TRI - Thomson Reuters Corporation Investor Day - London
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FINAL TRANSCRIPT TRI - Thomson Reuters Corporation Investor Day - London Event Date/Time: Oct. 02. 2008 / 7:30AM GMT THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. FINAL TRANSCRIPT Oct. 02. 2008 / 7:30AM, TRI - Thomson Reuters Corporation Investor Day - London CORPORATE PARTICIPANTS Frank Golden Thomson Reuters Corporation - SVP, Investor Relations Tom Glocer Thomson Reuters Corporation - CEO Devin Wenig Thomson Reuters Corporation - CEO - Markets Peter Moss Thomson Reuters Corporation - Global Head - Content, Technology & Operations Mark Redwood Thomson Reuters Corporation - President - Sales & Trading Jon Robson Thomson Reuters Corporation - Global Head - Enterprise Divisionn James Powell Thomson Reuters Corporation - Chief Technology Officer Jim Smith Thomson Reuters Corporation - CEO - Professional Division Peter Warwick Thomson Reuters Corporation - President & CEO - North American Legal Tony Abena Thomson Reuters Corporation - SVP - US Law Firms Bob Daleo Thomson Reuters Corporation - EVP, CFO CONFERENCE CALL PARTICIPANTS Colin Tennant Lehman Brothers - Analyst Polo Tang UBS - Analyst Vince Valentini TD Newcrest - Analyst Ian Whittaker Liberum Capital Ltd. - Analyst Paul Sullivan Merrill Lynch - Analyst Giasone Salati Execution - Analyst Patrick Wellington Morgan Stanley - Analyst Sami Kassab Exane BNP Paribas - Analyst PRESENTATION 1 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. FINAL TRANSCRIPT Oct. 02. 2008 / 7:30AM, TRI - Thomson Reuters Corporation Investor Day - London Frank Golden - Thomson Reuters Corporation - SVP, Investor Relations Let me begin by welcoming those of you in the audience, as well as those of you on today©s webcast, to the first Thomson Reuters Investor Day Meeting. Let me begin by introducing myself. I am Frank Golden, Senior Vice President of Investor Relations for Thomson Reuters. On the screen is today©s agenda. We will begin with Tom Glocer. And Tom will discuss the Company©s strategies, the strength of our businesses, and the opportunities and challenges ahead, as well as the developments in the markets we have all been experiencing over the course of the last several months. Following Tom, you will hear a series of presentations by Devin Wenig and his management team centered on the Markets Division. We will conclude the first portion of our program with James Powell, discussing the future of technology from a Thomson Reuters© perspective. We will then break at approximately 10.30 for 15 minutes. And following the break, we will hear a series of presentations by Jim Smith and his management team, focused on our Professional Division. Bob Daleo will then conclude the formal presentations with a recap of the Company©s financial strategy and capital position. And we will conclude today with Tom wrapping up today©s session, followed by a thirty minute Q&A session. That will start approximately noon. I would ask that you do hold your questions until that period to enable us to get through the presentations itself. Now following Q&A we will adjourn for lunch, and each of our management teams today will be hosting a table. So I encourage you to join us for lunch. As you have probably have seen on your way in, we also have product demonstrations set up in the lobby, which I encourage you to visit. I need to advise you that today©s presentations may contain certain forward-looking statements. Actual results may differ materially due to the number of risks and uncertainties discussed in reports and filings that we provide to regulatory agencies. You can access these documents on our website or by contacting our Investor Relations Department. This presentation also contains disclosures of certain non-GAAP financial measures. As applied by regulatory rules, we have provided a reconciliation of each of these measures to the most directly comparable GAAP measure in the Investor Relations section of our website, found at ThomsonReuters.com. That concludes my opening remarks. I would ask you to please turn off your cell phones and BlackBerrys. And let©s get started. Tom Glocer - Thomson Reuters Corporation - CEO Good morning everybody. It is really great to have the whole team back here together in London at this, the inaugural Thomson Reuters Investor Day. We©ve got quite a large program that we have tried to cram into little time. I think very much of the meat is to follow here today, so what I©m going to try and do is go relatively quickly through an introduction. Try to set the scene for you. And then turnover to my colleagues to really allow you to dig in a little bit deeper, and maybe just to set up the right questions for Q&A, which knowing this crowd, will certainly continue through lunch. I just want you to know I will be auctioning off seats at the Sales and Trading table for lunch time. 2 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. FINAL TRANSCRIPT Oct. 02. 2008 / 7:30AM, TRI - Thomson Reuters Corporation Investor Day - London But quite seriously, I think it is a great opportunity today. And we have geared the agenda to allow you to really get a good look into the wonderful assets on the Professional Division side of the house. We©ve got plenty on Markets as well, but in particular I have often felt that we at Thomson Reuters haven©t done enough to make it easier for you to see through, see into why are we so excited about this Professional Division. Why do we think it is so resilient? And so we not only have the people, what we have tried to do is really marshal together these assets and present them in a way where you don©t just sort of say, well, maybe it is like Reed -- and then go onto the other stuff. But really get a feel for why it is not only a great business, but it is an exciting business with great up and down market growth prospects. I am going to talk a bit about the Professional Division today. I do want to, however, also talk about Markets. This is not just a story about everything that is going on around us in the credit market today. There is both a very good story of what the Markets Division is today, and a story, which I will let Devin tell you about, what they are building in Markets. Because no matter what the news is day-to-day here, the idea that there won©t be a very important global intermediated finance business is absurd. It will be difficult for a period, but that is a market that comes back, and comes back strongly with very strong financial institutions. And we will play an absolutely central part in that. And it is an interesting thing along the way in that reshaping where we participate as well. I will talk a little bit about our strategy around the balance sheet, and not take too much away from Bob Daleo©s thunder. And then just end a little bit on where is our strategy. What is the mark-to-market on some of what we have seen over the couple of months? What are the challenges, and what are the opportunities for us as well? Let me just dive right into the Professional business. It is an incredible set of assets. The legal business, it is maybe easier for me to see, just because I was a practicing lawyer in the US, what an extraordinary set of assets, people and businesses this is. West is so interwoven into the very fabric of US legal system that you can©t pull it apart. I used to, and still do, talk about the Enterprise Division in Markets that Jon Robson leads, and he will be talking about it, as the plumbing of the financial system. West is so deeply ingrained into the very plumbing of the US legal system, and now increasingly abroad as we take it out, the very positive law of the US, the US code is published in its most used form by West with the USDA. Most of the court reporters are from West. But far beyond just the sort of more available general law, there is nowhere else you can turn to for 1.6 million briefs filed in cases, for videos now with expert witnesses as they appear in trial, and for a sophistication in search and linking and making information alive. So it is really an extraordinary business. Peter Warwick will come and talk to you about that in a little while. Tax & Accounting is perhaps the next legal business in formation. It is the number one business in the US. It started to globalize, but there©s lots of runway left still in the US. Whatever happens in the elections, we©re going to see significant changes in the tax code. And as long as people have to file a return, even as if the number is give us money back and it is a credit, they use tax services.