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THREE
MINUTES
The Thomson Corporation
Annual Report 2006

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To Our Shareholders
Financial Highlights
Growth Metrics
Three Minutes
Management’s Discussion and Analysis

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Financial Statements and Notes
Board of Directors
Senior Management
Corporate Information
In Memoriam: Ken Thomson

THREE
MINUTES
At Thomson, our job is helpingbusiness people and professionals
meet the constant demand of “I need to know now.” For the
lawyer preparing a case, the broker advising a client, the tax
adviser struggling with the intricacies of a new regulation or the
doctor prescribing a new drug – the demand for better-informed,
more innovative, more insightful answers is relentless. And the
right answers have to come fast, at the moment theopportunity
or risk arises.

These answers are never frozen in time. They are preceded
and followed by further questions. “Three Minutes” is a look
at how Thomson evolves its solutions to meet our customers’
complex information needs, address the various stages of their
workflows and enhance their productivity. Thomson folklore
has it that we ask our customers what they were doing threeminutes before they used our product and three minutes after.
Then we build out our solutions to support those before-andafter needs. The reality’s slightly more complicated.
To show what a workflow solution does, and how it delivers
value, we offer a look inside three of Thomson’s leading solutions.
Diagrams and text illustrate how three different types of experts
rely on Thomson to enabletheir daily work and speed its flow –
to do in minutes what once took hours or days – and to arrive
at better answers.

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TO OUR
SHAREHOLDERS:

In 2006 The Thomson
Corporation successfully
executed on its strategic and
operational priorities, and
delivered strong financial
results. Thomson has never
been in a stronger position –
strategically, operationally
and financially.Our electronic solutions, software and services
continued to gain momentum in the markets, accounting
for 80% of our revenues in 2006 and delivering our
highest organic revenue growth in years. Total revenues
grew 8%, operating profit rose 7% and earnings per
share increased 22%. The company generated over
$2 billion in cash from operations, and free cash flow
increased 21%, driven by stronggrowth in operating
income, lower tax payments and stable capital
expenditures. We delivered value to our customers
and created value for our shareholders. Our company
returned nearly $1 billion to shareholders in 2006
through dividends and our stock buyback program.
Thomson entered 2007 well positioned for continued
growth and profitability. The market has validated our
workflow solutionsstrategy. We enjoy leading positions
in all of our markets, which gives us the opportunity
to shape markets rather than react to them. And we
have realigned the company to be more focused,
efficient and effective. Going forward, we see a clear
opportunity to build on the foundation that we have
established as the world’s leading provider of workflow
solutions for business and professionalcustomers.
DRIVERS OF OUR SUCCESS

Three factors drive the company’s success: innovative
workflow solutions, a disciplined approach to
optimizing our business portfolio and an equally
rigorous approach to leveraging our company’s
infrastructure and assets.

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Our fastest-growing offerings are workflow solutions
such as the three highlighted in the feature section
of this report,along with others such as our Checkpoint
solution for tax specialists and the management and
clinical decision support solutions we provide to
healthcare payers and providers. Our solutions-based
strategy is achieving success every day as customers
sign on and begin asking for more: more functions,
more features and more adaptable interfaces.
As we hone our ability to tailor solutions so...