S&p Global Inc. · NYSE:SPGI
S&p Global — The McGraw-Hill Companies — Goldman Sachs Communacopia XV 2006 Conference
16 slides from S&p Global's conference presentation, Sep 20, 2006
Slide 1: Goldman Sachs Communacopia XV 2006 Conference
Goldman Sachs Communacopia XV 2006 Conference 1 September 20, 2006 Robert J. Bahash Executive Vice President and CFO The McGraw-Hill Companies Presented at Goldman Sachs Communacopia XV 2006 Conference September 20, 2006 2 1
Slide 2: Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995
“Safe Harbor” Statement Under The Private Securities Litigation Reform Act of 1995 This presentation includes certain forward-looking statements about the Company’s businesses, new products, sales, expenses, cash flows and operating and capital requirements. Such forward-looking statements include,
Slide 3: New opportunities for growth
New opportunities for growth • Trends in global financial markets favor more growth in years ahead • Strengthening our education business to take advantage of opportunities • Importance of timely, insightful information is creating new opportunities in Information & Media segment 5 Robust free cash
Slide 4: Committed to advancing total shareholder value
Committed to advancing total shareholder value Since 1996, the Corporation has returned more than $5.5 billion to $1,600 shareholders through dividend $1,491 $1,400 payments and share buybacks $ in Millions $1,200 $1,000 $924 $800 $638 $600 $361 $423 $387 $306 $394 $462 $400 $200 $168 $4 $1 $0 2003
Slide 5: Strong balance sheet
Strong balance sheet • We expect to return to a net surplus cash position by year-end $800 $749 $696 $681 $682 $700 $600 $ in millions $500 $400 $300 $211 $200 $100 $26 $5 $3 $0 12/31/03 12/31/04 12/31/05 6/30/06 9 Cash Debt MHP outperformed S&P 500 total return for a decade Annualized Total Shareho
Slide 6: Reaffirming 2006 EPS guidance
Reaffirming 2006 EPS guidance • Earnings per share of $2.44 to $2.49, excluding incremental impact of all stock- based compensation – Excludes $0.13 for incremental stock-based compensation in 2006 and $0.04 for one-time charge for elimination of restoration stock option program • Expect to return t
Slide 7: Current outlook: Softening at McGraw-Hill Education
Current outlook: Softening at McGraw-Hill Education • Tough comparisons after strong performance last year; will be evident in 3Q’06 • Weaker state new adoption calendar this year – Available dollars down about 30% from 2005 • Lackluster results in K−5 science in Florida, K−5 social studies in Calif
Slide 8: Current outlook: On course at Information & Media
Current outlook: On course at Information & Media • Some positive results masked by impact this year of stock-based compensation and amortization for acquisition of J.D. Power and Associates • BusinessWeek’s 3Q advertising pages up about 9% – For 37 issues, global edition ad pages off 1.5% versus la
Slide 9: Growing opportunities in international markets
Growing opportunities in international markets • Financial Services is biggest driver of international revenue – Ratings revenue 1994 2005 Int’l 21% Int’l 37% U.S. U.S. 79% 63% 17 Creating diversification and resiliency at S&P • Global network operates in more than 20 countries • S&P rates virtually
Slide 10: Creating diversification and resiliency at S&P
Creating diversification and resiliency at S&P • S&P rates growing array of instruments and provides new tools and models to customers – Growth of non-traditional products and services at S&P ratings 1994 2005 Non- Non- Traditional Traditional 8% 22% 92% 78% Traditional Traditional 19 S&P is more th
Slide 11: The current regulatory outlook
The current regulatory outlook • House passed bill (H.R. 2990) regulating credit rating agencies • Senate to follow with its version – Takes more constructive approach to increasing competition and transparency in credit ratings industry than House bill – More effectively addresses issues relating t
Slide 12: Strong state adoption calendar 2007-2009
Strong state adoption calendar 2007-2009 2007 2008 2009 Est. Mkt. Size $750M-$800M $850M-$900M $950M-$1B California K-12 California K-12 Math California K-12 Major State Science Reading/Literature Calls Florida K-12 Reading Florida K-12 Health, Florida 6-12 Georgia K-12 Science World Languages, Read
Slide 13: New top-line opportunities for McGraw-Hill School Solutions Group
New top-line opportunities for McGraw-Hill School Solutions Group • Integration enables us to respond more effectively to growing market demand for greater continuity in pedagogical design of instructional materials across all grade levels • Educators seek solutions to improve student achievement 25
Slide 14: Convergence of content and technology creates new opportunities
Convergence of content and technology creates new opportunities • Using technology to enhance learning experience for students, improve productivity for instructors – Self-paced learning – Online courses – Course management tools for instructors • Enable us to improve our workflow and productivity 2
Slide 15: The transition at Information & Media
The transition at Information & Media • Segment moving to model that serves readers and advertisers by providing: – News and information in text, audio, video, and digital formats – Data and analytics – Workflow tools and services • Enabling our customers to more effectively interact and transact bu
Slide 16: Goldman Sachs Communacopia XV 2006 Conference
Goldman Sachs Communacopia XV 2006 Conference 31 September 20, 2006 16
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