Table of Contents
4Q 2004 Earnings Call January 25, 2005
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
2004 full-year results
4Q 2004 results
Reviewing our guidance for 2005
A healthy economic climate in 2005
A gradual increase in interest rates
McGraw-Hill Education Financial Services Information and Media Services
McGraw-Hill Education
Growing worldwide sales
Successful titles in global markets
Successful titles in global markets
U.S. college and university market
Increased share in higher education market in 2004
Growth in higher education market
2005: Good prospects in higher education
2004 elementary-high school market
School Education Group
Strong performance in math
PPT Slide
Quality of our math website content and resources
Reading First triggered late ordering from Texas, California
Emphasis on state-specific tests is changing seasonality of testing market
Won several multi-year testing contracts in 2004
2005: Strong new state adoption calendar
Key new state adoption opportunities in 2005
Reading First
New Federal funding
Outlook for 2005 el-hi market
McGraw-Hill Education
McGraw-Hill Education Financial Services Information and Media Services
Financial Services
Record performance in 2004
Trends in U.S. debt market
Trends in U.S. debt market
Expectations for RMBS in 2005
Financial Services
Financial Services
Securitization an important driver of international growth
Smoothed out revenue stream
More than $15 trillion in global debt issuance has helped build revenue stream
In a decade, global debt issuance market has exploded
Divesting non-core businesses
Potential for index services continues to expand
Continuing to add products and customers to index services
New derivative based on SPDRs
Global research settlement produced incremental revenue in 2004
S&P 5-STARS has outperformed the S&P 500 since 1986
Regulatory issues and the rating agencies
Regulatory issues and the rating agencies
Financial Services
McGraw-Hill Education Financial Services Information and Media Services
Information and Media Services
Growth at Broadcasting
Growth at Broadcasting
Broadcasting Group: Outlook for 2005
Advertising improved at BusinessWeek
Extending the brand and building revenue
Adding to publications lineup in construction market
Information and Media Services’ diversified revenue stream
Information and Media Services’ diversified revenue stream
Information and Media Services
Robert J. Bahash Executive Vice President and Chief Financial Officer The McGraw-Hill Companies
Commitment to creating total shareholder value
Strong financial position
Achieved new buyback goal in 2004
Diluted weighted average shares
Anticipating 10-to-12 cents dilution in 2005
Reclassified revenue from McGraw-Hill Education
Repatriation Incentive
Pre-publication investments
CapEx for property and equipment
Additions to technology projects
Corporate expense
Non-cash charges
Non-cash charges
Non-cash charges
Global Transformation Project
Global Transformation Project
Strong free cash flow
2004 free cash flow
Free cash flow
Free cash flow
Harold McGraw III Chairman, President and CEO The McGraw-Hill Companies
Reviewing our guidance for 2005
4Q 2004 Earnings Call
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