REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

Notes on the consolidated profit and loss account1. Segmental analysisThe tables below are a segmental analysis of revenue, costs and contribution which reflect the way in which Reuters is managed. Following the group’sreorganisation which became effective on 1 January 1999 the group is managed on a divisional basis, comprising Reuters Information, Reuters Trading Systems(renamed in 2000 as Reuters Trading Solutions), Instinet and Reuters Ventures (renamed in 2000 as Reuterspace). For comparability the divisional results excludeReuters Business Briefing (RBB) and TIBCO Software Inc. RBB is now part of the Factiva joint venture which became effective in July 1999. TIBCO SoftwareInc., was floated on the NASDAQ stock market in July and is now accounted for as an associate. The segmental analysis for 1998 and 1997 has been restated toconform to the current year format.1999 % 1998 % 1997By division £M CHANGE £M CHANGE £MRevenueReuters Information 1,619 6% 1,531 4% 1,477Reuters Trading Systems 780 (6%) 827 4% 800Instinet 525 18% 446 16% 383Reuters Ventures 157 2% 154 (8%) 167Divisional revenue 3,081 4% 2,958 5% 2,827TIBCO Software Inc. 21 (40%) 35 40% 25Reuters Business Briefing 31 (43%) 54 29% 41Share of Factiva revenue 35 – – – –Intra-group revenue (8) 47% (15) (36%) (11)Gross revenue 3,160 4% 3,032 5% 2,882Less share of Factiva revenue (35) – – – –Group revenue 3,125 3% 3,032 5% 2,882CostsReuters Information (1,366) (1%) (1,373) 4% (1,320)Reuters Trading Systems (550) 3% (541) 3% (524)Instinet (396) 36% (291) 24% (234)Reuters Ventures (172) (5%) (181) (8%) (196)Divisional costs (2,484) 4% (2,386) 2% (2,274)TIBCO Software Inc. (27) 27% (38) 54% (24)Reuters Business Briefing (32) 52% (66) 12% (59)Share of Factiva costs (39) – – – –Intra-group costs 8 (47%) 15 36% 11Gross costs (2,574) 4% (2,475) 5% (2,346)Less share of Factiva costs 39 – – – –Group costs (2,535) 3% (2,475) 5% (2,346)ContributionReuters Information 253 60% 158 0% 157Reuters Trading Systems 230 (20%) 286 4% 276Instinet 129 (17%) 155 4% 149Reuters Ventures (15) 44% (27) 7% (29)Divisional contribution 597 5% 572 4% 553TIBCO Software Inc. (6) – (3) – 1Reuters Business Briefing (1) 93% (12) 29% (18)Gross contribution 590 6% 557 5% 536GoodwillReuters Information (13) (11%) (15) (29%) (21)Reuters Trading Systems (26) 35% (20) 25% (16)Instinet (5) 27% (4) 0% (4)Reuters Ventures (3) 59% (7) 30% (10)Total goodwill (47) 2% (46) (10%) (51)Net currency gain 6 (84%) 39 (29%) 56Operating profit 549 0% 550 2% 541Reuters Group PLC Annual Report 1999 45