Beyond the numbersBeyond the numbersXBRL and Reuters company newsXBRL and Reuters company news

Oct 15 2008

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

• Company news – New battle grounds

Thomson 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

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

Company news – Readership

Q2 2008 study of top-read 2,100 company news stories globally

Conclusion: Eyeballs are on M&A and credit crisis, not results

MRG

CREDIT

RES

PROD

HOT

RESF

JOB

MOVE

ISU

EXPAND

INVEST

MARKET

CRIME

0%

10%

20%

30%

Exhibit 1 – A bright future for Crocs?

Reuters headlines, CEO quote from BSW release

“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

16:00 31Oct2007 CROCS INC <CROX.O> Q3 SHR $0.6616:00 31Oct2007 CROCS INC <CROX.O> SEES FY 2007 SHR $1.94 TO $1.9816:00 31Oct2007 CROCS INC <CROX.O> SEES FY 2007 REVENUE $820 MLN TO $830 MLN16:00 31Oct2007 CROCS INC <CROX.O> Q3 REVENUE ROSE 130 PCT TO $256.3 MLN16:01 31Oct2007 CROCS INC <CROX.O> REUTERS ESTIMATES Q3 SHR VIEW $0.63, REV VIEW $259.76 MLN16:01 31Oct2007 CROCS INC <CROX.O> REUTERS ESTIMATES FY 2007 SHR VIEW $1.97, REV VIEW $836.98

Exhibit 1– The real Crocs story

Oct 31 Reuters story

"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

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.

Exhibit 1 – The other shoe drops

Source: Reuters EcoWin

May

07

June July August September October NovemberV

olum

e (m

illion

s)

0.0

7.5

15.0

22.5

Cro

cs s

hare

s

30

35

40

45

50

55

60

65

70

75

80

Crocs opens down 28 pct

Crocs earnings release

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

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

Exhibit 2 – The numbers look OK 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

“The Supervisory Board has decided to abandon the sales process concerning GNReSound immediately and keep the activities within GN”- GN Store OMX announcement

… until you give the statement a second look

Nov 6 Reuters headlines and GN OMX announcement

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.

• 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

Exhibit 2 – Conclusions

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

0

1000

2000

3000

4000

5000

6000

2002 2003 2004 2005 2006 2007

Beats & exclusives

Company news – Connecting the dots

• Connecting results & forecasts to estimates instantly and automatically – Reuters News and Thomson Reuters Data

• Linking big news events to companies and vice-versa – Reuters News

• Finding and tagging key words in news and announcements – Reuters ClearForest

• Gauging sentiment by scoring news and announcements -- Reuters NewScope

Company news & XBRL – Thanks