Transcript THOMSON REUTERS PRESENTATION TEMPLATE

DATASTREAM – SEE THE BIGGER PICTURE
WORLDSCOPE FUNDAMENTALS
Amira Fares
BY THE END OF TODAY’S SESSION YOU
WILL BE ABLE TO…
• EXPLAIN THE NATURE OF THE WORLDSCOPE
DATABASE
• DESCRIBE HOW AND WHERE WORLDSCOPE
DATA IS USED IN DATASTREAM
• EXPLAIN PAST AND FUTURE DATABASE
DEVELOPMENTS
2
WHAT IS WORLDSCOPE? AN OVERVIEW
• Some context and terminology:
– “As presented” – exactly the number and the item
description provided by the company
– “As reported” – an attempt to collect “as presented” data
in a database of manageable size and complexity
– “Standardised” – where the “as presented” data has been
re-presented in way that promotes comparability between
companies
3
WHAT IS WORLDSCOPE? AN OVERVIEW
Worldscope is a “Fundamentals” database and so covers:
•
Financial Statements:
• Balance Sheet
• Income Statement
• Cash flow statement
• Per Share data (EPS, DPS, BV, Cash Flow per share, etc.)
• Accounting standards used
• Financial Ratios:
• Growth
• Profitability
• Asset Utilisation
• Leverage
• Liquidity
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WHAT IS WORLDSCOPE? AN OVERVIEW
Content (continued…)
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Market & Stock performance:
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Security and identification
Exchange and indices
Market prices and trading volumes
Capital changes
Investment returns
P/E, P/B, Dividend yield, etc.
• Text & Others:
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Contact details
Officers
Business description
Industry classifications
Geographic segment
Product segment
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WHAT IS WORLDSCOPE? AN OVERVIEW
• Data sources and procedures
– Public domain – all the information on which we base
Worldscope is freely available to all.
– We use a variety of sources – annual reports, official
filings, data feeds, internet sources etc.
– We try to use native language sources wherever possible
– so we have staff who are native speakers of some 25-30
different languages.
– Many of our analysts have accounting expertise as well as
language skills when they join Thomson Reuters – but all
go through our intensive training programme followed by
3-6 months’ supervised on-the-job training.
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WHAT IS WORLDSCOPE? AN OVERVIEW
• Offices and staffing:
LOCATION
STAFF
COUNTRIES
Bangalore
c.260
Some N. America, India,
Pakistan, Sri Lanka, Some
Europe, Japan, Brazil
Manila
c.190
Some N. America, Asia-Pacific
(ex-Japan), UK, Ireland, Latin
America
Cardiff
c.12
Some Europe
Plus small numbers (c.20) elsewhere involved in projects,
technology, commercial support.
7
WHAT IS WORLDSCOPE? AN OVERVIEW
• QA/QC
– Detailed country- and item-specific documentation
– Over 2,000 automated tests:
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•
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Balance - things that should add up do
Magnitude - reasonableness check across periods
Correlation - reasonableness check within period
Alpha - e.g. correct date format, valid industry codes, correct
field lengths
– Group leader review
– Audit team – detailed reviews on a sample basis
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WORLDSCOPE IN DETAIL - AIMS
• The principal purpose of Worldscope is to aid the comparison
of financial information from companies from different
countries.
• While there are ongoing attempts to harmonise international
accounting standards this has not yet been achieved and
inconsistencies also arise from local legal and tax systems as
well as the use of language.
• In addition, while IFRS (International Financial Reporting
Standards) are now used in many countries they allow a great
deal of flexibility in how a company chooses to display its
figures.
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WORLDSCOPE IN DETAIL - COVERAGE
• A company needs to meet at least one of these coverage criteria:
– 100% coverage of quoted companies in many (33) markets
• E.g. USA, UK, EU (15), Switzerland, Norway, Japan.
– Index membership
• A company must be a member of one or more specified
global or local indices.
– Market capitalisation
• Companies with market cap greater than US$100 million.
– Visibility
• Number of broker estimates equal to or greater than 5.
• Total coverage is over 58,000 with more than 37,000 of those active.
• The earliest data is from 1980.
10
WORLDSCOPE IN DETAIL – LIMITED DATA
COMPANIES
• Companies which do not meet the criteria for full, detailed
coverage by Worldscope may be added at the “limited data”
level.
• There are currently around 8,400 active limited data
companies in Worldscope and just over 2,200 inactive ones.
• The limited company data set comprises about 350 key items.
• “Limited data” companies may be identified by using field
11519, Indicator-Limited Data Set Company” (= X).
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WORLDSCOPE IN DETAIL – STRUCTURE
• All companies allocated to one of four broad industry
categories: Industrial, Banks, Insurance, Other Financials
• Data and structure
– Over 1,700 items potentially available
– For an Industrial company, nearly 1,500 items potentially
available including:
• Over 500 “fundamentals”
• Some 300 per share / security-related items
• Over 300 derived items
• Remainder are mainly meta data or fielded textual data items
• Derived items include many financial ratios covering growth,
profitability, asset utilisation, leverage and liquidity
• Annual, interim and preliminary data all covered.
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WORLDSCOPE IN DETAIL – ANNUAL
UPDATE TYPES
• “Preliminary” – unaudited, may change, may be very limited
detail, may be more than one round of updating, timeliness
varies by country but we aim to update within 3 days of
receipt.
• “Fast” updates – always audited information, a sub-set of
some 350 items (templates listed in the Data Definitions
Guide (DDG)), aim to update within 5-10 days of receipt (but
often much less than that).
• “Final” – fully detailed updates from the annual report or filing,
again templates listed in the DDG).
Also note:
• All updates prioritised by market capitalisation/index
membership.
• Field 07034, Indicator-Data Update, may be used to show the
type of update completed for a particular time series.
13
WORLDSCOPE IN DETAIL – INTERIM
UPDATES
• This covers any data reported between the annual figures –
nearly always semi-annual or quarterly.
• There are two main components in Worldscope
– Some, mainly per share, data within the annual time series. This
has been available in the database since 1980.
– A much more substantial set of fundamental items available as
interim time series. This has been collected since 1998 for US
companies and 2001 for non-US companies.
• This does not mean that we have full interim series coverage
back to 1998/2001 – it is pretty comprehensive now, and has
been for a couple of years, but it grew to that position from
zero over a few years.
14
WORLDSCOPE IN DETAIL –
STANDARDISATION METHODOLOGY (1)
• DISCLOSURE differences
VALUATION differences
– LANGUAGE
– STANDARDS
–
–
–
–
–
Because much of the detail
TYPES
of FILING
needed
to make valuation
adjustments is of
notACCOUNTS
always
COMPONENTS
available, Worldscope does not
ACCOUNT
attempt toFORMATS
standardise for
depreciation policies or
CONSOLIDATION
methods of foreign currency
SPECIFIC
ITEMS:
translation,
for example.
• Share classifications
• Extraordinary items
• EPS and DPS
LEVELS of PRUDENCE,
including the COST BASIS


TAXATION

SPECIFIC ITEMS:
Goodwill

Investments

Depreciation

Inventories/Stocks

Financial & Operating Leases

Foreign Currencies

Research & Development

Pensions

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WORLDSCOPE IN DETAIL –
STANDARDISATION METHODOLOGY (2)
• DISCLOSURE differences
– LANGUAGE
– STANDARDS
VALUATION differences
LEVELS of PRUDENCE, including
BASIS
A full the
andCOST
careful
analysis of the

financial
statements and notes
TAXATION
to the accounts allows us to
SPECIFIC ITEMS:
– TYPES of FILING
reclassify data into one of a
– COMPONENTS of ACCOUNTS number ofGoodwill
templates, in which
each data Investments
item has a standard
– ACCOUNT FORMATS
definition. Depreciation
We do this to
– CONSOLIDATION
increase the
data’s
Inventories
comparability
and&utility
across
– SPECIFIC ITEMS:
Financial
Operating
Leases
borders, sectors and time
Foreign Currencies
• Share classifications
series.
Research & Development
• Extraordinary items
Pensions
• EPS and DPS










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WORLDSCOPE IN DETAIL – EXAMPLES OF
STANDARDISATION
• Sales – if a company includes excise duties and sales taxes
in its “headline” sales figure then Worldscope excludes them.
• Long/short term – Worldscope uses a consistent “one year”
as the dividing line whereas, for example, long term debtors
are sometimes included within current assets.
• Fixed asset impairment charge – sometimes in Cost of sales,
sometimes shown as a non-recurring item – WS always does
the latter and has an item (18274) to show the amount
concerned.
• Definitions – Worldscope’s Data Definitions Guide contains a
detailed definition for each item in the database.
• However, this type of approach can lead to a lack of
“transparency”…
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WORLDSCOPE IN DETAIL RECONCILIATION EXAMPLE
C28042450 DEUTSCHE LUFTHANSA AG
Page no,
Note no.
€ million
1,004 130, I/S
Operating Profit as Reported by the Company
Less: Other taxes
Less: Other Operating Income:
Other operating income
Income from sub-leasing aircraft
Rental income
Compensation received for damages
Hiring out of staff
Re-billing charges foe EDP distribution system
Commission earned
Income from re-billing of accounts payable
Total Other Operating Income
Amortisation of negative goodwill
Foreign currency translation loss
Foreign currency translation gain
Extraordinary Items Included in Trading Profit
Income from disposal of fixed assets
Income from disposal of current financial assets
Loss from disposal of fixed assets
Loss from disposal of current financial assets
Loss from disposal of other current assets
Impairment charges
Restructuring costs
Income from reversal of impairment losses
Total Extraordinaries Included in Trading Profit
Total Adjustments
Worldscope Operating Profit (field 01250)
-50
426
3
28
29
29
33
80
32
660
-446
-34
44
4
2
34
14
6
-388
130, I/S
146, 9
-660
-2
298
-374
155, 20
148, 13
146, 9
146,
146,
149,
149,
149,
148,
149,
146,
9
9
13
13
13
12
13
9
-388
-1,176
-172
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WORLDSCOPE IN DATASTREAM –
AVAILABLE DATA
• There are two levels of Worldscope data a client may have
access to via Datastream:
– All clients have access to a set of around 130 “key” items – listed
on the Datastream extranet and flagged in the Navigator item
description.
– Clients may also choose to subscribe to the “full” Worldscope
database.
• There are in fact a few minor exceptions – weekly, monthly and multistock items are not available via Datastream.
• The full Worldscope country and company coverage,
including “dead” companies, is available to all users.
• The Datastream extranet is a very useful resource for
Worldscope (as for other content sets). Let me know if you
have an idea for something that should be added.
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WORLDSCOPE IN DATASTREAM - ITEM
PREFIXES
• “WC” specifies “company-level” and “W” security-level data. The
difference is only ever significant for per share-related data items.
• When a company has:
– one class of ordinary/common shares (the majority of companies) –
Worldscope has just one company record in which all of the data is
stored and item codes prefixed with “WC” or “W” will return the same
data.
– more than one class of common/ordinary share – Worldscope contains
both a company-level record and a security-level record.
• The former contains per share data based on the combined number of shares
adjusted to the same par value, e.g. if a company has 10,000 “A” ordinary
shares of £1 par value and 5,000 “B” ordinary shares of 50p par value and the
“A” shares are deemed to be the main security then the combined number of
shares would be 10,000 + (5,000 * 50/100) = 12,500. The security-level record
contains per share data relevant to that particular security.
• Use the “WC” prefix to retrieve company-level data e.g. WC05201 for EPS or
the “W” prefix to retrieve security-level data e.g. W05201.
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WORLDSCOPE IN DATASTREAM - ITEM
SUFFIXES (1)
• The main uses of these are to specify the retrieval of interim
and/or restated data.
• The set of suffixes currently available is as follows:
– A originally reported interim figures on a fiscal basis, e.g.
WC01001A
– AQ originally reported key quarterly figures, on a fiscal basis,
provided by some companies which produce detailed figures
semi-annually but provide updates for key data, e.g. Sales, in
their quarterly trading statements
– R restated annual figures on a fiscal basis
– S restated interim figures on a fiscal basis
– SQ restated key quarterly figures, on a fiscal basis, provided by
some companies which produce detailed figures semi-annually
but provide updates for key data, e.g. Sales, in their quarterly
trading statements
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WORLDSCOPE IN DATASTREAM - ITEM
SUFFIXES (2)
• To request the retrieval of item Footnotes add “F”:
– E.g. WC01001F for Thomson Corporation for 2007 returns:
Type
C:TOC
NET SALES OR REVENUES
(K ): ACQ'D. DELOITTE TAX LLP PROPERTY TAX SERVICES,
PROUS SCIENCE & CROSSBORDER SOLUTIONS IN 2007 &
TAXSTREAM IN 2008
– N.B. The “F” suffix may be used in Static or Company Accounts
Data requests but it does not work in Time Series ones.
• To display the scale factor (thousands, millions etc. ) used
add “.U” e.g.
Type
C:TOC
WC01001.U
E+03
– The default for financial statement data is thousands.
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WORLDSCOPE IN DATASTREAM – WHERE
AND HOW IT FEATURES
• Static (900A), time series (900B) and company accounts
(900C) requests.
• It is included in some equities datatypes e.g. Price to Cash
(PC) and Market to Book Value (MTBV) and it also supplies
EPS for some markets.
• Datastream contains lists, e.g. WSCOPEAR for Argentina,
comprising all the companies (active and inactive) for each
country.
• Worldscope data can be used in expressions, graphs and
searches.
• We’ve recently added 14 items derived from Worldscope to
the Datastream Global Equity Indices.
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WORLDSCOPE IN DATASTREAM –
NAVIGATOR
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THE “REMEDY” AGREEMENT
The Agreement:
• FactSet buy a copy of Thomson Fundamentals databases, software
and supporting documentation, plus options on key staff and certain
customer contracts
• obliged to provide support to FactSet for a period of at least 18
months:
– Technical consulting and training
– Collection processes and systems training
– Keep the ‘remedy’ databases updated with ‘normal business’
enhancements, including supporting documentation
– Provide consulting services to FactSet as requested
The Impact:
• Thomson Fundamentals databases and outgoing feeds must be
maintained as normal through the remedy period
• enhancements to these databases passed on to FactSet
• considerable impact on our integration and enhancement strategy
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DATABASE DEVELOPMENT - RECENT
YEARS
• Continued to expand data sets e.g. pension and healthcare
items.
• Expanded interim data coverage in Worldscope.
• Added restated data capability to Worldscope.
• All ex-Thomson Financial fundamentals now collected in one
system (used to be four) thus improving timeliness and
reducing confusion.
• Added Key Performance Indicators (KPIs) (aka Operating
Metrics) for hotel, airline and retail sectors for Russell 3000
companies – now being extended to FTSE World Index.
• Worldscope data added for foreign quotations in Datastream.
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DATABASE DEVELOPMENT – THE FUTURE
•
Point-in-Time content (PIT):
Increase market share in the high-value quants business with this unique new global offering
•
Enhanced Operating Metrics/KPI content:
Essential new content for analyst clients with a strong industry focus, covering 15 new industries
•
XBRL content and capability
Offer potential clients a competitive edge, with increased levels of content consistency, accuracy and timeliness
•
Environmental, Social and Corporate Governance content (ESG):
Expand sales potential to the rapidly increasing numbers of investment managers including ESG criteria in their
investment decisions
•
Shariah Compliance content:
Capture more private and institutional clients wanting to make investment choices that concur with Islamic law
•
Improvements to Click Through:
Further enhancing the reputation and saleability of our content through greater transparency
•
Many new data points:
Giving clients access to the latest developments in financial reporting and value-adding to our content with these marketdriven requirements
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SOURCES OF INFORMATION
• Worldscope Data Definitions Guide:
– Updated version to follow in the near future
– Will be used as the basis for more targeted
documentation
• Datastream Extranet
• T1B – click on item name to see item definitions.
• and… Stephen Carter, IM Content Strategy:
– Phone: +44 29 2063 1943
– E-mail: [email protected]
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IN THIS SESSION WE LEARNT HOW TO…
• EXPLAIN THE NATURE OF THE WORLDSCOPE
DATABASE
• DESCRIBE HOW AND WHERE WORLDSCOPE
DATA IS USED IN DATASTREAM
• EXPLAIN PAST AND FUTURE DATABASE
DEVELOPMENTS
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Q&A SESSION
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