Thomson Reuters Corp at JPMorgan Ultimate Services Investor Conference Transcript

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

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Obviously, it's a period of time of great transformation in generative AI, and you're spending hundreds of millions of dollars on generative AI. Do you feel like you're able to track the ultimate returns on that? Like do you feel like I'd rather just overinvest even if that's a risk versus underinvest?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Wait, say it again. $200 million stays in '26 also?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : I had an other part to that question of like, are you going to be able to measure the returns on this?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : And do you think -- one more time. And you think that eventually you'll be able to give us like a percentage payback on the $600 million: [$200 million, $200 million, $200 million]?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : So I know now you could still buy a digital legal assistant, AI generated from Thomson. And you could buy it separately from the subscriptions, like if you want to do document review. But do you think that's going to continue in the future that you're going to have unbundled AI products? Or do you think eventually, it's all going to be bundled and with the value creation, it's going to be price increases and not separate subscriptions?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : And that's probably how you would charge for it, too, right?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Okay. Perfect. You know what I think is surprising if I mentioned this to people is that when you talk about pricing in the Big 3, tax is about 5. Corporates, and this is really about the end users, Corporates, which are products both in Tax and Legal is 3. And then Legal, which means law firms is only 2. Like should it be that way that the law firm price increases are the lowest of the three end users?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Okay. When you look at just the near term for your Legal segment, again, that would be selling into law firms, do you see room for acceleration? Year-to-date, that segment is at 7%. It also benefited a little bit from the sale of FindLaw. Like do you feel like there's a feeling of acceleration or more like steady growth when you talk about the law firm segment?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Helpful, right, it would be helpful, yes.

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Okay. Perfect. If you grab outside your information services data book, I'm just going to show them something. But on Page 11, it goes by subsegment. And if you look at Legal, all the -- so this is RELX Legal, Thomson Reuters Legal Professionals and Wolters Legal, everybody has shown acceleration into '24. Of course, 7% is at the top, so I'm not saying it's not top. But my question is, do you think that with all this innovation, that Thomson Reuters Legal is gaining market share? Or do you feel like this has been expanded market opportunity? And you can understand, Steve, the way I'm asking the question, I think it's expanded market opportunity to you.

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Should we expect to see more divestitures? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 8:10PM, TRI.TO - Thomson Reuters Corp at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : So smaller than the two of them?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Okay, that makes sense. And I'm sure you'll disclose that when that happens, right?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Sounds good. Okay, sounds good. Can we talk a little bit about the Indirect Tax & Accounting products? So we're not talking about the tax and accounting firms but the products. How do you feel now that you've acquired Pagero in terms of the product set there? I'm particularly talking about Indirect Tax. Has this really kind of revitalized that suite of products? Because the way I would say it is Indirect Tax, Thomson probably was a little bit in an awkward situation because Thomson Reuters likes to be number one or number two in everything they do, and Indirect Tax, you weren't there. And this sort of gives a boost of life. I think I made describing (inaudible)

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Through M&A?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Okay. Switching back to Tax & Accounting Professionals, I think Pagero is in Corporate, right?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Yes. And so just switching back to Tax & Accounting Professionals, like what should we watch in Tax & Accounting Professionals segment in terms

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Okay. I want to open it up for questions.

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : More questions? Unidentified Participant What's behind the decision to keep the absolute level of CapEx flat at $200 million?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Maybe on generative AI and CoCounsel, you just mentioned CoCounsel is not just rolled out to your Legal products, it's also rolled out to your Tax & Accounting products. When I think about large language models, generative AI, I think about language. And I feel like Legal is sort of primed for that. But if you were going to roll it out with Checkpoint Edge, I just feel that's more like numbers, not language. Like is there going to be as much value creation rolling out CoCounsel with, say, Checkpoint Edge as it would rolling it out with Westlaw Precision?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : Okay. Other questions?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : So we're getting close to end time. And I just wanted to give you the opportunity, Steve, to maybe address any subjects that you really thought we should have been asking you and we haven't. And kind of think maybe from now to a year from now when you're back here, November 18, 2025, what might we be talking about then that we're not talking about right now?

Question: Andrew Steinerman - J.P. Morgan Securities LLC - Analyst : That's great. Thank you.