Preliminary Results Tom Glocer Chief Executive Officer 18 February 2003

Target remains the same: Market conditions have changed First phase “self help”  Margin driven earnings growth - Cost reduction - Reshaping the business 5 year plan announced Oct 2001 Cyclical Competitive Structural Market forces Second phase  Revenue-driven earnings growth - Segment strategies take hold - Market upturn

 Costs down faster than revenues (10% vs 6%)  Normalised operating margin of 13.1% pre-restructuring  Normalised PBT increase of 51%  Portfolio reshaped: 56 units sold or closed Cyclical  83% increase in 3000 Xtra revenues  Over 250,000 registered users of Reuters Messaging, 70,000 activated  Next Generation products on track  Investment in Customer Service - more customer-facing staff Cyclical Competitive Structural  Instinet restructured; $200m returned  More work to do in core business Responding to market forces

Fundamental market changes… Overcapacity Regulatory Pressure Increasing Data Volumes How have we done so far? A focused information company that Operates on a global scale Delivers a range of carefully segmented products in ways that help our customers be more productive Is a trusted brand which stands for speed, accuracy and freedom from bias suit the company we are building: Time to accelerate …

1.Make our information indispensable – build up content, analytics, community and openness 3.Simplify and segment our product line 2.Move to a single product distribution architecture and business model 5.Reduce and reshape our cost base 4.Focus our Solutions business around our products Cyclical Competitive Structural To be a More Competitive, Focused and Profitable Information Company Action plan – Key strategic initiatives

Competitive Advantages Initiatives When ?  Add value to News  Build out Company Data  Multex Depth, breadth, speed and accuracy “Content” Now ’03 Now  87,000 Power Plus Pro users  Expand Bridge EJV  Kondor + v 2.6 Ability to analyse and graph “Analysis” Now ’03  Instinet Trading  Deutsche Bank Autobahn  Reuters Messaging Ability to share and trade “Community” Now  RMDS on Linux  NewsML  Reuters.Net products Delivery in formats clients can use “Openness” Now ‘03 Now 1. Make our information indispensable

Multex  Key company data sets complement Reuters strengths in news and pricing - Fundamentals on over 25,000 active companies - Earnings estimates for over 16,000 companies in 60 countries  Investment Research assets position us well as industry restructures  Multex Investor enhances the personal finance sector of reuters.com  Acquiring Multex for a net cash consideration of $195m revenues:$92m EBITDA: $11m  Integration and financing costs dilute normalised PBT by approximately £10m in 2003

BeforeAfter Key milestones 3000 Xtra, Reuters Plus and Trading Room systems fed by Bridge during 2004 Single global architecture 2. Move to a single product distribution architecture

Why we’re sure this is the right approach  Parallels in other industries  Experience with Reuters Plus (US) and other regional products  Evidence of sales success 3. Radically simplify and segment the product line Key Milestones  Reuters Knowledge -Early access programme under way  European Markets Suite -Launch Q2  Reuters Intelligent Advisor -Launch Q3  Product obsolescence -Over 70 removed in ’02 -Another 125 by end ‘03

4. Focus our Solutions business around our products What’s In  Integration of Reuters products  Focus on high margin products - Content Management Systems - Risk Management - Treasury Solutions  Channel partnerships with systems integrators What’s Out  Pure outsourcing  Consulting and business re-engineering  Integration of non-Reuters systems  Chasing revenue

5. Reduce and re-shape our cost base Existing Business Transformation  Savings of £235 million in 2002  Savings of £445 million in Channel Development Segments / Product Solutions Single Architecture Other Restructuring charge: 2003 – 2005 £340 million 2006 Cost Savings £440 million

Savings Costs What is the impact ? £m

Targets for 2003  Market conditions – our customers are forecasting a 2003 worse than 2002  Reuters core recurring revenue expected to decline at or slightly above 9% in Q1, and somewhat further in Q2  2003 priorities - Execute on Fast Forward plans - Improve customer service - Launch Next Generation products - Integrate Multex and capitalise on Research opportunity - Continue to drive down costs  Normalised operating margin of around 12%

Fast Forward to what ?  A more Competitive Reuters  A more Efficient Reuters  A more Service Orientated Reuters  A more Aggressive Reuters A focused information company that leverages its core skills, scale and brand to deliver the right products at the right price, with great service