Source:  McGraw-Hill Companies Annual Report 2006     Revenues from foreign sources grew by 14.4% to US$ 1,530.1 million in 2006 and represented 24.5% of the McGraw-Hill Companies’ total revenues.  Favorable foreign exchange rates contributed US$ 12.7 million to revenue in 2006.  Europe continues to be the most important contributor to foreign revenue, producing 57.8% of the total.  Europe also grew the fastest of the foreign regions, increasing revenues by 16.3%. Canada, Asia and Latin America grew by 14.3%, 11.8% and 8.8%, respectively.  Foreign revenue growth outpaced domestic revenue during the last 10 year period:  10 year CAGR for foreign revenue was 10.6% while domestic 10-year CAGR was 6.6%
Financial Services continue to be the Company’s largest and fastest growing international business.  Standard & Poor’s foreign revenue grew by 21.8% in 2006 to US$939.3 million and accounted for 61.4% of total foreign revenue.  Favorable foreign exchange rates contributed US$ 5.6 million to revenue for this segment in 2006.McGraw-Hill Education’s foreign revenue grew by 2.2% to US$393.4 million in 2006 and accounted for 25.7% of the Company’s total foreign revenue.  Favorable foreign exchange rates contributed US$ 6.6 million to revenue for this segment in 2006.Information & Media segment accounted for US$197.4 million or 12.9% of the Company’s total foreign revenue in 2006.  A solid performance by news and information services for the energy market contributed to the 8.6% growth in the segment’s foreign source revenue for 2006, offsetting the discontinuation of BusinessWeek Europe and Asia print editions at the end of 20005.  The total revenue from the discontinued editions was approximately US$26.6 million; there was no comparable revenue in 2006.

BIIA Newsletter September – 2007 Issue