Financial Performance

Revenues and non-IFRS financial measures1

Adjusted EBITDA2, Adjusted EBITDA less Capital Expenditures2, Underlying Operating Profit3 and related margins, and Adjusted EPS5
In millions of US dollars, except per share amounts
(unaudited)

Revenues

2015
$11,257
2016
$11,166

Adjusted EBITDA

2015
$3,089
20167
$2,954
$3,166
Including Charges
Excluding Charges

Adjusted EBITDA margin %

2015
27.4%
20167
26.5%
28.4%
Including Charges
Excluding Charges

Adjusted EBITDA less capital expenditures

2015
$2,138
2016
$2,049

Adjusted EBITDA less capital expenditures margin %

2015
19.0%
2016
18.4%

Underlying operating profit

2015
$2,055
20167
$1,930
$2,142
Including Charges
Excluding Charges

Underlying operating profit margin %

2015
18.3%
20167
17.3%
19.2%
Including Charges
Excluding Charges

Adjusted earnings per share

2015
$1.78
20167
$1.79
$2.07
Including Charges
Excluding Charges

Consolidated income statement

In millions of US dollars, except per share amounts

Year ended December 31,
Continuing operations201620151
Revenues$11,166$11,257
Operating expenses(8,232)(8,162)
Depreciation(313)(340)
Amortization of computer software(711)(694)
Amortization of other identifiable intangible assets(528)(548)
Other operating gains, net813
Operating profit1,3901,526
Finance costs, net:
Net interest expense(403)(416)
Other finance income5041
Income before tax and equity method investments1,0371,151
Share of post-tax earnings in equity method investments410
Tax benefit (expense)15(34)
Earnings from continuing operations1,0561,127
Earnings from discontinued operations, net of tax2,093184
Net earnings$3,149$1,311
Earnings attributable to:
Common shareholders3,0981,255
Non-controlling interests5156
Earnings per share
Basic earnings per share:
From continuing operations$1.34$1.37
From discontinued operations2.800.23
Basic earnings per share$4.14$1.60
Diluted earnings per share:
From continuing operations$1.34$1.37
From discontinued operations2.790.23
Diluted earnings per share$4.13$1.60

Reconciliation of earnings attributable to common shareholders to adjusted earnings, and adjusted EPS5

In millions of US dollars, except as otherwise indicated and except for per share data
(unaudited)

Year ended December 31,
201620151
Earnings attributable to common shareholders$3,098$1,255
Adjustments to remove
Fair value adjustments20(6)
Amortization of other identifiable intangible assets528548
Other operating gains, net(8)(13)
Other finance income(50)(41)
Share of post-tax earnings in equity method investments(4)(10)
Tax on above items(184)(168)
Tax items impacting comparability3419
Earnings from discontinued operations, net of tax(2,093)(184)
Dividends declared on preference shares(2)(2)
Adjusted earnings$1,339$1,398
Adjusted earnings per share$1.79$1.78
Impact of charges$0.28-
Adjusted earnings per share excluding charges$2.07$1.78
Diluted weighted-average common shares (millions)749.0784.1

Free cash flow6

In millions of US dollars
(unaudited)

2015
Free cash flow
$1,801
Free cash flow excluding discontinued operations
$1,556
2016
Free cash flow
$2,022
Free cash flow excluding discontinued operations
$1,976

Revenue profile

Revenues by media, region and type
Year ended December 31, 2016
(unaudited)

93% Electronic, software & services

7% Other

100%

62% Americas

27% EMEA

11% Asia Pacific

100%

86% Subscriptions or similar arrangements

14% Other

100%

Business segment revenue

In millions of US dollars
(unaudited)

Year ended December 31,Change
Revenues201620151TotalForeign Currency4Before Currency4
Financial & Risk$6,057$6,148-1%-1%0%
Legal3,3673,407-1%-2%1%
Tax & Accounting1,4521,4172%-2%4%
Corporate & Other (includes Reuters News)3042963%-1%4%
Eliminations(14)(11)
Revenues$11,166$11,257-1%-2%1%

Business segment adjusted EBITDA2

In millions of US dollars
(unaudited)

Year ended December 31,ChangeMarginExcluding Charges7
2016720151Total20167201512016ChangeMargin
Adjusted EBITDA
Financial & Risk$1,629$1,701-4%26.9%27.7%$1,7966%29.7%
Legal1,2321,268-3%36.6%37.2%1,258-1%37.4%
Tax & Accounting414456-9%28.5%32.2%432-5%29.8%
Corporate & Other (includes Reuters News)(321)(336) (320)
Adjusted EBITDA$2,954$3,089-4%26.5%27.4%$3,1662%28.4%

Business segment underlying operating profit3

In millions of US dollars
(unaudited)

Year ended December 31,ChangeMarginExcluding Charges7
2016720151Total20167201512016ChangeMargin
Financial & Risk$1,044$1,104-5%17.2%18.0%$1,21110%20.0%
Legal9841,013-3%29.2%29.7%1,0100%30.0%
Tax & Accounting283343-17%19.5%24.2%301-12%20.7%
Corporate & Other (includes Reuters News)(381)(405) (380)
Underlying operating profit$1,930$2,055-6%17.3%18.3%$2,1424%19.2%
Footnotes
Disclaimer
2016 Annual Report Regulatory Filing
PDF – 2.5MB