Devin Wenig

1
Transforming Reuters for growth

• Devin Wenig
• Executive Director President of Customer
  Segments

Morgan Stanley TMT Conference 18 November 2004
2
Fast Forward - well understood transformation
story
Morecompetitive

• Fast Forward delivering as promised
• Fully segmented product line in place
• Customer satisfaction improving
• 230m of annualised savings expected by end 2004
• Over 12 months to go, but confident on progress

Company stabilised and off critical
list Rediscovered competitive position
Lesscomplex
Moreservicedriven
Moreefficient
3
Scaling growth opportunities

Research Asset Management
Sales Trading
Enterprise
Media
TRANSACTIONS
RISK / EIP
PRODUCTS
CONSUMER
New Geographic Markets
4
Sales Trading the electronic opportunity
EuroMTS
BrokerTec

• Traditional roles breaking down
• Electronic trading set to become dominant
• More instruments, across all asset classes
• Lower costs, fewer traders
• Increased volume of market data
• Regulation driving transparency and best execution

ABN Amro toexecute 50trades electronicallyover
next18 months
eSpeed
Instinet
88 of USbuy sides haveconnectivity to at
least one ECN
TradeWeb
Citigroup toautomate 50 ofits trades within5
years
MarketAxess
ArcaEx
5
Bringing coherence to a fragmented marketplace
6
Bringing coherence to a fragmented marketplace
Liquidity AggregationPlatform (Reuters)
7
Putting together the jigsaw pieces
Fixed Income

• Extensive range of instruments and pricing
• Liquidity from eight leading dealers
• 12,000 fixed income securities across 21
  currencies

Equities
Treasury

• Algorithmic trading on desktop
• Seven price makers signed up
• Order routing for equities
• Links to almost 200 brokers worldwide

• Responding to changing markets
• Linking CME and Reuters FX liquidity pools
• System brought to market in six months

8
Generating growth from usage
Core Reuters revenueby type H1 2004

• Protect grow existing businesses
• Build value in the desktop
• Monetise by
• Growing user positions
• Growing usage based revenues
• Q3 2004 Dealing Matching revenues up 6 yoy

9
Research Asset Management winning through
products
Reuters Knowledge

• Market leading products
• Unique content and analytics
• Support to customers workflow
• In 2005 we expect
• Strong revenue growth
• Increasing market share

Reuters Wealth Manager
10
Enterprise targeting growth opportunities
Financial Markets Value Chain

• Risk revenue up 20 in Q3 2004
• Enterprise Information Product revenue up 81 in
  Q3 2004
• Front, mid and back office automation further
  growth expected
• underlying revenue growth (yoy)

11
Summary well positioned in a dynamic marketplace

• Fast Forward delivering as promised
• Targeting Reuters to exceed the rate of market
  growth post Fast Forward
• Electronic trading capability positions Reuters
  well in a dynamic marketplace

12
This presentation may be deemed to include
forward-looking statements relating to Reuters
within the meaning of Section 27A of the US
Securities Act of 1933 and Section 21E of the US
Securities Exchange Act of 1934. Certain
important factors that could cause actual results
to differ materially from those disclosed in such
forward-looking statements are described in
Reuters Annual Report and Form 20-F 2003 under
the heading Risk Factors. Copies of the Annual
Report and Form 20-F 2003 are available on
request from Reuters Group PLC, 85 Fleet Street,
London EC4P 4AJ.