Robert J. Bahash

6/14/2004


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Table of Contents

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Robert J. Bahash

“Safe Harbor” Statement Under The Private Securities Litigation Reform Act of 1995

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Commitment to creating total shareholder value

Increased the dividend

Expanded the stock buyback program

Planning another year of growth in 2004

Commitment to producing sustainable growth

Strong financial position

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McGraw-Hill Education

Rebound in state adoption cycle in U.S. elementary-high school market

Outlook for funding is continuing to improve

Outlook for funding is continuing to improve

Outlook for funding is continuing to improve

Broad public support to improve public education in the United States

Broad public support to improve public education in the United States

New emphasis on early childhood education

Growing knowledge economy

Convergence of technology, content and accountability

Convergence of technology, content and accountability

Convergence of technology, content and accountability

Convergence of technology, content and accountability

Convergence of technology, content and accountability

Taking advantage of convergence of technology and content

Using technology to create a new business model

Growing enrollments

Pre-publication investments

Global Transformation Project (GTP)

Outlook for 2004

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Reading First funds

Math: Biggest new adoption opportunity this year

Higher education market

McGraw-Hill Education Summary

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Financial Services: A key growth driver in 2004

Diversifying revenue stream and reducing dependence on new-issue market

International markets account for growing proportion of ratings’ revenue

Diversifying the revenue stream

Smoothing the revenue stream

Resilient portfolio performs even when U.S. new-issue market declines

Structured finance is setting the pace in international and domestic markets

Structured finance is setting the pace in international and domestic markets

Corporate market

Public finance

Outlook for credit market services

Outlook for interest rate

Powerful trends drive ratings business

Factors in margin improvement

Rapidly growing our highly profitable index services business

Growth in index services

Rapidly growing our highly profitable index services business

Index services generates four revenue streams

Index services generates four revenue streams

We will benefit from the global research settlement

S&P equity analysts continue to outperform S&P 500

The global research settlement opportunity for S&P

Opportunity for independent research

Financial Services Summary

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Information and Media Services

Strong brands increased or maintained market share

Advertising environment

Broadcasting

BusinessWeek

BusinessWeek

Information and Media Services

McGraw-Hill Construction Network

Key to our verticals

Segment improvements in 2004

Information and Media Services Summary

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The McGraw-Hill Companies: Outlook for 2004

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Author: Morgan