REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

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TO FIND OUT MORE VISITwww.reuters.com/Reuterspace. Reuters Ventures has been renamedReuterspace. It groups businesses and assetstogether to realise the internet-enabled opportunitiesfor Reuters to reach wider audiences at work and athome through fixed or mobile devices.Aladin Abdel Naby/ReutersRob Rowley, Chief Executive Reuterspace.99 98 97Revenue 157 154 167Cost (172) (181) (196)Contribution (15) (27) (29)Employees 1,344 1,541 1,484It includes the following activities:Reuters Media; Reuters Enterprise;Reuters Personal; Reuters Mobile; ReutersGreenhouse; and Reuters Partners.Reuters Media includes both traditionaland internet media sales. It builds onReuters extensive real-time output anddatabases of textual news, stillphotographs and news video footage toprovide services to the world’s media aswell as over 900 websites globally withan estimated 40 million users. Revenuefrom sales of internet media productsgrew by 226% in 1999.Reuters Enterprise will address theincreasing demand for information in thebusiness-to-business e-commercemarket. It will expand and exploit a rangeof acquisitions and developments alreadymade. In 1999 Reuters acquired amajority stake in TowerGroup of BostonMA, its first acquisition in the IT researchadvisory market. Together with an earlierinvestment in Datamonitor of the UK, theTowerGroup acquisition strengthensReuters position in the high-quality,specialised research information market.Reuters has also, subject to regulatoryapproval, agreed to acquire ORT, themarket leader in France for companyand business credit information.Reuters Personal will develop a newfinancial portal to provide services to theconsumer finance market. This broadensthe market for Reuters unique rangeof content. Reuters also plans to form ajoint venture in Europe with Multex tooffer a financial portal aimed at the highendretail investor.Reuters Mobile builds on its WirelessServices, a new venture formed in 1999to establish a strong position in the newand rapidly expanding market beingcreated by the wireless applicationprotocol (WAP). During 1999 Reutersbegan delivering user-defined contentto mobile telephones. Reuters proposedjoint venture with Aether Systems willdevelop and provide wireless dataapplications in Europe as part of thedevelopment of mobile services.Reuters Greenhouse Fund invests incompanies whose technology orbusiness models are of specific relevanceto Reuters (see opposite page).Reuters Partners will find ways ofincreasing co-operation with Reutersgrowing group of partner companies.They include Factiva, the joint venturewith Dow Jones Inc., which merged thebusinesses of Reuters Business Briefingand Dow Jones Interactive in 1999.14 Reuters Group PLC Annual Report 1999
TO FIND OUT MORE VISITwww.reuters.com/greenhouse/Reuters Greenhouse. The Greenhouse Fund reachedan important milestone when the value of the publiclytraded stock in its portfolio reached £438 millionat year end in a series of unprecedented surges intechnology stocks in late 1999.Dylan Martinez/ReutersDavid Lockwood, CEO Greenhouse Fund;John Taysom, Founder and CEOGreenhouse Fund; Norman Fiore, AssociateGreenhouse Fund.Five US investments: Intertrust, Digimarc,StarMedia, Phone.com, and Persistence,all held Initial Public Offerings (IPOs) onNASDAQ in 1999. The FantasticCorporation, of Switzerland, had an IPOon the German Neuer Markt, the Fund’sfirst European investment to go public.There have now been 11 IPOs and threetrade sales from the Greenhouse, onesale being to a public company,EdgarOnline, for stock. The pipeline ofqualified deals remains strong at thebeginning of 2000. Full details of thecurrent portfolio can be found onwww.reuters.com/greenhouse/In 1999 Reuters continued to takeadvantage of favourable marketconditions to sell down some earlierinvestments, re-investing in new start-upopportunities. In order to develop theFund at a faster pace and to build on itssuccess, Reuters has appointed advisersto prepare an IPO for a portion of theGreenhouse Fund in 2000.Reuters established the GreenhouseFund in 1995 to invest in internet startupsand new technologies and includesstakes in some of the world’s best knowninternet companies. The Fund was oneof the first external investors in Yahoo!,the internet directory. In 1999,Greenhouse activity accelerated andbroadened considerably. It invested instart-up companies in the US, Europe,Israel and Japan, bringing the numberof investments at the end of 1999 to 38.The investment focus continues to be oninfrastructure investments that enablecontent publishing and e-commerceover public networks. The Fund focuseson technologies that can be of use toReuters and on selected, early stage,niche content.TIBCO Software Inc.TIBCO Software is a leading provider ofreal-time infrastructure software for theInternet and enterprise. It enablesbusinesses to dynamically link internaloperations, business partners andcustomer channels.TIBCO Software completed an IPO inJuly 1999 and is now quoted onNASDAQ. At 31 December 1999 Reutersheld a 62.3% stake in the company on anundiluted basis but its voting rights wererestricted to 49%.TIBCO Software builds on the softwarewhich has been successful in dealingrooms to create applications for theInternet. The technology driving thevalue of TIBCO Software remainsavailable to Reuters especially inproviding solutions to larger customers.Reuters Group PLC Annual Report 1999 15
Page 1 and 2: REUTERS GROUP PLC ANNUAL REPORT AND
Page 3 and 4: 2 Financial highlights3 Five year s
Page 6 and 7: From the Chairman.Theus now is Inte
Page 8 and 9: Reuters, wherChief Executive Peter
Page 10 and 11: Peter Job talks about theprojection
Page 12 and 13: TO FIND OUT MORE VISITwww.reuters.c
Page 14 and 15: TO FIND OUT MORE VISITwww.reuters.c
Page 18 and 19: Board of Directors1 2 34 567 8Non-e
Page 20: Financial Review and Statements Con
Page 23 and 24: the world. In 1999, television, tex
Page 25 and 26: appointments of non-executive direc
Page 27 and 28: EXECUTIVE DIRECTORS’ SERVICECONTR
Page 29 and 30: The table below shows the number of
Page 31 and 32: Vested options on Reuters Group PLC
Page 33 and 34: Statement of directors’ responsib
Page 35 and 36: Operating and financial reviewThe f
Page 37 and 38: growth of 6% at comparable rates. I
Page 39 and 40: OtherYear to 31 December£m 1999 19
Page 41 and 42: ownership trust compared with £7 m
Page 43 and 44: market value of the Greenhouse Fund
Page 45 and 46: through internet-based infrastructu
Page 47 and 48: Notes on the consolidated profit an
Page 49 and 50: 2. Operating costs1999 % 1998 % 199
Page 51 and 52: 4. Taxation on profit on ordinary a
Page 53 and 54: Consolidated cash flow statement fo
Page 55 and 56: 11. Analysis of net fundsBANK/OTHER
Page 57 and 58: 12. Derivatives and other financial
Page 59 and 60: Reconciliation of movements in shar
Page 61 and 62: 15. Tangible assetsOFFICECOMPUTER E
Page 63 and 64: 17. Stocks1999 1998 1997£M £M £M
Page 65 and 66: 23. Pensions and similar obligation
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26. Capital and reservesPROFIT ANDC
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29. Employee share option plansReut
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32. Acquisitions and disposalsDurin
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Balance sheet of Reuters Group PLC
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Accounting policiesAccounting basis
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Summary of differences between UK a
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38. Adjustments to shareholders’
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Other information for shareholdersI
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Financial diary for 2000Tuesday 8 F
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1999 1998H1 H2 FY H1 H2 FYCosts £M
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1999 1998Net assets £M £MReuters
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1996 1995 1994 1993 1992 1991 1990
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Where to find usCorporate headquart
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www.reuters.com/ REUTERS GROUP PLC
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REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

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