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Beyond the numbers XBRL and Reuters company news

Beyond the numbers XBRL and Reuters company news. Dec 4 2007 Jack Reerink Reuters News. Agenda. Reuters and XBRL Company news state of play Company news readership – M&A dominates Exhibit 1 – Crocs: the power of market expectations Exhibit 2 - GN Store: the power of text

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Beyond the numbers XBRL and Reuters company news

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  1. Beyond the numbersXBRL and Reuters company news Dec 4 2007 Jack Reerink Reuters News

  2. Agenda • Reuters and XBRL • Company news state of play • Company news readership – M&A dominates • Exhibit 1 – Crocs: the power of market expectations • Exhibit 2 - GN Store: the power of text • Company news – New battle grounds

  3. Reuters & XBRL– On top of the game • First publicly listed company to report results in XBRL format in 2001 • First company to submit IFRS-based XBRL data to U.S. SEC in 2007

  4. Company news – State of play • Earnings announcements have become commoditised • Algo trading drives intense competition on speed & finding key alerts • Forget the past: Forecasts are key • A number without market estimates is just a number • Real market movers: M&A, executive changes & industry metrics • Exclusivity and connecting the dots are the new battle grounds

  5. Company news – Readership Conclusion: Eyeballs are on M&A and hot stocks, not results Q2 study of top-read 3,600 company news stories globally

  6. Exhibit 1 – A bright future for Crocs? 16:00 31Oct2007 CROCS INC <CROX.O> Q3 SHR $0.66 16:00 31Oct2007 CROCS INC <CROX.O> SEES FY 2007 SHR $1.94 TO $1.98 16:00 31Oct2007 CROCS INC <CROX.O> SEES FY 2007 REVENUE $820 MLN TO $830 MLN 16:00 31Oct2007 CROCS INC <CROX.O> Q3 REVENUE ROSE 130 PCT TO $256.3 MLN 16:01 31Oct2007 CROCS INC <CROX.O> REUTERS ESTIMATES Q3 SHR VIEW $0.63, REV VIEW $259.76 MLN 16:01 31Oct2007 CROCS INC <CROX.O> REUTERS ESTIMATES FY 2007 SHR VIEW $1.97, REV VIEW $836.98 “Looking ahead, we are excited about both our near-term and long-term prospects, reflected in our heightened outlook for the remainder of fiscal 2007 and fiscal 2008“ - Crocs CEO Ron Snyder in BSW release Reuters headlines, CEO quote from BSW release

  7. Exhibit 1– The real Crocs story UPDATE 2-Crocs outlook lags Wall Street, shares tumble (Recasts; adds analyst, background, dateline) LOS ANGELES, Oct 31 (Reuters) - Crocs Inc <CROX.O>, maker of the clunky but popular plastic shoes, said on Wednesday its quarterly profit more than doubled, but its high-flying stock slipped by more than 24 percent after hours on its disappointing revenue and 2007 outlook. "I think the stock has been trading as a momentum stock. What we're seeing here is a reversal of that momentum” - Jeff Mintz, vice president of research at Wedbush Morgan Securities in Reuters story Oct 31 Reuters story

  8. Exhibit 1 – The other shoe drops

  9. Exhibit 1 –Japan is different 02:00 25Oct2007 SONY <6758.T> REVISES 2007/08 GROUP (SEC) NET PROFIT FORECAST TO Y330.00 BLN FROM Y320.00 BLN 02:01 25Oct2007 SONY <6758.T> REVISES 2007/08 GROUP (SEC) OPERATING PROFIT FORECAST TO Y450.00 BLN FROM Y440.00 BLN 02:01 25Oct2007 SONY <6758.T> REVISES 2007/08 GROUP (SEC) PRETAX PROFIT FORECAST TO Y500.00 BLN FROM Y420.00 BLN 02:14 25Oct2007 Sony <6758.T>-2007/08 group forecast (SEC) Oct 25 (Reuters) - SONY CORP CONSOLIDATED EARNINGS ESTIMATES (in billions of yen unless specified) Full year to Full year to March 31,2008 March 31,2008 LATEST PREVIOUS FORECAST FORECAST Sales 8.98 trillion 8.78 trillion Operating 450.00 440.00 Pretax 500.00 420.00 Net 330.00 320.00 EPS 329.10 yen 319.61 yen Oct 25 Reuters headlines and story

  10. Exhibit 1 –Conclusions • Assuming instant delivery, XBRL will help: - Easy & quick analysis of data for expert sector journalists - Automate alerts on earnings numbers – Japan most promising - Free up journalists to break more news • XBRL becomes even more valuable when: - Key earnings numbers are instantly matched with estimates - The data includes forecasts (matched with estimates) - It expands from GAAP items to industry metrics

  11. Exhibit 2– The numbers look good at GN Store … 07:03 06Nov2007 GN STORE NORD <GN.CO> Q3 SALES FOR CONTINUING OPS 673 MLN DKK (REUTERS POLL 729 MLN DKK) 07:03 06Nov2007 GN STORE NORD <GN.CO> Q3 EBITA FOR CONTINUING OPS 12 MLN DKK (REUTERS POLL 22 MLN DKK LOSS) 07:04 06Nov2007 GN STORE NORD <GN.CO> NOW SEES FY 2007 EBITA FOR CONTINUING OPS AT 100 MLN DKK … until you give the statement a second look “The Supervisory Board has decided to abandon the sales process concerning GNReSound immediately and keep the activities within GN” - GN Store OMX announcement Nov 6 Reuters headlines and GN OMX announcement

  12. Exhibit 2– The key alert at GN Store 07:05 06Nov2007 GN STORE NORD <GN.CO> SAYS TO ABANDON SALE OF RESOUND HEARING AID ARM UPDATE 3-GN shares drop 17 pct as it abandons ReSound sale (Updates share price to close, adds background) By Gelu Sulugiuc COPENHAGEN, Nov 6 (Reuters) - Danish headset maker GN Store Nord <GN.CO> posted a larger than expected third-quarter operating profit on continuing operations on Tuesday, but its shares sank more than 16 percent on news it would no longer try to sell hearing aid unit ReSound. This summer the German competition authorities blocked Swiss hearing aid maker Sonova's <SOON.S> $2.8 billion bid for ReSound, derailing the deal. GN said this summer it was considering all options, including spinning off ReSound and floating it on the Copenhagen exchange. Instead, the company said it decided to keep ReSound within GN but run the headset and hearing aid units as two separate businesses with two equally-ranked chief executives.

  13. Exhibit 2– Conclusions • Next step in XBRL is identifying numbers in text of press releases • We need brains (journalists) to discover other nuggets - for now • Tagging and search technologies can help on speed and finding key alerts • They can even automate the process - if we’re willing to accept more errors

  14. Company news– What journalism is all about • Reuters company news exclusives up five-fold in five years • XBRL to free up journalists to break even more news 2007 annualised based on 10-months through Oct

  15. Company news– Connecting the dots • Connecting results & forecasts to estimates instantly and automatically – Reuters News and Data • Linking big news events to companies and vice-versa – Reuters News • Assigning significance levels to events – Reuters SigDev • Finding and tagging key words in news and announcements – Reuters ClearForest • Gauging sentiment by scoring news and announcements -- Reuters NewScope

  16. Company news & XBRL– Thanks

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