Beyond the numbers XBRL and Reuters company news

1
Beyond the numbersXBRL and Reuters company news
Dec 4 2007 Jack Reerink Reuters News
2
Agenda

• Reuters and XBRL
• Company news state of play
• Company news readership MA dominates
• Exhibit 1 Crocs the power of market
  expectations
• Exhibit 2 - GN Store the power of text
• Company news New battle grounds

3
Reuters XBRL On top of the game

• First publicly listed company to report results
  in XBRL format in 2001
• First company to submit IFRS-based XBRL data
  to U.S. SEC in 2007

4
Company news State of play

• Earnings announcements have become commoditised
• Algo trading drives intense competition on speed
  finding key alerts
• Forget the past Forecasts are key
• A number without market estimates is just a
  number
• Real market movers MA, executive changes
  industry metrics
• Exclusivity and connecting the dots are the new
  battle grounds

5
Company news Readership
Conclusion Eyeballs are on MA and hot stocks,
not results
Q2 study of top-read 3,600 company news stories
globally
6
Exhibit 1 A bright future for Crocs?
1600 31Oct2007 CROCS INC ltCROX.Ogt Q3 SHR
0.66 1600 31Oct2007 CROCS INC ltCROX.Ogt SEES FY
2007 SHR 1.94 TO 1.98 1600 31Oct2007 CROCS INC
ltCROX.Ogt SEES FY 2007 REVENUE 820 MLN TO 830
MLN 1600 31Oct2007 CROCS INC ltCROX.Ogt Q3 REVENUE
ROSE 130 PCT TO 256.3 MLN 1601 31Oct2007 CROCS
INC ltCROX.Ogt REUTERS ESTIMATES Q3 SHR VIEW 0.63,
REV VIEW 259.76 MLN 1601 31Oct2007 CROCS INC
ltCROX.Ogt REUTERS ESTIMATES FY 2007 SHR VIEW
1.97, REV VIEW 836.98
Looking ahead, we are excited about both our
near-term and long-term prospects, reflected in
our heightened outlook for the remainder of
fiscal 2007 and fiscal 2008 - Crocs CEO Ron
Snyder in BSW release
Reuters headlines, CEO quote from BSW release
7
Exhibit 1 The real Crocs story

• UPDATE 2-Crocs outlook lags Wall Street,
  shares tumble
• (Recasts adds analyst, background, dateline)
• LOS ANGELES, Oct 31 (Reuters) - Crocs Inc
  ltCROX.Ogt, maker of the clunky but popular plastic
  shoes, said on Wednesday its quarterly profit
  more than doubled, but its high-flying stock
  slipped by more than 24 percent after hours on
  its disappointing revenue and 2007 outlook.

"I think the stock has been trading as a
momentum stock. What we're seeing here is a
reversal of that momentum - Jeff Mintz, vice
president of research at Wedbush Morgan
Securities in Reuters story
Oct 31 Reuters story
8
Exhibit 1 The other shoe drops
9
Exhibit 1 Japan is different

• 0200 25Oct2007 SONY lt6758.Tgt REVISES 2007/08
  GROUP (SEC) NET PROFIT FORECAST TO Y330.00 BLN
  FROM Y320.00 BLN
• 0201 25Oct2007 SONY lt6758.Tgt REVISES 2007/08
  GROUP (SEC) OPERATING PROFIT FORECAST TO Y450.00
  BLN FROM Y440.00 BLN
• 0201 25Oct2007 SONY lt6758.Tgt REVISES 2007/08
  GROUP (SEC) PRETAX PROFIT FORECAST TO Y500.00 BLN
  FROM Y420.00 BLN
• 0214 25Oct2007 Sony lt6758.Tgt-2007/08 group
  forecast (SEC)
• Oct 25 (Reuters) -
• SONY CORP
• CONSOLIDATED EARNINGS ESTIMATES
• (in billions of yen unless specified)
• Full year to Full year to
• March 31,2008 March 31,2008
• LATEST PREVIOUS
• FORECAST FORECAST
• Sales 8.98 trillion 8.78
  trillion
• Operating 450.00 440.00
• Pretax 500.00 420.00
• Net 330.00 320.00
• EPS 329.10 yen 319.61 yen

Oct 25 Reuters headlines and story
10
Exhibit 1 Conclusions

• Assuming instant delivery, XBRL will help
• - Easy quick analysis of data for expert
  sector journalists
• - Automate alerts on earnings numbers Japan
  most promising
• - Free up journalists to break more news
• XBRL becomes even more valuable when
• - Key earnings numbers are instantly matched
  with estimates
• - The data includes forecasts (matched with
  estimates)
• - It expands from GAAP items to industry metrics

11
Exhibit 2 The numbers look good at GN Store

• 0703 06Nov2007 GN STORE NORD ltGN.COgt Q3 SALES
  FOR CONTINUING OPS 673 MLN DKK (REUTERS POLL 729
  MLN DKK)
• 0703 06Nov2007 GN STORE NORD ltGN.COgt Q3 EBITA
  FOR CONTINUING OPS 12 MLN DKK (REUTERS POLL 22
  MLN DKK LOSS)
• 0704 06Nov2007 GN STORE NORD ltGN.COgt NOW SEES FY
  2007 EBITA FOR CONTINUING OPS AT 100 MLN DKK

until you give the statement a second look
The Supervisory Board has decided to abandon the
sales process concerning GNReSound immediately
and keep the activities within GN - GN Store OMX
announcement
Nov 6 Reuters headlines and GN OMX announcement
12
Exhibit 2 The key alert at GN Store

• 0705 06Nov2007 GN STORE NORD ltGN.COgt SAYS TO
  ABANDON SALE OF RESOUND HEARING AID ARM

UPDATE 3-GN shares drop 17 pct as it abandons
ReSound sale (Updates share price to close, adds
background) By Gelu Sulugiuc COPENHAGEN,
Nov 6 (Reuters) - Danish headset maker GN Store
Nord ltGN.COgt posted a larger than expected
third-quarter operating profit on continuing
operations on Tuesday, but its shares sank more
than 16 percent on news it would no longer try to
sell hearing aid unit ReSound. This summer
the German competition authorities blocked Swiss
hearing aid maker Sonova's ltSOON.Sgt 2.8 billion
bid for ReSound, derailing the deal. GN said
this summer it was considering all options,
including spinning off ReSound and floating it on
the Copenhagen exchange. Instead, the company
said it decided to keep ReSound within GN but run
the headset and hearing aid units as two separate
businesses with two equally-ranked chief
executives.
13
Exhibit 2 Conclusions

• Next step in XBRL is identifying numbers in text
  of press releases
• We need brains (journalists) to discover other
  nuggets - for now
• Tagging and search technologies can help on speed
  and finding key alerts
• They can even automate the process - if were
  willing to accept more errors

14
Company news What journalism is all about

• Reuters company news exclusives up five-fold in
  five years
• XBRL to free up journalists to break even more
  news

2007 annualised based on 10-months through Oct
15
Company news Connecting the dots

• Connecting results forecasts to estimates
  instantly and automatically Reuters News and
  Data
• Linking big news events to companies and
  vice-versa Reuters News
• Assigning significance levels to events Reuters
  SigDev
• Finding and tagging key words in news and
  announcements Reuters ClearForest
• Gauging sentiment by scoring news and
  announcements -- Reuters NewScope

16
Company news XBRL Thanks