Thomson Remake 07

This is a presentation “makeover”. It is intended to give potential clients an idea of what my presentation work might look like.

The original content for this presentation belongs to The Thompson Corporation.

I have redesigned the presentation, but I have not altered the content.

The original presentation (for comparison) can be found at:

http://tinyurl.com/27nrvw

The presentation was given June 7th, 2007 at the Merrill Lynch U.S. Media Conference

I kept the show stark, clean, and a little web2.0-ish.

Thomson is a truly modern information company. The audience is primarily investors and analysts - expecting clean information, not entertainment.

Visit my websites at:

www.i3mm.com

www. linux group of rochester .com

The Thomson Corporation – Legal Segment

Merrill Lynch Conference, London, June 7th, 2007

Safe Harbor

Agenda

Introduction

Legal Segment

Overview

Market Trends

Strategy Objective and Revenue Growth Drivers

Summary

Frank Golden

Peter Warwick

Thomson-Reuters

Createsa global leader in electronic information services, trading systems and news for professionals in knowledge based industries

Meetscustomers’ growing demand for broader, faster and more deeply integrated information and solutions

Positionedfor growth in two business segments –Financial Services and Professional Services

Combinationof two strong, experienced management teams and a well capitalized industry leader ($35B market cap)

Thomson-Reuters Creates a Diversified $11B+ Company

Financial $6.7B – 59%

Professional $4.6B – 41%

Americas $6.9B – 60%

EMEA $3.5B – 31%

Asia-Pacific $1.0B – 9%

2006 Pro Forma Revenue by Division

2006 Pro Forma Revenue by Region

Source: Public filings and investor presentations. Refer to Special Note for a more detailed explanation of pro forma financial information provided throughout this presentation. Reuters results converted into US dollars at 2006 average USD/GBP exchange ratio of 1.84

88% - Electronic, Software & Services

86% - Recurring

Thomson-Reuters Pro-Forma 2006

Financial59%

Legal27%

Tax & Acct.5%

Healthcare4%

Scientific5%

Revenue $11.343B

Source: Public filings and “Thomson-Reuters” presentation 5/15/2007.Reuters results converted into US dollars at 2006 average USD/GBP exchange ratio of 1.84Assumes all Reuters 2006 EBITA is combined with Thomson Financial to form “Financial”*Percentages exclude Thomson corporate and other costs

Thomson-Reuters Pro-Forma 2006

Financial59%

Legal27%

Tax & Acct.5%

Healthcare4%

Scientific5%

Adjusted EBITA $2.144B

Source: Public filings and “Thomson-Reuters” presentation 5/15/2007.Reuters results converted into US dollars at 2006 average USD/GBP exchange ratio of 1.84Assumes all Reuters 2006 EBITA is combined with Thomson Financial to form “Financial”*Percentages exclude Thomson corporate and other costs

Agenda

Introduction

Legal Segment

Overview

Market Trends


Summary

Frank Golden

Peter Warwick

Professional Revenue Composition

Legal $3.0B – 66%

Professional Group2006 Revenue: $4.6B

Scientific$0.6B – 13%

Tax & Acct.$0.6B – 13%

Healthcare$0.4B – 8%

Legal Operating Structure

West FindLaw EliteConsulting Services

International

Thomson Legal2006 Revenue: $3.0B

• Law Firms• Corporate, Govt.

& Academic• GSI• West Education

Group• Carswell

• Elite• Hubbard One• ProLaw

• Hildebrandt• Baker Robbins

• Sweet & Maxwell (UK)

• Aranzandi(Spain)

• TLR Australia / NZ

Legal Segment Highlights

• Global Market ~$21B

• #1 in North America

• Market Growing ~5% per Year

• Key Competition: Reed Elsevier (LexisNexis) and Wolters Kluwer

• Strong Financial Results– 4 Year Revenue CAGR =

7%

– Segment Operating Profit Margin Up 170bps in 3 years

• Driving Growth through Organic Initiatives

• Major Brands

Thomson Legal 2006 Revenue Composition

North America83%

International17%

Revenue by Geography

Thomson Legal 2006 Revenue Composition

Electronic / Software / Services66%

Print34%

Revenue by Format

Legal Segment Highlights

• Westlaw ($1.2B) organic growth of at least 8.5% for eight consecutive quarters

2%5%

4%6%8%

9%6%

7%

$2.5B

$2.7B2.8B

$3.0B

$2.2B

Organic Other % Total Revenue Growth

Revenue Growth Segment Operating Profit Margin

29.6% 29.4%

30.4%

31.3%

• Past tipping point in North America – growing both print and electronic

2003 2004 2005 2006 2003 2004 2005 200628%

Changing Revenue Dynamics

2000 20061995

35%

67%

65%33%

North American Legal

$1.0B

$2.5B

$0.6

$0.4

$0.8

$1.7

Print/CDElectronic/Software/Services

• Enables rapid access to new information

• Ideal environment for researching case law

• Loading and linking facilitates usage growth

• Enables integration of content with workflow applications

• We can quickly and effectively add components that deliver additional value

• Migration from print to online has stabilized

• Younger attorneys primarily trained in online legal research

• Some areas of law are still better served by print –e.g. analytical law

• Combining online and print resources is very compelling value proposition

Online Dynamics Print Dynamics

Agenda

Introduction

Legal Segment

Overview

Market Trends


Summary

Frank Golden

Peter Warwick

Changing Revenue Dynamics

• Legal market growing at estimated 5%

• Large US law firms have healthy revenue growth of 8-10%

• Expense management becoming more important

• “Boomers” reaching retirement is increasing the pressure on talent

• LexisNexis’ growth has focused outside core legal information in public records, services and software

• Wolters Kluwer is a smaller player with niche positions

Market Trends Competitor Trends

Growth of US Law Firms

43,330

58,28368,139 66,890

75,465

104,360109,495

116,671

173233 273 268 302

386438 467

Average and Total Lawyers in NLJ 250 Firms

The size of the top 250 law firms has increased

dramatically over the last 20 years

Total Lawyers

Average Lawyers per Firm

Source: The National Law Journal

270% increase

1985 1988 1991 1994 1997 2000 2003 2005

U.S. Law School Enrollments

135,091

140,612

145,088148,169 148,273

150,603 151,414 151,042 150,870

125,000

U.S. Law School Enrollment

+ 1.6% + 0.5% - 0.2% - 0.1%

+ 0.1%+ 2.1%

+ 3.2%

+ 4.1%

+ 2.0%

The talent pool is constrained as law school enrollments

flatten

Actual

Projected

2002 2003 2004 2005 2006 2007 2008 2009 2010

• Practice of Law opportunity:

–Demand for workflow solutions that increase efficiency and success

• Business of Law opportunity:

–Client development

–Talent management

Opportunities for Thomson

• Increased emphasis on client development/client teams

• Continued “talent war”

• More aggressively managing cost structure to maintain per partner profits

Law Firms

Impact of Key Trends

• Shift to “buyer’s market” from “seller’s market”

• Clients demand cost effectiveness from law firms

• Increasing use of competitive firm assessment/selection

Client Relationships

Key Competitor Comparison (2006)

15.2%

$40

Competitive threat only in niches

1.9%

2005

4.0%

2.4%

$260

Wolters Kluwer

7.7%

2006

7.1%

2006

23.6%35.5%OI Margin

$507$878OI (MM)

Slowing growth driven by non-legal information

Strong OI and healthy growth

4.5%*14.8%6.6%

200620052005Total

12.5%8.1%Other

2.4%6.9%Legal Information

Revenue Growth

$2,147$2,476Revenue (MM)

LexisNexisThompson NA Legal

* Includes acquisition of Best Case Solutions Bankruptcy SoftwareNOTE: Data for LexisNexis and Wolters Kluwer based on publicly reportedinformation, as adjusted to reflect our assumptions for comparative purposesand conversion into US$

Agenda

Introduction

Legal Segment

Overview

Market Trends


Summary

Frank Golden

Peter Warwick

Strategic Objectives - Overview

Total Estimated USLaw Firm Billings is $200B*

Litigation65%

Transactions24%

Advisory11%

Litigation

Transaction Law

Advisory / Compliance

Practice of Law

Client Development

Talent Management

Other C-Level Solutions

Business of Law

Source: Company Estimates.

Practice of Law Growth Strategy

US Law Firm Billings$200B*

Litigation65%

Transactions24%

Advisory11%

All areas share consistent growth phases

Acquire/BuildInformation

Assets

Enable thePractitioner’s

Workflow

Enable theProcess

Phase 1Phase 2

Phase 3

ConsolidateInformation

(Load & Link)

DevelopSoftware Tools

LeveragePlatform


Litigation Workflow

Value Case and Capture

ClientPlead Conduct

Discovery

Negotiate/ Prepare for

TrialConduct Trial Appeal

1 2 3 4 5 6

The litigation process follows six broad stages

Litigation Workflow – Core Assets

File & Present

Analyze, Negotiate,

DraftResearch Law / Info

Investigate & Compile Facts

Intake

$50M~$2,400M

$3,900M

~$50M ~$2,100M

Current Presence

Growth Opportunity

Strong market share in overall legal information space

Market leading comprehensive set of litigation content and workflow tools

Superior technology that will help link content to the larger litigation platform

Significant growth opportunities still ahead


Westlaw Litigator Revenue Growth

$12M

$43M

$77M

$110M

2003 2004 2005 2006

Expanding share of wallet and driving organic revenue


Transactional Law – Market Overview

Workflow Perspective of Customers

Litigation65%

Transactions24%

Advisory11%

Low

High

HighComplexity

Value

Immigration

Family Law

PersonalBankruptcy Estates & Trusts

Labor &Employment Insurance

Antitrust & Trade

IntellectualPropertyTax

Real EstateFinance

Restructuring &Bankruptcy Business

Entities

Securities &Offerings Mergers &

AcquisitionsBusiness &

FinanceInvestment &Private Equity

Business Transactions:

Business Transactions Legal Activity

Complex, high-value business transactions and associated legal disclosures create significant legal opportunity


Advisory/Compliance Customer Workflow

Litigation65%

Transactions24%

Advisory11%

Compliance Workflow

Customers work to assure corporations act in accordance with complex statutory and regulatory requirements

Lobbying Keeping Current

Assessing Risk

Setting Policy & Process

Reporting & Monitoring

Litigating & Investigating

1 2 3 4 5 6

Workflow Pain Points:

Understanding compliance requirements

Assessing greatest risk areas

Establishing appropriate policies and processes

Interpreting important changes

Assuring filings and record keeping are complete

Corporate Counsel (35% in-house activity)



Business of Law Solutions ($250M and growing)

Assembling an array of industry leading solutions addressing the most significant C-level focus areas

Workflows: Strategy Management

Profitability Management

Client Development

Talent Management

Technology Management

Target Users:Managing Partner,

Executive Committee

CFOs, Executive Directors, Analysts

CMOs, Competitive Intelligence,

Analysts

Practice Heads, Billing Partners

Chief Technology

Officers

Thomson Solutions:

• Hildebrandt

• Peer Monitor

• Elite

• ProLaw

• Findlaw

• Hubbard One

• Litigator Monitor

• LegalEd Center

• Legalworks

• Baker Robbins

• Managed Technology Services

Agenda

Introduction

Legal Segment

Overview

Market Trends


Summary

Frank Golden

Peter Warwick

Thomson-Reuters

Strongmarket conditions with new growth opportunities

Leveragingunrivalled scale, reputation, brand power and domain expertise

Acceleratedorganic growth

Stablecapital requirements

Focused on driving organic growth, margins and free cash flow

Questions & Answers

Visit my websites at:

www.i3mm.com

www. linux group of rochester .com