
Comparables Using EV/Revenue 20% $38.3
FCFF Fair Value Multiple Method 30% $42.7
FCFF Fair Value Perpetuity Method 30% $44.2
Target Price: $42.00
$42.00
$35.33
$43.43
$53.10
$0.00
$20.00
$40.00
$60.00
Bear Base Bull
Valuation
Investment
Highlight
Thesis
Financial
Analysis
Valuation Risks Conclusion
10

11. Monte Carlo Simulation
 Moderate Fluctuation in Revenue Growth
Will Not Change Our Hold Recommendation
Terminal Growth Rate
$48.33 1.50% 1.75% 2.00% 2.25% 2.50%
5.50% $60.47 $64.74 $69.62 $75.26 $81.83
6.00% $52.62 $55.93 $59.66 $63.88 $68.71
6.50% $46.34 $48.98 $51.91 $55.18 $58.86
WACC 7.14% $39.91 $41.93 $44.16 $46.61 $49.32
7.50% $36.92 $38.70 $40.63 $42.75 $45.08
8.00% $33.30 $34.79 $36.40 $38.15 $40.07
8.50% $30.20 $31.46 $32.82 $34.29 $35.89
Valuation Sensitive to WACC, Terminal Growth Rate and Exit EBITDA Multiple
Exit EBITDA Multiple
9.0x 10.0x 11.0x 12.0x 13.0x
$36.93 $41.11 $45.29 $49.47 $53.65
$36.26 $40.37 $44.48 $48.59 $52.71
$35.61 $39.65 $43.70 $47.74 $51.79
$34.79 $38.75 $42.71 $46.67 $50.63
$34.35 $38.26 $42.18 $46.09 $50.00
$33.74 $37.59 $41.44 $45.29 $49.14
$33.14 $36.92 $40.71 $44.50 $48.29
Sensitivity Analysis
Buy Hold Sell
$35.84 $48.50
Frequency
Bin
11
50%

12. • Ability to execute on EPS improvements is key
• Further Cost Saving is still a challenge
Execution Risk
• Better/worse than anticipated economic climate
impacts our valuation
Macroeconomic Climate
• A 10% depreciation of Euro against USD will
result in ~$90 million decrease in EBITDA
Currency Fluctuations
• Thomson family maintains a major
voice among shareholders
• Thomson Reuters is ranked at the
lowest 25 percentile compared to
113 TSX companies
Corporate Governance
Current: $39.75
Buy Hold Sell
$28.45 $38.49
Current: $39.75
Buy Hold Sell
$45.14 $61.07
Rotman
Corporate
Governance
Score
TRI
62.00%12.00%
9.00%
17.00%
Revenue
Risks
60%
7%
14%
19%
Expenses
US $
Euro
GBP
Other
12

13. TRI is Up to Bat
Investment
Highlight
Thesis
Financial
Analysis
Valuation Risks Conclusion
Cost Saving: $140 Million/ Year
Repurchase: 86 Million Shares
$3.8 Billion
Acquisition: $2.5 Billion
$1.7 Billion
Max. Cash Attainable by the end of 2017
Target EPS: $2.80 Our Estimate: $2.62
$0.18
Deficit
2013 EPS: $1.80
Revenue
Repurchase
Cost
Repurchase
Cost
Revenue
$0.55
$0.20
$0.25 - $0.35
How to make up the EPS deficit?

14. APPENDIX: Company
14

15. Stock Price
02/23/2015 Price: US$ 39.75
CA$ 50.04
52 weeks High(USD): 41.44
52 weeks Low(USD): 33.21
YTD Change % : -0.53/-1.31%
Market Cap (USD): 31689.4 M
Shares Outstanding: 796.0M
0
500
1000
1500
2000
2500
0
5
10
15
20
25
30
35
40
45
9/21/07
11/21/07
1/21/08
3/21/08
5/21/08
7/21/08
9/21/08
11/21/08
1/21/09
3/21/09
5/21/09
7/21/09
9/21/09
11/21/09
1/21/10
3/21/10
5/21/10
7/21/10
9/21/10
11/21/10
1/21/11
3/21/11
5/21/11
7/21/11
9/21/11
11/21/11
1/21/12
3/21/12
5/21/12
7/21/12
9/21/12
11/21/12
1/21/13
3/21/13
5/21/13
7/21/13
9/21/13
11/21/13
1/21/14
3/21/14
5/21/14
7/21/14
9/21/14
11/21/14
1/21/15
TRI S&P 500
Stock DataStock Price
15

16. 0
5
10
15
20
25
30
35
40
45
9/21/07 3/21/08 9/21/08 3/21/09 9/21/09 3/21/10 9/21/10 3/21/11 9/21/11 3/21/12 9/21/12 3/21/13 9/21/13 3/21/14 9/21/14
TRI
01/03/2013 Acquire
Practical Law
2010/09/14:
TRI launched EIKON
2011
3 billions goodwill
Impairment Charge 09/28/2011:
James Smith
becomes CEO
04/17/2008
Acquire
Reuters
TIMELINE OF KEY EVENTS
16

17. Significant Acquisitions and Divestures
Date Role Target Buyer/Investors Sellers Size($m m )
Jan-06-2015 Buyer - Parent Flow tivity, LLC Boomer Consulting, Inc. 0
Aug-07-2014 Buyer GenoSpace, LLC Thom son Reuters Corporation (TSX:TRI) 5
Dec-12-2012 Seller - Parent Investor Relations, Public Relations and
Multimedia Services Businesses
NASDAQ OMX Corporate Solutions, Inc. Thomson Reuters (Markets) LLC; Thomson Reuters Global
Resources 390
Jul-09-2012 Buyer FX Alliance Inc Thom son Reuters Corporation (TSX:TRI) LabMorgan Corporation; Technology Crossover Ventures;
The Bank of New York Mellon Corp, Private Banking &
Securities Investments; Westpac Banking (NY),
Investment Arm Seller Funds: TCV Member Fund, L.P.;
Technology Crossover Ventures VI, L.P. 679.9
Apr-23-2012 Seller - Parent Truven Health Analytics Inc. (nka:Truven
Holding Corp.)
Veritas Capital Buyer Funds: Veritas Capital Fund IV, L.P. Thomson Reuters Global Resources; Thomson Reuters
U.S.A. Inc. 1250
Feb-29-2012 Seller - Parent Thomson Reuters (Markets) LLC, Portia
Investment Operations Platform Business
SS&C Technologies Holdings, Inc. (NasdaqGS:SSNC) Thomson Reuters (Markets) LLC
170
Jul-04-2011 Buyer - Parent Solcara Limited Thomson Reuters (Professional) UK Ltd. Access Intelligence plc (AIM:ACC) 4.02
May-16-2011 Buyer Global Objectives Limited Thom son Reuters Corporation (TSX:TRI) HarbourVest Partners, LLC; Spectrum Equity Investors 530
Nov-18-2010 Buyer Pangea3 LLC Thom son Reuters Corporation (TSX:TRI) Sequoia Capital India; The GlenRock Group, LLC 95
Nov-11-2010 Buyer - Parent Connect 4 Pty Ltd. Thomson Reuters (Professional) Australia Limited Fairfax Business Media 9.96
May-17-2010 Buyer Affinitext, UAE legislation Library Thom son Reuters Corporation (TSX:TRI) Affinitext Inc. 10
Feb-02-2010 Buyer Super law yers Thom son Reuters Corporation (TSX:TRI) Key Professional Media, Inc. 15
Dec-17-2009 Buyer - Parent Bionure, S.L Digna Biotech S.L.; Galenicum Health, S.L.; Prous Science
S.A.U. 2.02
Sep-10-2009 Target - Parent Tradew eb Markets LLC Barclays Capital PLC; Thomson Financial, Inc. 68
Apr-22-2008 Seller Thomson Reuters, A Copy Of The Thomson
Fundamentals Database
FactSet Europe Limited Thom son Reuters Corporation (TSX:TRI)
73
Mar-31-2008 Seller - Parent Pluck Corporation Demand Media, Inc. (NYSE:DMD) Austin Ventures; Mayfield Fund; Reuters Group PLC
(nka:Thomson Reuters UK Limited) 66.29
Oct-11-2007 Target - Parent Tradew eb Markets LLC Credit Suisse Innoventure Capital AG; Deutsche Bank AG,
Investment Arm; Goldman Sachs Group, Merchant
Banking Division; JPMP Capital, LLC; Lehman Brothers,
Private Equity Division; Merrill Lynch Global Private Equity;
Morgan Stanley Private Equity; Royal Bank Equity Finance;
UBS Capital
Thomson Financial, Inc.
180
Jun-28-2007 Buyer - Parent FERI Fund Market Information Ltd. Reuters Group PLC (nka:Thomson Reuters UK Limited) Feri Rating and Research GmbH 5.36
Jun-18-2007 Seller - Parent TA Indigo Holding Corporation
(nka:IntraLinks Holdings, Inc. (NYSE:IL))
Rho Capital Partners, Inc.; TA Associates, Inc. (nka:TA
Associates Management, L.P.) Buyer Funds: Rho
Ventures IV, L.P.; TA X, L.P.
Apax Partners LLP; Canaan Partners; Deutsche Bank AG,
Investment Arm; Emigrant Capital Corp.; Ernst & Young
LLP; Inclusive Ventures, LLC; Johnson & Johnson
Development Corporation; New York City Investment Fund
Manager, Inc.; New York Community Investment Company;
Portview Communications Partners LP; Reuters Group
PLC (nka:Thomson Reuters UK Limited); Tow erBrook
Capital Partners L.P.; Wachovia Capital Partners, Inc.
(nka:Pamlico Capital) Seller Funds: Catalyst Investments;
Tow erbrook Investors I, L.P.
215
May-11-2007 Seller Thomson Corp., Thomson Learning And
Thomson Nelson Learning
Apax Partners LLP; OMERS Private Equity The Thom son Corporation (nka:Thom son Reuters
Corporation (TSX:TRI)) 7750
May-08-2007 Buyer Reuters Group PLC (nka:Thomson Reuters
UK Limited)
The Thom son Corporation (nka:Thom son Reuters
Corporation (TSX:TRI)) 18794.38
17

18. APPENDIX: Thesis Supporting Data
18

19. Segments: 3-Year Rolling CAGR Calculations
Segment Revenues and 3-Year Rolling CAGR
Segment Revenues and 3- year Rolling CAGR
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Finance and Risk $6,902.00$7,297.00$6,802.22$6,647.99$6,538.00$6,651.45$6,774.16$6,883.87$6,999.09$7,116.27$7,235.45
Legal $3,027.00$3,221.00$3,266.00$3,351.00$3,379.00$3,485.94$3,548.48$3,605.40$3,660.18$3,715.79$3,715.79
Tax & Accounting $907.00 $1,050.00$1,161.00$1,243.00$1,370.00$1,473.71$1,586.69$1,686.23$1,793.06$1,854.95$1,892.05
Intellectual Property $789.00 $852.00 $894.00 $982.00 $1,011.00 $999.82 $1,000.92$1,001.02$1,018.14$1,033.41$1,048.91
3-Year F&R CAGR -0.48% -3.06% -1.31% 0.02% 1.19% 1.15% 1.09% 1.11%
3-Year Legal CAGR 2.57% 1.33% 1.14% 1.32% 1.64% 1.13% 1.04% 1.01%
3-Year T&A CAGR 8.58% 5.79% 5.67% 5.84% 5.02% 4.59% 4.16% 3.23%
3-Year T&A CAGR 4.25% 4.85% 4.18% 0.60% -0.33% 0.04% 0.57% 1.07%
19

20. Revenue CAGR Calculations
Calculation of Required Growth Rate
2013 2014 2015 2016 2017
Earnings Per Share $1.83 $1.85 $2.80
Required Growth Rates in
'13
Required Growth Rates after '14
results
Low
End
High
End
Low
End
High
End
Revenue Contribution $0.25 $0.35 Revenue Contribution $0.23 $0.33
% Growth from Revenue 13.7% 19.1%
% Growth from
Revenue 12.6% 18.0%
CAGR over 4 years 3.25% 4.47% CAGR over 3 years 4.03% 5.68%
20

21. TRI Acquisition History
TRI’s Acquisition History
$379 $349
$612
$1,200
$1,301 $1,24119
31
26
39
29
28
5
10
15
20
25
30
35
40
45
50
$100
$600
$1,100
$1,600
$2,100
$2,600
$3,100
$3,600
2008 2009 2010 2011 2012 2013
Total cash consideration # Acquisitions
21

22. Share Repurchase Calculations
• Management guidance: Net Debt to EBITDA of 2.5
• At Net Debt to EBITDA of 2.25, $4.6Bn of cash flows
available
• $1.0Bn worth of shares already repurchased in 2014
$2,156.58
$3,416.37
$4,640.49
0.20
0.70
1.20
1.70
2.20
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
2010 2011 2012 2013 2014 2015E 2016E 2017E
USDMILLION
Net Debt Available Net Debt to EBITDA
$887
$1,824
$2,818
$3,872
$4,994
$6,188
$7,464
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35
USDMILLION
EPS: USD / SHARE
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Cash & equivalents 864 422 1,283 1,316 1,018 1,500 2,906 3,455 4,654 6,291 8,359
Dividends paid 901 963 1,024 1,041 1,036 1,034 1,034 1,034 1,034 1,034 1,034
Repurchase of Common Stock 0 326 168 400 1,023 0 0 0 0 0 0
Actual Net Debt to EBITDA Ratio 2.13 1.96 1.73 2.15 1.62 2.07 2.12 1.95 1.96 2.08 2.34
Net Debt to EBITDA 2.13 1.96 1.73 2.15 1.62 2.25 2.25 2.25 2.25 2.25 2.25
Net Debt at Desired Ratio $8,233.07 $8,607.55 $8,869.17 $9,044.93 $9,182.65 $9,213.80
Actual Net Debt $6,076.48 $5,191.18 $4,228.68 $3,225.34 $2,209.90 $1,227.89
Excess Net Debt Capacity $2,156.58 $3,416.37 $4,640.49 $5,819.58 $6,972.75 $7,985.91
Net Debt Available $2,156.58 $3,416.37 $4,640.49 $5,819.58 $6,972.75 $7,985.91
22

23. Significant Acquisitions and Divestures
23

24. F&R Segment
1.Tepid Market in F &R and Legal Segments
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
21
22
23
24
25
26
27
2009 2010 2011 2012 2013
Financial Data Market
Finanical Market Data Spending (Billions)
Market Data Spending Growth Rate
275.8
272.5
273
273.5
274
274.5
275
275.5
276
2009 2010 2011 2012 2013
Total Revenue (Billions)
264.5 CAGR 1.4%
24

25. F&R Segment
2.Continuously losing data market share to competitors
From 2005 to 2013 :
TRI’s market share declined from 37% to 27%
Bloomberg’s market share increased from 25% to 32%
TRI launched
EIKON37%
36%
34%
29.40%
33%
30.05%
29.48%
27%
25%
26%
24%
29.20%
30.30% 30.44% 30.82%
31.71%
20%
22%
24%
26%
28%
30%
32%
34%
36%
38%
2006 2008 2009 2010 2011 2012 2013 2014
TRI Bloomberg
25

26. F&R Segment
3. Revenue Growth is sluggish
-10%
-5%
0%
5%
10%
15%
10.5
11
11.5
12
12.5
13
13.5
14
2008 2009 2010 2011 2012 2013
Thomson Reuters
Revenues(Billions)
Revenue Growth Rate Poly. (Revenue)
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
0
2
4
6
8
10
2008 2009 2010 2011 2012 2013
Bloomberg L.P.
Revenues(Billions)
Revenue Growth Rate
Poly. (Revenue)
26

27. APPENDIX: Market Support
27

28. US 30 Year Yields, TRI stock performance, Canadian Mining Index
28

29. Beta Regression, TRI Vs. S&P 500 stock chart
29

30. TRI and Peers Stock Returns
30

31. APPENDIX: Economy
31

32. US Macro Economics
0
2
4
6
8
10
12
US Unemployment Rate
14480.3
14720.3
14417.9
14958.3
15533.8
16244.6
16800
1.66%
-2.05%
3.75%
3.85%
4.58%
3.42%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
13000
13500
14000
14500
15000
15500
16000
16500
17000
2008 2009 2010 2011 2012 2013 2014
USD GDP USD GDP Growth Rate
US economy is recovering
32

33. Global Macroeconomics
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2008 2009 2010 2011 2012 2013
India
GDP GDP Growth Rate
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2008 2009 2010 2011 2012 2013
China
GDP GDP Growth Rate
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
0
500
1000
1500
2000
2500
3000
2008 2009 2010 2011 2012 2013
Brazil
GDP GDP Growth Rate
 Developing Countries’ GDP Growth Rate is Slower
33

34. APPENDIX: FINANCE & RISK
34

35. Transactions Non-Desktop Desktop Recoveries
39%
45%
16%
Americas
EMEA
Asia
FINANCE & RISK: OVERVIEW
Organic Growth Rates
• Porter’s 5 forces analysis: Oligopolistic structure, high barriers to entry
• Continued weakness in desktop
• Non-desktop showing some growth
2014 Share of Total Revenues: 51.6%
2014 Revenues: $6.5 billion
2014 Adj. EBITDA Margin: 24.3%
2010 2011 2012 2013
Trading -3% -1% -3% -6%
Investors -5% -2% -2% -1%
Marketplaces 7% 10% 1% -3%
GRC -3% 0% 17% 10%
35

36. Context Methodology Analysis
Recommenda
tion
Non - Desktop
Non-Desktop, Transactions, Risk
• 3-year CAGR 4.65%
• Strong growth to continue
Transactions Risk
8.0%
1.8% 1.8%
7.1%
4.65%
4.65%
4.65% 4.65%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2011 2012 2013 2014E 2015E 2016E 2017E 2018E
Growth Rate Estimated
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E
Average Trades/ Day Estimated Trades/ Day
• 4-year CAGR -5.8%
• Reversal to 2010 levels. CAGR 7.7%
0%
5%
10%
15%
20%
25%
30%
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
2011 2012 2013 2014E 2015E 2016E 2017E 2018E
GRC Estimated Organic Growth
• 3-year CAGR 14%
• Estimate future CAGR of 5.35% into
2018
36

37. DESKTOPS: Market Share Position
• Eikon 4.0 well received by financial community
• Cost efficient: 13 user customizable packages
• Expect market share gains for Eikon
• Forecast 60-40 split of new desktops in TRI’s favor
37%
36%
34%
29.40%
33%
30.05%
29.48%
27%25% 26%
24%
29.20%
30.30%
30.44%
30.82% 31.71%
20%
22%
24%
26%
28%
30%
32%
34%
36%
38%
2006 2008 2009 2010 2011 2012 2013 2014
TRI Bloomberg
Historical Bloomberg Vs. Eikon Market Share
37

38. Sell - Side
DESKTOPS: Market growth rate 1.7%
Buy - Side
0
20000
40000
60000
80000
100000
120000
140000
160000
2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E
Bank of America Deutsche Bank Barclays Citi
Goldman Sachs JP Morgan Morgan Stanley Estimated Total
• 2010 to 2013 buy-side costs CAGR: 2.25%
• Expect pace to continue into 2018
• 2010 - 2013 trading, IB revenue CAGR -1.4%
• Expect return to 2010 levels by 2018, or 1.2% CAGR
-50%
-40%
-30%
-20%
-10%
0%
10%
0
5000
10000
15000
20000
25000
30000
2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E
Blackrock State Street
T Row Price Invesco
AXA Lazard
Fortress Estimated Total
Investment Management
38

39. Sell-Side IB Revenue Calculations: Bank Of America
Bank of America Corporation (NYSE:BAC) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Restated
12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
12 months
Dec-31-2010
Reclassified
12 months
Dec-31-2011
Reclassified
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Consumer & Business Banking - Deposits (Includes Business
Banking)
- - - - 13,294.0 14,286.0
Consumer & Business Banking - Consumer Lending 11,358.0 (1,574.0) - - 12,348.0 12,474.0
Consumer Real Estate Services - Home Loans - - - - 4,574.0 3,132.0
Consumer Real Estate Services - Legacy Assets & Servicing - - - - 2,735.0 4,740.0
Global Wealth and Investment Management (GWIM) 5,643.0 14,726.0 14,737.0 16,097.0 16,252.0 17,734.0
Global Banking - - 16,446.0 16,902.0 16,016.0 15,406.0
Global Markets - - 19,101.0 15,628.0 14,250.0 15,918.0
39

40. Sell-Side IB Revenue Calculations: Deutsche Bank, Barclays
Deutsche Bank AG (DB:DBK) > Financials >
Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Reclassified
12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
Reclassified
12 months
Dec-31-2010
Reclassified
12 months
Dec-31-2011
Restated
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Corporate Banking & Securities - 20,599.1 21,807.6 17,991.6 20,261.1 18,498.9
Barclays PLC (LSE:BARC) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Reclassified
12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
Restated
12 months
Dec-31-2010
Restated
12 months
Dec-31-2011
Restated
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Barclays Core - Barclaycard 3,094.6 3,623.3 3,936.3 4,658.7 5,355.5 5,834.5
Barclays Core - Investment Bank 4,091.2 17,533.3 19,864.2 15,766.2 18,807.0 17,415.7
Barclays Core - Head Office (593.0) (2,920.6) 621.4 2,941.9 (6,504.7) (566.6)
UK Retail and Business Banking (UK RBB) 6,087.3 5,241.9 5,678.8 6,358.5 6,688.3 6,917.9
Europe Retail and Business Banking (Europe RBB) 1,438.0 1,583.1 1,055.5 1,240.6 733.0 627.8
Africa Retail and Business Banking (Africa RBB) 954.3 4,206.4 4,178.3 4,517.1 3,731.8 3,798.6
Corporate Banking 3,495.3 2,621.8 2,506.1 3,369.9 3,512.4 4,315.4
Wealth and Investment Management 1,847.5 2,053.1 2,393.6 2,691.3 2,896.4 2,846.0
Investment Management (104.9) 64.6 - - - -
Absa 2,680.8 - - - - -
Total Revenues 22,991.2 34,006.9 40,234.2 41,544.1 35,219.8 41,189.4
40

41. Sell-Side IB Revenue Calculations: Citi, Goldman Sachs
Citigroup Inc. (NYSE:C) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Restated
12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
12 months
Dec-31-2010
Reclassified
12 months
Dec-31-2011
Reclassified
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Citicorp - Global Consumer Banking 21,262.0 17,536.0 20,494.0 32,151.0 33,189.0 31,627.0
Citicorp - Institutional Clients Group 32,444.0 35,306.0 33,260.0 32,068.0 30,493.0 33,553.0
The Goldman Sachs Group, Inc. (NYSE:GS) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Reclassified
12 months
Nov-28-2008
Fiscal
Year
Change
Restated
12 months
Dec-31-2009
Restated
12 months
Dec-31-2010
Reclassified
12 months
Dec-31-2011
Reclassified
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues FYC
Investment Banking 5,453.0 FYC 4,984.0 4,810.0 4,355.0 4,926.0 6,004.0
41

42. Sell-Side IB Revenue Calculations: JP Morgan
JPMorgan Chase & Co. (NYSE:JPM) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Restated
12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
12 months
Dec-31-2010
12 months
Dec-31-2011
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Consumer & Community Banking - Consumer & Business Banking - - 17,106.0 17,531.0 16,840.0 16,963.0
Consumer & Community Banking - Mortgage Banking - - 2,430.0 4,948.0 14,453.0 12,707.0
Consumer & Community Banking - Card, Merchant Services &
Auto (Card)
6,415.0 3,551.0 11,902.0 15,520.0 14,817.0 16,021.0
Corporate & Investment Bank - - 34,724.0 34,269.0 34,805.0 34,457.0
Commercial Banking 4,313.0 4,266.0 5,743.0 6,210.0 6,784.0 6,888.0
Asset Management 7,499.0 7,777.0 8,898.0 9,476.0 9,860.0 11,255.0
Corporate/Private Equity (1,912.0) 6,554.0 7,400.0 4,239.0 (1,054.0) 1,282.0
Corporate (2,029.0) (1,891.0) (2,148.0) (2,533.0) (2,859.0) (3,192.0)
Investment Bank (IB) 10,320.0 25,830.0 - - - -
Retail Financial Services (RFS) 13,615.0 15,043.0 - - - -
Treasury & Securities Services (TSS) 8,052.0 7,289.0 - - - -
Total Revenues 46,273.0 68,419.0 86,055.0 89,660.0 93,646.0 96,381.0
42

43. Sell-Side IB Revenue Calculations: Morgan Stanley
Morgan Stanley (NYSE:MS) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Restated
12 months
Nov-30-2008
Fiscal
Year
Change
Press Release
12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
Reclassified
12 months
Dec-31-2010
Reclassified
12 months
Dec-31-2011
Reclassified
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD USD
Revenues FYC
Institutional Securities 14,768.0 FYC 11,081.0 - 16,129.0 17,683.0 11,025.0 15,443.0
Wealth Management 7,019.0 FYC 6,887.0 - 12,519.0 12,772.0 13,034.0 14,214.0
Investment Management 547.0 FYC 463.0 - 2,685.0 1,887.0 2,219.0 2,988.0
Corporate (194.0) FYC (195.0) - (103.0) (115.0) (176.0) (228.0)
Total Revenues 22,140.0 FYC 18,236.0 - 31,230.0 32,227.0 26,102.0 32,417.0
43

44. Buy-Side Cost Calculations: Blackrock
BlackRock, Inc. (NYSE:BLK) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Restated
12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
12 months
Dec-31-2010
12 months
Dec-31-2011
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Asset Management Business 5,064.0 4,700.0 8,612.0 9,081.0 9,337.0 10,180.0
Total Revenues 5,064.0 4,700.0 8,612.0 9,081.0 9,337.0 10,180.0
Operating Profit Before Tax
Asset Management Business 1,593.0 1,278.0 2,998.0 3,249.0 3,524.0 3,857.0
Total Operating Profit Before Tax 1,593.0 1,278.0 2,998.0 3,249.0 3,524.0 3,857.0
44

45. Buy-Side Cost Calculations: State Street
State Street Corporation (NYSE:STT) > Financials > Segments
In Millions of the reported currency. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: Reported Currency Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Reclassified
12 months
Dec-31-2008
12 months
Dec-31-2009
Reclassified
12 months
Dec-31-2010
12 months
Dec-31-2011
Reclassified
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Investment Servicing 8,791.0 7,369.0 8,120.0 8,428.0 8,484.0 8,581.0
Investment Management 1,486.0 1,115.0 1,152.0 1,166.0 1,214.0 1,297.0
Other 418.0 7.0 (344.0) - (46.0) -
Divestitures (2.0) - - - - -
Total Revenues 10,693.0 8,491.0 8,928.0 9,594.0 9,652.0 9,878.0
Net Profit Before Tax
Investment Servicing 3,092.0 2,449.0 2,615.0 2,538.0 2,443.0 2,405.0
Investment Management (40.0) 118.0 60.0 267.0 350.0 461.0
Other (203.0) (42.0) (589.0) (269.0) (27.0) (180.0)
Divestitures (7.0) - - - - -
Total Net Profit Before Tax 2,842.0 2,525.0 2,086.0 2,536.0 2,766.0 2,686.0
45

46. Buy-Side Cost Calculations: T. Rowe Price Group
T. Rowe Price Group, Inc. (NasdaqGS:TROW) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Restated
12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
Reclassified
12 months
Dec-31-2010
12 months
Dec-31-2011
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Investment Advisory Services 2,121.3 1,867.4 2,367.2 2,750.2 3,024.8 3,485.7
Total Revenues 2,121.3 1,867.4 2,367.2 2,750.2 3,024.8 3,485.7
Operating Profit Before Tax
Investment Advisory Services 848.5 701.6 1,036.5 1,226.9 1,364.3 1,637.4
Total Operating Profit Before Tax 848.5 701.6 1,036.5 1,226.9 1,364.3 1,637.4
46

47. Buy-Side Cost Calculations: Invesco
Invesco Ltd. (NYSE:IVZ) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending 12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
Reclassified
12 months
Dec-31-2010
Reclassified
12 months
Dec-31-2011
Reclassified
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Investment Management 3,307.6 2,627.3 3,487.7 3,982.3 4,050.4 4,644.6
Total Revenues 3,307.6 2,627.3 3,487.7 3,982.3 4,050.4 4,644.6
Operating Profit Before Tax
Investment Management 747.8 484.3 589.9 882.1 842.6 1,120.2
Total Operating Profit Before Tax 747.8 484.3 589.9 882.1 842.6 1,120.2
47

48. Buy-Side Cost Calculations: AXA Group
AXA Group (ENXTPA:CS) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Reclassified
12 months
Dec-31-2008
Restated
12 months
Dec-31-2009
Reclassified
12 months
Dec-31-2010
Restated
12 months
Dec-31-2011
Restated
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Life & Savings 28,655.1 130,328.9 116,056.3 86,125.4 110,052.1 119,946.3
Property & Casualty 37,201.1 40,735.2 37,869.3 37,364.1 40,586.7 42,715.7
International Insurance 4,839.0 4,576.1 4,485.4 4,515.8 4,387.9 4,709.8
Asset Management 5,687.1 5,153.7 5,063.4 4,613.2 4,910.0 5,604.9
Banking 558.9 685.1 674.5 684.6 622.3 706.5
Holdings & Other Companies 2,217.6 1,719.8 42.9 883.4 98.9 526.1
Corporate (2,091.8) (2,214.3) (2,142.8) (1,991.6) (2,077.9) (2,134.5)
Total Revenues 77,067.0 180,984.6 162,048.9 132,194.9 158,580.0 172,074.6
Operating Profit Before Tax
Life & Savings (2,603.2) 4,644.9 3,262.5 3,602.5 4,770.3 4,869.5
Property & Casualty 1,897.6 3,161.6 2,944.7 2,956.8 3,685.1 4,080.4
International Insurance 121.6 683.6 645.0 543.0 418.0 442.1
Asset Management 1,317.7 1,113.6 659.7 302.7 747.6 1,429.5
Banking (18.2) (4.3) (2.7) (283.2) (46.1) 4.1
Holdings & Other Companies 1,885.0 507.3 (706.7) 84.4 (777.9) (391.1)
Corporate (1,105.3) (1,328.6) (1,131.7) (1,154.9) (1,236.7) (1,166.4)
Total Operating Profit Before Tax 1,495.1 8,778.2 5,670.8 6,051.3 7,560.2 9,268.1
48

49. Buy-Side Cost Calculations: Lazard
Lazard Ltd. (NYSE:LAZ) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Reclassified
12 months
Dec-31-2008
12 months
Dec-31-2009
12 months
Dec-31-2010
Reclassified
12 months
Dec-31-2011
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Financial Advisory 1,022.9 986.8 1,119.9 992.1 1,049.1 980.6
Asset Management 614.8 601.7 849.7 897.4 896.3 1,039.1
Corporate (80.5) (58.0) (64.2) (60.0) (32.9) (34.4)
Total Revenues 1,557.2 1,530.5 1,905.4 1,829.5 1,912.4 1,985.4
Operating Profit Before Tax
Financial Advisory 225.9 (11.9) 168.9 62.4 (8.5) 20.9
Asset Management (63.4) 97.2 265.3 268.5 236.8 335.1
Corporate (137.4) (267.5) (190.6) (95.4) (104.3) (139.2)
49

50. Buy-Side Cost Calculations: Fortress
Fortress Investment Group LLC (NYSE:FIG) > Financials > Segments
In Millions of USD. View By: Line Items Restatement: Latest Filings
Period Type: Annual Order: Latest on Right
Currency: US Dollar Conversion: Historical
Units:
S&P Capital IQ
(Default) Decimals: Capital IQ (Default)
Business Segments
For the Fiscal Period Ending
Reclassified
12 months
Dec-31-2008
Reclassified
12 months
Dec-31-2009
12 months
Dec-31-2010
Reclassified
12 months
Dec-31-2011
Reclassified
12 months
Dec-31-2012
12 months
Dec-31-2013
Currency USD USD USD USD USD USD
Revenues
Private Equity - Funds 68.2 168.0 179.7 130.2 130.5 150.1
Private Equity - Permanent Capital Vehicles 54.1 50.4 48.1 53.4 56.5 76.5
Liquid Hedge Funds 235.2 112.2 165.8 112.7 145.2 261.3
Credit - Hedge Funds 161.4 106.1 226.9 200.3 231.5 292.7
Credit - PE Funds 15.7 62.6 206.1 190.9 167.0 216.1
Logan Circle - - 13.3 20.1 26.8 35.8
Corporate 197.1 84.8 (45.8) (27.8) 16.9 14.6
Total Revenues 731.8 584.1 794.1 679.6 774.3 1,047.3
Operating Profit Before Tax
Private Equity - Funds - - 126.9 92.8 85.4 94.5
Private Equity - Permanent Capital Vehicles - - 18.0 24.8 28.8 30.9
Liquid Hedge Funds - - 63.6 13.8 45.3 112.9
Credit - Hedge Funds - - 72.3 37.2 92.5 120.9
Credit - PE Funds - - 95.8 101.2 34.0 56.1
Logan Circle - - (14.9) (17.3) (9.8) (11.8)
Corporate - - (3.7) 0.4 0.6 -
Total Operating Profit Before Tax 358.0 252.9 276.8 403.5
50

51. DESKTOPS: Market growth rate 1.7%
51

52. F&R Platforms Before and After
52

53. Thomson Reuters F&R Products
53

54. APPENDIX: Legal
54

55. Legal : OVERVIEW
Organic Growth Rate
• US Legal Service Market is tepid
• Core Legal Research stays sluggish (especially US print)
2014 Share of Total Revenues: 27%
2014 Revenues: $ 3.4 billion
2014 Adj. EBITDA Margin: 36.6%
2011 2012 2013
Core Legal
Research
-2% -2% -1%
Business of Law 13% 7% 7%
Corporation,
Government and
Academic
4% 2% 0%
Global Business 4% 5% -1%
41.18%
11.76%
23.53%
23.53%
Core Legal Research
Business of Law
Corporation, Government and Academic
Global Business
86%
10%
4%
Americans EMEA Asia
55

56. US Legal Online Research
Market Share is Stable
US Legal Service Market Revenue
275.8
0
50
100
150
200
250
300
350
2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E
CAGR
1.4%
264
48.60% 51.08% 51.50% 52.65% 53.98%
27.15% 25.91% 25.23% 24.62% 23.77%
24.26% 23.01% 23.27% 22.73% 22.25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2018E
Market Share of Online Legal Research
Thomos Reuter Rees Elsevier(LexisNexis) Wolters Kluwer
56

57. US Print Suffers from Industry Transformation
Growth Rate of US Print
-6%
-5% -5%
-6% -6%
-6% -6% -6% -6%
-6%
-6%
-6%
-6%
-5%
-5%
-5%
-5%
-5%
-4%
2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E
• Industry Transform from Print Service
to Electronic Service
• Continues to decline 5% annually
57

58. Business of Law Corporation, Government and Academic
• Increase as transforming from outside counsel to in-
house counsel
• 2010 – 2013 Growth Driver for Legal Segment
• Grows at high speed in future
Business Of Law & Corporation, Government and Academic
33.5
39.8
0
5
10
15
20
25
30
35
40
45
50
2011 2012 2013 2014E 2015E 2016E 2017E 2018E
Corporate in-house Legal Spending
CAGR
4%
13%
7% 7%7% 7% 7%
6% 6%
5%
0%
2%
4%
6%
8%
10%
12%
14%
2011 2012 2013 2014E 2015E 2016E 2017E 2018E
58

59. Asia
Global Business
• 2009 to 2013 Asia Legal Service
revenues (billions) CAGR 5.9%
• Strong Growth
Europe Volatile Historical Growth
• 2009 to 2013 Legal Service revenues
CAGR 3.2%
0
20
40
60
80
100
120
CAGR
5.9%
0
50
100
150
200
250
CAGR
3.2%
4%
5%
-1% -1%2011 2012 2013 2014(Q1-Q3
increase in Latin American, and
declines in UK and Spain
18% increase in
Latin American
10% decrease in
Latin American
59

60. Thomson Reuters Legal Products
60

61. APPENDIX: Tax & Accounting
61

62. 2014 Revenues: $ 1.4 billion
2014 Adj. EBITDA Margin: 30.4%
2014 Operating Profit Margin: 21.5%
Tax & Accounting: OVERVIEW
Organic Growth Rate
• Strong growth led by Corporate and Professional Segments
• Heavily Concentrated in North America
• Thread of new entrants remains significant
2011 2012 2013 2014
Professional 8% 8% 10% 9%
Corporate 7% 10% 9% 12%
Government 0% (29%) (33%) 31%
Knowledge Solutions 3% 4% 3% 2%
27%
40%
4%
29%
Revenue by Segments
Professional Corporate Government Knowledge Solutions
94%
3% 3%
Revenue by Geography
North America EMEA Asia
62

63. Context Methodology Analysis
Recommenda
tion
Corporate
Corporate and Professional
Professional
• 4 Year CAGR 9.49%
• Expected to Continue Growth over the Next 4 Years
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2011 2012 2013 2014 2015E 2016E 2017E 2018E
Historical Expected
• 4 Year CAGR 8.75%
• Expected to Continue Growth over the Next 4 Years
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2011 2012 2013 2014 2015E 2016E 2017E 2018E
Historical Expected
63

64. Government and Knowledge Solutions
Knowledge Solutions
• 4 Year CAGR 3%
• Expected to Grow Moderately
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
2011 2012 2013 2014 2015E 2016E 2017E 2018E
Historical Expected
Government
• Small proportion of T&A Revenue
• Volatile Organic Growth over the Past Years
• New Management Team Shows Signs of Recovery
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
2012 2013 2014 2015E 2016E 2017E 2018E
Historical Expected
64

65. APPENDIX: Intellectual Property & Science
65

66. Intellectual Property & Science: Overview
• Growth of China Spending on R&D
• Overall small growth lead by spending in Aerospace sector
• Porter’s Five Force
51%
16%
33%
IP Solutions Life Sciences Scientific and Scholarly Research
Organic Growth Rates
2011 2012 2013
IP Solutions 7% 0% 2%
Life Sciences 12% 5% 3%
Scientific & Scholarly
Research
5% 2% 7%
2013 Revenues: $ 1.0 billion
2013 EBITDA Margin: 31.0%
2013 Operating Profit Margin: 22.9%
78%
17%
5%
Americas EMEA Asia
66

67. Intellectual Property Solutions
Patent Applications and Publications: Indicators of Innovation
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010 2011 2012 2013 2014
US Innovation Indicators
Patent Applications Publications
• Patent and Publication expected to remain consistent at 1% and 7%
CAGR
67

68. Life Sciences
Life Science Industry R&D Spending
• Overall growth of 3% CAGR in US Life Science spending
• US represents over 45% of Life Science R&D Spending market
-
50
100
150
200
250
2011 2012 2013 2014 2015 2016 2017
Life Science Industry R&D Spending
Global US
68

69. Scientific & Scholarly Research
U.S. University Spending
Continued Spending Among Top
Universities
• Academic performs ~60% of all U.S.
basic research
• Federal funding for academia will
increase 2.5% in 2015
• U.S. universities continue to lead
world rankings
0%
20%
40%
60%
80%
100%
120%
Top 400 Top 50 Top 10
U.S. Standing Among World’s Top
Universities
US Non US
69

70. APPENDIX: Financial Statement
70

71. Historical and Projected Statements
Income Statement
Projected Fiscal Years Ending December 31
($ in millions of U.S. dollars except per share amounts) 2013 2014 2015 2016 2017 2018 2019
Finance and Risk 6,648 6,538 6,651 6,774 6,884 6,999 7,116
Legal 3,351 3,379 3,486 3,548 3,605 3,660 3,716
Tax & Accounting 1,243 1,370 1,474 1,587 1,686 1,793 1,855
Intellectual Property 982 1,011 1,000 1,001 1,001 1,018 1,033
Corporate and Other revenues 331 319 344 351 358 365 373
Eliminations revenues (12) (12) (12) (12) (12) (12) (12)
Total Revenue From ongoing operations 12,543 12,605 12,943 13,250 13,523 13,824 14,081
Disposals 159 2 - - - - -
Total revenue 12,702 12,607 12,943 13,250 13,523 13,824 14,081
Revenue deferral & recognition - -
Total GAAP accounting revenues 12,702 12,607 12,943 13,250 13,523 13,824 14,081
Cost of revenues 9,486 9,304 9,478 9,621 9,781 10,007 10,207
Gross profit 3,216 3,303 3,465 3,628 3,742 3,817 3,875
Margin 25% 26% 27% 27% 28% 28% 28%
Finance and Risk cash costs (5,192) (4,947) (4,950) (4,964) (5,005) (5,096) (5,188)
Legal cash costs (2,157) (2,141) (2,244) (2,287) (2,328) (2,370) (2,412)
Tax and Accounting cash costs (865) (953) (997) (1,060) (1,115) (1,186) (1,227)
Intellectual Property cash costs (678) (683) (669) (680) (690) (700) (711)
Corporate and Other cash costs (594) (580) (618) (630) (643) (656) (669)
Integration costs - - - - - - -
EBITDA from ongoing operations 3,068.6 3,313.0 3,477.2 3,640.3 3,753.6 3,828.6 3,886.6
Margin 24.2% 26.3% 26.9% 27.5% 27.8% 27.7% 27.6%
Other businesses (disposals) 64.00 1,064.00 0.00 0.00 0.00 0.00 0.00
Total EBITDA 3,132.58 4,377.00 3,477.24 3,640.32 3,753.60 3,828.56 3,886.57
Depreciation & amortization of computer software (1,189) (1,175) (1,137) (1,164) (1,188) (1,215) (1,237)
Amortization of other identifiable intangible assets (641) (647) (651) (666) (680) (695) (708)
EBIT 1,303 2,555 1,689 1,810 1,886 1,919 1,941
Margin 10.3% 20.3% 13.1% 13.7% 13.9% 13.9% 13.8%
Interest expense (460) (442) (455) (463) (468) (461) (443)
Interest income - - - - - - -
Gain (loss) on investments - (85) - - - - -
Unusuals and Other 190 (7) - - - - -
Earnings before taxes 1,033 2,021 1,235 1,347 1,418 1,458 1,498
Tax expense (848) (62) (370) (404) (425) (437) (450)
Net income (loss) 184.6 1,959.0 864.2 942.9 992.6 1,020.5 1,048.9
Minority interest - (50) - - - - -
Net income attributable to Thomson Reuters 185 1,909 864 943 993 1,020 1,049
Diluted shares outstanding 828 796 771.00$ 746.00$ 721.00$ 721.00$ 721.00$
Diluted earnings (loss) per share (IFRS) 0.22$ 2.40$ 1.12$ 1.26$ 1.38$ 1.42$ 1.45$
Operating EPS per share 1.50$ 1.87$ 2.19$ 2.43$ 2.62$ 2.66$ 2.69$ 71

72. Historical and Projected Statements
Cash Flow Statement
Projected Fiscal Years Ending December 31
($ in millions of U.S. dollars) 2013 2014 2015 2016 2017 2018 2019 2020
Funds From Operating Activities
Net income (loss) 185 1,959 864 943 993 1,020 1,049 1,058
Depreciation And Amortization 1,830 1,822 1,788 1,830 1,868 1,910 1,945 1,970
Deferred Income Taxes 434 (273) - - - - - -
Disposal/Sale of Assets (195) (9) - - - - - -
Other Non-Cash Items 289 (701) - - - - - -
Funds from operations 2,543 2,798 2,652 2,773 2,861 2,930 2,994 3,027
Change in operating assets and liabilities 60 (432) 254 22 16 21 13 (1)
Pension Contributions (500)
Cash flow from operating activities 2,103 2,366 2,907 2,795 2,876 2,951 3,007 3,027
Funds From Investing Activities
Acquisitions, net of cash (1,241) (167) - - - - - -
Proceeds from Disposal of businesses 550 14 - - - - - -
Capital Expenditures (1,004) (968) (1,011) (1,008) (1,015) (1,038) (1,057) (1,070)
Other Investing Activities 67 50 - - - - -
Investing cash flow s from discountinued operations 6 - - - - - -
Cash flow from investing activities (1,622) (1,071) (1,011) (1,008) (1,015) (1,038) (1,057) (1,070)
CFADS (cash flow s available for debt service) 481 1,295 1,896 1,787 1,861 1,913 1,950 1,956
Funds From Financing Activities
Proceeds From Debt 3,268 1,480 206 1,144 306 - - -
Repayment of Debt (2,240) (1,120) (534) (564) (704) - (563) (632)
Net repayment under short term loan (3) - - - - - - -
Issuance of Common Stock - - - - - - - -
Repurchase of Common Stock (400) (1,023) (1,000) (1,000) (1,000) - - -
Dividends paid (1,041) (1,036) (1,034) (1,034) (1,034) (1,034) (1,034) (1,034)
Other financing activities (19) 129 - - - - - -
Cash flow from financing activities (435) (1,570) (2,362) (1,453) (2,432) (1,034) (1,597) (1,666)
Translation Adjustments on Cash (13) (22) - - - - - -
Beginning cash balance 1,283 1,316 1,018 552 886 315 1,195 1,548
Change in cash & equivalents 33 (297) (466) 334 (570) 879 353 290
Ending cash balance 1,316 1,018 552 886 315 1,195 1,548 1,838
72

73. Historical and Projected Statements
Projected Fiscal Years Ending December 31
($ in millions of U.S. dollars) 2013 2014 2015 2016 2017 2018 2019 2020
Assets
Current Assets
Cash & equivalents 1,316 1,018 552.1 885.7 315.3 1,194.7 1,547.8 1,838.2
Trade & Other Receivables 1,751 1,810 1,850 1,894 1,933 1,976 2,013 2,038
Other Financial Assets 183 161 161 161 161 161 161 161
Other Current Assets 650 657 657 657 657 657 657 657
Assets Held for Sale - - - - - - - -
Total Current Assets 3,900 3,646 3,220 3,598 3,066 3,989 4,378 4,694
Computer Hardw are & Other Property 1,291 1,182 1,124 1,053 975 894 812 729
Computer Softw are 1,622 1,529 1,460 1,375 1,280 1,184 1,085 986
Other Intangible Assets 7,890 7,124 6,473 5,807 5,127 4,432 3,724 3,007
Goodw ill 16,871 16,403 16,403 16,403 16,403 16,403 16,403 16,403
Other Financial Assets 192 127 127 127 127 127 127 127
Other Noncurrent Assets 583 536 536 536 536 536 536 536
Deferred Tax 90 50 50 50 50 50 50 50
Total Assets 32,439 30,597 29,394 28,949 27,564 27,615 27,116 26,533
Liabilities & Shareholders Equity
Current Liabilities
Current Indebtness 596 534 564 704 - 563 632 755
Payables, Accruals, and Provision 2,624 2,443 2,762 2,828 2,886 2,950 3,005 3,043
Deferred/Unearned Revenue (Short-Term) 1,348 1,355 1,362 1,395 1,423 1,455 1,482 1,501
Other Financial Liabilities 193 265 233 201 169 136 104 72
Liabilities Associated w ith Assets for Sale - - - - - - - -
Total Current Liabilities 4,761 4,597 4,922 5,127 4,478 5,105 5,223 5,371
Notes & LT Indebtness 7,470 7,576 7,012 6,308 6,308 6,308 5,839 5,138
Provisions and Other Non-current Liabilities 1,759 2,171 2,377 3,521 3,827 3,263 3,100 3,046
Other Financial Liabilities 102 161 161 161 161 161 161 161
Deferred Tax 1,917 1,433 1,433 1,433 1,433 1,433 1,433 1,433
Total Liabilities 16,009 15,938 15,904 16,550 16,206 16,270 15,757 15,149
Capital 10,347 10,157 9,157 8,157 7,157 7,157 7,157 7,157
Retained Earnings (Accumulated Deficit) 7,303 7,168 6,999 6,908 6,867 6,853 6,869 6,893
Accumulated Other Comprehensive Income (1,614) (3,147) (3,147) (3,147) (3,147) (3,147) (3,147) (3,147)
Non-Controlling Interest 394 481 481 481 481 481 481 481
Total Shareholders' Equity 16,430 14,659 13,490 12,399 11,358 11,344 11,360 11,384
Total Liabilities & Shareholders' Equity 32,439 30,597 29,394 28,949 27,564 27,615 27,116 26,533
Balance Sheet
73

74. APPENDIX: Valuation
74

75. DCF Valuation
DCF Valuation Results
Cashflow Forecast
*All dollar amounts in millions 2015E 2016E 2017E 2018E 2019E
Free cash flow s to the firm (FCFF) 2,214 2,111 2,189 2,236 2,260
Enterprise Value EBITDA Multiple Method Enterprise Value Perpetual Growth Method WACC Assumptions
EBITDA Multiple 11.0x Perpetual grow th of firm cash flow s 2.00% Valuation date 31-Dec-15
Terminal Year EBITDA 3,887 30-yr US government bond rate 2.5%
Expected market return 8.5%
Present Value of Terminal Value 33,581 Present Value of Terminal Value 35,211 Market risk premium 6.0%
Present Value of Forecast FCF 8,187 Present Value of Forecast FCF 7,670 Beta 0.91
Enterprise Value 41,767 Enterprise Value 42,881 CAPM cost of equity 8.0%
- Debt 9,389 - Debt 9,389 Cost of debt 4.5%
+ Cash 552 + Cash 552 Tax rate 14.0%
Equity Value (Market Cap) 32,931 Equity Value (Market Cap) 34,044 After tax cost of debt 3.9%
Shares outstanding 771 Shares outstanding 771 Target gearing 20.0%
Fair value share price $42.71 Fair value share price 44.16 WACC 7.1%
75

76. Comparable Firms’ Ratios
Company Name Market Enterprise Net Debt / EV/Revenue
(3)(4)
EV/EBITDA
(3)(4)
P/E
(3)(4)
Thomson Reuters Cap.
(1)
Value
(2)
EV 2013A LTM NTM 2015E 2013A LTM NTM 2015E 2013A LTM NTM 2015E
U.S. Comparables
Factset $5.9 B $5.8 B (2.4%) 6.4x 6.2x 5.9x 5.4x 17.4x 17.1x 15.8x 14.6x 24.7x 23.4x 20.3x 22.9x
MarketAxess $2.8 B $2.6 B (6.5%) 11.2x 10.2x 9.3x 8.5x 21.9x 19.7x 17.5x 14.7x 29.1x 32.6x 39.6x 33.1x
Mcgraw Hill $24.2 B $24.0 B (4.7%) 5.0x 4.7x 4.5x 4.2x 13.9x 12.5x 11.2x 10.3x 22.9x 25.7x 20.8x 21.5x
Moody's $19.0 B $19.8 B 2.2% 6.4x 6.1x 5.5x 5.2x 14.2x 13.1x 12.1x 11.0x 19.7x 22.3x 22.2x 21.1x
MSCI $6.0 B $6.3 B 5.4% 6.3x 5.8x 5.9x 5.4x 14.3x 14.4x 14.9x 13.7x 22.2x 24.6x 28.5x 25.9x
U.S. Comparables Average $11.6 B $11.7 B (1.2%) 7.1x 6.6x 6.2x 5.7x 16.3x 15.4x 14.3x 12.9x 23.7x 25.7x 26.3x 24.9x
European Comparables
ICAP $3.0 B $3.1 B 4.0% 2.5x 2.7x 2.7x 2.7x 11.3x 10.8x 10.2x 9.5x 68.2x 98.5x 12.5x 16.0x
Markit $4.7 B $5.2 B 8.2% 5.6x 5.0x 4.9x 4.7x 14.2x 13.0x 11.1x 11.0x N/A 18.4x 17.6x 17.9x
Pearson $10.9 B $13.1 B 16.5% 2.5x 2.7x 2.7x 2.5x 14.2x 16.0x 15.5x 13.7x 32.9x NA 16.3x 17.7x
Reed Elsevier $12.9 B $16.0 B 19.4% 2.7x 2.6x 2.5x 2.4x 10.8x 11.8x 12.5x 11.8x 23.2x 23.4x 17.9x 19.0x
Wolters Kluw er $7.9 B $10.1 B 22.0% 2.8x 2.9x 2.8x 2.6x 11.1x 11.6x 11.4x 10.5x 15.5x NA 15.5x 16.1x
European Comparables Average $7.9 B $9.5 B 14.0% 3.2x 3.2x 3.1x 3.0x 12.3x 12.6x 12.1x 11.3x 35.0x 46.7x 15.9x 17.4x
Thomson Reuters $30.4 B $38.3 B 18.8% 3.0x 3.0x 3.0x 2.9x 12.2x 14.2x 11.1x 10.2x 32.5x 70.1x 18.6x 19.0x
Average $11.6 B $13.1 B 7.5% 4.9x 4.7x 4.5x 4.2x 14.1x 14.0x 13.0x 11.9x 29.1x 37.6x 20.9x 20.9x
Sources: Capital IQ, Bloomberg, Company Information
76

77. Context Methodology Analysis
Recommenda
tion
Comparable Valuation
Company Name 2015E EV/Revenue 2015E EV/EBITDA
U.S. Comparables
Factset Yes 5.4x Yes 14.6x
MarketAxess Yes 8.5x Yes 14.7x
Mcgraw Hill Yes 4.2x Yes 10.3x
Moody's Yes 5.2x Yes 11.0x
MSCI Yes 5.4x Yes 13.7x
U.S. Comparables Average 5.7x 12.9x
European Comparables
ICAP Yes 2.7x Yes 9.5x
Markit Yes 4.7x Yes 11.0x
Pearson Yes 2.5x Yes 13.7x
Reed Elsevier Yes 2.4x Yes 11.8x
Wolters Kluw er Yes 2.6x Yes 10.5x
European Comparables Average 3.0x 11.3x
Combined Average 3.0x 12.1x
Thomson Reuters Metric 2.8x 10.2x
Total Enterprise Value $38,903 $42,012
- Debt $9,953 $9,953
+ Cash $552 $552
Equity Value $29,503 $32,612
Fair Value Share Price $38.27 $42.30
77

78. APPENDIX: Risk Analysis
78

79. Risk Analysis
Risk
Execution
Risk
High ProbabilityLow Probability
Low Impact
High Impact
Market
Risk
Legislation
&
Regulation
IP
Rights
Alternative
Information
Exchange
Rate Risk
79

80. Where We Could Be Wrong
Macroeconomic Climate
Execution Risk
Risk Model Implication
Eikon 4.0 fails to attract
customers and continues to
loose market share
F&R-Desktop revenue shrinks 8.3%
annually in the next two years
Further cost savings are not
realized
EBITDA Margin remains at 2014
level
Buy Hold Sell
$28.45 $38.49
Risk Model Implication
Better than expected GDP
growth in the U.S. and global
economies will impact our
valuation
Bull Case in DCF Valuation
Buy Hold Sell
$45.14 $61.07
$43.43
$53.10
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
DCFImpliedPrice
22%
$43.43
$33.47
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
DCFImpliedPrice
(23%)
80

81. Context Methodology Analysis
Recommenda
tion
Currency Risk
Risk Model Implication
Unhedged fluctuation in FX
market impacts company
profitability
Considering the revenue/cost
structure, effect of exchange rate
fluctuations in EBITDA is estimated
under different scenarios. 60%
7%
14%
19%
Expenses
US $
Euro
GBP
Other
62.00%12.00%
9.00%
17.00%
Revenues
$3,465
$3,352
$3,250
$3,300
$3,350
$3,400
$3,450
$3,500
2015EBITDA($Million)
If USD Appreciates 10%
(3.3%)
$3,465
$3,376
$3,300
$3,350
$3,400
$3,450
$3,500
2015EBITDA($Million)
If Euro Depreciates 10% against
USD
(2.6%)
81

82. Governance Risk
Governance Structure
10%
33%
57%
% of Ownership
Public & Other
Institutions
The Woodbridge
Company Limited
82

83. Governance Risk
Governance Risk
Individual Potential
• Significant share
ownership by Thompson
Family
Group Potential Board Decision Output Ending Shareholder Score
• No split between CEO
and Chair position
• Poor director
assessment
• Performance peer group
and CEO share
ownership requirements
• Average score on TSX
is113 with a standard
deviation of 20
-14
-16
-14
Average TSXTRI
83

84. APPENDIX: Governance and Key People
84

85. Governance Analysis
Key People
David Thomson
James C. Smith David W. Binet
85

86. Governance Analysis
Key People
David Thomson
• Chairman and Deputy Chairman of the
Woodbridge Company Limited, and the principal
shareholder of The Thomson Corporation
• MA from Cambridge University
• President of Hudson's Bay Company and its
subsidiaries Zellers and Simpsons until 1990
• Director at Thomson Reuters Corporation since
1988
• Evident preference for taking the back seat in
management
86

87. Governance Analysis
Key People
James C. Smith
• President and Chief Executive Officer, Thomson
Reuters
• Marshall University
• Chief Executive Officer at Thomson Reuters UK
Limited and Thomson Reuters Corp., since
January 1, 2012
• Chief Operating Officer of Thomson Reuters UK
Limited since September 28, 2011
• Served as the Chief Executive Officer and
President of Professional Division of Thomson
Reuters Corporation and Thomson Reuters UK
Limited
87

88. Governance Analysis
Key People
David W. Binet
• President and Chief Executive Officer of The
Woodbridge Company Limited since January 1,
2013
• Senior Vice President at Thomson Reuters
Corporation and Secretary until January 2013
• Partner at Tory Tory DesLauriers and Binnington
• Director of The Woodbridge Company Limited since
January 1, 2013.
• Member of the board of The Globe and Mail
• Board member on a number of companies which
Woodbridge controls
• Law degree from McGill University,
• BA from Queen’s University
• Graduate degree in journalism from Northwestern
University.
88

89. Governance Analysis
Key People
Name Position
David Thomson
James C. Smith
Sheila Bair
Manvinder S. Banga
David W. Binet
Mary Cirillo
Michael E. Daniels
Steven A. Denning
P. Thomas Jenkins
Ken Olisa
Vance K. Opperman
Peter J. Thomson
Wulf von Schimmelmann
Chairman
President and CEO
Director
Director
Deputy Chairman
Director
Director
Director
Director
Director
Director
Director
Director
89

90. Governance Analysis
Key People
Name Position
James C. Smith
Stephane Bello
Jus Carlson
David W. Craig
Carla Jones
Richard H. King
Gonzalo Lissarrague
Niel Masterson
Basil Moftah
Brian Peccarelli
President and CEO
Executive VP and CFO
Executive VP and CCO
President, Financial & Risk
Senior VP, Office of CEO
Executive VP and COO
President Global Growth & Operations
Executive VP and CTO
President, Intellectual Property & Science
President, Tax & Accounting
90

91. Governance Analysis
Key People
Name Position
James T. Powell
Andrew Rashbass
Brian Scanlon
Deirdre Stanley
Susan Taylor Martin
Peter Warwick
Executive VP and CTO
Chief Executive, Reuters
Executive VP and CSO
Executive VP, General Counsel
President, Legal
Chief People Officer
91

92. APPENDIX: Conclusion Figures’ Calculation
92

93. Required Acquisition Calculations
EPS Deficit = $0.18
Net Income = .18 x 771 mm Shares = $140 million
@ a 30% Tax Rate, EBT = $200
Interest = 13% of EBITDA
EBITDA = $230 million
Assuming a 11.0x buy-out multiple,
Takeover price = $2.5 Billion

94. Cash Flow Forecast
Cash Attainable at the End of 2017
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Cash & equivalents 864 422 1,283 1,316 1,018 552 886 315 1,195 1,548 1,838
Dividends paid 901 963 1,024 1,041 1,036 1,034 1,034 1,034 1,034 1,034 1,034
Repurchase of Common
Stock 0 326 168 400 1,023 1,000 1,000 1,000 0 0 0
Debt
$7,518.0
0
$7,594.0
0
$7,231.0
0
$8,066.0
0 $8,110.00
$7,781.5
5
$8,361.8
7
$7,963.7
1
$7,963.7
1
$7,400.4
0
$6,768.1
0
Cash $864.00 $422.00
$1,283.0
0
$1,316.0
0
$1,018.0
0 $552.10 $885.72 $315.26
$1,194.7
0
$1,547.8
1
$1,838.2
0
EBITDA
$3,126.0
0
$3,661.0
0
$3,447.2
2
$3,132.5
8
$4,377.0
0
$3,477.2
4
$3,640.3
2
$3,753.6
0
$3,828.5
6
$3,886.5
7
$3,897.1
5
Net Debt to EBITDA 2.13 1.96 1.73 2.15 1.62 2.08 2.05 2.04 1.77 1.51 1.27
Actual Net Debt to EBITDA
Ratio 2.13 1.96 1.73 2.15 1.62 2.24 2.30 2.12 2.08 1.90 1.74
Net Debt to EBITDA 2.13 1.96 1.73 2.15 1.62 2.5 2.5 2.5 2.5 2.5 2.5
Net Debt at Desired Ratio 8693.104 9100.804 9383.994 9571.404 9716.416 9742.878
Actual Net Debt 7229.45 7476.146 7648.452 6769.011 5852.59 4929.903
Excess Net Debt Capacity 1463.654 1624.658 1735.542 2802.392 3863.827 4812.975
Net Debt Capacity
$1,463.6
5
$1,624.6
6
$1,735.5
4
$2,802.3
9
$3,863.8
3
$4,812.9
8

95. Historical TRI Valuation
6.00x
8.00x
10.00x
12.00x
14.00x
16.00x
18.00x
TEV/LTM EBITDA
TEV/LTM EBITDA Average Average EV/EBITDA