DATASTREAM – SEE THE BIGGER PICTURE

1. DATASTREAM – SEE THE BIGGER PICTURE WORLDSCOPE FUNDAMENTALS Amira Fares

2. BY THE END OF TODAY’S SESSION YOU WILL BE ABLE TO… • EXPLAIN THE NATURE OF THE WORLDSCOPE DATABASE • DESCRIBE HOW AND WHERE WORLDSCOPE DATA IS USED IN DATASTREAM • EXPLAIN PAST AND FUTURE DATABASE DEVELOPMENTS

3. WHAT IS WORLDSCOPE? AN OVERVIEW • Some context and terminology: • “As presented” – exactly the number and the item description provided by the company • “As reported” – an attempt to collect “as presented” data in a database of manageable size and complexity • “Standardised” – where the “as presented” data has been re-presented in way that promotes comparability between companies

4. WHAT IS WORLDSCOPE? AN OVERVIEW Worldscope is a “Fundamentals” database and so covers: • Financial Statements: • Balance Sheet • Income Statement • Cash flow statement • Per Share data (EPS, DPS, BV, Cash Flow per share, etc.) • Accounting standards used • Financial Ratios: • Growth • Profitability • Asset Utilisation • Leverage • Liquidity

5. WHAT IS WORLDSCOPE? AN OVERVIEW Content (continued…) • Market & Stock performance: • Security and identification • Exchange and indices • Market prices and trading volumes • Capital changes • Investment returns • P/E, P/B, Dividend yield, etc. • Text & Others: • Contact details • Officers • Business description • Industry classifications • Geographic segment • Product segment

6. WHAT IS WORLDSCOPE? AN OVERVIEW • Data sources and procedures • Public domain – all the information on which we base Worldscope is freely available to all. • We use a variety of sources – annual reports, official filings, data feeds, internet sources etc. • We try to use native language sources wherever possible – so we have staff who are native speakers of some 25-30 different languages. • Many of our analysts have accounting expertise as well as language skills when they join Thomson Reuters – but all go through our intensive training programme followed by 3-6 months’ supervised on-the-job training.

7. WHAT IS WORLDSCOPE? AN OVERVIEW • Offices and staffing: LOCATION STAFF COUNTRIES Bangalore c.260 Some N. America, India, Pakistan, Sri Lanka, Some Europe, Japan, Brazil Manila c.190 Some N. America, Asia-Pacific (ex-Japan), UK, Ireland, Latin America Cardiff c.12 Some Europe Plus small numbers (c.20) elsewhere involved in projects, technology, commercial support.

8. WHAT IS WORLDSCOPE? AN OVERVIEW • QA/QC • Detailed country- and item-specific documentation • Over 2,000 automated tests: • Balance - things that should add up do • Magnitude - reasonableness check across periods • Correlation - reasonableness check within period • Alpha - e.g. correct date format, valid industry codes, correct field lengths • Group leader review • Audit team – detailed reviews on a sample basis

9. WORLDSCOPE IN DETAIL - AIMS • The principal purpose of Worldscope is to aid the comparison of financial information from companies from different countries. • While there are ongoing attempts to harmonise international accounting standards this has not yet been achieved and inconsistencies also arise from local legal and tax systems as well as the use of language. • In addition, while IFRS (International Financial Reporting Standards) are now used in many countries they allow a great deal of flexibility in how a company chooses to display its figures.

10. WORLDSCOPE IN DETAIL - COVERAGE • A company needs to meet at least one of these coverage criteria: • 100% coverage of quoted companies in many (33) markets • E.g. USA, UK, EU (15), Switzerland, Norway, Japan. • Index membership • A company must be a member of one or more specified global or local indices. • Market capitalisation • Companies with market cap greater than US$100 million. • Visibility • Number of broker estimates equal to or greater than 5. • Total coverage is over 58,000 with more than 37,000 of those active. • The earliest data is from 1980.

11. WORLDSCOPE IN DETAIL – LIMITED DATA COMPANIES • Companies which do not meet the criteria for full, detailed coverage by Worldscope may be added at the “limited data” level. • There are currently around 8,400 active limited data companies in Worldscope and just over 2,200 inactive ones. • The limited company data set comprises about 350 key items. • “Limited data” companies may be identified by using field 11519, Indicator-Limited Data Set Company” (= X).

12. WORLDSCOPE IN DETAIL – STRUCTURE • All companies allocated to one of four broad industry categories: Industrial, Banks, Insurance, Other Financials • Data and structure • Over 1,700 items potentially available • For an Industrial company, nearly 1,500 items potentially available including: • Over 500 “fundamentals” • Some 300 per share / security-related items • Over 300 derived items • Remainder are mainly meta data or fielded textual data items • Derived items include many financial ratios covering growth, profitability, asset utilisation, leverage and liquidity • Annual, interim and preliminary data all covered.

13. WORLDSCOPE IN DETAIL – ANNUAL UPDATE TYPES • “Preliminary” – unaudited, may change, may be very limited detail, may be more than one round of updating, timeliness varies by country but we aim to update within 3 days of receipt. • “Fast” updates – always audited information, a sub-set of some 350 items (templates listed in the Data Definitions Guide (DDG)), aim to update within 5-10 days of receipt (but often much less than that). • “Final” – fully detailed updates from the annual report or filing, again templates listed in the DDG). Also note: • All updates prioritised by market capitalisation/index membership. • Field 07034, Indicator-Data Update, may be used to show the type of update completed for a particular time series.

14. WORLDSCOPE IN DETAIL – INTERIM UPDATES • This covers any data reported between the annual figures – nearly always semi-annual or quarterly. • There are two main components in Worldscope • Some, mainly per share, data within the annual time series. This has been available in the database since 1980. • A much more substantial set of fundamental items available as interim time series. This has been collected since 1998 for US companies and 2001 for non-US companies. • This does not mean that we have full interim series coverage back to 1998/2001 – it is pretty comprehensive now, and has been for a couple of years, but it grew to that position from zero over a few years.

15. WORLDSCOPE IN DETAIL – STANDARDISATION METHODOLOGY (1) VALUATION differences • LEVELS of PRUDENCE, including the COST BASIS • TAXATION • SPECIFIC ITEMS: • Goodwill • Investments • Depreciation • Inventories/Stocks • Financial & Operating Leases • Foreign Currencies • Research & Development • Pensions • DISCLOSURE differences • LANGUAGE • STANDARDS • TYPES of FILING • COMPONENTS of ACCOUNTS • ACCOUNT FORMATS • CONSOLIDATION • SPECIFIC ITEMS: • Share classifications • Extraordinary items • EPS and DPS Because much of the detail needed to make valuation adjustments is not always available, Worldscope does not attempt to standardise for depreciation policies or methods of foreign currency translation, for example.

16. WORLDSCOPE IN DETAIL – STANDARDISATION METHODOLOGY (2) VALUATION differences • LEVELS of PRUDENCE, including the COST BASIS • TAXATION • SPECIFIC ITEMS: • Goodwill • Investments • Depreciation • Inventories • Financial & Operating Leases • Foreign Currencies • Research & Development • Pensions • DISCLOSURE differences • LANGUAGE • STANDARDS • TYPES of FILING • COMPONENTS of ACCOUNTS • ACCOUNT FORMATS • CONSOLIDATION • SPECIFIC ITEMS: • Share classifications • Extraordinary items • EPS and DPS A full and careful analysis of the financial statements and notes to the accounts allows us to reclassify data into one of a number of templates, in which each data item has a standard definition. We do this to increase the data’s comparability and utility across borders, sectors and time series.

17. WORLDSCOPE IN DETAIL – EXAMPLES OF STANDARDISATION • Sales – if a company includes excise duties and sales taxes in its “headline” sales figure then Worldscope excludes them. • Long/short term – Worldscope uses a consistent “one year” as the dividing line whereas, for example, long term debtors are sometimes included within current assets. • Fixed asset impairment charge – sometimes in Cost of sales, sometimes shown as a non-recurring item – WS always does the latter and has an item (18274) to show the amount concerned. • Definitions – Worldscope’s Data Definitions Guide contains a detailed definition for each item in the database. • However, this type of approach can lead to a lack of “transparency”…

18. WORLDSCOPE IN DETAIL - RECONCILIATION EXAMPLE

19. WORLDSCOPE IN DATASTREAM – AVAILABLE DATA • There are two levels of Worldscope data a client may have access to via Datastream: • All clients have access to a set of around 130 “key” items – listed on the Datastream extranet and flagged in the Navigator item description. • Clients may also choose to subscribe to the “full” Worldscope database. • There are in fact a few minor exceptions – weekly, monthly and multi-stock items are not available via Datastream. • The full Worldscope country and company coverage, including “dead” companies, is available to all users. • The Datastream extranet is a very useful resource for Worldscope (as for other content sets). Let me know if you have an idea for something that should be added.

20. WORLDSCOPE IN DATASTREAM - ITEM PREFIXES • “WC” specifies “company-level” and “W” security-level data. The difference is only ever significant for per share-related data items. • When a company has: • one class of ordinary/common shares (the majority of companies) – Worldscope has just one company record in which all of the data is stored and item codes prefixed with “WC” or “W” will return the same data. • more than one class of common/ordinary share – Worldscope contains both a company-level record and a security-level record. • The former contains per share data based on the combined number of shares adjusted to the same par value, e.g. if a company has 10,000 “A” ordinary shares of £1 par value and 5,000 “B” ordinary shares of 50p par value and the “A” shares are deemed to be the main security then the combined number of shares would be 10,000 + (5,000 * 50/100) = 12,500. The security-level record contains per share data relevant to that particular security. • Use the “WC” prefix to retrieve company-level data e.g. WC05201 for EPS or the “W” prefix to retrieve security-level data e.g. W05201.

21. WORLDSCOPE IN DATASTREAM - ITEM SUFFIXES (1) • The main uses of these are to specify the retrieval of interim and/or restated data. • The set of suffixes currently available is as follows: • A originally reported interim figures on a fiscal basis, e.g. WC01001A • AQ originally reported key quarterly figures, on a fiscal basis, provided by some companies which produce detailed figures semi-annually but provide updates for key data, e.g. Sales, in their quarterly trading statements • R restated annual figures on a fiscal basis • S restated interim figures on a fiscal basis • SQ restated key quarterly figures, on a fiscal basis, provided by some companies which produce detailed figures semi-annually but provide updates for key data, e.g. Sales, in their quarterly trading statements

22. WORLDSCOPE IN DATASTREAM - ITEM SUFFIXES (2) • To request the retrieval of item Footnotes add “F”: • E.g. WC01001F for Thomson Corporation for 2007 returns: • N.B. The “F” suffix may be used in Static or Company Accounts Data requests but it does not work in Time Series ones. • To display the scale factor (thousands, millions etc. ) used add “.U” e.g. • The default for financial statement data is thousands. Type NET SALES OR REVENUES C:TOC (K ): ACQ'D. DELOITTE TAX LLP PROPERTY TAX SERVICES, PROUS SCIENCE & CROSSBORDER SOLUTIONS IN 2007 & TAXSTREAM IN 2008 Type WC01001.U C:TOC E+03

23. WORLDSCOPE IN DATASTREAM – WHERE AND HOW IT FEATURES • Static (900A), time series (900B) and company accounts (900C) requests. • It is included in some equities datatypes e.g. Price to Cash (PC) and Market to Book Value (MTBV) and it also supplies EPS for some markets. • Datastream contains lists, e.g. WSCOPEAR for Argentina, comprising all the companies (active and inactive) for each country. • Worldscope data can be used in expressions, graphs and searches. • We’ve recently added 14 items derived from Worldscope to the Datastream Global Equity Indices.

24. WORLDSCOPE IN DATASTREAM – NAVIGATOR

25. THE “REMEDY” AGREEMENT The Agreement: • FactSet buy a copy of Thomson Fundamentals databases, software and supporting documentation, plus options on key staff and certain customer contracts • obliged to provide support to FactSet for a period of at least 18 months: • Technical consulting and training • Collection processes and systems training • Keep the ‘remedy’ databases updated with ‘normal business’ enhancements, including supporting documentation • Provide consulting services to FactSet as requested The Impact: • Thomson Fundamentals databases and outgoing feeds must be maintained as normal through the remedy period • enhancements to these databases passed on to FactSet • considerable impact on our integration and enhancement strategy

26. DATABASE DEVELOPMENT - RECENT YEARS • Continued to expand data sets e.g. pension and healthcare items. • Expanded interim data coverage in Worldscope. • Added restated data capability to Worldscope. • All ex-Thomson Financial fundamentals now collected in one system (used to be four) thus improving timeliness and reducing confusion. • Added Key Performance Indicators (KPIs) (aka Operating Metrics) for hotel, airline and retail sectors for Russell 3000 companies – now being extended to FTSE World Index. • Worldscope data added for foreign quotations in Datastream.

27. DATABASE DEVELOPMENT – THE FUTURE • Point-in-Time content (PIT): Increase market share in the high-value quants business with this unique new global offering • Enhanced Operating Metrics/KPI content: Essential new content for analyst clients with a strong industry focus, covering 15 new industries • XBRL content and capability Offer potential clients a competitive edge, with increased levels of content consistency, accuracy and timeliness • Environmental, Social and Corporate Governance content (ESG): Expand sales potential to the rapidly increasing numbers of investment managers including ESG criteria in their investment decisions • Shariah Compliance content: Capture more private and institutional clients wanting to make investment choices that concur with Islamic law • Improvements to Click Through: Further enhancing the reputation and saleability of our content through greater transparency • Many new data points: Giving clients access to the latest developments in financial reporting and value-adding to our content with these market-driven requirements

28. SOURCES OF INFORMATION • Worldscope Data Definitions Guide: • Updated version to follow in the near future • Will beused as the basis for more targeted documentation • Datastream Extranet • T1B – click on item name to see item definitions. • and… Stephen Carter, IM Content Strategy: • Phone: +44 29 2063 1943 • E-mail: stephen.carter@thomsonreuters.com

29. IN THIS SESSION WE LEARNT HOW TO… • EXPLAIN THE NATURE OF THE WORLDSCOPE DATABASE • DESCRIBE HOW AND WHERE WORLDSCOPE DATA IS USED IN DATASTREAM • EXPLAIN PAST AND FUTURE DATABASE DEVELOPMENTS

30. Q&A SESSION