Table of Contents
4Q 2003 Earnings Call January 27, 2004
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
Strong finish for 2003
Took actions in 4Q to strengthen our position for 2004
Financial components to results
Exceeded First Call mean estimates for 4Q and 2003
Financial Services McGraw-Hill Education Information and Media Services
Financial Services
Structured finance set the pace in ratings
Standard & Poor’s: Market leader in securitization ratings
Outlook for 2004 issuance
International markets will be growth driver in 2004
Public finance market
Expect improvement in U.S. corporate market
Global research settlement: An opportunity in 2004
Looking for more growth in our index business
Looking for more growth in our index business
Financial Services
Financial Services McGraw-Hill Education Information and Media Services
McGraw-Hill Education
2003 revenue for HPI grew 1.5%
2003 U.S. college market
Professional markets
2004 outlook improves for HPI
Using technology to improve the value proposition
School Education Group
Prospects for 2004 el-hi market
El-hi opportunities in 2004
Reading First: A wildcard in 2004
Reading First: Following the funding
Mandatory testing begins in 2005/06
McGraw-Hill Education
Financial Services McGraw-Hill Education Information and Media Services
Information and Media Services
Caliber of our print and broadcast journalism gains recognition
Broadcasting
BusinessWeek
Expect to see improvement across Business-to-Business Group
Information and Media Services
Outlook for The McGraw-Hill Companies
Robert J. Bahash Executive Vice President and Chief Financial Officer The McGraw-Hill Companies
Selling non-core assets
Selling non-core assets
Selling non-core assets
Selling non-core assets
Selling non-core assets
Selling non-core assets
Outlook for net cash
Solid year of working capital management in 2003
Outlook for capital expenditures
Outlook for pre-publication costs
Outlook for technology projects
Outlook for GTP
Outlook for GTP
Non-cash charges
Non-cash charges
Non-cash charges
Interest expense for 2003 and 2004
Outlook for interest expense
Share repurchase program
Growth in cash returned to shareholders
Cash from operating activities (U.S. GAAP)
Growth of free cash flow (non-GAAP)
Growth of free cash flow (non-GAAP)
Outlook for free cash flow (non-GAAP) for 2004
4Q 2003 Earnings Call January 27, 2004
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