Driving Business Performance Through Strategic Talent

1. Driving Business Performance Through Strategic Talent Stephen Dando EVP & Chief Human Resources Officer 23rd November 2010

2. Who we are • Largest provider in the electronic information space • For professionals, by professionals • Employing 56,000 people • And operating in over 100 countries

3. We are global We employ 56,000 people and operate in over 100 countries \

4. People Video

5. It is anticipated that these forces will create a shift in the leadership model It is expected that leaders will need to be: • Transparent: Behave in transparent and authentic ways (‘leadership in a fishbowl’), earning trust in their employees whilst being true to themselves • Networked: Demonstrate highly developed, diverse and valuable global networks • Informed: Take the lead in focusing on global issues and the role of the company in the wider community • Collaborative: Behave in a collaborative way and encourage and reward collaboration • Deeply Experienced: Have deep skills and crucible experiences required to manage employees in a new landscape where virtual working, empowerment, collective problem solving, cross-border interaction will be the norm

6. Increasing globalisation is a strategic leadership challenge at Thomson Reuters Strategic drivers Associated leadership challenges Our business is global – we operate in over 100 countries in 19 languages • Executive leaders challenged with multiple sources of role complexity – cross cultural and highly distributed teams • Increasing numbers of remote managers - managing successful virtual teams are a pre-requisite for organisational performance • More and more leaders facing cross-cultural challenges for the first time • Need to expand our leadership cadre in local markets to take advantage of global talent pools and commercial opportunities • Managing diversity across multiple dimensions (culture, education, experience, values) Increasing requirement to enter new markets, particularly RDEs Innovation increasingly anticipated outside US and UK Continual leverage of lower cost locations outside US and UK

7. Talent as our ‘signature’ • What our strategy attempts to do? • Take a fresh approach to talent that: • Aligns to the business strategy • Gives us deep and intimate knowledge of our people • Simplifies our processes • Embeds talent into our global mindset • How does this change the game? • Talent is the only source of competitive advantage that doesn’t erode over time • Segmenting, growing and deploying our leaders will allow us to create value and impact business to succeed 6

8. Our talent strategy is driven by our business strategy External Forces at Work Implications for Talent Impact on Thomson Reuters Macroeconomic Shifts and Globalisation Information, Volume, Velocity Networked, mobile communities New Respect for Risk • Growing opportunity to help companies manage global complexity, governance, risk, & compliance • Demolish internal barriers • Flow talent Increasing regulation & intervention 7

9. Our 3 year Talent Journey 2009 2012 How we look now… …how we want to look in 3 years Shift building talent competency to top 3 strengths of our senior leaders Building talent competency ranked # 8th in talent review population – i.e. the lowest strength of our senior leaders Building Talent Mindset Cumulative target over 3 years: 60 moves between Corporate and Divisions; 12 moves between Markets and Professional (K & above) 18 moves in 2009 between Corporate and Divisions; 1 move between Markets and Professional in 2009 (K and above) Flowing Talent seamlessly across divisions Succession depth ratio of 3:1 for exec roles (bands L & above – ready in less than 2 years) Succession depth ratio 1:1 for exec roles (bands L & above – ready in less than 2 years) Depth of Leadership succession pipeline At or exceeding the HPN in the Personal Development category in our annual employee survey Currently 8 points below the HPN in the Personal Development category in our annual employee survey Growth & Development of our talent Execs: 23% females, 85% based in US/UK (L and above), and 11% “non-Anglo” citizenship (OTM population) Higher female representation, increased citizenship diversity & senior population to be more in line with population distribution Strengthening Diversity & Global External reputation for Attracting & Developing Talent Well regarded but not recognized as talent leaders in market place Consistent view in the market place about our quality of talent Source of metrics: PeopleSoft, OTM, OPM, Talent Reviews, External Survey, Taleo

10. Our segments…our point of differentiation

11. Customer segmentation has been in full flight for decades… ...and talent segmentation should follow same principles There is a need for meaningful and measurable segments according to customers' needs, their past behaviors or their demographic profiles Determine the profit potential of each segment by analyzing the revenue and cost impacts of serving each segment Target segments according to their profit potential and the company's ability to serve them in a proprietary way Invest resources to tailor product, service, marketing and distribution programs to match the needs of each target segment Measure performance of each segment and adjust the segmentation approach over time as market conditions change decision making throughout the organization Implications for Talent Companies who segment have more success retaining their market segment 1 Defining markets and segments creates a deep understanding of needs and values 2 Increase the capabilities of our strategically important talent 3 Organizational ability to lead in innovation and globalisation 4 10

12. Segments focus our attention on the talent we need to know deeply and intimately… Direct linkage to the CEO agenda Direct linkage to the business strategy & future opportunities A deep and intimate knowledge of our people - joint selection, joint accountability of their development and future career growth will retain our critical talent 11

13. Segment intersections and information flow… Executive Executive Executive Executive Future Leaders Domain Experts Global Technologists Global Global Future Leaders Future Leaders Global Technologists

14. Alignment of strategic initiatives across our segments…delivers value and impact Direct linkage to the CEO agenda Direct linkage to the business strategy and future opportunities We will continue to embed 2010 initiatives with an enhanced focus in the Technologist segment 13

15. Alignment of strategic initiatives across our segments…delivers value and impact Direct linkage to the CEO agenda Direct linkage to the business strategy and future opportunities We will continue to embed 2010 initiatives with an enhanced focus in the Technologist segment 14

16. Executives – Global Executive Programme GEP is a Thomson Reuters leadership programme targeted at leaders who will drive and sustain future growth and success for Thomson Reuters. Purpose, Audience & Key Themes • The purpose of GEP is simple: Build world-class leaders • The target audience is our most senior executives and senior high potentials • The major themes for the program are around ‘smart growth,’ ‘globalization’ and ‘personal leadership’

17. Alignment of strategic initiatives across our segments…delivers value and impact Direct linkage to the CEO agenda Direct linkage to the business strategy and future opportunities We will continue to embed 2010 initiatives with an enhanced focus in the Technologist segment 16

18. Future Leaders - Accelerate Accelerate is a Thomson Reuters leadership program targeted at high performing leaders whom we believe have the potential to make even greater contributions in the future. Purpose, Audience & Key Themes • The aim of Accelerate is to provide a high impact, challenging, development experience for high potential employees • The target audience is high potential leaders (mid-career) • The key themes of the Accelerate programme are: Driving Innovation, Working on real business challenges and Delivering thought leadership

19. Alignment of strategic initiatives across our segments…delivers value and impact Direct linkage to the CEO agenda Direct linkage to the business strategy and future opportunities We will continue to embed 2010 initiatives with an enhanced focus in the Technologist segment 18

20. Future Leaders - Generate Generate is a Thomson Reuters development program targeted at high performing individuals in their early careers (Gen Y), whom we believe have the potential to make even greater contributions in the future Purpose, Audience & Key Themes • The aim of Generate is to provide early career talent with a genuine global and immersive experience, • The target audience for the Generate programme are High potential individuals in early career • The key themes of the Generate programme are around: Working collaboratively, Global market awareness and Delivering innovation in a resource tight environment

21. Alignment of strategic initiatives across our segments…delivers value and impact Direct linkage to the CEO agenda Direct linkage to the business strategy and future opportunities We will continue to embed 2010 initiatives with an enhanced focus in the Technologist segment 20

22. We have also started the analysis into our Global segment with a focus on developing a Global Mindset… Broadening our definition of global mindset “Global mindset is about understanding and influencing those who are different to you and leveraging those differences effectively for commercial advantage”

23. Global Mindset – Objectives: • Fully define Global Mindset: Understand what it means to be truly “global” in Thomson Reuters, including the experiences required to build global capability • Explore options to define a flexible methodology of Global assessment: test and pilot an approach for how we identify and assess global capability at multiple levels • Establish the curricula for different ‘global’ development needs: Review all the existing development options in use throughout TR to identify strengths and gaps, with specific focus on both virtual and cross-cultural leadership capability 22

24. Alignment of strategic initiatives across our segments…delivers value and impact Direct linkage to the CEO agenda Direct linkage to the business strategy and future opportunities We will continue to embed 2010 initiatives with an enhanced focus in the Technologist segment 23

25. Technologists The goal of the Technologists segment is to build a consistent, compelling experience for talent who shape our critical and future technologies Purpose, Audience & Key Themes • This strategy around Technologists will focus on growing and flowing the technology thought-leaders who can play an essential role in building future technology across the company • Initiatives will focus on: Identification of pivotal technologists, building a pipeline of next generation thought leaders, attracting and retaining diverse Technologists and building a collaborative, global community of client-oriented Technologists 24

26. To deliver on our vision, we need to focus on select areas… 25

27. We encountered a number of leadership challenges as we embarked on our strategic talent journey… Key Insights • Organisational Barriers to Change • Definition of our Segments • Shared Accountability across the Segments • Volume of activity underway and amount of ‘high touch’ activity • Focusing on the right segment at the right time

28. Q&A 27