Table of Contents
3Q 2006 Earnings Call October 19, 2006
Donald S. Rubin Senior Vice President, Investor Relations The McGraw-Hill Companies
“Safe Harbor” Statement Under The Private Securities Litigation Reform Act of 1995
Harold McGraw III Chairman, President and CEO The McGraw-Hill Companies
6% increase in EPS for 3Q 2006
Raising guidance for 2006 EPS
McGraw-Hill Education Financial Services Information & Media
McGraw-Hill Education
Managing costs in weaker state new adoption market this year
Reduced market opportunities for McGraw-Hill School Education
Solid results with secondary school programs in key adoption states
Solid results with other programs
Taking the measure of a soft market
Gearing up for new opportunities
Improving new product development for a changing market
Creating pipeline of products for state new adoptions
Growing opportunities in intervention
The outlook for new adoptions
Facing margin pressure in testing even as we invest to improve efficiency
Higher Education, Professional and International Group
Higher Education, Professional and International Group
Growing global opportunities for digital products
Outlook for McGraw-Hill Education
Outlook for McGraw-Hill Education
McGraw-Hill Education Financial Services Information & Media
Financial Services
Why operating margin expanded at Financial Services in 3Q
How a diversified and resilient portfolio delivers results
How a diversified and resilient portfolio delivers results
Global growth drivers in 3Q
Strong investor demand for cash flow and synthetic CDOs
Strength in U.S. Commercial Mortgage-Backed Securities market
Slowing U.S. Residential Mortgage-Backed Securities market
Strength in European Residential Mortgage-Backed Securities
Auto companies reduce activity in Asset-Backed Securities market
Corporate market strong in U.S. and overseas
How a diversified and resilient portfolio delivers results
Global growth for S&P data and information
Continuing to leverage index products and services
Outlook for Financial Services for full-year 2006
4Q outlook for new issuance
Update on regulatory outlook for credit rating agencies
Update on regulatory outlook for credit rating agencies
Outlook for Financial Services
McGraw-Hill Education Financial Services Information & Media
Information & Media
Business-to-Business Group revenue increased 9.9% in 3Q
Broadcasting Group: Improvement on the horizon
BusinessWeek advertising up in 3Q
Outlook for Information & Media
Summing up for The McGraw-Hill Companies
Raising guidance for 2006 EPS
Factors influencing our expectations for EPS of $0.53 to $0.55 in 4Q
Factors influencing 4Q expectations
Robert J. Bahash Executive Vice President and Chief Financial Officer The McGraw-Hill Companies
Stronger than expected cash flow in 3Q
Outlook for interest expense
Continued commitment to share repurchases
Returning more cash to shareholders
Impact of restructuring
Revenue recognition and transformation of Sweets
Revenue recognition and transformation of Sweets
Impact of incremental stock-based compensation
Outlook for corporate expenses
Dilution from 2004 and 2005 acquisitions
Outlook for tax rate
Outlook for pre-publication investments
Outlook for CapEx for property and equipment
Outlook for non-cash charges
Outlook for non-cash charges
Outlook for non-cash charges
3Q 2006 Earnings Call October 19, 2006
3Q 2006 Earnings Call October 19, 2006
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