Thomson Reuters Reports Third-Quarter 2009 Results


    
    - Businesses performing well in challenging markets

    - Total revenues down 2% before currency; Professional division up 2%,
    Markets division down 4%

    - Underlying operating profit up 3%; operating profit margin up 140 basis
    points

    - Full-year 2009 guidance reaffirmed






    
</pre>
<p>NEW YORK, <chron>Nov. 5</chron> /CNW/ -- Thomson Reuters (TSX / NYSE:   TRI), the world's leading source of intelligent information for businesses and professionals, today reported results for the third quarter ended <chron>September 30, 2009</chron>.  While net sales began to improve in the third quarter, revenue flow-through from weaker year-to-date net sales in Legal and Markets overshadowed strong performances in Tax & Accounting and Healthcare & Science.  Underlying operating profit margin improvement was driven by the benefit of currency, continuing progress on the integration program and strong cost management.</p>
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    (Logo: http://www.newscom.com/cgi-bin/prnh/20090507/NY12658LOGO )



    
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<p> </p>
<pre>
    
                                      Three Months Ended September 30,
                                      --------------------------------
                                   (Millions of U.S. dollars, except EPS
                                             and Profit Margin)
    
</pre>
<p> </p>
<pre>
    
    IFRS Financial Measures        2009    2008                     Change
                                   ----    ----                     ------
    Revenues                     $3,216  $3,339                       -4%
    Operating profit               $378    $553                      -32%
    Diluted earnings per share
     (EPS)                        $0.19   $0.49                      -61%
    Cash flow from operations      $513    $592                      -13%
    
</pre>
<p> </p>
<pre>
    
                                                   Change Before
    Non-IFRS Financial Measures(1) 2009    2008         Currency    Change
                                   ----    ----         --------    ------
    Revenues from ongoing
     businesses                  $3,212  $3,331           -2%         -4%
    Underlying operating profit    $711    $690                        3%
    Underlying operating profit                                    +140bps
     margin                        22.1%   20.7%
    Adjusted earnings per share
     (EPS)                        $0.43   $0.47                       -9%
    Free cash flow                 $260    $332                      -22%
    
</pre>
<p> </p>
<pre>
    
    (1) These non-IFRS financial measures are defined and reconciled to the
    most directly comparable IFRS measure in the tables appended to this news
    release. Additional information is provided in the explanatory note at the
    end of this news release.



    --  Revenues from ongoing businesses were $3.2 billion, a decrease of 2%
        before currency and 4% after currency. IFRS revenues were down 4%
after
        currency against the prior year period.
    --  Underlying operating profit was up 3% to $711 million, with the
related
        margin up 140 basis points, driven by the benefit of currency,
        integration-related savings and a continued commitment to strong cost
        management.
    --  Adjusted earnings per share were $0.43 compared with $0.47 in the
third
        quarter of 2008. The decline was due to higher integration-related
        spending, which is included in adjusted earnings but not underlying
        operating profit.
    --  Free cash flow remained strong in the third quarter, with net cash
flow
        provided by operations of $513 million and reported free cash flow of
        $260 million, down versus the prior period reflecting planned
        integration and interest costs.

    --  During the quarter, the company further strengthened its capital
        structure with the redemption of $600 million of outstanding debt,
        financed through cash-on-hand and the issuance of $500 million of
4.70%
        notes, due 2019.  Year-to-date, the company has refinanced $1.1
billion
        of long-term debt, reflecting its continued ability to access and take
        advantage of favorable capital markets.
    
</pre>
<p>"Despite difficult market conditions, our businesses delivered solid results in the third quarter.  Our Tax & Accounting and Healthcare & Science businesses continued to perform very strongly, and sales of subscription products in our Markets and Legal units improved in Q3 over what we expect were their bottom in Q2.  While the weak year-to-date net sales experienced in recent quarters are now flowing through into revenues, we expect this dip to be shallow and limited to the next few quarters," said Thomas H. Glocer, chief executive officer of Thomson Reuters.</p>
<p>"Our ongoing focus on the Reuters integration and close cost management across the company has enabled us to continue to grow underlying operating profit.  While we would welcome a quick return to revenue growth, we understand how to operate in challenging markets and we are confident that we are outperforming the competition," said <person>Mr. Glocer</person>.</p>
<pre>
    

    Third-Quarter Business Segment Highlights

    
</pre>
<p>Unless otherwise noted, all revenue growth comparisons in this news release are before the impact of foreign currency translation as Thomson Reuters believes this provides the best basis to measure the performance of its business. All revenue growth and operating profit comparisons are based upon results from ongoing businesses and exclude the results of disposals.</p>
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    Professional Division


    
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<p> </p>
<pre>
    
                                  Three Months Ended September 30,
                                  --------------------------------
                       (Millions of U.S. dollars, unless otherwise indicated)
    
</pre>
<p> </p>
<pre>
    
                                                        Change Before
    Revenues                 2009    2008    Change       Currency
                             ----    ----    ------       --------
    Legal                    $917    $940      -2%           -1%
    Tax & Accounting         $225    $210       7%            8%
    Healthcare & Science     $213    $200       7%            8%
                             ----    ----
    Professional
     Division Total        $1,355  $1,350     0.4%            2%
    
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<p> </p>
<pre>
    
                                                                        2008
    Operating Profit         2009    2008    Change     2009 Margin    Margin
                             ----    ----    ------     -----------    ------
    Legal                    $305    $322      -5%         33.3%       34.3%
    Tax & Accounting          $36     $40     -10%         16.0%       19.0%
    Healthcare & Science      $50     $38      32%         23.5%       19.0%
                              ---     ---
    Professional
     Division Total          $391    $400      -2%         28.9%       29.6%



    --  Revenues were up 2% before currency, with strong growth in Tax &
        Accounting, Healthcare & Science and Legal's recurring subscription
        businesses.

    --  Operating profit decreased 2% and the corresponding margin decreased
70
        basis points due to slowing revenue growth, business mix and the
        dilutive effect of acquisitions.
    Legal

    --  Revenues were down 1%. Solid growth in subscription businesses led by
        Westlaw, FindLaw and international units was offset by continued
        weakness in non-subscription services including Print, Ancillary,
        Enterprise software, Consulting Services and Trademarks. As in the
        second quarter, small law firms and government units were the fastest
        growing customer segments.

    --  Operating profit declined 5%, with the related margin decreasing 100
        basis points, due primarily to the mix of revenues, partially offset
by
        cost controls and the benefits of efficiency initiatives.

    Tax & Accounting

    --  Revenue growth of 8% was driven by robust performances in both the
        Corporate and Professional Software and Services businesses.  Research
        & Guidance revenues declined slightly as double-digit print declines
        more than offset Checkpoint growth.

    --  Operating profit declined 10% and the related margin decreased 300
        basis points. Flow-through on revenue was offset by acquisitions,
        changes in the business mix and technology-related product
investments.
        Tax & Accounting is a seasonal business and close to half of its full
        year operating profit is typically generated in the fourth quarter.

    Healthcare & Science

    --  Revenues increased 8%, driven by a 19% increase in the Payer business
        as a result of significant demand for timely healthcare spending
        analytics from both the Government and Employer segments. Scientific
        and Scholarly Research, driven by Web of Knowledge / Web of Science,
        and the Life Sciences business both contributed to growth.

    --  Operating profit increased 32% with the corresponding margin
increasing
        450 basis points, driven by significant revenue flow-through,
synergies
        realized from combining legacy business units and the timing of
certain
        expenses.

    Markets Division


    
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<p> </p>
<pre>
    
                          Three Months Ended September 30,
                          --------------------------------
                    (Millions of U.S. dollars, unless otherwise indicated)
    
</pre>
<p> </p>
<pre>
    
                                                    Change Before
    Revenues             2009    2008    Change       Currency
                         ----    ----    ------       --------
    Sales & Trading      $881    $970      -9%           -6%
    Investment &
     Advisory            $570    $600      -5%           -5%
    Enterprise           $318    $307       4%            8%
    Media                 $90    $105     -14%          -10%
                          ---    ----
    Markets Division
     Total             $1,859  $1,982      -6%           -4%
    
</pre>
<p> </p>
<pre>
    
                                                                    2008
    Operating Profit     2009    2008    Change     2009 Margin    Margin
                         ----    ----    ------     -----------    ------
    Markets Division
     Total               $369    $336      10%         19.8%        17.0%



    --  Revenues declined 4% due to flow-through from weaker year-to-date net
        sales and strong prior period revenue growth of 5%.
    --  Subscription revenues declined 0.7%, but remain up 2% year-to-date.
    --  Revenues were impacted by softness in transaction, recoveries and
        outright revenues.
    --  Revenues in Asia were unchanged against the prior year period while
        revenues in Europe, Middle East and Africa (EMEA) and the Americas
were
        down 3% and 6%, respectively.

    --  Operating profit increased 10% with the related margin expanding 280
        basis points. The margin improvement was driven by integration
savings,
        effective cost management and the benefit of currency.
    Sales & Trading

    --  Revenues decreased 6% despite good performances from Commodities &
        Energy and Tradeweb. The decrease was due to lower third party
        recoveries revenues, declines in transaction revenues (primarily spot
        foreign exchange) against very strong prior year period results and
        desktop cancellations driven by headcount reductions.
    Investment & Advisory

    --  Revenues declined 5% reflecting continued pressure on customer budgets
        across Investment Management, Corporates and Wealth Management.  The
        Investment Banking business recovered well in the quarter, with
        revenues broadly flat against the comparable 2008 quarter and the
        sector showing lower cancellations and increased usage revenues.

    Enterprise

    --  Revenues increased 8% driven by the continued demand from customers
for
        risk management and data solutions.  The fastest growing business in
        Enterprise, Enterprise Information, grew 15%, driven by strong
customer
        demand for pricing and reference data and low latency feeds to power
        trading systems.
    Media


    --  Revenues declined 10%, attributable to continued challenges in
        Professional Publishing and the advertising-driven Consumer business.
        The Agency business' revenues declined 6%, a result of consolidation
in
        traditional media outlets and softness in transactions.


    Corporate & Other

    
</pre>
<p>Corporate & Other expenses increased <money>$163 million to $244 million</money>. The increase was comprised of a <money>$108 million</money> increase in non-cash fair-value currency-related adjustments and a planned <money>$52 million</money> increase in one-time integration costs. Core Corporate Costs were essentially flat.</p>
<pre>
    

    Financial Highlights - Nine-Months 2009

    
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<p> </p>
<pre>
    
                                     Nine Months Ended September 30,
                                     -------------------------------
                      (Millions of U.S. dollars, except EPS and Profit Margin)
    
</pre>
<p> </p>
<pre>
    
                              2009          2008                    Change
    IFRS Financial Measures   ----          ----                    ------
    Revenues                $9,640        $8,312                      16%
    Operating profit        $1,229        $1,035                      19%
    Diluted earnings per
     share (EPS)             $0.80         $0.98                     -18%
    Cash flow from
     operations             $1,770        $1,756                       1%
    
</pre>
<p> </p>
<pre>
    
    Non-IFRS Financial                              Change Before
     Measures                 2009          2008(2)      Currency   Change
                              ----          -------      --------   ------
    Revenues from ongoing
     businesses             $9,621        $9,977             1%       -4%
    Underlying operating
     profit                 $2,094        $1,992                       5%
    Underlying operating                                           +180bps
     profit margin            21.8%         20.0%
    Adjusted earnings per
     share (EPS)             $1.41         $1.31                       8%
    Free cash flow          $1,049        $1,123                      -7%
    
</pre>
<p> </p>
<pre>
    
    (2) This 2008 financial information, other than free cash flow, has been
    prepared on a pro forma basis and 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 IFRS results.  2009 results include
    the impact of the acquisition for the entire period.  For more
    information, see the explanatory note at the end of this news release.



    --  Revenues from ongoing businesses increased 1% before currency to $9.6
        billion.
    --  IFRS revenues increased 16% after currency and include Reuters results
        subsequent to its acquisition on April 17, 2008.
    --  Underlying operating profit increased 5% to $2.1 billion and the
        related margin increased 180 basis points.
    --  Adjusted earnings per share increased 8% to $1.41.

    --  Net cash provided by operations was $1.8 billion, unchanged from a
year
        ago.  Free cash flow of $1.0 billion was down 7% from a year ago, as
        higher cash profits and lower tax payments were offset by higher
        interest payments and increased capital expenditures on platform and
        product development initiatives.
    Integration Programs
    
</pre>
<p>Thomson Reuters has achieved combined run-rate savings of <money>$975 million</money> as at <chron>September 30, 2009</chron>.  Given the progress the company continues to make on its integration programs, Thomson Reuters continues to expect to achieve at least <money>$1.0 billion</money> of run-rate savings by year-end 2009. Savings were principally achieved through elimination of redundant positions and the retirement of legacy products.</p>
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    Recent Developments

    
</pre>
<p>Thomson Reuters completed the unification of its dual listed company (DLC) structure on <chron>September 10, 2009</chron>, receiving strong support from shareholders as well as UK court approval.  Specifically, each Thomson Reuters PLC ordinary share was exchanged for one Thomson Reuters Corporation common share, and each Thomson Reuters PLC American Depositary Share (ADS) was exchanged for six Thomson Reuters Corporation common shares.  As a result, the company's common shares now have a primary listing on the <location>Toronto</location> Stock Exchange, and are also listed on the New York Stock Exchange (both, symbol: TRI). The last trading day for Thomson Reuters PLC ordinary shares on the <location>London</location> Stock Exchange and ADSs on Nasdaq was <chron>September 9, 2009</chron>.</p>
<p/>
<p>In the third quarter, Thomson Reuters exercised its right to redeem approximately <money>$600 million</money> of outstanding debt securities and financed these redemptions through cash-on-hand and the issuance of <money>$500 million</money> of 4.70% notes due 2019. The redemptions were completed on <chron>October 22, 2009</chron>.</p>
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    Business Outlook (Before Currency)

    
</pre>
<p>Thomson Reuters reaffirms its previous outlook that revenues are expected to grow in 2009 and underlying operating profit margin and free cash flow will be comparable with 2008.  The revenue impact of weaker 2009 subscription net sales in Markets and Legal is expected to continue to be a drag on revenues through the first half of 2010; however, good growth in other units, continued focus on effective cost management and the benefits of the integration program are expected to reduce the impact on operating profit and maintain strong free cash flow.</p>
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    Dividend

    
</pre>
<p>Thomson Reuters will pay a quarterly dividend of <money>$0.28</money> per share on <chron>December 15, 2009</chron> to shareholders of record as of <chron>November 20, 2009</chron>.</p>
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    Thomson Reuters

    
</pre>
<p>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, healthcare and science and media markets, powered by the world's most trusted news organization.  With headquarters in New York and major operations in <location>London</location> and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the <location>Toronto</location> and New York Stock Exchanges (symbol: TRI). For more information, go to <a href="http://www.thomsonreuters.com">www.thomsonreuters.com</a>.</p>
<p/>
<p> </p>
<p>CONTACTS</p>
<p> </p>
<p>MEDIA</p>
<p> </p>
<pre>
    
    Gus Carlson
    Executive Vice President & Chief Marketing Officer
    +1 646 223 8313
    gus.carlson@thomsonreuters.com
    
</pre>
<p> </p>
<pre>
    
    Victoria Brough
    Head of External Affairs, EMEA
    +1 646 223 5285 / +44 (0)207 542 8763
    victoria.brough@thomsonreuters.com
    
</pre>
<p> </p>
<p>INVESTORS</p>
<p> </p>
<pre>
    
    Frank Golden
    Senior Vice President, Investor Relations
    +1 646 223 5288
    frank.golden@thomsonreuters.com


    
</pre>
<p>Thomson Reuters will webcast a discussion of its third-quarter results today beginning at <chron>8:30 a.m.</chron> U.S. Eastern Standard Time (EST).  You can access the webcast by visiting <a href="http://www.thomsonreuters.com">www.thomsonreuters.com</a> and clicking on "Investor Relations" at the top of the page and then "Thomson Reuters Reports Third-Quarter 2009 Results" on the right side of the page. An archive of the webcast will be available in the "Investor Relations" section of the Thomson Reuters website.</p>
<p/>
<p>Thomson Reuters currently prepares its financial statements under International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). Previously, Thomson Reuters prepared its financial statements in accordance with Canadian GAAP.</p>
<pre>
    

    NON-IFRS FINANCIAL MEASURES

    
</pre>
<p>This news release includes certain non-IFRS financial measures, including pro forma financial information as described herein. Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These measures do not have any standardized meanings prescribed by IFRS 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 IFRS. Non-IFRS financial measures (other than pro forma financial information) are defined and reconciled to the most directly comparable IFRS measures in the tables below.</p>
<pre>
    

    PRO FORMA FINANCIAL INFORMATION

    
</pre>
<p>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 prior to the closing of the acquisition and which currently apply to Thomson Reuters as though Reuters was acquired on <chron>January 1, 2007</chron>. 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 <chron>January 1, 2007</chron>, 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 financial information reflects the impacts of purchase accounting but excludes deal-related expenses and an initial one-time purchase accounting adjustment related to deferred revenue.</p>
<pre>
    

    CAUTIONARY NOTE CONCERNING FACTORS THAT MAY AFFECT FUTURE RESULTS

    
</pre>
<p>This news release, in particular the sections under the headings "Integration Programs" and "Business Outlook (Before Currency)" 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 from time to time files with, or furnishes 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.</p>
<p/>
<p>The material assumptions underlying the company's outlook are that the outlook is based on the current environment in the markets that the company serves and it excludes the impact of changes in foreign currency exchange rates.</p>
<p/>
<p> </p>
<p>                     IFRS and Pro Forma Results</p>
<p> </p>
<pre>
    
                         Thomson Reuters Corporation
                   Division and Business Segment Information
                         (millions of U.S. dollars)
                                 (unaudited)
    
</pre>
<p> </p>
<pre>
    
                                        Three Months Ended
                                          September 30,
                                          -------------
                                         2009    2008(1)     Change   Organic
                                         ----    -------     ------   -------
    Revenues
         Legal                           $917         $940       -2%      -2%
         Tax & Accounting                 225          210        7%       4%
         Healthcare & Science             213          200        7%       8%
                                          ---          ---
    Professional Division               1,355        1,350        0%       1%
         Sales & Trading                  881          970       -9%      -6%
         Investment & Advisory            570          600       -5%      -5%
         Enterprise                       318          307        4%       8%
         Media                             90          105      -14%     -10%
                                           --          ---
    Markets Division                    1,859        1,982       -6%      -4%
    Eliminations                           (2)          (1)
                                           --           --
    Revenues from ongoing
     businesses(3)                      3,212        3,331       -4%      -2%
     Before currency                                             -2%
    Disposals(3)                            4            8
                                           --           --
    Revenues                           $3,216       $3,339       -4%
                                       ======       ======
    
</pre>
<p> </p>
<pre>
    
    Operating Profit
     Legal                               $305         $322       -5%
     Tax & Accounting                      36           40      -10%
     Healthcare & Science                  50           38       32%
                                           --           --
    Professional Division                 391          400       -2%
    Markets Division                      369          336       10%
    Corporate & Other                    (244)         (81)
    Amortization of other
     intangible assets                   (124)        (126)
                                         ----         ----
    Operating profit from
     ongoing businesses(3)                392          529      -26%
    Disposals(3)                           (7)          (5)
    Impairment of assets held
     for sale                               -            -
    Other operating (losses)
     gains, net                            (7)          29
                                           --           --
    Operating profit                     $378         $553      -32%
                                         ====         ====
    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                         Nine Months Ended
                                           September 30,
                                         -----------------
                                                    Pro
                                                    Forma
                                                    2008
                                          2009     (1)(2)   Change  Organic
                                        ------    -------   ------  -------
    Revenues
         Legal                          $2,683     $2,727      -2%       0%
         Tax & Accounting                  695        646       8%       4%
         Healthcare & Science              627        594       6%       8%
                                           ---        ---
    Professional Division                4,005      3,967       1%       2%
         Sales & Trading                 2,674      2,959     -10%      -3%
         Investment & Advisory           1,731      1,789      -3%      -1%
         Enterprise                        946        945       0%       8%
         Media                             270        325     -17%      -8%
                                           ---        ---
    Markets Division                     5,621      6,018      -7%      -1%
    Eliminations                            (5)        (8)
                                            --         --
    Revenues from ongoing
     businesses(3)                       9,621      9,977      -4%       0%
     Before currency                                            1%
    Disposals(3)                            19         69
                                            --         --
    Revenues                            $9,640    $10,046      -4%
                                        ======    =======
    
</pre>
<p> </p>
<pre>
    
    Operating Profit
     Legal                                $887       $895      -1%
     Tax & Accounting                      113        118      -4%
     Healthcare & Science                  134        109      23%
                                           ---        ---
    Professional Division                1,134      1,122       1%
    Markets Division                     1,130      1,041       9%
    Corporate & Other                     (648)      (404)
    Amortization of other
     intangible assets                    (367)      (386)
                                          ----       ----
    Operating profit from
     ongoing businesses(3)                1,249      1,373      -9%
    Disposals(3)                            (13)        (4)
    Impairment of assets held
     for sale                                -        (89)
    Other operating (losses)
     gains, net                             (7)        29
                                            --         --
    Operating profit                    $1,229     $1,309      -6%
                                        ======     ======
    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                          Thomson Reuters Corporation
        Reconciliation of Operating Profit to Underlying Operating Profit (4)
                          (millions of U.S. dollars)
                                  (unaudited)
    
</pre>
<p> </p>
<pre>
    
                      Three Months Ended            Nine Months Ended
                         September 30,                September 30,
                         -------------                -------------
                                                           Pro Forma
                        2009      2008     Change     2009   2008(2)   Change
                        ----      ----     ------     ----   -------   ------
    
</pre>
<p> </p>
<pre>
    
    Operating profit    $378      $553      -32%    $1,229   $1,309      -6%
    Adjustments:
       Amortization of
        other intangible
        assets           124       126                 367      386
       Integration
        program costs    148        96                 343      310
       Fair value
        adjustments       47       (61)                135      (77)
       Disposals           7         5                  13        4
       Other operating
        losses (gains),
        net                7       (29)                  7      (29)
       Impairment of
        assets held
        for sale           -         -                   -       89
                          --        --                  --       --
    Underlying
     operating
     profit             $711      $690        3%    $2,094   $1,992       5%
                        ====      ====              ======   ======
    Underlying
     operating
     profit margin      22.1%     20.7%               21.8%    20.0%
                        ====      ====                ====     ====
    
</pre>
<p> </p>
<p> </p>
<p> </p>
<p>                         IFRS and Pro Forma Results</p>
<p> </p>
<pre>
    
                            Thomson Reuters Corporation
          Reconciliation of Earnings Attributable to Common Shareholders
              to Adjusted Earnings from Continuing Operations (5)
     (millions of U.S. dollars, except as otherwise indicated and except for
                                  per share data)
                                    (unaudited)
    
</pre>
<p> </p>
<pre>
    
                                   Three Months Ended     Nine Months Ended
                                      September 30,         September 30,
                                      -------------         -------------
                                    2009       2008(6)     2009    2008(6)
                                    ----       -------     ----    -------
     Earnings attributable to
      common shareholders (7)       $162                    $667
     Adjustments:
          Disposals                   7                      13
          Fair value adjustments     47                     135
          Other operating losses,
           net                        7                       7
          Other finance costs         7                      64
          Other non-operating
           charge                   326                     326
          Share of post tax
           earnings in equity
           method investees          (1)                     (2)
          Tax on above items          4                     (32)
     Interim period effective
      tax rate normalization (8)     44                       9
     Amortization of other
      intangible assets             124                     367
     Discrete tax items            (356)                   (356)
     Discontinued operations        (11)                    (17)
     Dividends declared on
      preference shares              (1)                     (2)
                                     --                      --
     Adjusted earnings from
      continuing operations        $359          $392    $1,179       $1,095
                                   ====          ====    ======       ======
     Adjusted earnings per
      share from continuing
      operations                  $0.43         $0.47     $1.41        $1.31
                                  =====         =====     =====        =====
    
</pre>
<p> </p>
<pre>
    
     Weighted average
      shares (in millions) (7)    837.5         829.4     836.1        834.4
                                  =====         =====     =====        =====
    
</pre>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p>                         IFRS and Pro Forma Results</p>
<p> </p>
<pre>
    
                             Thomson Reuters Corporation
      Division and Business Segment Depreciation and Amortization of Computer
                                      Software
                             (millions of U.S. dollars)
                                    (unaudited)
    
</pre>
<p> </p>
<pre>
    
                         Three Months Ended        Nine Months Ended
                            September 30,            September 30,
                            -------------            -------------
    Depreciation and
     amortization of                                          Pro Forma
     computer software    2009        2008(1)       2009      2008(1)(2)
                          ----        -------       ----      ----------
       Legal               (66)        (62)         (194)       (187)
       Tax &
       Accounting          (19)        (15)          (57)        (42)
       Healthcare &
        Science            (18)        (16)          (55)        (44)
                           ---         ---           ---         ---
    Professional Division (103)        (93)         (306)       (273)
    Markets Division      (152)       (160)         (449)       (474)
    Corporate & Other       (8)         (9)          (18)        (13)
                            --          --           ---         ---
    Depreciation -
     Ongoing Businesses   (263)       (262)         (773)       (760)
    Disposals                -           -            (1)         (3)
                            --          --            --          --
    Total Depreciation
     and amortization
     of computer
     software             (263)       (262)         (774)       (763)
                          ====        ====          ====        ====
    
</pre>
<p> </p>
<pre>
    
    (1) 2008 segment results have been restated to be comparable to the
        presentation for 2009.
    (2) The results for the nine months ended September 30, 2008 are shown on
        a pro forma basis which assumes that Thomson acquired Reuters on
        January 1, 2007.  These amounts reflect the impacts of purchase
        accounting, but exclude deal-related expenses and an initial one-time
        purchase accounting adjustment related to deferred revenue.
    (3) Revenues and operating profit from ongoing businesses exclude the
        results of disposals. Disposals include the results of businesses sold
        or held for sale that do not qualify as discontinued operations.
    (4) Underlying operating profit excludes amortization of other intangible
        assets, impairment charges, fair value adjustments, integration
        program costs, other operating gains and losses and the results of
        disposals.  Underlying operating profit margin is the underlying
        operating profit expressed as a percentage of revenues from ongoing
        businesses.
    (5) Adjusted earnings from continuing operations and adjusted earnings per
        share from continuing operations include dividends declared on
        preference shares and integration program costs, but exclude the pre
        tax impacts of amortization of other intangible assets as well as the
        post-tax impacts of fair value adjustments, other operating gains and
        losses, impairment charges, the results of disposals (see note (3)
        above), other finance (income) costs, Thomson Reuters share of post
        tax earnings in equity method investees, discontinued operations and
        other items affecting comparability.  Adjusted earnings per share from
        continuing operations is calculated using diluted weighted average
        shares and does not represent actual earnings per share attributable
        to shareholders.
    (6) In 2008, Thomson Reuters calculated its adjusted earnings by deducting
        from underlying operating profit certain normally recurring items
        appearing below operating profit on the income statement.
        Additionally, Thomson Reuters deducted costs associated with its
        integration program as well as earnings attributable to non
        controlling interests and dividends declared on preference shares.
        The table below presents a reconciliation of underlying operating
        profit to adjusted earnings from continuing operations for the three
        and nine months ended September 30, 2008.
    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                                                                  Pro Forma
                                                  Three Months   Nine Months
    (millions of U.S. dollars, except as              Ended         Ended
     otherwise indicated and except per             September     September
     share data)                                   30, 2008(a)    30, 2008(a)
    ------------------------------------           -----------    -----------
    Underlying operating profit                        690           1,992
    Adjustments:
      Integration program costs                        (96)           (310)
      Net interest expense (b)                        (109)           (334)
      Income taxes (calculated using an
       estimated effective tax rate of 25%)            (90)           (241)
      Earnings attributable to non-controlling
       interests                                        (2)             (8)
      Dividends declared on preference shares           (1)             (4)
      ---------------------------------------           --              --
    Adjusted earnings from continuing
     operations                                        392           1,095
    ---------------------------------                  ---           -----
    Adjusted earnings per share from
     continuing operations                           $0.47           $1.31
    --------------------------------                 -----           -----
    
</pre>
<p> </p>
<pre>
    
    Weighted average shares outstanding
     (in millions)(7)                                829.4           834.4
    -----------------------------------              -----           -----
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    (a) This calculation has been restated to be comparable to the 2009
    presentation of disposals.
    (b) Pro forma interest expense for the three-month period reflected actual
    interest expense, which approximates a proportional amount of the full
    year pro forma run rate. For the nine-month period, pro forma interest
    expense was derived as the sum of the actual three-month interest expense
    plus the proportion of the pro forma full year run rate used for the six
    months ended June 30, 2008.
    
</pre>
<p> </p>
<pre>
    
    Weighted average common shares outstanding reflected the actual reported
    diluted weighted average common shares outstanding adjusted as if the
    approximately 194 million Thomson Reuters PLC shares issued to Reuters
    shareholders on April 17, 2008 were outstanding from the beginning of the
    period presented, as well as the effect of the approximately 34 million
    Reuters Group PLC share options assumed as part of the acquisition.
    
</pre>
<p> </p>
<pre>
    
    (7) On September 10, 2009, all then-outstanding Thomson Reuters PLC
        ordinary shares were exchanged for an equivalent number of Thomson
        Reuters Corporation common shares in connection with unification of
        the dual listed company (DLC) structure.
    (8) Adjustment to reflect income taxes based on estimated full-year
        effective tax rate.  Reported earnings for interim periods reflect
        income taxes based on the estimated effective tax rates of each of the
        jurisdictions in which Thomson Reuters operates. The adjustment
        reallocates estimated full-year income taxes between interim periods,
        but has no effect on full-year income taxes.
    
</pre>
<p> </p>
<p> </p>
<p> </p>
<p>                      Consolidated IFRS Results</p>
<p> </p>
<pre>
    
                         Thomson Reuters Corporation
                        Consolidated Income Statement
            (millions of U.S. dollars, except per share data)
                                   (unaudited)
    
</pre>
<p> </p>
<pre>
    
                                Three Months Ended         Nine Months Ended
                                   September 30,             September 30,
                                   -------------             -------------
                                 2009         2008         2009         2008
                                 ----         ----         ----         ----
    
</pre>
<p> </p>
<pre>
    
    Revenues                   $3,216       $3,339       $9,640       $8,312
    Operating expenses         (2,444)      (2,427)      (7,263)      (6,278)
    Depreciation                 (128)        (122)        (370)        (289)
    Amortization of
     computer software           (135)        (140)        (404)        (344)
    Amortization of other
     intangible assets           (124)        (126)        (367)        (306)
    Impairment of assets
     held for sale                  -            -            -          (89)
    Other operating
     (losses) gains, net           (7)          29           (7)          29
                                   --           --           --           --
    Operating profit              378          553        1,229        1,035
    Finance costs, net:
      Net interest expense       (122)        (109)        (322)        (121)
      Other finance
       (costs) income              (7)          90          (64)          18
    Other non-operating
     charge                      (326)           -         (326)           -
                                 ----           --         ----           --
    (Loss) income before
     tax and equity
     method investees             (77)         534          517          932
    Share of post tax
     earnings in equity
     method investees               1            1            2            2
    Tax benefit (expense)         232         (118)         149         (164)
                                  ---         ----          ---         ----
    Earnings from continuing
     operations                   156          417          668          770
    Earnings (loss) from
     discontinued operations,
     net of tax                    11          (11)          17          (15)
                                   --          ---           --          ---
    Net earnings                 $167         $406         $685         $755
                                 ====         ====         ====         ====
    
</pre>
<p> </p>
<pre>
    
    Earnings attributable to:
      Common shareholders(1)      162          404          667          747
      Non-controlling
       interests                    5            2           18            8
    
</pre>
<p> </p>
<pre>
    
    Basic earnings per
     share                      $0.19        $0.49        $0.80        $0.99
                                =====        =====        =====        =====
    Diluted earnings per
     share                      $0.19        $0.49        $0.80        $0.98
                                =====        =====        =====        =====
    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Basic weighted
     average common
     shares(1)            829,718,327  823,780,979  829,037,410  752,404,146
                          ===========  ===========  ===========  ===========
    Diluted weighted
     average common
     shares(1)            837,477,121  829,427,276  836,098,202  756,671,587
                          ===========  ===========  ===========  ===========
    
</pre>
<p> </p>
<pre>
    
    (1) On September 10, 2009, all then-outstanding Thomson Reuters PLC
        ordinary shares were exchanged for an equivalent number of Thomson
        Reuters Corporation common shares in connection with unification of
        the dual listed company structure.
    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                          Thomson Reuters Corporation
                  Consolidated Statement of Financial Position
                          (millions of U.S. dollars)
                                   (unaudited)
    
</pre>
<p> </p>
<pre>
    
                                                 September 30,  December 31,
                                                      2009          2008
                                                      ----          ----
    Assets
    Cash and cash equivalents                       $1,860          $841
    Trade and other receivables                      1,729         1,818
    Other financial assets                             222           261
    Prepaid expenses and other current assets          636           766
                                                       ---           ---
    Current assets                                   4,447         3,686
    
</pre>
<p> </p>
<pre>
    
    Computer hardware and other property, net        1,483         1,556
    Computer software, net                           1,413         1,299
    Other identifiable intangible assets, net        8,714         8,702
    Goodwill                                        18,468        18,324
    Other financial assets                             354           286
    Other non-current assets                           646           627
    Deferred tax                                        90           109
                                                        --           ---
    Total assets                                   $35,615       $34,589
                                                   =======       =======
    
</pre>
<p> </p>
<pre>
    
    Liabilities and equity
    Liabilities
    Current indebtedness                            $1,049          $688
    Payables, accruals and provisions                2,503         2,704
    Deferred revenue                                 1,021         1,193
    Other financial liabilities                         34            60
                                                        --            --
    Current liabilities                              4,607         4,645
    
</pre>
<p> </p>
<pre>
    
    Long-term indebtedness                           7,535         6,783
    Provisions and other non-current liabilities     1,947         1,798
    Other financial liabilities                         97           222
    Deferred tax                                     2,246         2,653
                                                     -----         -----
    Total liabilities                               16,432        16,101
    
</pre>
<p> </p>
<pre>
    
    Equity
    Capital                                         10,140        10,034
    Retained earnings                               10,557        10,650
    Accumulated other comprehensive loss            (1,583)       (2,268)
                                                    ------        ------
    Total shareholders' equity                      19,114        18,416
    Non-controlling interests                           69            72
                                                        --            --
    Total equity                                    19,183        18,488
                                                    ------        ------
    Total liabilities and equity                   $35,615       $34,589
                                                   =======       =======
    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                            Thomson Reuters Corporation
                       Consolidated Statement of Cash Flow
                           (millions of U.S. dollars)
                                    (unaudited)
    
</pre>
<p> </p>
<pre>
    
                                       Three Months Ended  Nine Months Ended
                                           September 30,     September 30,
                                          -------------      -------------
                                          2009      2008    2009      2008
                                          ----      ----    ----      ----
    Cash provided by (used in):
    Operating activities
    Net earnings                          $167      $406    $685      $755
    Add back (deduct) items not
     involving cash:
      Depreciation                         128       122     370       289
      Amortization of computer
       software                            135       140     404       344
      Amortization of other
       intangible assets                   124       126     367       306
      Net losses (gains) on disposals
       of businesses and investments        12       (29)     12       (29)
      Impairment of assets held for
       sale                                  -         -       -        89
      Loss from redemption of debt
       securities                           35         -      35         -
      Deferred tax                        (380)       54    (446)      (86)
      Fair value adjustments                47       (61)    135       (79)
      Other non-operating charge           326         -     326         -
      Other                                 35       (46)    206        85
    Changes in working capital and
     other items                          (123)     (118)   (331)      104
                                          ----      ----    ----       ---
    Operating cash flows from
     continuing operations                 506       594   1,763     1,778
    Operating cash flows from
     discontinued operations                 7        (2)      7       (22)
                                             -        --       -       ---
    Net cash provided by operating
     activities                            513       592   1,770     1,756
                                           ---       ---   -----     -----
    
</pre>
<p> </p>
<pre>
    
    Investing activities
    Acquisitions, less cash
     acquired                              (53)      (28)    (98)   (8,298)
    Proceeds from other disposals,
     net of tax paid                        12       117      15       271
    Capital expenditures, less
     proceeds from disposals              (254)     (259)   (720)     (615)
    Other investing activities               2         -       1        (7)
                                            --        --      --        --
    Investing cash flows from
     continuing operations                (293)     (170)   (802)   (8,649)
    Investing cash flows from
     discontinued operations                 -       (12)     22       (72)
                                            --       ---      --       ---
    Net cash used in investing
     activities                           (293)     (182)   (780)   (8,721)
                                          ----      ----    ----    ------
    
</pre>
<p> </p>
<pre>
    
    Financing activities
    Proceeds from debt                     498         -   1,107     7,600
    Repayments of debt                    (206)       --    (398)   (5,079)
    Net borrowings (repayments)
     under short-term loan
     facilities                              1         7      (7)   (1,065)
    Share repurchases                       --       (53)     ---     (511)
    Dividends paid on preference
     shares                                 (1)       (1)     (2)       (4)
    Dividends paid on common
     shares (1)                           (228)     (146)   (682)     (416)
    Dividend payable assumed from
     Reuters Group PLC                       -         -       -      (246)
    Other financing activities              (1)       11      (6)      205
                                            --        --      --       ---
    Net cash provided by (used in)
     financing activities                   63      (182)     12       484
                                            --      ----      --       ---
    
</pre>
<p> </p>
<pre>
    
    Translation adjustments                  5       (34)     17       (33)
                                            --       ---      --       ---
    Increase (decrease) in cash and
     cash equivalents                      288       194   1,019    (6,514)
    Cash and cash equivalents at
     beginning of period                 1,572       789     841     7,497
                                         -----       ---     ---     -----
    Cash and cash equivalents at
     end of period                      $1,860      $983  $1,860      $983
                                        ======      ====  ======      ====
    
</pre>
<p> </p>
<pre>
    
    (1) On September 10, 2009, all then-outstanding Thomson Reuters PLC
        ordinary shares were exchanged for an equivalent number of Thomson
        Reuters Corporation common shares in connection with unification of
        the dual listed company structure.
    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                         Thomson Reuters Corporation
           Reconciliation of Net Cash Provided by Operating Activities
                              to Free Cash Flow(1)
                           (millions of U.S. dollars)
                                   (unaudited)
    
</pre>
<p> </p>
<pre>
    
                                     Three Months Ended    Nine Months Ended
                                        September 30,        September 30,
                                        -------------        -------------
                                       2009       2008      2009       2008
                                       ----       ----      ----       ----
    Net cash provided by operating
     activities                        $513       $592    $1,770     $1,756
    Capital expenditures, less
     proceeds from disposals           (254)      (259)     (720)      (615)
    Other investing activities            2          -         1         (7)
    Investing activities of
     discontinued operations              -          -         -         (7)
    Dividends paid on preference
     shares                              (1)        (1)       (2)        (4)
                                         --         --        --         --
    Free cash flow (1)                 $260       $332    $1,049     $1,123
                                       ====       ====    ======     ======
    
</pre>
<p> </p>
<pre>
    
    (1) Free cash flow is net cash provided by operating activities less
        capital expenditures, other investing activities, investing activities
        of discontinued operations 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
        share repurchases and new acquisitions.






    

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