Thomson Reuters Reports Fourth-Quarter and Full-Year 2008 Results



    
    Q4 pro forma revenues up 5% before currency; underlying operating profit
up 13%

    Full-year pro forma revenues up 8%; underlying operating profit up 19%

    Integration savings target raised

    Board approves $0.04 annual dividend increase

    
    NEW YORK, Feb. 24 /PRNewswire/ -- Thomson Reuters (NYSE:   TRI; TSX: TRI;
LSE: TRIL; Nasdaq:   TRIN), the world's leading source of intelligent
information for businesses and professionals, today reported strong results
for the fourth quarter and full year ended December 31, 2008.  These results
reflect balanced contributions across the company's portfolio of businesses,
despite very challenging market conditions.
    

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20080424/NYTH069LOGO )

    --  Pro forma fourth-quarter revenues of $3.4 billion, an increase of 5%
        before currency (flat after the impact of currency).(1)
    --  Full-year pro forma revenues of $13.4 billion, an increase of 8%
        (currency had no impact).
    --  GAAP revenues increased 68% for the fourth quarter and 60% for 2008,
        primarily due to the Reuters acquisition, which was completed on April
        17, 2008.
    --  Fourth-quarter diluted earnings per common share of $0.79 and pro
forma
        adjusted diluted earnings per share of $0.57.
    --  2008 diluted earnings per share of $1.81 and pro forma adjusted
diluted
        earnings per share of $1.91.
    --  Fourth-quarter free cash flow of $694 million and underlying free cash
        flow of $829 million.(2)
    --  2008 free cash flow of $1.8 billion and underlying free cash flow of
        $2.3 billion.(2)

    
    (1) Pro forma financial information disclosed in this news release
assumes that Thomson's acquisition of Reuters closed on January 1, 2007. 
Thomson Reuters believes that pro forma financial information provides more
meaningful period-to-period comparisons of its performance because Reuters
results prior to the April 17, 2008 closing are not included in GAAP results. 
For more information, see the explanatory note on page 10.
    

    
    (2) Underlying free cash flow for the fourth quarter and full year
excludes one-time cash costs related to the Reuters acquisition and costs
associated with integration and synergy programs.
    

    
    "I am very pleased with the operating performance of Thomson Reuters in
2008, as well as the significant progress we achieved in integrating the
acquired Reuters business," said Thomas H. Glocer, chief executive officer of
Thomson Reuters.
    

    
    "As major economies slid into recession in 2008, we nonetheless continued
to perform well, thanks to our proven business model of providing must-have
content and services to professionals and our well-balanced set of businesses,
both by market and geography.
    

    
    "I am especially pleased we have been able to accelerate the Reuters
integration, significantly increase the savings we expect to achieve, and
reach our goal of becoming 'one company in one year'.  While considerable work
remains to consolidate operations and migrate customers to the new strategic
products we will launch this year, we are beginning to benefit from the
advantages of increased scale.
    

    
    "Based on the current environment in the markets we serve, we expect our
revenues to grow in 2009," said Mr. Glocer.
    

    Consolidated Pro Forma Financial Highlights - Fourth-Quarter 2008
    --  Revenues were $3.4 billion, an increase of 5% before currency and flat
        after currency.
    --  Underlying operating profit increased 13% to $833 million.(3)
    --  Underlying operating profit margin increased 280 basis points to
24.4%.
    Consolidated Pro Forma Financial Highlights - Full-Year 2008
    --  Revenues increased 8% to $13.4 billion.  There was no impact from
        currency.
    --  In 2008, revenues were 58% from the Americas, 32% from Europe, the
        Middle East and Africa, and 10% from Asia.
    --  Underlying operating profit increased 19% to $2.8 billion.(3)
    --  Underlying operating profit margin increased 190 basis points to
20.7%.

    
    (3) Pro forma underlying operating profit excludes amortization of
intangibles, fair value adjustments, costs associated with integration and
synergy programs and other items affecting comparability.
    

    Fourth-Quarter and Full-Year Business Segment Highlights
    Professional Division
    --  Fourth-quarter revenues were $1.5 billion, an increase of 6% before
        currency (up 3% after currency) driven by online, software and
services
        revenue growth of 10% slightly offset by a 1% decline in print and CD
        revenues.
    --  Fourth-quarter operating profit was $511 million, an 8% increase from
        the prior-year period.  Operating profit margin was 34.4%, compared to
        32.7% in the fourth quarter of 2007, with all segments of the
        Professional Division demonstrating margin expansion.  Operating
profit
        growth and margin expansion were due to strong revenue flow-through.
    --  Full-year revenues grew 8% to $5.5 billion (currency had no impact).
        Growth was driven by online, software and services product offerings
        which grew 8% and included strength from key products like FindLaw and
        Elite in Legal, Checkpoint in Tax & Accounting, ISI Web of Knowledge /
        Web of Science in Scientific and Medstat Advantage Suite in
Healthcare.
    --  Full-year 2008 operating profit increased 9% to $1.6 billion. 
        Operating profit margin was 29.5%, representing a 20 basis point
        improvement.
    Legal
    --  Fourth-quarter revenues were $887 million, up 6% before currency (up
1%
        after currency) primarily due to continued strength in international
        online products, and growth in Westlaw and within software and
services
        led by FindLaw.
    --  Fourth-quarter operating profit was $282 million, a 4% increase.  The
        corresponding margin of 31.8% represented a 70 basis point improvement
        from a year ago.  Margin expansion was due to strong revenue
        flow-through and efficiency savings.
    --  For the full year, revenues increased 6% to $3.5 billion driven by
        continued strong performance from Westlaw, and double-digit growth
from
        international online products.  FindLaw and Elite helped more than
        offset slowing ancillary (additional services above base subscription)
        revenues.  Print and CD revenues were up 1% for the year.
    --  Full-year operating profit increased 9% to $1.1 billion, with the
        related margin increasing 60 basis points to 32.1%.

    Tax & Accounting

    --  Fourth-quarter revenues increased 13% to $281 million. Growth was
        driven by core products Checkpoint, UltraTax, and the acquisition of
        Property Tax Services. Checkpoint has now recorded 24 consecutive
        quarters of double-digit revenue growth.
    --  Fourth-quarter operating profit increased 27% to $113 million, while
        the related margin increased 430 basis points to 40.2%.  Operating
        profit and margin growth primarily reflected strong revenue
        flow-through, benefits of efficiency initiatives and the impact of
        purchase accounting adjustments compared to the prior year period.  As
        in past years, about 50% of the unit's operating profit was generated
        in the fourth quarter.
    --  Full-year revenues rose 22% to $861 million. Growth was driven by
        strong performance in core products such as Checkpoint, which grew 18%
        for the year.
    --  Full-year operating profit increased 19% to $219 million, while the
        operating profit margin decreased 70 basis points to 25.4%.  Margins
        were lower due to the impact of acquisition accounting and an increase
        in revenues from faster growing services businesses, which have had
        lower margins to date.
    Scientific
    --  Fourth-quarter revenues were $159 million, up 6% before currency (flat
        after currency). Growth was driven by strength in ISI Web of Knowledge
        / Web of Science subscriptions.  Results for Scientific exclude the
        impact of Dialog, which was sold in July 2008.
    --  Fourth-quarter operating profit was $54 million, representing a 2%
        increase.  The related margin increased 70 basis points to 34.0%,
        primarily due to solid cost controls and favorable currency trends,
        offset by investments in growth initiatives, primarily in Asia.
    --  Full-year revenues were $604 million, up 8% before currency (up 7%
        after currency).  Growth was led by a double-digit increase from ISI
        Web of Knowledge / Web of Science.  These gains helped to offset
        softening in one-time revenues.
    --  Full-year operating profit grew 4% to $171 million with the related
        margin decreasing 70 basis points to 28.3%, primarily due to
        incremental investments in Asia.

    Healthcare
    --  Fourth-quarter revenues were $160 million, a 1% increase.  Growth was
        driven by the Payer business which demonstrated strength across all
        segments, led by the Medstat Advantage Suite.  Excluding the results
        for PDR (Physicians Desk Reference), which we intend to sell, revenues
        were up 6%.
    --  Fourth-quarter operating profit increased 9% to $62 million, and the
        related margin increased 270 basis points to 38.8%.  As in past years,
        about 70% of Healthcare's operating profit was generated in the fourth
        quarter.
    --  Full-year revenues increased 4% to $468 million. Revenue growth in
2008
        was impacted by a decline in PDR revenues.  Double-digit growth in the
        Payer segment offset continued declines from PDR.  Excluding PDR,
        full-year revenue growth was 7%.
    --  Full-year operating profit was $85 million, unchanged compared to
2007.
        The related margin decreased 60 basis points to 18.2%, with operating
        profit and margin affected in part by the decline in PDR revenues.

    Markets Division Pro Forma Results
    --  Fourth-quarter 2008 revenues were $1.9 billion, up 4% before currency
        (down 2% after currency).  The Markets Division continued to
        demonstrate solid performance, despite extreme volatility in the
        financial sector due to competitive wins, a broad global customer mix,
        and a breadth of offerings.  Growth was led by continued momentum in
        the Enterprise, Investment & Advisory, and Sales & Trading businesses.
        In the fourth quarter, 7% revenue growth in the Europe, Middle East
and
        Africa region led all geographic areas, while Asia grew 4% and the
        Americas declined 1%.
    --  Fourth-quarter operating profit increased 7% to $365 million and the
        related margin increased 160 basis points to 19.0%, reflecting the
        continued benefits of synergies, efficiency initiatives and tight cost
        management.
    --  Full-year revenues were $7.9 billion, up 6% before currency (up 7%
        after currency). Growth was spread across the division and was driven
        by strong performance from Enterprise solutions, Investment
Management,
        Corporate Services, Commodities & Energy and Treasury units.
    --  Full-year operating profit increased 26% to $1.4 billion, with the
        corresponding margin increasing 260 basis points to 17.7%. The margin
        expansion was driven by revenue growth and the benefits of the
        integration and savings programs.

    Sales & Trading
    --  Fourth-quarter revenues were $888 million, up 2% before currency (down
        4% after currency). Sales & Trading generates revenue from the sale of
        desktop products, as well as trading systems.  Growth was generated by
        transaction volumes driven by volatile markets, offset by headcount
        reductions in the industry.
    --  Full-year revenues were $3.8 billion, up 4% before currency (up 5%
        after currency).  Growth was driven by double-digit increases in
        Commodities & Energy and Tradeweb, as well as good performance in
        Treasury and foreign exchange transaction products.  Growth was
        particularly strong outside North America.
    Investment & Advisory
    --  Fourth-quarter revenues were $582 million, up 5% before currency (down
        1% after currency).  Investment Management, Wealth Management and
        Corporate Services all contributed solidly to the quarter's results.
        Despite large reductions in client assets under management from weak
        performance and redemptions, Investment Management continued to
perform
        well with an 8% growth in revenues, as demand grew for datafeeds and
        analytics products, such as QAI and Starmine.  Retail Wealth
Management
        and Corporate Services grew 7% and 9%, respectively.  Wealth
Management
        revenues were driven by strong sales of ThomsonONE and from strength
in
        the transaction processing business, BETA, which benefited from high
        market volumes.  The Corporate Services business continued to drive
        growth through geographic expansion and cross selling.  As
anticipated,
        Investment Banking revenues declined for the quarter as the economic
        environment continued to have an adverse impact on its customer base.
    --  Full-year revenues were $2.4 billion, up 8% before currency (up 7%
        after currency).  Growth was driven by strong demand for datafeeds and
        analytics products in the Investment Management segment.  The
Corporate
        Services business grew revenues in double-digits, and Retail Wealth
        Management grew 5%, led by BETA.  These segments helped to offset a
        challenging year for the Investment Banking unit.
    Enterprise
    --  Fourth-quarter revenues were $350 million, up 13% before currency (up
        5% after currency).  Growth was driven by the increasing demand for
        automated information and management solutions, including pricing and
        reference datafeeds and risk and information management systems.
    --  Full-year revenues were $1.3 billion, up 13% before currency (up 14%
        after currency). Growth was driven by strong performance in the
        Enterprise and Information Management System segments as customers
        continue to seek ways to reduce risk, drive efficiencies and increase
        returns.
    Media
    --  Fourth-quarter revenues were $106 million, down 5% before currency
        (down 11% after currency).   The decline in the quarter was
        attributable to modest weakness in the Agency business and marked
        slowdowns in the advertising-driven Consumer and Professional
        Publishing segments.
    --  Full-year revenues were $450 million, comparable to last year before
        currency (up 4% after currency).  Increases within Agency and Consumer
        segments were offset by a decline in Professional Publishing revenues.
        Advertising spending in Consumer and Professional Publishing segments
        slowed towards the end of 2008.
    Corporate and Other Pro Forma Results
    --  Fourth-quarter Corporate and Other expenses increased $34 million to
        $140 million,  primarily due to $123 million of integration and
synergy
        related costs, which were $55 million higher than the integration and
        synergy costs in the fourth quarter of 2007.  These expenses were
        partially offset by favorable non-cash fair value currency related
        adjustments.  Core Corporate and Other costs were $43 million compared
        to $76 million in the prior period, reflecting the benefits of the
        integration program.
    --  Full-year Corporate and Other expenses increased $78 million to $502
        million, primarily due to $362 million of integration and
        synergy-related costs which increased $209 million compared to the
        prior year.  These expenses were partially offset by favorable
non-cash
        fair value currency related adjustments.  Core Corporate and Other
        costs were $243 million compared to $257 million in 2007.
    Integration Programs
    --  As Thomson Reuters progressed with the execution of its Reuters
        integration plan, the company identified significant additional
        opportunities for cost savings. Thomson Reuters now expects $1 billion
        in annualized cost savings from integration programs by the end of
        2011, up from $750 million of savings projected in May 2008. This
        raises the overall savings target (including legacy efficiency
        programs) to $1.4 billion.
    --  Across all integration and legacy efficiency programs, Thomson Reuters
        achieved combined run-rate savings of $750 million as of December 31,
        2008.  The 2008 cost required to achieve these savings through
December
        31 was approximately $362 million.
    --  Thomson Reuters is now beginning the second phase of the acquisition
        integration, which includes retiring legacy products and systems to
        simplify the business and help make it more agile, responsive and
        profitable. In 2009, Thomson Reuters will roll out new strategic
        products, consolidate data centers and capture revenue synergies.
    
    Consolidated GAAP Financial Highlights - Fourth-Quarter 2008 (GAAP
financial information does not include the results of Reuters prior to the
closing date of April 17, 2008.)
    
    --  Revenues were $3.4 billion, a 68% increase, primarily due to the
        acquisition of Reuters.
    --  Operating profit was $689 million, an increase of 68%.  The increase
        was due to both additional profit from existing businesses and the
        Reuters acquisition, which offset costs associated with the
acquisition
        as well as integration programs.
    --  Earnings attributable to common and ordinary shares were $656 million,
        or $0.79 per share, compared to $432 million, or $0.67 per share, in
        the same period in 2007.  Earnings in the fourth quarter of 2007
        included $123 million related to discontinued operations.
    --  Net cash provided by operations in the fourth quarter was $1 billion
        compared to $659 million a year ago.  Free cash flow was $694 million.
        After adjusting for one-time cash costs related to the Reuters
        acquisition and costs associated with integration and synergy
programs,
        underlying free cash flow was $829 million.
    
    Consolidated GAAP Financial Highlights - Full-Year 2008 (GAAP financial
information does not include the results of Reuters prior to the closing date
of April 17, 2008.)
    
    --  Revenues were $11.7 billion, an increase of 60%, primarily due to the
        acquisition of Reuters.
    --  Operating profit was $1.7 billion, a 31% increase, as additional
profit
        from existing businesses and the Reuters acquisition offset costs
        associated with the acquisition as well as integration programs.
    --  Earnings attributable to common and ordinary shares were $1.4 billion,
        or $1.81 per share on a diluted basis, compared to $4 billion, or
$6.20
        per share on a diluted basis in 2007.  Earnings for 2007 included $2.9
        billion related to discontinued operations, net of tax, primarily
        related to the gain from the sale of Thomson Learning's higher
        education assets.
    --  Net cash provided by operations in 2008 was $2.8 billion compared to
        $1.8 billion a year ago.  Free cash flow was $1.8 billion and, after
        adjusting for one-time cash costs related to the Reuters acquisition
        and costs associated with integration and synergy programs, underlying
        free cash flow was $2.3 billion.
    2009 Business Outlook (Before Currency)

    
    Based on the current environment in the markets we serve, Thomson Reuters
expects its revenues to grow in 2009. We also expect underlying operating
margin to be comparable to 2008, supported by revenue growth and the expected
savings from integration and synergy programs.  Underlying free cash flow is
expected to be comparable to 2008, adjusted for certain timing related items.
    

    Dividend

    
    The Board of Directors approved an increase in the quarterly dividend. On
an annualized basis, 2009 dividends will increase $0.04 per share.  The
quarterly dividend of $0.28 per share is payable on March 26, 2009 to
shareholders of record as of March 6, 2009.
    

    Thomson Reuters

    
    Thomson Reuters is the world's leading source of intelligent information
for businesses and professionals.  We combine industry expertise with
innovative technology to deliver critical information to leading decision
makers in the financial, legal, tax and accounting, scientific, healthcare and
media markets, powered by the world's most trusted news organization.  With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs more than 50,000 people in 93 countries. Thomson
Reuters shares are listed on the New York Stock Exchange (NYSE:   TRI); Toronto
Stock Exchange (TSX: TRI); London Stock Exchange (LSE: TRIL); and Nasdaq
(Nasdaq:   TRIN). For more information, go to www.thomsonreuters.com.
    

    
    Thomson Reuters will webcast a discussion of its fourth-quarter and
full-year results today beginning at 10:00 a.m. U.S. Eastern Standard Time
(EST)/ 3:00 p.m. GMT.  To participate in the webcast, please visit
www.thomsonreuters.com and click the "Investor Relations" link located at the
top of the page and then "Earnings Webcasts" on the left side of the "Investor
Relations" page.  A copy of this news release along with slides and other
materials for the webcast are available at www.thomsonreuters.com.
    

    
    Thomson Reuters Corporation is incorporated in Ontario, Canada with a
registered office at Suite 2706, Toronto Dominion Bank Tower, P.O. Box 24,
Toronto-Dominion Centre, Toronto, Ontario M5K 1A1, Canada. Thomson Reuters PLC
(registered no. 06141013) is registered in England & Wales with a registered
office at The Thomson Reuters Building, South Colonnade, Canary Wharf, London
E14 5EP, United Kingdom. Thomson Reuters primary financial statements are the
consolidated financial statements of Thomson Reuters Corporation. Those
statements account for Thomson Reuters PLC as a subsidiary.
    

    
    All references to growth rate percentages compare the results of the
period to those of the prior year comparable period.
    

    NON-GAAP FINANCIAL MEASURES

    
    This news release includes certain non-GAAP financial measures, including
pro forma financial information as described herein. Thomson Reuters uses
these non-GAAP financial measures as supplemental indicators of its operating
performance and financial position. These measures do not have any
standardized meanings prescribed by Canadian GAAP and therefore are unlikely
to be comparable to the calculation of similar measures used by other
companies, and should not be viewed as alternatives to measures of financial
performance calculated in accordance with Canadian GAAP. Non-GAAP financial
measures (other than pro forma financial information) are defined and
reconciled to the most directly comparable Canadian GAAP measures in the
following tables.
    

    
    In this news release, Thomson Reuters refers to growth rates before and
after currency so that its results can be viewed without the impact of changes
in foreign currency exchange rates. Thomson Reuters believes this facilitates
period-to-period comparisons of its fourth-quarter and full-year 2008 results.
    

    PRO FORMA FINANCIAL INFORMATION

    
    Pro forma financial information included in this news release is for
information purposes only and is unaudited. Pro forma financial information
was prepared in U.S. dollars in a manner consistent with accounting policies
that applied to Thomson under Canadian GAAP prior to the closing of the
acquisition and which currently apply to Thomson Reuters as though Reuters was
acquired on January 1, 2007. Pro forma financial information should not be
considered indicative of actual balance sheet data or operating results that
would have been achieved had Thomson acquired Reuters on January 1, 2007, or
of results which may occur in the future. Pro forma financial information
should be read in conjunction with historical financial results for Thomson
and Reuters. Pro forma information reflects the impacts of purchase accounting
but excludes deal-related expenses.  The impacts of purchase accounting were
based on preliminary estimates during the course of 2008, but were finalized
in the fourth quarter. These adjustments have been reflected in the full-year
pro forma results as though they had been recorded at the finalized amounts in
earlier quarters.
    

    CAUTIONARY NOTE CONCERNING FACTORS THAT MAY AFFECT FUTURE RESULTS

    
    This news release, in particular the section under the heading "2009
Business Outlook", includes forward-looking statements that are based on
certain assumptions and reflect Thomson Reuters current expectations.
Forward-looking statements are those that are not historical facts and also
include Thomson Reuters expectations about its future prospects. 
Forward-looking statements are subject to a number of risks and uncertainties
that could cause actual results or events to differ materially from current
expectations. Some of the factors that could cause actual results to differ
materially from current expectations include risks related to Thomson Reuters
ability to achieve the anticipated benefits from the Reuters transaction and
other integration program initiatives (including within the time periods
currently expected), develop additional products and services to meet
customers' needs, attract new customers, general economic conditions and
actions of competitors.   These and other factors are discussed in materials
that Thomson Reuters Corporation and Thomson Reuters PLC from time to time
file with, or furnish to, securities regulatory authorities.  Thomson Reuters
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, other than as required by applicable law, rule or regulation.

    
    CONTACTS
    Fred Hawrysh
    Senior Vice President, Corporate Affairs
    1.646 223 5285
    fred.hawrysh@thomsonreuters.com
    

    
    Victoria Brough
    Head of Corporate Communications, EMEA
    +44 (0) 207 542 8763
    victoria.brough@thomsonreuters.com
    


    
    Frank Golden
    Senior Vice President, Investor Relations
    1.646 223 5288
    frank.golden@thomsonreuters.com

    


    
                          Pro Forma Thomson Reuters
                  Division and Business Segment Information
                          (millions of U.S. dollars)
                                 (unaudited)
    

    
                                                 Three Months Ended
                                                 ------------------
                                                    December 31,
                                                    ------------
                                        2008     2007   Change   Organic
                                        ----     ----   ------   -------
    Pro Forma Revenues
         Legal                          $887     $875        1%        5%
         Tax & Accounting                281      248       13%       11%
         Scientific                      159      159        0%        6%
         Healthcare                      160      158        1%        1%
                                      ------   ------
    Professional Division              1,487    1,440        3%        6%
         Sales & Trading                 888      927       -4%        2%
         Investment & Advisory           582      585       -1%        4%
         Enterprise                      350      333        5%       13%
         Media                           106      119      -11%       -5%
                                      ------   ------
    Markets Division                   1,926    1,964       -2%        4%
    Intercompany eliminations             (1)      (3)
                                      ------   ------
    Pro Forma Revenues -
     Ongoing Businesses(1)             3,412    3,401        0%        5%
    Purchase accounting difference (1)     -        -
    Disposals(2)                           -       21
                                      ------   ------
    Pro Forma Revenues                $3,412   $3,422        0%
                                      ======   ======
    Pro Forma Operating Profit
       Legal                            $282     $272        4%
       Tax & Accounting                  113       89       27%
       Scientific                         54       53        2%
       Healthcare                         62       57        9%
                                      ------   ------
    Professional Division                511      471        8%
    Markets Division                     365      341        7%
    Corporate and Other                 (140)    (106)
    Amortization                        (126)    (134)
                                      ------   ------
    Pro Forma Operating profit
     - Ongoing Businesses(1)             610      572        7%
    Purchase accounting
     difference(1)                         -        -
    Disposals(2)                                    2
    Impairment of assets held for sale     -        -
                                      ------   ------
    Pro Forma Operating Profit          $610     $574        6%
                                      ======   ======
    


    
                                                 Twelve Months Ended
                                                 -------------------
                                                    December 31,
                                                    ------------
                                        2008     2007   Change   Organic
                                        ----     ----   ------   -------
    Pro Forma Revenues
         Legal                        $3,531   $3,318        6%        6%
         Tax & Accounting                861      705       22%       10%
         Scientific                      604      565        7%        4%
         Healthcare                      468      452        4%        4%
                                      ------   ------
    Professional Division              5,464    5,040        8%        6%
         Sales & Trading               3,828    3,640        5%        4%
         Investment & Advisory         2,371    2,207        7%        7%
         Enterprise                    1,295    1,139       14%       13%
         Media                           450      432        4%        0%
                                      ------   ------
    Markets Division                   7,944    7,418        7%        6%
    Intercompany eliminations             (9)     (16)
                                      ------   ------
    Pro Forma Revenues -
     Ongoing Businesses(1)            13,399   12,442        8%        6%
    Purchase accounting difference (1)     -      (86)
    Disposals(2)                          42       86
                                      ------   ------
    Pro Forma Revenues               $13,441  $12,442        8%
                                      ======   ======
    Pro Forma Operating Profit
       Legal                          $1,135   $1,044        9%
       Tax & Accounting                  219      184       19%
       Scientific                        171      164        4%
       Healthcare                         85       85        0%
                                      ------   ------
    Professional Division              1,610    1,477        9%
    Markets Division                   1,406    1,117       26%
    Corporate and Other                 (502)    (424)
    Amortization                        (511)    (524)
                                      ------   ------
    Pro Forma Operating profit
     - Ongoing Businesses(1)           2,003    1,646       22%
    Purchase accounting
     difference(1)                         -      (86)
    Disposals(2)                           5       11
    Impairment of assets held for sale   (72)       -
                                      ------   ------
    Pro Forma Operating Profit        $1,936   $1,571       23%
                                      ======   ======
    



    
                             Pro Forma Thomson Reuters
        Reconciliation of Operating Profit to Underlying Operating Profit
                             (millions of U.S. dollars)
                                     (unaudited)
    

    
                                   Three Months Ended    Twelve Months Ended
                                   ------------------    -------------------
                                      December 31,          December 31,
                                      ------------          ------------
                                  2008    2007  Change  2008    2007   Change
                                  ----    ----  ------  ----    ----   ------
    

    
    Pro Forma Operating Profit     $610   $574    6%  $1,936   $1,571    23%
    Adjustments:
         Amortization               126    134           511      524
         Purchase accounting
          difference                  -      -             -       86
         Disposals                    -     (2)           (5)     (11)
         Impairment of assets
          held for sale               -      -            72        -
         Fair value adjustments     (26)    (4)         (103)      48
         Integration and
          synergy costs             123     68           362      153
         Pension                      -    (34)            -      (34)
                                  -----  -----         -----    -----
    Pro Forma Underlying
     Operating Profit(3)           $833   $736   13%  $2,773   $2,337    19%
                                  =====  =====         =====    =====
    Pro Forma Underlying
     Operating Profit Margin %(3)  24.4%  21.6%         20.7%    18.8%
                                  =====  =====         =====    =====
    



    
                                Pro Forma Thomson Reuters
     Reconciliation of Underlying Operating Profit to Adjusted Earnings From
                                  Continuing Operations
                   (millions of U.S. dollars, except per share data)
                                       (unaudited)
    

    
                                        Three Months Ended Twelve Months Ended
                                        ------------------ -------------------
                                         December 31, 2008  December 31, 2008
                                         -----------------  -----------------
    

    
    Pro Forma Underlying Operating Profit(3)         $833           $2,773
    Integration and synergy costs                    (123)            (362)
    Net interest expense(4)                          (102)            (434)
    Income taxes(5)                                  (121)            (367)
    Tradeweb ownership interests                       (8)             (17)
    Dividends declared on preference shares            (1)              (5)
                                                 --------         --------
    Pro Forma Adjusted Earnings -
     Ongoing Businesses(6)                           $478           $1,588
                                                 ========         ========
    Pro Forma Adjusted Basic Earnings
     Per Share - Ongoing Businesses                 $0.58            $1.92
                                                 ========         ========
    Pro Forma Adjusted Diluted Earnings
     Per Share - Ongoing Businesses                 $0.57            $1.91
                                                 ========         ========
    

    
    Pro forma basic weighted average common
     and ordinary shares(7)                         825.7            828.6
                                                 ========         ========
    Pro forma diluted weighted average common
     and ordinary shares(8)                         831.7            833.0
                                                 ========         ========
    



    
                            Pro Forma Thomson Reuters
                   Division and Business Segment Depreciation
                            (millions of U.S. dollars)
                                   (unaudited)
    

    
                                        Three Months Ended Twelve Months Ended
                                        ------------------ -------------------
                                           December 31,       December 31,
                                           ------------       ------------
    Pro Forma Depreciation by Segment    2008        2007     2008     2007
                                         ----        ----     ----     ----
    Professional Division
       Legal                             $(59)       $(52)   $(235)   $(205)
       Tax & Accounting                    (8)         (6)     (30)     (21)
       Scientific                         (10)         (7)     (35)     (28)
       Healthcare                          (6)         (7)     (25)     (24)
                                        ------------------  ----------------
    Professional Division                 (83)        (72)    (325)    (278)
    Markets Division                     (157)       (149)    (617)    (626)
    Corporate and Other                   (13)         (4)     (21)     (14)
                                        ------------------  ----------------
    Pro Forma Depreciation -
     Ongoing Businesses                  (253)       (225)    (963)    (918)
    Disposals                               -          (2)      (1)      (4)
                                        ------------------  ----------------
    Total Pro Forma Depreciation        $(253)      $(227)   $(964)   $(922)
                                        ==================  ================
    

    
    (1) Pro forma revenues from ongoing businesses and pro forma operating
        profit from ongoing businesses exclude the results of disposals (see
        note (2) below).  These revenues exclude the initial one-time
        purchase accounting adjustment related to acquired revenue.  Pro
        forma operating profit has been restated to reflect purchase
        accounting adjustments based on the final valuation of net assets
        acquired.
    

    
    (2) Disposals include the results of businesses sold or held for sale
        that do not qualify as discontinued operations.
    

    
    (3) Pro forma underlying operating profit excludes amortization of
        acquired intangible assets, fair value adjustments, the impairment
        of assets held for sale, costs associated with integration and
        synergy programs, and other items affecting comparability.  Pro forma
        underlying operating profit excludes the results of disposals as well
        as the initial one-time purchase accounting adjustments related to
        acquired revenue.  Pro forma underlying operating profit margin is
        the pro forma underlying operating profit expressed as a percentage
        of pro forma ongoing revenues.
    

    
    (4) Pro forma net interest expense for the three months ended December
        31, 2008 equals actual interest expense.  Pro forma net interest
        expense for the twelve months represents a pro rata portion of full
        year pro forma interest expense of $450 million through June 2008
        plus actual net interest expense for the six months ended December
        31, 2008.
    

    
    (5) Pro forma income taxes are calculated using an effective tax rate
        of 25%.
    

    
    (6) Pro forma adjusted earnings from ongoing operations and pro forma
        adjusted earnings per share from ongoing operations include costs
        associated with the integration and synergy programs, but exclude
        non-recurring items, discontinued operations, the results of
        disposals (see note (2) above) and other items affecting
        comparability.  Pro forma adjusted earnings per share from ongoing
        operations does not represent actual earnings per share attributable
        to shareholders.
    

    
    (7) Pro forma basic weighted average common and ordinary shares includes
        approximately 194.1 million Thomson Reuters PLC shares issued to
        former Reuters Group PLC shareholders on April 17, 2008 as if the
        shares were outstanding from January 1, 2008, the beginning of the
        periods presented.
    

    
    (8) Pro forma diluted weighted average common and ordinary shares
        includes the effect of Reuters Group PLC options and other awards
        assumed in the acquisition from January 1, 2008, the beginning of the
        periods presented.
    



    
                         Thomson Reuters Corporation
                     Consolidated Statement of Earnings
             (millions of U.S. dollars, except per common share data)
                                 (unaudited)
    

    
                                Three Months Ended        Twelve Months Ended
                                ------------------        -------------------
                                  December 31,                December 31,
                                  ------------                ------------
                                2008         2007          2008         2007
                                ----         ----          ----         ----
    

    
    Revenues                     3,412        2,033       11,707        7,296
    Cost of sales, selling,
     marketing, general and
     administrative expenses    (2,367)      (1,436)      (8,700)      (5,275)
    Depreciation                  (306)        (120)        (831)        (468)
    Amortization                   (50)         (67)        (411)        (256)
    Impairment of assets held
     for sale                        -            -          (72)           -
                           -----------  -----------  -----------  -----------
    Operating profit               689          410        1,693        1,297
    Net other income (expense)     249          (40)         304          (34)
    Net interest (expense) income
     and other financing costs    (102)          52         (224)         (12)
    Income taxes                  (187)        (111)        (351)        (155)
    Tradeweb ownership interests    (8)           -          (17)           -
                           -----------  -----------  -----------  -----------
    Earnings from continuing
     operations                    641          311        1,405        1,096
    Earnings from discontinued
     operations, net of tax         16          123            -        2,908
                           -----------  -----------  -----------  -----------
    Net earnings                   657          434        1,405        4,004
    Dividends declared on
     preference shares              (1)          (2)          (5)          (6)
                           -----------  -----------  -----------  -----------
    Earnings attributable to
     common and ordinary shares    656          432        1,400        3,998
    


    
    Basic earnings per share     $0.79        $0.67        $1.82        $6.24
                           ===========  ===========  ===========  ===========
    

    
    Diluted earnings per share   $0.79        $0.67        $1.81        $6.20
                           ===========  ===========  ===========  ===========
    Basic weighted average
     common and ordinary
     shares                825,737,282  641,393,907  770,837,612  641,157,718
                           ===========  ===========  ===========  ===========
    Diluted weighted average
     common and ordinary
     shares                831,688,580  644,516,692  775,179,027  644,430,796
                           ===========  ===========  ===========  ===========
    



    
                          Thomson Reuters Corporation
                          Consolidated Balance Sheet
                          (millions of U.S. dollars)
                                 (unaudited)
    

    
                                                    December 31,  December 31,
                                                        2008         2007
                                                        ----         ----
    Assets
    

    
    Cash and cash equivalents                             841          7,497
    Accounts receivable, net of allowances              1,780          1,565
    Prepaid expenses and other current assets             952            512
    Deferred income taxes                                 100            104
                                                      -------        -------
    Current assets                                      3,673          9,678
    

    
    Computer hardware and other property, net           1,555            731
    Computer software, net                              1,298            721
    Identifiable intangible assets, net                 8,596          3,438
    Goodwill                                           19,348          6,935
    Other non-current assets                            1,550          1,328
                                                      -------        -------
    Total assets                                       36,020         22,831
                                                      =======        =======
    Liabilities and shareholders' equity
    

    
    Liabilities
    

    
    Short-term indebtedness                                13            183
    Accounts payable and accruals                       2,710          1,536
    Deferred revenue                                    1,196          1,108
    Current portion of long-term debt and
     finance lease obligations                            672            412
                                                      -------        -------
    Current liabilities                                 4,591          3,239
    

    
    Long-term debt and finance lease obligations        6,834          4,264
    Other non-current liabilities                       1,723            783
    Deferred income taxes                               2,674            974
    

    
    Minority interest in equity of
     consolidated affiliate                                72              -
    

    
    Shareholders' equity
    

    
    Capital                                            11,135          2,932
    Retained earnings                                  10,969         10,355
    Accumulated other comprehensive (loss) income      (1,978)           284
                                                      -------        -------
    Total shareholders' equity                         20,126         13,571
                                                      -------        -------
    Total liabilities and shareholders' equity         36,020         22,831
                                                      =======        =======
    



    
                            Thomson Reuters Corporation
                         Consolidated Statement of Cash Flow
                            (millions of U.S. dollars)
                                  (unaudited)
    

    
                                    Three Months Ended     Twelve Months Ended
                                    ------------------   -------------------
                                       December 31,           December 31,
                                       ------------           ------------
                                     2008        2007       2008       2007
                                     ----        ----       ----       ----
    Cash provided by (used in):
    

    
    Operating activities
    Net earnings                      657         434       1,405     4,004
    Remove earnings from
     discontinued operations          (16)       (123)          -    (2,908)
    Add back (deduct) items
     not involving cash:
       Depreciation                   306         120         831       468
       Amortization                    50          67         411       256
       Net gains on disposals of
        businesses and investments     (6)          -         (35)       (8)
       Impairment of assets
        held for sale                   -           -          72         -
       Deferred income taxes          117         (54)         32      (124)
       Other, net                    (249)         58        (125)      258
    Changes in working capital
     and other items                  146          71         192      (136)
    Cash provided by (used in)
     operating activities -
     discontinued operations            -          86         (22)        6
                                   -------------------    ------------------
    Net cash provided by
     operating activities           1,005         659       2,761     1,816
                                   -------------------    ------------------
    Investing activities
    

    
    Acquisitions, less cash
     acquired                        (204)       (173)     (8,502)     (488)
    (Payments for) proceeds from
     disposals of discontinued
     operations, net of income
     taxes paid                         -        (899)        (65)    7,151
    (Payments for) proceeds from
     disposals, net of income
     taxes paid                       (27)          7         244        18
    Capital expenditures, less
     proceeds from disposals         (317)       (225)       (906)     (608)
    Other investing activities          7          (4)        (26)      (37)
    Capital expenditures of
     discontinued operations            -           -           -       (97)
    Acquisitions by discontinued
     operations                         -           -           -       (54)
    Other investing activities of
     discontinued operations            -           -          (7)       (2)
                                   -------------------    ------------------
    Net cash (used in) provided by
     investing activities            (541)     (1,294)     (9,262)    5,883
                                   -------------------    ------------------
    Financing activities
    

    
    Proceeds from debt                  -         794       7,600       794
    Repayments of debt               (408)          -      (5,487)     (249)
    Net borrowings (repayments)
     under short-term loan
     facilities                         -         190      (1,065)     (180)
    Purchase of sterling call
     options                            -           -           -       (76)
    Repurchase of common and
     ordinary shares                  (11)        (93)       (522)     (168)
    Dividends paid on
     preference shares                 (1)         (2)         (5)       (6)
    Dividends paid on common
     and ordinary shares             (180)       (153)       (842)     (612)
    Other financing activities, net     2          14         207        33
                                   -------------------    ------------------
    Net cash (used in) provided
     by financing activities         (598)        750        (114)     (464)
                                   -------------------    ------------------
    Translation adjustments            (8)        (73)        (41)      (72)
                                   -------------------    ------------------
    (Decrease) increase in
     cash and cash equivalents       (142)         42      (6,656)    7,163
    Cash and cash equivalents
     at beginning of period           983       7,455       7,497       334
                                   -------------------    ------------------
    Cash and cash equivalents
     at end of period                 841       7,497         841     7,497
                                   ===================    ==================
    



    
                          Thomson Reuters Corporation
       Reconciliation of Net Cash Provided by Operating Activities to Free
                                   Cash Flow(1)
                            (millions of U.S. dollars)
                                   (unaudited)
    

    
                                          Three Months     Twelve Months
                                          ------------     -------------
                                             Ended             Ended
                                             -----             -----
                                          December 31,      December 31,
                                          ------------      ------------
                                          2008     2007    2008     2007
                                          ----     ----    ----     ----
    Net cash provided by operating
     activities                          1,005      659   2,761    1,816
    Capital expenditures                  (317)    (225)   (906)    (608)
    Other investing activities               7       (4)    (26)     (37)
    Capital expenditures of discontinued
     operations                              -        -       -      (97)
    Other investing activities of
     discontinued operations                 -        -      (7)      (2)
    Dividends paid on preference shares     (1)      (2)     (5)      (6)
                                        ----------------------------------
    Free cash flow                         694      428   1,817    1,066
                                        ==================================
    



    
    (1) Free cash flow is net cash provided by operating activities less
        capital expenditures, other investing activities and dividends paid
        on preference shares. Thomson Reuters uses free cash flow as a
        performance measure because it represents cash available to repay
        debt, pay dividends and fund new acquisitions.
    

    
        In 2008, free cash flow was affected by certain unusual items.
        The following analysis removes these items to derive our
        underlying free cash flow:
    

    
                                        Three Months      Twelve Months
                                        ------------      -------------
                                           Ended              Ended
                                           -----              -----
                                        December 31,       December 31,
                                        ------------       ------------
                                            2008               2008
                                            ----               ----
    

    
    Free cash flow                          $694             $1,817
    One-time Reuters acquisition,
     integration and synergy costs           135                518
                                        ----------------------------
    Underlying free cash flow                829              2,335
    Adjustments for certain items              -               (450)
                                        ----------------------------
                                             829              1,885
                                        ============================
    


    
    To provide a more Normalized 2008 Free Cash Flow number we adjust
    for two timing related items:
    

    
    (1)  Interest costs which were substantially lower in 2008 since
         we benefitted from having interest income and only a partial
         year of interest expense related to the Reuters acquisition
         debt.
    (2)  And last year's figure does not include what is traditionally
         negative free cash flow from the Reuters business in the first
         quarter of the year, which will be reflected in 2009.





    




For further information:

For further information: Fred Hawrysh, Senior Vice President, Corporate
Affairs, +1-646-223-5285, fred.hawrysh@thomsonreuters.com; Victoria Brough,
Head of Corporate Communications, EMEA, +44 (0) 207 542 8763,
victoria.brough@thomsonreuters.com; or Frank Golden, Senior Vice President,
Investor Relations, +1-646-223-5288, frank.golden@thomsonreuters.com Web Site:
http://www.thomson.com


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