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Agenda

Agenda. 2001 Performance Review - Revenue - Operating margin - Bridge progress - JVs, associates and investments Key issues for Reuters Outlook and summary. 2001 (underlying). Reuters Performance Review Recurring Revenue. Q1 Q2 Q3 Q4 FY 6% 5% 2% 0% 3%.

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Agenda

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  1. Agenda • 2001 Performance Review - Revenue - Operating margin - Bridge progress - JVs, associates and investments • Key issues for Reuters • Outlook and summary

  2. 2001 (underlying) Reuters Performance Review Recurring Revenue Q1 Q2 Q3 Q4 FY 6% 5% 2% 0% 3% • Significant high tier progress - 3000 Xtra - 6,000 units ahead of sales target - Dealing 3000 - installs 7% ahead of target

  3. 2001 (underlying) Reuters Performance ReviewOutright/Solutions Revenue • 21% growth in Consulting revenue stream • Reuters now deeply integrated in customers’ business infrastructure Q1 Q2 Q3 Q4 FY 47% 4% 25% -9% 7%

  4. Reuters Performance ReviewOperating Margin • Operating margin of 7% reflects - Bridge integration costs - Business Transformation - Once-off severance charges • Headcount reductions – 1400 of 1800 completed; all identified • Efficiency gains • Investing in next generation products - Reuters Dealing Link - Instant Messaging

  5. Reuters Performance ReviewBridge Progress • Rapid integration • Monthly loss reduced to $2m from $6mat time of announcement • Reuters US back office functions to be consolidated at St Louis campus • Neutral in 2003, earnings accretive in 2004

  6. Reuters Performance ReviewJVs, associates and investments • Dispassionate look at the portfolio • Reorganisation of Greenhouse to reflect strategic role in Group • Greater focus on investments with strong strategic significance - Instinet - Tibco - Radianz - Factiva

  7. Key Issues for Reuters • Delivering future revenue growth • Strengthening our competitive position • Maximising the value of Instinet to theReuters Group • Improving our operating margin • Capturing value through investment and resource allocation

  8. Future Revenue Growth Focus &Innovation IBB Reuters Knowledge STP 3000Xtra DomesticServices AM Smart Trading Advisor Workstation Global Scale Dealing3000 Treasury Lower Entry Points Solutions Suite SolutionsSelling DatafeedAccesses C&M Numerous verticalmarket segments

  9. Strengthening our Competitive Position • Reuters remains leader as market consolidates • Concentrating our efforts where they will count most - Global scale for operating advantage - Great, differentiating customer service - Superior open technology to drive solutions sales • Fewer, better, scaleable products

  10. Instinet • Volatile market conditions • More than a sell side ECN • Profitable business with strong buy side penetration • New products to be released in 2002 • Well positioned to participate in evolving market

  11. Outlook • Recurring revenue • Overall growth in 2002 driven by Bridge • 2-3% underlying decline in H1 • H2 rate of decline slightly higher than H1 • Outright revenue • Further solutions sales growth in 2002

  12. Put the customer at the heart of what we do Make global scale count Focus and innovate Summary Sustainable, double-digit earnings growth Unrelenting performance culture

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