Thomson Reuters Corp at Barclays Americas Select Franchise Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Manav Patnaik - Barclays - Analyst : Steve, maybe I'll start with you. Just to set the stage a little bit. I guess, when -- still for a lot of folks, especially out here, when you hear Thomson, we still think of -- I shouldn't say we, but some of them still think of the legacy business that you've had, that you've cleaned away. So maybe just to set the stage, how do you describe Thomson Reuters today?

Question: Manav Patnaik - Barclays - Analyst : Got it. And the three main divisions, the Big 3 as you talk about it, maybe just give us a flavor of that in the mix there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 9:45AM, TRI.TO - Thomson Reuters Corp at Barclays Americas Select Franchise Conference

Question: Manav Patnaik - Barclays - Analyst : Got it. Kirsty, maybe I'll move to you. Just a little bit of background of yourself. Some of folks here, you'll be new to them. And then also I think the initial work you had done in terms of transforming Thomson Reuters into its current stage, if you could just give us a flavor of that as well.

Question: Manav Patnaik - Barclays - Analyst : Got it. And maybe you can just expand on the latter part, the growth of the product, technology, the growth. Like what are some of your goals that you have there?

Question: Manav Patnaik - Barclays - Analyst : Got it. And Steve, several years ago when you were at this conference, GenAI had just about hit the tapes and there was a lot of debate on whether that's good or bad for the legal industry and, therefore, your business, where do we stand today? How do you see this?

Question: Manav Patnaik - Barclays - Analyst : Got it. And just to put some numbers on the GenAI strategy, talk about the annual organic investment in AI broadly, I guess. And then also as a follow-up, you kind of -- you've made a few key acquisitions along the way. If you could just talk about those as well.

Question: Manav Patnaik - Barclays - Analyst : That's clear. And Kirsty, sounds like you're very involved with the GenAI part as well. So maybe if you could give us a flavor on the $200 million. Like where does that get spent? Like what are some of the key signposts, I guess, to look for?

Question: Manav Patnaik - Barclays - Analyst : Got it. So just to follow up on that, either Steve or Kirsty. So with Legal, clearly, you have that content advantage, and I think everyone -- most of the press on GenAI and the opportunities on the legal side or on the tax side, it's more on the software side of the opportunity. Or can you just help us appreciate the TR advantage there?

Question: Manav Patnaik - Barclays - Analyst : Got it. I mean, GenAI has clearly been a big part of your story at least over the last several years. And I think you're one of the only companies that provides a breakout of GenAI contribution. So I don't know, Gary, maybe you want to just tell us the history of the ACV, the contribution, anything you can on the growth side.

Question: Manav Patnaik - Barclays - Analyst : And some of the key products in that 20%?

Question: Manav Patnaik - Barclays - Analyst : Got it. And Steve, maybe just to take a step back. Even before GenAI helped you accelerate some of your growth, I mean, you did -- you guys did a fabulous job transforming the company from what was low single-digit growth, low-30s margins. And now we're talking about high single-digit growth, approaching 40% margin. So even before GenAI, like, what was -- what were some of the key things that you had to change when you took over right at the start of COVID? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 9:45AM, TRI.TO - Thomson Reuters Corp at Barclays Americas Select Franchise Conference

Question: Manav Patnaik - Barclays - Analyst : And Gary, just to follow up on that. I asked you this last week, but the 20% ACV that's GenAI and the 25% of products is growing 10%, is there an overlap there? Or --

Question: Manav Patnaik - Barclays - Analyst : Got it. And Steve, you needed -- you have another public competitor, RELX, that also has a good legal business. They've also talked a lot about their GenAI; efforts, growing nicely them as well. Can you just help us distill the competitive dynamics? Do you guys eat -- swim in your own lane? What is the context behind both of you doing well here?

Question: Manav Patnaik - Barclays - Analyst : Got it. And to Gary's point, if Westlaw obviously has grown faster, but it's still not double digits, I mean, you would think that the law firm should be adopting this pretty quickly. But what are some of the qualitative barriers that you hear from your customers and why it's not?

Question: Manav Patnaik - Barclays - Analyst : Got it. When I think of Thomson Reuters, I always think of like four key parts of the story, which is the accelerating growth we talked about that. The GenAI layer we talked about that. The other two is kind of your defensiveness and capital allocation. So maybe starting with the defensiveness point, maybe more current view, like with all the noise out there, have you seen any impact from your customers? Are they delaying decisions?

Question: Manav Patnaik - Barclays - Analyst : Got it. And I know a lot has changed, but in past slides, you guys have shown kind of the resiliency of the growth. In that low single-digit range, you guys obviously starting at a higher level. So should we think that the resiliency could also be at a higher level?

Question: Manav Patnaik - Barclays - Analyst : Correct, yeah. I observed that in your script on the last call. So I was going to follow up on that. So maybe it's a good time just to remind us of what are the key geographies, verticals, even segments. Like where are some of these deals that we should be looking at?

Question: Manav Patnaik - Barclays - Analyst : And just on the international point of view, you talked a lot about it at the Investor Day as well. I mean, I think some of the challenges with our companies is the business models and the content is so good in the US, you can't find the same thing abroad. So is that the case? Or is it valuation?

Question: Manav Patnaik - Barclays - Analyst : Got it. And you've clearly been active with M&A. You said $2.3 billion, but $10 billion is a big number. Let's just say some of these big deals you mentioned don't come through, what do you do with the cash?

Question: Manav Patnaik - Barclays - Analyst : Got it.

Question: Manav Patnaik - Barclays - Analyst : Okay. Got it. In the last couple of minutes, I just wanted to end with some of your government contracts, exposure, a lot of noise, obviously, the DOGE website. There's a couple of your contracts listed up there. But then in the last earnings call, you actually talked about how your government growth accelerated. So just help us bridge the gap. Like are you losing stuff to those? Is -- just the dynamics, that would be helpful.

Question: Manav Patnaik - Barclays - Analyst : Got it. And maybe just quickly to end with that, Reuters News is a little bit more in the news on the government side. Just any thoughts there?

Question: Manav Patnaik - Barclays - Analyst : Got it. All right. Let's end it there. Thank you, guys, for your time.