Financial Highlights

1
Preliminary Results
Business Update
Tom Glocer Chief Executive Officer
17 February 2004
2
Status

• Strengthening financial markets
• Competitive position improving
• Fast Forward on track after 1st of 3 years
• Steps to simplify and generate value from the
  portfolio

3
Signs of market stabilisation

• Customer profitability improving
• Financial Services headcount rising

Cyclical

• Continued overcapacity
• Regulatory issues remain
• Opportunities as well as threats

Structural

• Reuters now more vigilant betterpositioned

Competitive
4
Competitive wins

• 3000 Xtra 18,000 additional positions
• c.7,000 are new business
• Reuters Trader Reuters Knowledge
• c.800 positions sold since October

Right product right price

• Customers joining the exodus to RMDS
• Credit Suisse, Merrill Lynch, Goldman Sachs, UBS,
  major European central banks
• Back office data products (EIP) 50 growth
• 54 new Risk sales

Distributionpartnerships
Trading Technology Week Annual Review 2003
5
Fast Forward on track
1. Make our information indispensable 2. Move to
a new business architecture 3. Simplify and
segment our product line 4. Focus our Solutions
business 5. Reduce and reshape our cost base 6.
Reinvigorate culture and behaviour
More competitive Less complex More
service-driven More efficient
6
More competitive - Treasury franchise
Treasury Revenues 1,018m

• Strong information business
• Best electronic news service
• Best information vendor for FX prices
• High value new data e.g. SuperDerivatives
• Conversational Dealing holding up well
• Matching revenues up 20
• Reuters Automated Dealing (ADT)
• Over 60 clients (up 25 this year)
• Sales to HSBC, Merrill Lynch, JP Morgan Chase
• Encouraging growth in Risk

Information 49
Conversational Dealing 25
Recoveries 10
Matching 6
Risk 8
Treasury Solutions 2
FX Week Awards November 2003
7
Less complex

• 1. Simplify and segment our desktop product line
• Range of information products down from 1300 to
  550
• 50 information products by end 2005, in 4
  families

• Right product, right price, common backbone
• 2003 Strong foundations
• Reuters Trader Reuters Knowledge Reuters
  Distribution Network
• 2004 Keep building
• New versions of Xtra, BridgeStation new data
  sets analytics
• Messaging interoperability (AOL, MSN, Lotus)
• New products Global Advisor regional Traders

• 3. Customer migration
• Legacy 2000/3000 accesses migrated to Xtra and
  Trader

8
More service driven
Change vs. H1 03
Reuters OverallSatisfaction
68.4
1.5
0.9
0.6
Product
Installation
0.9
1.3
News Service
Help Desk
1.2
2.7
Training
Account Managers
Indicates significant increase between H1 and H2
2003
9
More efficient
Savings from Fast Forward
885
Savings from previous initiatives
Fast Forward charge
665
440
520
220
savings

75

54

costs
125
161
03
04
05
06
10
Value from the portfolio

• Commercial agreement renegotiated
• Innovative equity sale created win-win
• Orderly sell down over time of remaining stake

• Now profitable
• Take advantage of market opportunities to
  strengthen franchise

• Reduce Reuters network management costs
• Improve service by simplifying the supply chain
• More independent Radianz once operating goals are
  achieved

11
Key tasks

• 2004
• Execute on Fast Forward plans
• Intensify focus on customer service
• Perfect Next Generation products
• Continue to drive down costs
• New transactions capabilities
• Grow core new business opportunities
• Risk Management Products
• Enterprise Information Products

• 2003
• Execute on Fast Forward plans
• Improve customer service
• Launch Next Generation products
• Continue to drive down costs

12
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