Thomson Reuters

In 2015, approximately 40% of the Thomson Reuters revenues were derived outside of North America: 27% (2014 – 30%) from Europe, Middle East and Africa (EMEA) and 10% (2014 – 10%) from Asia Pacific. As of December 31, 2015 Thomson Reuters had 9.000 employees in its Legal unit and 3,700 employees in its Tax & Accounting unit.

Thomson Reuters Legal’s Major Brands

(Main Source: Thomson Reuters Anual Report 2015)
The following are the Thomson Reuters Legal’s major brands, by type of product or service, including the target customers:

Thomson Reuters Westlaw (U.S.), Sweet & Maxwell (U.K.), Carswell (Canada), Aranzadi (Spain), La Ley (Argentina) and Revista dos Tribunais (Brazil)

Thomson Reuters Westlaw (U.S.), Sweet & Maxwell (U.K.), Carswell (Canada), Aranzadi (Spain), La Ley (Argentina) and Revista dos Tribunais (Brazil): Legal, regulatory and compliance information-based products and services. The Thomson Reuters Westlaw is Legal’s primary online legal research delivery platform in the United States.
Westlaw offers content, search functionality and research organization, team collaboration features, and navigation tools to find and share specific points of law and search for analytical commentary. Localized versions of online legal research services are provided in Argentina, Australia, Brazil, Canada, Chile, China, France, Hong Kong, India, Ireland, Japan, Malaysia, New Zealand, South Korea, Spain, the United Kingdom and other countries. Through
Westlaw International, Thomson Reuters offers its online products and services to customers in markets where they may not have yet developed a fully localized Westlaw service.

Target customers for this Thomson Reuters Service or Product: Law firm and corporate professionals, law students, law librarians, legal professionals in government agencies and trademark professionals

Practical Law and Practice Point

Legal know-how, current awareness and workflow tools with embedded guidance from expert practitioners. Practice notes, standard documents, checklists and What’s Market tools cover a wide variety of practice areas such as commercial, corporate, labor and employment, intellectual property, finance and litigation. Practical Law currently has offerings in the United Kingdom, United States, Canada and China.

Target customers for this Thomson Reuters Service or Product: Law firm and corporate legal professionals and legal professionals in government agencies

Thomson Reuters Legal Tracker

• Online matter management, e-billing and legal analytics services (formerly known as Serengeti)
• Target customers for this Thomson Reuters Service or Product: Corporate legal professionals

Legal Managed Services<(h3>

• Outsourced legal services (formerly known as Pangea3)
• Target customers for this Thomson Reuters Service or Product: Corporate legal and law firm professionals

Elite 3E and ProLaw

• Suite of integrated software applications that assist with business management functions, including financial and practice management, matter management, document and email management, accounting and billing, timekeeping and records management.
• Target customers for this Thomson Reuters Service or Product: Law firm and professional services, legal, finance and technology professionals.

FindLaw

• Findlaw is an online legal directory, offering website creation and hosting services; law firm marketing solutions; and peer rating services.
• Target customers for this Thomson Reuters Service or Product: Law firm professionals, marketers and consumers.

Case Logistix, Case Notebook and Drafting Assistant

• Electronic discovery service, research tools, case analysis software and deposition technology, as well as expert witness, document review and document retrieval services and drafting tools to support the stages of the litigation workflow.
• Target customers for this Thomson Reuters Service or Product: Law firm and corporate legal professionals, paralegals and court professionals.

C-Track Court Management Solutions

• Software suite to support e-filing, case management, and public access solutions for courts which can be integrated with other court applications. The C-Track Court Management Solutions business continued its growth in 2015 in the U.S. and globally, most notably continuing to serve the Royal Courts of Justice in the United Kingdom.
• Target customers for this Thomson Reuters Service or Product: Judges, lawyers, court and law firm staff and general public.

Thomson Reuters ProView

• Professional grade e-reader platform. ProView library solutions enable customers to leverage digital platforms as their business needs evolve.
• Law firm and corporate legal professionals, legal academics, legal professionals in courts, government agencies and government departments.

CLEAR and PeopleMap

• Public and proprietary records about individuals and companies with tools for immediately usable results.
• Target customers for this Thomson Reuters Service or Product: Fraud prevention and investigative professionals in government, law enforcement, law firms and businesses.

Competition of Thomson Reuters Legal

Legal’s primary global competitors are Reed Elsevier (which operates LexisNexis) and Wolters Kluwer. Legal also competes with other companies that provide legal and regulatory information, including Bloomberg BNA, as well as practice and matter management software companies, client development providers and other service providers who support legal professionals.

Thomson Reuters Tax & Accounting’s Major Brands

The following are the Thomson Reuters Tax & Accounting’s major brands, by type of product or service, including the target customers:

ONESOURCE

• A global tax compliance solution with local, country-specific, focus to manage a company’s tax lifecycle. ONESOURCE software and services, which can be sold separately or as a suite, include solutions for tax planning, tax provision, tax compliance, transfer pricing, trade and customs, tax information reporting, trust, property, and overall tax workflow management and data management.
• Target customers for this Thomson Reuters Service or Product: Tax departments of multinational and domestic corporations, accounting firms, financial institutions and tax authorities.

Checkpoint

• Integrated information solution delivering research, expert guidance, applications and workflow tools as well as primary sources and third party content providers.
• Target customers for this Thomson Reuters Service or Product: Accounting firms, corporate tax, finance and accounting departments, international trade professionals, law firms and governments.

CS Professional Suite

• A scalable, integrated suite of desktop software applications that encompass key aspects of a professional accounting firm’s operations – from collecting customer data and posting finished tax returns to the overall management of the accounting practice. It also offers tax
  preparation, engagement, practice management, document management and workflow management solutions for large firms.
• Target customers for this Thomson Reuters Service or Product: Accounting firms

Onvio

• An innovative suite of cloud-based products that brings together what a firm does into a single, accessible online platform. Available applications include document management, a client portal system, time and billing and engagement management.
• Target customers for this Thomson Reuters Service or Product: Accounting firms.

Digita

• U.K. tax compliance and accounting software and services.
• Accounting firms, corporate tax, finance and accounting departments, law firms and governments

Competition of Thomson Reuters Tax & Accounting’s

Tax & Accounting’s primary competitor across all customer segments is Wolters Kluwer. Other major competitors include Intuit in the professional software and services market segment and CORPTAX (owned by Corporation Services Company) in the corporate software and services market segment and Bloomberg BNA in the tax research market segment. Tax & Accounting also competes with other providers of software and services, and ERP vendors.

Details

In 2015, 93% (2014 – 92%) of Thomson Reuters revenues were derived from information delivered electronically, software and services, with the remaining 7% derived from print (which is primarily in Thomson Reuters Legal segment).

Thomson Reuters obtains significant data and information through licensing arrangements with content providers (providing proprietary content or services).

In 2015, 87% of Thomson Reuters revenues were derived from subscriptions or similar contractual arrangements, which result in recurring revenues. Subscription revenues are the 72% of Thomson Reuters Legal’s business in 2015. Because a high proportion of Thomson Reuters revenues are recurring, Thomson Reuters revenue patterns are generally more stable compared to other business models that primarily involve the sale of products in discrete or one-off arrangements. Thomson Reuters revenues are supported by a relatively fixed cost base that is generally not impacted by fluctuations in revenues.

In Thomson Reuters Legal and Tax & Accounting business units, customers have increasingly been seeking products and services delivered electronically and continue to migrate away from higher margin print products. In 2015, Thomson Reuters Legal U.S. print-related revenues declined 6%.

A majority of Thomson Reuters operating expenses are fixed. Thomson Reuters most
significant operating expense is staff costs, which represented 55% of Thomson Reuters total 2015 expenses (2014 – 54%) and is comprised of salaries, bonuses, commissions, benefits, severance, payroll taxes, and equity-based compensation awards.

In Legal:

• Solutions business revenues (46% of total) include non-U.S. legal information and global software and services businesses. Solutions business includes Legal Enterprise Solutions (Elite and Serengeti) and Legal Managed Services (Pangea3).
• Online legal information revenues (39% of total) includes U.S. Practical Law and Westlaw.

Future

While traditional legal research offerings remain essential to Thomson Reuters customers, the company also has growth opportunities in Thomson Reuters solutions businesses. Lawyers and other legal professionals need more effective tools to assist them with compliance, regulatory and risk-related issues and questions. Additionally, Legal practitioners in both companies and law firms are seeking better ways to manage massive amounts of data in the e-discovery process. They are also looking to simplify and modernize processes for handling routine legal work by leveraging technology, increasingly in a software-as-a-service (SaaS) format. These dynamics have created opportunities for our legal solutions businesses, such as Legal Enterprise Solutions (Elite and Serengeti) and Legal Managed Services (Pangea3). Legal believes it is well positioned to act on these trends with its solutions that integrate its research offerings with practical know-how and practice management tools.

In January 2016, Thomson Reuters Legal launched Practice Point, which integrates the research
capabilities of Westlaw and the know-how of Practical Law.