Annual Review 2013

Annual Review 2013

Financial Results

Non-IFRS Financial Measures

In Millions of U.S. Dollars (Unaudited)

Revenues from Ongoing Businesses

2012
$12,443
2013
$12,543

Adjusted EBITDA

2012
$3,310
2013
$3,070

Adjusted EBITDA Margin %

2012
26.6%
2013
24.5%

Adjusted EBITDA Less Capital Expenditures

2012
$2,364
2013
$2,067

Adjusted EBITDA Less Capital Expenditures Margin %

2012
19.0%
2013
16.5%

Underlying Operating Profit

2012
$2,205
2013
$1,881

Underlying Operating Profit Margin %

2012
17.7%
2013
15.0%

Adjusted Earnings Per Share

2012
$1.89
2013
$1.54
Financial Results

Cash Flow

In Millions of U.S. Dollars (Unaudited)

2012

$1,737
$1,516

Free cash flow from ongoing businesses
Free cash flow

2013

$1,163
$1,098

Free cash flow from ongoing businesses
Free cash flow

Financial Results

Revenue Profile

Revenues by media, region and type (ongoing businesses)
Year ended 2013

Revenues by media

Revenues by media

Revenues by region

Revenues by region

Revenues by type

Revenues by type
Financial Results

Business Segment Revenue

In Millions of U.S. Dollars (Unaudited)
Twelve Months Ended December 31,
Revenues 2013 2012 (1) Change Organic
Trading $2,480 $2,645 -6% -6%
Investors 2,142 2,168 -1% -1%
Marketplaces 1,779 1,770 1% -3%
Governance, Risk & Compliance 247 219 13% 10%
Financial & Risk 6,648 6,802 -2% -3%
Legal 3,351 3,266 3% -1%
Tax & Accounting 1,243 1,161 7% 5%
Intellectual Property & Science 982 894 10% 4%
Corporate & Other (includes Media) 331 331 0% 2%
Eliminations (12) (11)
Revenues from Ongoing Businesses (2)
Before Currency
12,543 12,443 1%
2%
-1%
Other Businesses (3) 159 689
Revenues $12,702 $13,132 -3%
Financial Results

Business Segment Adjusted EBITDA (4)

In Millions of U.S. Dollars (Unaudited)
Twelve Months Ended December 31,
Adjusted EBITDA 2013 2012 (1)   Change
Financial & Risk $1,457 $1,691   -14%
Legal 1,194 1,246   -4%
Tax & Accounting 378 352   7%
Intellectual Property & Science 304 303   0%
Corporate & Other (includes Media) (263) (282)    
Adjusted EBITDA $3,070 $3,310   -7%
Financial Results

Business Segment Underlying Operating Profit (5)

In Millions of U.S. Dollars (Unaudited)
Twelve Months Ended December 31,
Underlying Operating Profit 2013 2012 (1)   Change
Financial & Risk $816 $1,082   -25%
Legal 903 967   -7%
Tax & Accounting 257 238   8%
Intellectual Property & Science 225 235   -4%
Corporate & Other (includes Media) (320) (317)    
Underlying Operating Profit $1,881 $2,205   -15%
Financial Results

Business Segment Adjusted EBITDA (4) and Adjusted EBITDA less Capital Expenditures

In Millions of U.S. Dollars (Unaudited)
Twelve Months Ended December 31,
Adjusted EBITDA 2013 2012 (1)   Change
Financial & Risk $1,457 $1,691   -14%
Legal 1,194 1,246   -4%
Tax & Accounting 378 352   7%
Intellectual Property & Science 304 303   0%
Corporate & Other (includes Media) (263) (282)    
Adjusted EBITDA 3,070 3,310   -7%
Capital Expenditures less proceeds from disposals (excluding Other Businesses) 1,003 946   6%
Adjusted EBITDA less Capital Expenditures (4) $2,067 $2,364   -13%
Financial Results

Consolidated Income Statement

In Millions of U.S. Dollars, except per share amounts
Twelve Months Ended December 31,
  2013   2012
Revenues $12,702   $13,132
Operating Expenses (9,554)   (9,710)
Depreciation (416)   (425)
Amortization of Computer Software (773)   (691)
Amortization of Other Identifiable Intangible Assets (641)   (619)
Other Operating Gains, Net 198   883
Operating Profit 1,516   2,570
Finance Costs, Net:      
Net Interest Expense (460)   (453)
Other Finance Income (Costs) (53)   40
Income Before Tax and Equity Method Investees 1,003   2,157
Share of Post-Tax Earnings and Impairment in Equity Method Investees 20   9
Tax Expense (848)   (126)
Earnings from Continuing Operations 175   2,040
Earnings from Discontinued Operations, Net of Tax 10   2
Net Earnings $185   $2,042
Earnings Attributable to:      
Common Shareholders 137   1,989
Non-Controlling Interests 48   53
Earnings Per Share      
Basic Earnings Per Share:      
From Continuing Operations $0.15   $2.40
From Discontinued Operations 0.01   -
Basic Earnings Per Share $0.16   $2.40
Diluted Earnings Per Share:      
From Continuing Operations $0.15   $2.39
From Discontinued Operations 0.01   -
Diluted Earnings Per Share $0.16   $2.39
Financial Results

Consolidated Statement of Financial Position

In Millions of U.S. Dollars
Twelve Months Ended December 31,
Assets 2013   2012
Cash and Cash Equivalents $1,316   $1,283
Trade and Other Receivables 1,751   1,818
Other Financial Assets 183   72
Prepaid Expenses and Other Current Assets 650   638
Current Assets Excluding Assets Held for Sale 3,900   3,811
Assets Held for Sale -   302
Current Assets 3,900   4,113
Computer Hardware and Other Property, Net 1,291   1,416
Computer Software, Net 1,622   1,659
Other Identifiable Intangible Assets, Net 7,890   8,134
Goodwill 16,871   16,251
Other Financial Assets 192   355
Other Non-Current Assets 583   559
Deferred Tax 90   50
Total Assets $32,439   $32,537
Liabilities and Equity      
Liabilities      
Current Indebtedness $596   $1,008
Payables, Accruals and Provisions 2,624   2,612
Deferred Revenue 1,348   1,222
Other Financial Liabilities 193   95
Current Liabilities Excluding Liabilities
Associated with Assets Held for Sale
4,761   4,937
Liabilities Associated with Assets Held for Sale -   35
Current Liabilities 4,761   4,972
Long-Term Indebtedness 7,470   6,223
Provisions and Other Non-Current Liabilities 1,759   2,502
Other Financial Liabilities 102   37
Deferred Tax 1,917   1,305
Total Liabilities $16,009   $15,039
Equity      
Capital 10,347   10,371
Retained Earnings 7,303   8,311
Accumulated Other Comprehensive Loss (1,614)   (1,537)
Total Shareholders’ Equity 16,036   17,145
Non-Controlling Interests 394   353
Total Equity 16,430   17,498
Total Liabilities and Equity $32,439   $32,537
Financial Results

Consolidated Statement of Cash Flow

In Millions of U.S. Dollars
Twelve Months Ended December 31,
Cash Provided By (Used In): 2013   2012
Operating Activities      
Net Earnings $185   $2,042
Adjustments for:      
Depreciation 416   425
Amortization of Computer Software 773   691
Amortization of Other Identifiable Intangible Assets 641   619
Net Gains on Disposals of Businesses and Investments (195)   (829)
Deferred Tax 434   (149)
Other 289   18
Pension contributions (500)   -
Changes in Working Capital and Other Items 60   (159)
Net Cash Provided by Operating Activities 2,103   2,658
Investing Activities      
Acquisitions, Net of Cash Acquired (1,241)   (1,301)
Proceeds from Other Disposals, Net of Taxes Paid 550   1,901
Capital Expenditures, Less Proceeds from Disposals (1,004)   (964)
Other Investing Activities 67   46
Investing Cash Flows from Continuing Operations (1,628)   (318)
Investing Cash Flows from Discontinued Operations 6   90
Net Cash Used in Investing Activities (1,622)   (228)
Financing Activities      
Proceeds from Debt 3,268   -
Repayments of Debt (2,240)   (2)
Net Repayments Under Short-Term Loan Facilities (3)   (422)
Repurchases of Common Shares (400)   (168)
Dividends Paid on Preference Shares (3)   (3)
Dividends Paid on Common Shares (1,038)   (1,021)
Other Financing Activities (19)   65
Net Cash Used in Financing Activities (435)   (1,551)
Translation Adjustments on Cash and Cash Equivalents (13)   -
Increase in Cash and Cash Equivalents 33   879
Cash and Cash Equivalents at Beginning of Period 1,283   404
Cash and Cash Equivalents at End of Period $1,316   $1,283
Interest paid (414)   (419)
Interest received 9   5
Income taxes paid:      
Within operating activities (236)   (249)
Within investing activities (98)   (197)
Total income taxes paid (334)   (446)
Dividend History

Dividend History 2000-2014

Source: 2013 Earnings Presentation

Dividend History 2000-2014
Reconciliations

Reconciliation of Operating Profit to Underlying Operating Profit (5) and Adjusted EBITDA (4)

In Millions of U.S. Dollars (Unaudited)
Twelve Months Ended December 31,
  2013   2012 (1)
Operating Profit $1,516   $2,570
Adjustments to Remove:      
Amortization of Other Identifiable Intangible Assets 641   619
Fair Value Adjustments (14)   36
Other Operating Gains, Net (198)   (883)
Operating Profit from Other Businesses (3) (64)   (137)
Underlying Operating Profit (5) $1,881   $2,205
Adjustments to Remove:      
Depreciation and Amortization of Computer Software
(Excluding Other Businesses (3))
1,189   1,105
Adjusted EBITDA (4) $3,070   $3,310
Underlying Operating Profit Margin 15.0%   17.7%
Adjusted EBITDA Margin 24.5%   26.6%
Reconciliations

Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA (4)

In Millions of U.S. Dollars (Unaudited)
Twelve Months Ended December 31,
  2013   2012 (1)
Earnings from Continuing Operations $175   $2,040
Adjustments to Remove:      
Tax Expense 848   126
Other Finance (Income) Costs 53   (40)
Net Interest Expense 460   453
Amortization of Other Identifiable Intangible Assets 641   619
Amortization of Computer Software 773   691
Depreciation 416   425
EBITDA 3,366   4,314
Adjustments to Remove:      
Share of Post-Tax Earnings and Impairment in Equity Method Investees (20)   (9)
Other Operating Gains, Net (198)   (883)
Fair Value Adjustments (14)   36
EBITDA from Other Businesses (3) (64)   (148)
Adjusted EBITDA (4) $3,070   $3,310
Reconciliations

Reconciliation of Underlying Operating Profit (5) to Adjusted EBITDA (4) by Business Segment

In Millions of U.S. Dollars (Unaudited)
Twelve Months Ended
December 31, 2013
Twelve Months Ended
December 31, 2012 (1)
  Underlying Operating Profit Add: Depreciation and Amortization of Computer Software* Adjusted EBITDA Underlying Operating Profit Add: Depreciation and Amortization of Computer Software* Adjusted EBITDA
Financial & Risk $816 $641 $1,457 $1,082 $609 $1,691
Legal 903 291 1,194 967 279 1,246
Tax & Accounting 257 121 378 238 114 352
Intellectual Property & Science 225 79 304 235 68 303
Corporate & Other (includes Media) (320) 57 (263) (317) 35 (282)
  $1,881 $1,189 $3,070 $2,205 $1,105 $3,310
*Excludes Other Businesses (3)
Reconciliations

Reconciliation of Earnings Attributable to Common Shareholders to Adjusted Earnings (6)

In Millions of U.S. Dollars, except as otherwise indicated and except for per share data (unaudited)
Twelve Months Ended December 31,
  2013   2012 (1)
Earnings Attributable to Common Shareholders $137   $1,989
Adjustments to Remove:      
Operating Profit from Other Businesses (3) (64)   (137)
Fair Value Adjustments (14)   36
Other Operating Gains, Net (198)   (883)
Other Finance Costs (Income) 53   (40)
Share of Post-Tax Earnings and Impairment in Equity Method Investees (20)   (9)
Tax on Above Items 64   251
Discrete Tax Items 773   (254)
Tax Charge Amortization (8) (76)   -
Amortization of Other Identifiable Intangible Assets 641   619
Discontinued Operations (10)   (2)
Dividends Declared on Preference Shares (3)   (3)
Adjusted Earnings (6) $1,283   $1,567
Adjusted Earnings per Share (6) $1.54   $1.89
Diluted Weighted Average Common Shares (In Millions) 831.0   829.6
Reconciliations

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow from Ongoing Businesses (7)

In Millions of U.S. Dollars (Unaudited)
Twelve Months Ended December 31,
  2013   2012 (1)
Net Cash Provided by Operating Activities $2,103   $2,658
Capital Expenditures, Less Proceeds from Disposals (1,004)   (964)
Other Investing Activities 67   46
Dividends Paid on Preference Shares (3)   (3)
Free Cash Flow 1,163   1,737
Remove: Other Businesses (3) (65)   (221)
Free Cash Flow from Ongoing Businesses (1) $1,098   $1,516