Leo C. O

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The McGraw-Hill Companies
Leo C. ONeill President Standard
Poors May 19, 2000 Media Entertainment
Analysts of New York
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Standard Poors Management Team

• Leo C. ONeill
• President
• Hendrik Kranenburg
• Executive Vice President
• Information Services
• Vickie Tillman
• Executive Vice President
• Rating Services
• Robert Maitner
• Executive Vice President
• Operations
• Joan Lewis
• Senior Vice President
• Marketing Communications

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Standard Poors Ratings Services

• Strategic Objectives
• Accelerate global growth
• Diversify revenues Non-traditional services
• Smooth revenue stream

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Standard Poors Information Services

• Goals
• Accelerate top-line growth improve profit
  margin
• Focus on faster growth, larger, integrated
  opportunities
• Global markets
• E-commerce
• Managed funds
• Maintain brand equity value in legacy businesses

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Standard Poors Information Services

• Strategic Objectives
• Transform legacy products to integrated content
  for Internet and direct distribution
• Grow SPs high value content in index products,
  and portfolio services
• Expand position in managed funds/retirement
  services market
• Extend SPs coverage globally

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Standard Poors Ratings Services

• Strategic Objectives
• Accelerate global growth
• Diversify revenues Non-traditional services
• Smooth revenue stream

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Standard Poors Ratings Services
Revenues - 1995

• Non-Traditional Includes
• Ratings Evaluation Services
• Counterparty Ratings
• Insurance Financial Strength Ratings

• Global Infrastructure Ratings
• Bank Loan Ratings

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Standard Poors Ratings Services
Revenues - Today

• Non-Traditional Includes
• Ratings Evaluation Services
• Counterparty Ratings
• Insurance Financial Strength Ratings

• Global Infrastructure Ratings
• Bank Loan Ratings

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Standard Poors Ratings Services
Revenue Sources - Today

• Non-Traditional Includes
• Ratings Evaluation Services
• Counterparty Ratings
• Insurance Financial Strength Ratings

• Global Infrastructure Ratings
• Bank Loan Ratings

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Standard Poors Ratings Services

• Product Extensions
• Financial strength ratings of insurance companies
• Global project finance
• Credit evaluation services
• Ratings evaluation services
• Counterparty ratings of financial institutions
• Corporate credit ratings
• Bank loan ratings
• Derivative product company ratings

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Financial Strength Ratings
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Global Project Finance Ratings
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Ratings Evaluation Services
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Counterparty Ratings
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Corporate Credit Ratings
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Derivative Product Company Ratings
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Standard Poors Information Services

• Strategic Objectives
• Transform legacy products to integrated content
  for Internet and direct distribution
• Grow SPs high value content in index products,
  and portfolio services
• Expand position in managed funds/retirement
  services market
• Extend SPs coverage globally

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Standard Poors Information Services

• Strategic Objectives
• Transform legacy products to integrated content
  for Internet and direct distribution
• Emphasis on value of SP content
• Enable our customers to differentiate themselves
• Three mechanisms
• Integrated data fee
• Web solutions
• Web station
• Emphasis on SP brand

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Standard Poors Information Services

• Grow SPs high value content in index products
  and portfolio services
• Index Strategy Leverage SPs expertise and
  reputation in indexes to build global family of
  investable indexes
• Global 1200 Global 100
• Exchange relationships
• BCG shares
• Portfolio Services Strategy Leverage SPs
  equity analytical talent to build asset
  portfolios
• Portfolio assets 10.6 billion

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Standard Poors Information Services

• Expand position in managed funds/retirement
  services market
• Consolidated operations to create focus
• Funds Ratings
• Micropal
• Rationale Investors
• Published image

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Standard Poors Information Services

• Extend SPs coverage globally
• Index Services Global relationships
• Managed Funds Build analytical capability
• Emerging Markets Initiative Focused approach
  across the segment

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Standard Poors

• Benchmarks of Success
• Acknowledged as the best provider of independent,
  highly valued analytical services and information
  to the worlds financial markets
• Recognized by our customers as an innovative,
  service-driven company providing creative
  solutions
• An employer of choice in the financial services
  industry
• Doubling our revenues by 2005
• Generating 40 of our revenues from outside the
  United States by 2005
• Generating 100 of our information-based revenues
  from e-based services

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The McGraw-Hill Companies

• Investor Relations Contact
• Donald S. Rubin
• Senior Vice President, Investor Relations
• The McGraw-Hill Companies
• 1221 Avenue of the Americas
• New York, NY 10020
• Tel [phone]
• Fax [phone]
• E-mail investor_relations_at_mcgraw-hill.com
• URL www.mcgraw-hill.com/investor_relations