標普全球 (SPGI) 2012 Q4 法說會逐字稿

Good morning and welcome to The McGraw-Hill Companies conference call. I would like to inform you that this call is being recorded for broadcast. All participants are in a listen-only mode. We will open the conference to question and answers after the presentation and instructions will follow at that time. To access the webcast and slides, go to www.mcgraw-hill.com and click on the link for the fourth-quarter earnings webcast. (Operator Instructions)

早安，歡迎參加麥格羅-希爾公司（The McGraw-Hill Companies）電話會議。我想提醒各位，本次通話將被錄音以供播出。所有與會者目前皆為僅收聽模式。簡報結束後我們將開放問答，屆時會提供相關指示。如需收看網路直播與投影片，請至 www.mcgraw-hill.com，並點選第四季財報網路直播連結。(接線員指示)

I would now like to introduce Mr. Chip Merritt, Vice President of Investor Relations for The McGraw-Hill Companies. Sir, you may begin.

現在我想介紹麥格羅-希爾公司投資人關係副總裁 Chip Merritt 先生。先生，您可以開始了。

Good morning. Thank you for joining us this morning for McGraw-Hill Companies' fourth-quarter and full-year 2012 earnings call. This morning we issued a news release with our results.

早安。感謝各位今天早上參加麥格羅-希爾公司 2012 年第四季與全年財報電話會議。今天早上我們已發布新聞稿公布業績結果。

I should comment there was a bit of a confusion with those -- with some of the press reports coming out of that. I want to remind all the listeners that the McGraw-Hill Education business was re-classified as a discontinued operation. What that means is you are not going to see McGraw-Hill Education revenue in the revenue line. You see that the ultimate results, if you will, the profitability of McGraw-Hill Education in one line entitled Discontinued Operations. So hopefully, the media can straighten that out.

我應該說明一下，關於那些——關於部分媒體報導，出現了一些混淆。我想提醒所有聽眾，McGraw-Hill Education 業務已重新分類為終止營運（discontinued operation）。這表示你不會在營收（revenue）項下看到 McGraw-Hill Education 的營收。你會在名為「終止營運」的一行中看到 McGraw-Hill Education 的最終結果，也就是其獲利表現。希望媒體能釐清這一點。

In today's earnings release and during the conference call we're providing adjusted financial information. This information is provided to enable investors to make meaningful comparisons of the Corporation's operating performance between periods and to view the Corporation's business from the same perspective as management's. The earnings release contains exhibits that reconcile the difference between the non-GAAP measures and the comparable financial measures, calculated in accordance with US GAAP. The results also reflect the re-classification of McGraw-Hill Education as a discontinued operation as I mentioned a moment ago.

在今天的財報新聞稿以及本次電話會議中，我們提供經調整的財務資訊。提供此資訊是為了讓投資人能在不同期間之間對本公司的營運表現進行有意義的比較，並以與管理階層相同的角度來檢視本公司業務。財報新聞稿包含附表，用以調節非 GAAP 指標與依照美國 GAAP 計算之可比較財務指標之間的差異。如我剛才提到的，結果亦反映將 McGraw-Hill Education 重新分類為終止營運。

Before we begin, I need to provide certain cautionary remarks about forward-looking statements. Except for historical information, the matters discussed in the teleconference may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including projections, estimates, and descriptions of future events. Any such statements are based on current expectations and current economic conditions and subject to the risks and uncertainties that may cause actual results to differ materially from results anticipated in those forward-looking statements. In this regard, we direct listeners to the cautionary statements contained in our Form 10-Ks, 10-Qs, and other periodic reports filed with the US Securities and Exchange Commission.

在開始之前，我需要就前瞻性陳述提供若干警示性說明。除歷史資訊外，本次電話會議所討論事項可能包含《1995 年私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）所定義的前瞻性陳述，包括對未來事件的預測、估計與描述。任何此類陳述均基於目前預期與當前經濟狀況，並受風險與不確定性影響，可能導致實際結果與該等前瞻性陳述所預期之結果出現重大差異。在此方面，我們請聽眾參閱我們向美國證券交易委員會提交之 Form 10-K、10-Q 及其他定期報告中所載的警示性聲明。

We are aware that we do have some media representatives with us on the call. However, this call is intended for investors, and we ask that questions for the media be directed to Jason Feuchtwanger in our New York office at 212-512-3151 subsequent to this call.

我們知道本次電話會議中也有一些媒體代表與會。然而，本次會議主要是面向投資人；我們請媒體的提問在會後致電我們紐約辦公室的 Jason Feuchtwanger，電話 212-512-3151。

Now I would like to turn the call over to Harold McGraw III, Chairman, President, and CEO of The McGraw-Hill Companies. Terry?

現在我想把電話交給麥格羅-希爾公司董事長、總裁兼執行長 Harold McGraw III。Terry？

Thank you, Chip. Good morning, everyone. Thanks for being with us, and welcome to today's conference call. While we are excited about sharing our Growth and Value Plan accomplishments and the strong financial results delivered both in the fourth quarter and in the full year, we recognize that investors are keenly interested in receiving a thorough update concerning recent legal development. Therefore the normal sections that Jack Callahan, our Chief Financial Officer, and I cover have been somewhat abbreviated.

謝謝你，Chip。各位早安。感謝各位與會，歡迎參加今天的電話會議。雖然我們很高興與各位分享「成長與價值計畫」（Growth and Value Plan）的成果，以及第四季與全年所交出的強勁財務表現，但我們也了解投資人非常關心近期法律進展的完整更新。因此，平常由我們財務長 Jack Callahan 與我負責的例行段落，今天做了些精簡。

So in addition to Jack Callahan, joining me on today's call you will also hear presentations from Ken Vittor, our General Counsel, and Doug Peterson, the President of Standard & Poor's Ratings. Ken will discuss the civil complaint we received last week from the Department of Justice and demonstrate that this and other state claims are entirely without factual or legal merit; and we will vigorously defend our Company, as we have successfully defended against more than 40 other financial crisis related cases.

因此，除了 Jack Callahan 之外，今天的電話會議也將由我們的總法律顧問 Ken Vittor，以及標準普爾評級（Standard & Poor's Ratings）總裁 Doug Peterson 一同進行簡報。Ken 將說明我們上週收到司法部提出的民事訴狀，並證明此案及其他州層級的主張在事實或法律上皆毫無根據；我們將一如既往積極為公司辯護，正如我們已成功抗辯超過 40 件其他與金融危機相關的案件。

Doug Peterson will then discuss the ongoing changes that we have made and will continue to make to ensure the highest quality ratings. At the end of the call I will make a few summary remarks, and then open it up for questions. So, let's begin.

接著 Doug Peterson 將說明我們已採取並將持續採取的各項變革，以確保最高品質的評級。在電話會議結尾，我會做幾點總結，然後開放提問。那麼，我們開始。

In September of 2011, we introduced our Growth and Value Plan. Today, we are pleased to discuss the many achievements of this plan.

在 2011 年 9 月，我們推出了「成長與價值計畫」。今天，我們很高興與各位討論此計畫所取得的多項成果。

There were four principal component of the Growth and Value Plan. First, I told you that we would transform McGraw-Hill from a Holding Company into two focused, industry-leading, standalone Operating Companies -- McGraw-Hill Financial, focused on global capital and commodity and commercial market; and McGraw-Hill Education, focused on educational services and digital learning.

「成長與價值計畫」有四個主要組成部分。第一，我曾告訴各位，我們將把麥格羅-希爾從控股公司轉型為兩家聚焦、各自獨立且在產業中領先的營運公司——McGraw-Hill Financial，聚焦於全球資本市場、商品與商業市場；以及 McGraw-Hill Education，聚焦於教育服務與數位學習。

For McGraw-Hill Education, we found a more attractive path forward for our share owners in the form of a sale to Apollo Global Management for $2.5 billion. All of the government approvals have been received, and Apollo is securing their financing. We expect the deal to close in the first quarter.

就 McGraw-Hill Education 而言，我們為股東找到了更具吸引力的前進路徑：以 25 億美元出售給 Apollo Global Management。所有政府核准均已取得，而 Apollo 正在安排其融資。我們預期交易將於第一季完成交割。

Second, we discussed stepping up our focus on reducing costs and committed to reducing a run rate cost by at least $100 million. Today, we are proud to announce that we have achieved $175 million in yearly savings.

第二，我們談到要加強降低成本的聚焦，並承諾將年度化成本（run rate cost）至少降低 1 億美元。今天，我們很自豪地宣布，我們已達成每年 1.75 億美元的節省。

The principal components of the savings come from redesigning the employee benefits plans, including a freeze of the US benefit plan; select headcount restructurings of approximately 670 employees within McGraw-Hill Financial and approximately 10% of the McGraw-Hill Education workforce; and the migration of numerous accounting, IT, and human resource work streams to world-class partners. While McGraw-Hill Financial will end up with some stranded costs, we estimate that approximately one-third of the savings will be realized by McGraw-Hill Financial after taking into account these additional stranded costs.

節省的主要來源包括重新設計員工福利計畫（其中包含凍結美國福利計畫）；在 McGraw-Hill Financial 進行約 670 名員工的選擇性人力重整，以及 McGraw-Hill Education 約 10% 的人力調整；並將多項會計、IT 與人力資源的工作流程移轉給世界級合作夥伴。雖然 McGraw-Hill Financial 最終會承擔部分「擱置成本」（stranded costs），但在考量這些額外擱置成本後，我們估計約三分之一的節省將由 McGraw-Hill Financial 實現。

Third, we committed to accelerating the pace of capital return to shareholders. Here again, we delivered on our commitment. During 2011 and 2012, we spent $1.8 billion and repurchased 41.5 million shares. Importantly, we plan to continue our share repurchase activity in 2013, and Jack Callahan will discuss that in just a moment.

第三，我們承諾加快向股東返還資本的步伐。在這方面，我們同樣兌現了承諾。在 2011 年與 2012 年期間，我們投入 18 億美元並回購了 4,150 萬股。重要的是，我們計畫在 2013 年持續進行股票回購，Jack Callahan 稍後會進一步說明。

We also returned approximately $1.3 billion to shareholders through dividends. Along with our normal quarterly dividend, we distributed a special dividend of $2.50 per share in December of 2012 or approximately $700 million. Most recently, we increased our regular quarterly dividend by about 10%.

我們也透過股利向股東返還約 13 億美元。除例行的季度股利外，我們於 2012 年 12 月發放每股 2.50 美元的特別股利，合計約 7 億美元。最近，我們也將例行季度股利提高約 10%。

Lastly, we committed to investing for growth. Earlier this year we formed the S&P/Dow Jones Indices joint venture. With some of the most widely followed and trusted brands in the index space, we believe this joint venture will prove to be of great value not only to our customers but also to our shareholders.

最後，我們承諾投資以推動成長。今年稍早，我們成立了 S&P／道瓊指數（S&P/Dow Jones Indices）合資企業。憑藉指數領域中一些最廣受追蹤且最受信賴的品牌，我們相信這家合資企業不僅將為客戶帶來巨大價值，也將為股東創造重大價值。

In addition, during 2012 the Company acquired QuantHouse, R2 Financial Technologies, and Credit Market Analysis Limited to bolster our capabilities within S&P Capital IQ. We acquired Coalition Development Limited to add high-end analytics to CRISIL -- that is our credit rating agency in India -- and Kingsman SA, providing Platts with a springboard for growth into global agricultural commodity markets.

此外，在 2012 年，公司收購了 QuantHouse、R2 Financial Technologies 與 Credit Market Analysis Limited，以強化我們在 S&P Capital IQ 內的能力。我們收購了 Coalition Development Limited，為 CRISIL——也就是我們在印度的信用評等機構——增添高階分析能力；並收購 Kingsman SA，為 Platts 提供進軍全球農業商品市場、推動成長的跳板。

Okay. Now, turning to the business results, McGraw-Hill Financial delivered for the full year in 2012 13% revenue growth, 24% adjusted operating profit, and 32% adjusted earnings per share growth. Our operating leverage and share repurchases amplified the EPS.

好的。現在轉到業務成果，McGraw-Hill Financial 在2012年全年實現營收成長13%、調整後營業利益成長24%，以及調整後每股盈餘成長32%。我們的營運槓桿與股票回購放大了每股盈餘。

Standard & Poor's Ratings Services ended an already solid year with a strong fourth quarter. Revenue for the segment grew 34%, with a 46% increase in domestic revenue and a 23% increase in international revenue.

標準普爾評級服務（Standard & Poor's Ratings Services）在原本就穩健的一年之後，以強勁的第四季作結。該部門營收成長34%，其中國內營收成長46%，國際營收成長23%。

Adjusted segment operating profit increased 63%, and corresponding operating margin increased 750 basis points to more than 43%. Continued low interest rates, the tightest spreads of the year, concerns about the fiscal cliff, and a surge in special dividends all contributed to a very strong quarter of debt issuance.

調整後部門營業利益成長63%，相應的營業利益率提高750個基點至超過43%。持續的低利率、全年最緊的利差、對「財政懸崖」的擔憂，以及特別股利激增，皆促成了債務發行非常強勁的一季。

For the full-year 2012, Standard & Poor's Ratings Services delivered double-digit growth for both revenue and adjusted operating profit. This was the second-best worldwide corporate and government issuance year on record, at $4.5 trillion, and US structured issuance increased more than 50%.

就2012年全年而言，標準普爾評級服務在營收與調整後營業利益兩者皆實現兩位數成長。這是有紀錄以來全球企業與政府發行量第二高的一年，達4.5兆美元，而美國結構型產品發行量增加逾50%。

This chart shows a steady progression of increased issuance in the United States and, while a bit more erratic, a similar trend in Europe. The sequential fourth-quarter increase in US issuance was predominantly due to low Treasury yields, low spreads, ample liquidity, and an abundance of dividend recapitalization deals.

此圖表顯示美國發行量穩步上升；而歐洲雖然波動較大，但趨勢相近。美國發行量在第四季的季增主要來自低國庫券殖利率、低利差、充裕流動性，以及大量股利再資本化交易。

Let me turn over to S&P Capital IQ. Beginning this quarter, S&P Capital IQ and S&P/Dow Jones Indices will be reported as separate lines of businesses. We are going to do this to give investors added transparency into the growth and value creation for both businesses.

接下來我把話題轉到 S&P Capital IQ。自本季起，S&P Capital IQ 與 S&P/Dow Jones Indices 將以獨立的業務線分別揭露。我們這麼做是為了讓投資人更清楚了解兩項業務的成長與價值創造。

So let me start with the S&P/Dow Jones Indices. In the fourth quarter, organic revenue increased 5%; and the addition of Dow Jones Index revenue brought total revenue to $110 million. The principal driver of the organic revenue growth was a 28% increase in assets under management in exchange-traded funds linked to S&P Indices to $402 billion. Including the assets under management linked to Dow Jones Indices, assets under management increased 27% to $466 billion.

先從 S&P/Dow Jones Indices 談起。第四季有機營收成長5%；加上道瓊指數營收後，總營收達1.10億美元。有機營收成長的主要驅動因素，是連結 S&P 指數的交易所交易基金（ETF）資產管理規模成長28%至4,020億美元。若包含連結道瓊指數的資產管理規模，AUM 成長27%至4,660億美元。

Partly offsetting this growth was a decline in average daily volumes for major exchange-traded derivatives and over-the-counter derivative activity of almost 20%. While the joint venture realized $67 million of adjusted operating profit, $50 million is retained by the Company as 27% of the profits are forwarded to our Partners.

部分抵銷上述成長的是，主要交易所交易衍生品與場外衍生品活動的平均每日成交量下滑近20%。雖然合資企業實現6,700萬美元的調整後營業利益，但其中5,000萬美元由本公司保留，因為27%的利潤會轉交給我們的合作夥伴。

You can see the full-year figures on this slide as well. We are encouraged by the prospects for 2013.

你也可以在這張投影片上看到全年數據。我們對2013年的前景感到鼓舞。

Through November, investors pulled $119 billion from actively managed US stock funds in 2012, the biggest yearly outflow since 2008; and that is according to the latest data from Morningstar. Industry exchange-traded fund inflows reached a record $191 billion in 2012, and of course that is surpassing the $169 billion flow in 2008. We believe this strong trend of increased Index investing will continue.

根據晨星（Morningstar）最新數據，截至11月，投資人在2012年自美國主動式管理股票基金撤出1,190億美元，為自2008年以來最大的年度淨流出。2012年全產業ETF淨流入達到創紀錄的1,910億美元，當然也超越了2008年的1,690億美元。我們相信指數化投資增加的強勁趨勢將會延續。

For Capital IQ, in the fourth quarter S&P Capital IQ delivered top-line growth of 8%, of which 5% was organic. Two key offerings -- S&P Capital IQ within Desktop Solutions, and Global Data Solutions within Enterprise Solutions -- delivered double-digit revenue growth. These results were offset somewhat by declines in revenue from equity research and the continued planned migration away from TheMarkets.com.

就 Capital IQ 而言，第四季 S&P Capital IQ 的營收（top-line）成長8%，其中5%為有機成長。兩項關鍵產品——桌面解決方案中的 S&P Capital IQ，以及企業解決方案中的全球數據解決方案——皆帶來兩位數的營收成長。但股權研究營收下滑，以及持續按計畫自 TheMarkets.com 轉移，部分抵銷了上述成果。

Both S&P Capital IQ and RatingsXpress delivered mid to high single-digit subscriber growth. RatingsXpress is now available on Xpressfeed. This will enable customers to receive updates every 15 minutes instead of only once or twice during the day.

S&P Capital IQ 與 RatingsXpress 的訂戶數皆呈現中至高個位數成長。RatingsXpress 現已可在 Xpressfeed 上使用。這將使客戶能每15分鐘接收一次更新，而不再只是每天一次或兩次。

Adjusted operating profit decreased 1%, and there was a modest decline in the adjusted operating margins as the segment integrates and develops newly acquired technology and products from R2, QuantHouse, and CMA into new S&P Capital IQ offerings.

調整後營業利益下滑1%，調整後營業利益率亦小幅下降，原因是該部門正整合並開發自 R2、QuantHouse 與 CMA 新收購的技術與產品，並將其納入新的 S&P Capital IQ 產品方案。

For the full year, S&P Capital IQ revenue increased 9%, of which 7% was organic and adjusted operating profit increased 6%. Through the first six months of the year, adjusted operating profit increased 19%. But due to the acquisitions and the associated investment, profitability declined in the second half.

全年而言，S&P Capital IQ 營收成長9%，其中7%為有機成長；調整後營業利益成長6%。在上半年，調整後營業利益成長19%。但由於收購及相關投資，下半年獲利能力有所下滑。

We have made great progress developing these new technologies. By the end of the first quarter we expect QuantLINK to be able to deliver low-latency data from every major exchange in North America, Europe, and Asia. In addition, we anticipate rolling out our new portfolio risk analytics product; and that will be in the second quarter.

我們在開發這些新技術方面已取得重大進展。預期在第一季末之前，QuantLINK 將能提供來自北美、歐洲與亞洲各主要交易所的低延遲數據。此外，我們也預計在第二季推出新的投資組合風險分析產品。

Let me shift now to the Commodities & Commercial Markets segment. Revenue growth in the fourth quarter was 9%, with international revenue up 21%. The leverage of this business is very evident, as adjusted operating profit increased 27% and the margin increased 300 basis points to 22.7%.

接著我把焦點轉到大宗商品與商業市場（Commodities & Commercial Markets）部門。第四季營收成長9%，其中國際營收成長21%。此業務的槓桿效應非常明顯，調整後營業利益成長27%，利潤率提高300個基點至22.7%。

Platts, J.D. Power, and Aviation Week drove fourth-quarter revenue growth and offset declines in McGraw-Hill Construction. Margins, while up year-over-year, were down sequentially due to the Kingsman acquisition and technology investments in new products and capabilities.

Platts、J.D. Power 與 Aviation Week 推動第四季營收成長，並抵銷 McGraw-Hill Construction 的營收下滑。利潤率雖較去年同期上升，但因 Kingsman 收購案及新產品與能力的技術投資，較前一季下滑。

For the full year, Commodities & Commercial grew 9% and adjusted operating profit grew 40%. Both Platts and J.D. Power delivered record revenue. And with the explosive growth that Platts has provided and the investor attention that it has received this year, I don't think I can continue to call it our hidden gem.

全年而言，大宗商品與商業市場營收成長9%，調整後營業利益成長40%。Platts 與 J.D. Power 皆創下營收新高。而隨著 Platts 帶來的爆發性成長，以及今年獲得投資人高度關注，我想我不能再把它稱作我們的「隱藏寶石」。

Okay. Let's hold it there; and now I would like to turn the call over to Jack Callahan, our Chief Financial Officer, for additional detail on the financials. And he will also be going into the outlook for 2013. Jack?

好的。我們先到這裡；接下來我想把電話會議交給我們的財務長 Jack Callahan，請他就財務提供更多細節。他也會談到2013年的展望。Jack？

Thank you, Terry. This morning I want to discuss three topics. First, now that Education has moved to discontinued operations, I want to baseline our McGraw-Hill Financial results, including cash flow and our strong balance sheet position, which now form the starting point for future performance.

謝謝你，Terry。今天早上我想討論三個主題。第一，既然教育事業已轉列為停業單位，我想為 McGraw-Hill Financial 的業績建立基準，包括現金流與我們強健的資產負債表狀況，這些如今構成未來表現的起點。

Second, I will detail the one-time charges that were essential to separate and stand up the two companies. This will help investors better evaluate the underlying performance of McGraw-Hill Financial.

第二，我將說明為了分拆並建立兩家公司而必須承擔的一次性費用。這將有助投資人更好地評估 McGraw-Hill Financial 的基本面表現。

Lastly, I will provide our guidance and outlook for 2013 across our four lines of business and for other selected financial items that are foundational to the future performance of McGraw-Hill Financial.

最後，我將提供我們對2013年的指引與展望，涵蓋四條業務線，以及其他若干對 McGraw-Hill Financial 未來表現至關重要的財務項目。

Let me begin by comparing our previously consolidated McGraw-Hill Companies results, which includes McGraw-Hill Education, to our new continuing business, McGraw-Hill Financial. As you can see from the slide, McGraw-Hill Financial has achieved a 2010 to 2012 revenue CAGR of 11%, almost 3 times higher growth compared to The McGraw-Hill Companies.

我先從比較我們先前合併後的 McGraw-Hill Companies 業績（包含 McGraw-Hill Education）與我們新的持續經營業務 McGraw-Hill Financial 開始。如投影片所示，McGraw-Hill Financial 在2010至2012年的營收年複合成長率（CAGR）達11%，相較 McGraw-Hill Companies 的成長幾乎高出3倍。

This growth is based largely on capital and commodity market participants who value the benchmarks, analytics, and independent insights that McGraw-Hill Financial provides. Reflecting this stronger revenue growth, McGraw-Hill Financial has delivered 2010-2012 adjusted earnings per share CAGR of 20%, a growth rate over 50% higher when compared to our historical performance pre-separation.

此成長主要來自資本市場與大宗商品市場參與者，他們重視 McGraw-Hill Financial 所提供的基準、分析工具與獨立洞見。反映更強勁的營收成長，McGraw-Hill Financial 在2010至2012年的調整後每股盈餘年複合成長率達20%，相較分拆前我們的歷史表現，成長率高出逾50%。

It has taken a tremendous effort across the organization to establish two separate industry-leading companies. Now we turn our focus across McGraw-Hill Financial to provide market participants with valuable and essential services and to target more pronounced growth for both our shareholders and employees.

要建立兩家各自獨立、在產業中領先的公司，整個組織付出了巨大的努力。現在，我們將把 McGraw-Hill Financial 的重點放在為市場參與者提供有價值且不可或缺的服務，並為股東與員工追求更顯著的成長。

Let me review full-year results. McGraw-Hill Financial revenue grew 13% to $4.45 billion, and adjusted segment operating profit growth grew 21%, with margins increasing 230 basis points to 35.7%. The margin expansion was driven by the benefits realized from our cost-reduction initiatives and positive sales mix.

讓我回顧全年業績。McGraw-Hill Financial 營收成長 13% 至 44.5 億美元，調整後分部營業利益成長 21%，利潤率提升 230 個基點至 35.7%。利潤率擴張主要來自我們成本削減措施所帶來的效益，以及有利的銷售組合。

Adjusted unallocated expense grew 2% as an increase in incentives offset tight cost management. These unallocated expenses include approximately $20 million to $25 million of stranded costs due to the divestiture of McGraw-Hill Education.

調整後未分攤費用成長 2%，主因獎酬增加抵銷了嚴格的成本控管。這些未分攤費用包含約 2,000 萬至 2,500 萬美元的擱置成本，係因出售 McGraw-Hill Education 所致。

The tax rate declined 130 basis points, while noncontrolling interest grew $33 million, both primarily due to the impact of the S&P Dow Jones joint venture. For the year, adjusted net income from continuing operations grew 24% while adjusted earnings per share from continuing operations grew even faster, with 32% growth to $2.75.

稅率下降 130 個基點，而非控制權益增加 3,300 萬美元，兩者主要皆受 S&P Dow Jones 合資企業影響。全年而言，持續營運的調整後淨利成長 24%，而持續營運的調整後每股盈餘成長更快，成長 32% 至 2.75 美元。

Share count dropped from 304 million shares to 285 million shares due to our share repurchase program. Overall, 2012 was a strong base year for McGraw-Hill Financial and one on which we plan to build for 2013.

由於我們的庫藏股回購計畫，股數由 3.04 億股降至 2.85 億股。整體而言，2012 年是 McGraw-Hill Financial 的強勁奠基年，我們計畫以此為基礎邁向 2013 年。

Now I will discuss the more recent fourth-quarter results. McGraw-Hill Financial delivered excellent growth, well ahead of full-year results, with a 22% increase in revenue and a 45% increase in adjusted segment operating profit. As Terry mentioned, Standard & Poor's Ratings led the growth, benefiting from the strong debt issuance trends, especially when compared to the modest market activity of a year ago.

接下來我將說明較近期的第四季業績。McGraw-Hill Financial 交出優異成長，明顯優於全年表現，營收成長 22%，調整後分部營業利益成長 45%。如 Terry 所提，Standard & Poor's Ratings 引領成長，受惠於強勁的債券發行趨勢，尤其相較於一年前較為溫和的市場活動。

Adjusted unallocated expense grew 7% primarily due to increased incentive compensation due to the strong overall operating results. Our tax rate declined 150 basis points versus prior year, primarily due to the impact of the S&P Dow Jones Indices joint venture. Offsetting this decline was a $17 million increase in noncontrolling interests, again largely representing CME's share of the joint venture profits.

調整後未分攤費用成長 7%，主要因整體營運成果強勁而帶動獎酬增加。我們的稅率較去年下降 150 個基點，主要因 S&P Dow Jones Indices 合資企業的影響。抵銷此下降的是非控制權益增加 1,700 萬美元，同樣主要代表 CME 在合資企業獲利中的份額。

Adjusted net income grew 52% while adjusted earnings per share grew 56% to $0.72. Overall, a solid finish to a strong year.

調整後淨利成長 52%，而調整後每股盈餘成長 56% 至 0.72 美元。整體而言，為強勁的一年畫下穩健句點。

Now let me just take a moment to run through the one-time charges, which we have excluded from adjusted earnings. McGraw-Hill Financial incurred a net $25 million in one-time charges in the fourth quarter and $174 million for the full year. Excluding the $52 million non-cash benefit from a change in vacation policy, the one-time costs were $77 million in the fourth quarter and $226 million for the full year.

現在我花點時間快速說明一次性費用，我們已將其自調整後盈餘中排除。McGraw-Hill Financial 在第四季產生一次性費用淨額 2,500 萬美元，全年為 1.74 億美元。若排除因休假政策變更帶來的 5,200 萬美元非現金利益，則一次性成本為第四季 7,700 萬美元、全年 2.26 億美元。

Going forward, Growth and Value Plan costs and related restructuring actions are anticipated to ramp down over the first half of 2013.

展望未來，成長與價值計畫（Growth and Value Plan）成本及相關重整行動預期將在 2013 年上半年逐步下降。

With regard to discontinued operations, McGraw-Hill Education incurred one-time cash charges of $61 million and a $497 million intangible impairment at School Education, which we indicated we would incur in November of 2012 when we announced we had signed an agreement to sell McGraw-Hill Education to Apollo. There was also a benefit from the companywide change in vacation policy in the discontinued operations.

就已終止營運而言，McGraw-Hill Education 產生 6,100 萬美元的一次性現金費用，並在 School Education 認列 4.97 億美元的無形資產減損；我們在 2012 年 11 月宣布已簽署協議將 McGraw-Hill Education 出售給 Apollo 時即已指出將發生該等費用。已終止營運亦受惠於全公司休假政策變更所帶來的利益。

Now let me turn to cash flow and the balance sheet. Free cash flow before the payment of the regular dividend was $626 million in 2012. The decline of $183 million versus last year was entirely driven by the Growth and Value Plan expenses and a $150 million pension contribution made in the fourth quarter of 2012.

接下來談現金流與資產負債表。2012 年在支付例行股利之前的自由現金流為 6.26 億美元。較去年減少 1.83 億美元，完全是由成長與價值計畫費用以及 2012 年第四季提撥的 1.5 億美元退休金供款所致。

We finished the year with $761 million in cash and short-term investments and over $1.2 billion in debt -- $800 million long-term and $457 million short term. The short-term debt consists of commercial paper, which will be paid down with the proceeds from McGraw-Hill Education.

年底我們持有 7.61 億美元的現金與短期投資，並有超過 12 億美元的負債——其中 8 億美元為長期、4.57 億美元為短期。短期負債由商業本票構成，將以 McGraw-Hill Education 出售所得款項償還。

Overall, we have an exceptionally strong balance sheet and we intend to maintain it going forward to both build the business and, as appropriate, return cash to shareholders.

整體而言，我們的資產負債表極為強健，未來也打算維持此狀態，以同時推動業務成長並在適當時機回饋現金給股東。

Now let me turn to 2013 guidance. As a reminder, our guidance is based on 2012 adjusted results from continuing operations.

接下來談 2013 年展望指引。提醒一下，我們的指引係以 2012 年持續營運的調整後結果為基礎。

First, the lines of business. We expect S&P Ratings to grow high single digits both top and bottom line, reflecting the continued favorable issuance environment. Given the strong finish this year, we obviously expect the comparisons to 2012 will become more challenging in the second half of 2013.

首先是各業務線。我們預期 S&P Ratings 的營收與獲利（上、下線）皆將呈現高個位數成長，反映持續有利的發行環境。鑑於今年收尾強勁，我們顯然預期在 2013 年下半年與 2012 年相比的比較基期將更具挑戰。

For S&P Capital IQ, we expect mid single-digit revenue growth, but relatively flat profits given continued investments. We do anticipate profit growth in the back half of the year, as the first half of the year is likely to be below year-ago as we cycle through acquisitions, particularly QuantHouse, and targeted technology investments.

就 S&P Capital IQ 而言，我們預期營收中個位數成長，但由於持續投資，獲利相對持平。我們確實預期下半年獲利將成長，因上半年可能會低於去年同期，原因在於我們正消化併購（尤其是 QuantHouse）以及特定的科技投資。

For S&P Dow Jones Indices, we expect approximately 20% top- and bottom-line growth, benefiting from the full-year benefit of the joint venture. We expect organic growth to be in the mid single digits, although results are always a bit of a challenge to predict, given the ongoing volatility in the market.

就 S&P Dow Jones Indices 而言，我們預期營收與獲利（上、下線）約成長 20%，受惠於合資企業帶來的全年效益。我們預期有機成長為中個位數，但由於市場持續波動，結果一向較難預測。

For Commodities & Commercial, we expect high single-digit revenue growth with continued margin expansion, targeting low double-digit profit growth. Taken in total, we expect high single-digit revenue and segment operating profit growth for McGraw-Hill Financial.

就 Commodities & Commercial 而言，我們預期營收高個位數成長且利潤率持續擴張，目標為低雙位數的獲利成長。合計而言，我們預期 McGraw-Hill Financial 的營收與分部營業利益皆為高個位數成長。

Let me provide additional detail on selected financial items. Unallocated expense, which was $202 million in 2012, should declined by $10 million to $15 million in 2013, although this line can be impacted by swings in incentive compensation.

我再補充幾項特定財務項目的細節。未分攤費用在 2012 年為 2.02 億美元，2013 年應會下降 1,000 萬至 1,500 萬美元，但此項目可能受獎酬變動影響。

We expect net interest expense to be approximately $35 million to $40 million, versus $81 million in 2012. This decline reflects the paydown of $400 million in 5 and 3/8 senior notes in November of 2012 and the anticipated paydown of our existing short-term debt once the funds from the sale of McGraw-Hill Education are received. We will also earn interest on the $250 million of the 8.5% senior unsecured notes which will be received as part of the sale of McGraw-Hill Education to Apollo.

我們預期淨利息費用約為 3,500 萬至 4,000 萬美元，相較 2012 年的 8,100 萬美元。此下降反映我們於 2012 年 11 月償還 4 億美元、票面利率 5 又 3/8% 的優先票據，以及在收到出售 McGraw-Hill Education 的資金後，預期將償還現有短期負債。我們也將就出售 McGraw-Hill Education 給 Apollo 的交易中所取得、2.5 億美元、利率 8.5% 的優先無擔保票據賺取利息。

We expect our adjusted tax rate to be approximately 35% in 2013, a 100 basis points decline from 2012, reflecting a full year's benefit of the S&P Dow Jones Indices joint venture and other ongoing tax-planning initiatives. We expect noncontrolling interest to be $90 million to $100 million versus $52 million in 2012, largely due to the full-year impact of the joint venture.

我們預期 2013 年調整後有效稅率約為 35%，較 2012 年下降 100 個基點，反映 S&P Dow Jones Indices 合資企業的全年效益以及其他持續的稅務規劃措施。我們預期非控制權益為 9,000 萬至 1 億美元，相較 2012 年的 5,200 萬美元，主要因合資企業的全年影響。

Capital expenditures are anticipated to be approximately $125 million. And free cash flow should continue to be strong, as it is expected to be in the range of $650 million to $700 million before the payment of the basic dividend.

資本支出預期約為 1.25 億美元。自由現金流預期仍將維持強勁，在支付基本股利之前，預期介於 6.5 億至 7 億美元。

Summing up, we expect another strong year in 2013, with revenue growth in the high single digits and earnings per share of $3.10 to $3.20, approximately 15% growth. Please note, our guidance does include the impact of continued share repurchase. Once we receive the proceeds from the sale of Education, we anticipate resuming our share repurchase program, subject to market conditions. As a reminder, 16.9 million shares remain in our current share repurchase authorization.

總結而言，我們預期 2013 年將再度是強勁的一年，營收高個位數成長、每股盈餘 3.10 至 3.20 美元，約成長 15%。請注意，我們的指引已包含持續回購股份的影響。一旦收到出售 Education 的款項，我們預期將在視市場狀況而定的前提下恢復股份回購計畫。提醒一下，目前的股份回購授權尚餘 1,690 萬股。

Now let me turn the call back over to Terry.

現在我把電話交回給 Terry。

Okay. Thanks, Jack. As you heard from Jack's review, 2012 was just a terrific year for McGraw-Hill Financial. We continue to generate substantial amounts of cash, and our 2013 guidance paints a picture of continued growth.

好的。謝謝，Jack。如同你從 Jack 的回顧中所聽到的，2012 年對 McGraw-Hill Financial 來說確實是非常出色的一年。我們持續創造可觀的現金，而我們對 2013 年的指引也描繪了持續成長的圖景。

Okay. With that, let me now ask Ken Vittor, he is McGraw-Hill's General Counsel, to address the recent legal developments and how we plan to defend our Company against a civil complaint that we just received last week from the Department of Justice. Ken?

好的。接下來，讓我請 McGraw-Hill 的總法律顧問 Ken Vittor，說明近期的法律進展，以及我們計畫如何為本公司辯護，以因應我們上週剛收到、由司法部提出的民事訴狀。Ken？

Thank you, Terry. I want to describe the legal actions that were brought last week by the civil division of the United States Department of Justice, as well as a number of cases filed just after the DOJ announcement by state attorneys general. As Terry said at the beginning of the call, the Company does not believe the cases have legal or factual merit, and we intend to defend the Company vigorously, as we have successfully defended against more than 40 other financial crisis related cases.

謝謝你，Terry。我想說明上週由美國司法部民事司提起的法律行動，以及在司法部公告後不久由各州檢察長提出的多起案件。如同 Terry 在電話會議一開始所說，本公司不認為這些案件在法律或事實上有任何根據，我們將強力為公司辯護，就像我們先前成功抗辯超過 40 件其他與金融危機相關的案件一樣。

Last Monday, February 4, the civil division of the United States Department of Justice filed a civil lawsuit against The McGraw-Hill Companies and Standard & Poor's Financial Services LLC in federal court in California. No other companies are named as defendants in the case nor are there any individuals who have been named as defendants.

上週一，2 月 4 日，美國司法部民事司在加州聯邦法院對 The McGraw-Hill Companies 與 Standard & Poor's Financial Services LLC 提起民事訴訟。本案未將其他公司列為被告，也沒有任何個人被列為被告。

The case was brought under the Financial Institutions Reform, Recovery and Enforcement Act of 1989, known as the FIRREA statute. This is a federal statute that permits the Department of Justice to seek civil penalties if it can establish that violations occurred of a number of other statutes and that the violations affected a federally insured financial institution.

本案係依據 1989 年《金融機構改革、復甦與執法法》（Financial Institutions Reform, Recovery and Enforcement Act of 1989），亦即 FIRREA 法案提起。這是一部聯邦法規，允許司法部在能證明發生若干其他法規之違反，且該等違反影響到受聯邦保險保障的金融機構時，尋求民事罰金。

In this case, the government is alleging that violations of the mail fraud, wire fraud, and bank fraud statutes occurred and that they affected financial institutions including Western Corporate Federal Credit Union, known as WesCorp, Citibank, and Bank of America.

在本案中，政府主張發生了郵件詐欺、電信詐欺與銀行詐欺法規之違反，且影響到包括 Western Corporate Federal Credit Union（WesCorp）、花旗銀行（Citibank）以及美國銀行（Bank of America）等金融機構。

The government alleges that the Company violated these statutes when it issued its forward-looking rating opinions concerning creditworthiness or confirmed those opinions of 33 collateralized debt obligations, known as CDOs, in 2007. The government claims that in preparing its ratings, S&P knowingly failed fully to take into account risks associated with residential mortgage-backed securities, known as RMBS, that were being used as collateral for the CDOs.

政府主張，本公司在 2007 年就 33 檔擔保債務憑證（collateralized debt obligations，CDOs）的信用狀況發布前瞻性評等意見，或確認該等意見時，違反了上述法規。政府聲稱，在編製其評等時，S&P 明知卻未充分納入與住宅抵押貸款支持證券（residential mortgage-backed securities，RMBS）相關的風險，而該等 RMBS 被用作 CDO 的擔保品。

The government also claims in its lawsuit that S&P's statements about its independence and objectivity were false because during the years 2004 to 2007 S&P allegedly made adjustments or delayed adjustments to the models it used to rate RMBS and CDOs, in order to preserve market share at the expense of analytical accuracy.

政府亦在其訴狀中主張，S&P 關於其獨立性與客觀性的陳述不實，因為在 2004 至 2007 年間，S&P 據稱為了以犧牲分析準確性為代價維持市占率，而對其用於評等 RMBS 與 CDO 的模型進行調整或延後調整。

The government says that it is seeking more than $5 billion in penalties. This figure is based on losses that were allegedly suffered by federally insured financial institutions that purchased CDOs rated by S&P in 2007.

政府表示其尋求超過 50 億美元的罰金。此金額係以受聯邦保險保障的金融機構在 2007 年購買由 S&P 評等之 CDO 所遭受的據稱損失為基礎。

The complaint includes specifics regarding only about $500 million of the $5 billion the government is seeking. The government has not explained where the other $4.5 billion in alleged losses come from.

該訴狀僅就政府所求 50 億美元中的約 5 億美元提供具體細節。政府並未說明其餘據稱 45 億美元損失的來源。

The revenues S&P earned in connection with the CDOs identified in the complaint were less than $15 million. About half of the par value of the CDOs identified in the complaint relates to losses that allegedly affected Citibank and Bank of America after purchasing CDOs that they or their affiliates had underwritten or arranged.

S&P 就訴狀所指認之 CDO 相關業務所取得的收入低於 1,500 萬美元。訴狀所指認之 CDO 名目本金（par value）約有一半，係與花旗銀行與美國銀行在購買由其或其關係企業承銷或安排之 CDO 後所據稱受到影響的損失相關。

The penalties that the government is seeking in this case are based on its position that they are not required to show that the losses were proximately caused by S&P's rating opinions. The government cannot recover any penalty, of course, unless it first proves that a violation of one of the statutes occurred.

政府在本案所尋求的罰金，係基於其立場：其無須證明該等損失與 S&P 的評等意見之間具有近因關係（proximately caused）。當然，除非政府首先證明發生了上述任一法規之違反，否則其無法取得任何罰金。

S&P believes that to do this the government is required to prove that S&P Rating committee did not believe the ratings that S&P gave to the CDOs at the time these rating opinions were issued; that S&P assigned those ratings with the intent to defraud the investors which purchased those CDOs; and that S&P's rating opinions affected a federally insured financial institution.

S&P 認為，為達成此點，政府必須證明：S&P 評等委員會在發布該等評等意見時並不相信 S&P 給予 CDO 的評等；S&P 在給予該等評等時具有詐欺購買該等 CDO 之投資人的意圖；且 S&P 的評等意見影響到受聯邦保險保障的金融機構。

As I said at the beginning of my remarks, the Company intends to defend this lawsuit vigorously. We believe that the complete record does not support the government's theory.

如同我在開頭所說，本公司將強力為本訴訟辯護。我們認為，完整紀錄並不支持政府的主張理論。

S&P did not make changes to its model that it believed were not analytically justified, nor could S&P refuse to make changes that had been determined to be analytically justified by a committee. The culture at S&P has always been characterized by vigorous debate and robust analysis. Although there may have been opinions within the Company, even very strongly held opinions, that did not carry the day, this is not evidence of fraud.

S&P 並未對其模型做出其認為在分析上不具正當性的變更；同時，若委員會已認定某些變更在分析上具正當性，S&P 也不可能拒絕進行該等變更。S&P 的文化一向以激烈辯論與嚴謹分析為特徵。即使公司內部可能存在某些意見，甚至是非常強烈的意見，最終未被採納，這也不是詐欺的證據。

The government's claim that S&P did not fully take into account the risk of RMBS that were going into CDOs in 2007 is also, we believe, a hindsight criticism of S&P's rating opinions during this turbulent time, which we don't think can support a fraud claim. The complaint details information about deteriorating residential mortgages that S&P had available to it in February, March, April, May, June, and July of 2007.

政府主張 S&P 在 2007 年未充分納入納入 CDO 之 RMBS 風險，我們亦認為這是對 S&P 在該動盪時期所作評等意見的事後諸葛式批評，我們不認為這足以支持詐欺主張。訴狀詳述了 S&P 在 2007 年 2 月、3 月、4 月、5 月、6 月與 7 月可取得的、關於住宅抵押貸款惡化的資訊。

This data, by the way -- about the rate at which residential mortgages were becoming delinquent -- is the same data that was available to the rest of the market and to the government. It is the same data that the Federal Open Market Committee was reviewing during 2007 in the transcripts that were made public a few weeks ago.

順帶一提，這些資料——關於住宅抵押貸款轉為逾期的速度——與市場其他參與者及政府所能取得的資料相同。這也是聯邦公開市場委員會（Federal Open Market Committee）在 2007 年所檢視的同一批資料，相關逐字稿於數週前已公開。

What the complaint leaves out is all of the work being done by S&P in each of those months to understand that data and to make good-faith judgments about what it might mean for the securities that S&P rated. In fact, S&P reviewed this data every month and developed more stressful tests to help it update its opinion of any RMBS that was exposed to these delinquent mortgages.

訴狀所遺漏的是：S&P 在上述每個月份所進行的所有工作，用以理解該等資料，並就其對 S&P 所評等證券可能代表的意涵作出善意判斷。事實上，S&P 每月都會檢視這些資料，並制定更嚴苛的壓力測試，以協助其更新對任何暴露於這些逾期抵押貸款之 RMBS 的看法。

As a result, S&P took an increasing number of negative rating actions, credit watch actions, and downgrades in February, March, April, May, June, and July 2007 even before its large-scale rating actions in mid-July. These negative rating actions had a direct and automatic impact on S&P's CDO ratings.

因此，S&P 在 2007 年 2 月、3 月、4 月、5 月、6 月與 7 月，即使在 7 月中旬的大規模評等行動之前，就已採取日益增加的負面評等行動、信用觀察（credit watch）行動與調降評等。這些負面評等行動對 S&P 的 CDO 評等產生直接且自動的影響。

If the RMBS that was put on credit watch or downgraded was in a CDO, or was being considered for a new CDO, S&P's CDO rating took that negative status into account and required additional protection for the CDO.

若被列入信用觀察或遭調降評等的 RMBS 位於某一 CDO 之中，或正被納入新 CDO 的考量，S&P 的 CDO 評等便會將該負面狀態納入考量，並要求該 CDO 提供額外的保護。

Unfortunately, these actions turned out to be insufficient in anticipating the great speed, depth, and duration of the housing crisis that ultimately came to pass. But the Company does not believe the government can prove that this failure, common to nearly everyone at the time, was the product of intentional misconduct by anyone at S&P. Significantly, the government's complaint also ignores the fact that all of the CDOs that it identifies received a virtually identical rating from at least one other rating agency.

不幸的是，這些行動最終證明不足以預見後來發生的房市危機之速度、深度與持續時間。但本公司不認為政府能證明：這種在當時幾乎所有人都共同面臨的判斷失誤，是 S&P 任何人故意不當行為的產物。尤其重要的是，政府的訴狀也忽略了一點：其所指認的所有 CDO，至少都有另一家評等機構給予幾乎相同的評等。

The Company has publicly responded to the government complaint in two press releases last week. These press releases and additional information about the government's case is also available on S&P's website.

本公司已於上週透過兩則新聞稿公開回應政府的訴狀。這些新聞稿以及關於政府案件的其他資訊，也可在 S&P 的網站上取得。

Following the announcement of the DOJ lawsuit, 13 additional states and the District of Columbia filed lawsuits against McGraw-Hill and S&P. These lawsuits generally follow the pattern of the lawsuits that were already pending in Connecticut, Illinois, and Mississippi, although there are some differences among them.

在司法部訴訟公告後，另有 13 個州及哥倫比亞特區（District of Columbia）對 McGraw-Hill 與 S&P 提起訴訟。這些訴訟大致遵循先前已在康乃狄克州、伊利諾州與密西西比州待審訴訟的模式，儘管彼此之間仍有一些差異。

One state, California, is suing for losses incurred by two state pension funds under a statute, the California False Claims Act, that potentially allows for treble damages. The lawsuits in Connecticut and Mississippi were brought against both S&P and Moody's. It is possible that additional states will file similar lawsuits.

其中一州，加州，依據一項法規——《加州虛假申報法》（California False Claims Act）——就兩個州退休基金所發生的損失提起訴訟；該法規可能允許三倍損害賠償。康乃狄克州與密西西比州的訴訟則同時對 S&P 與穆迪（Moody's）提起。未來可能還會有其他州提出類似訴訟。

Generally speaking, these cases are being brought under each state's consumer protection law and focus on S&P's statements regarding the independence and objectivity of its ratings practice. The Company has been vigorously defending these lawsuits. It is the Company's position that its statements about objectivity and independence cannot be the basis for a claim of deception.

一般而言，這些案件係依各州的消費者保護法提起，並聚焦於標普（S&P）就其評等作業之獨立性與客觀性所作的陳述。本公司一直積極抗辯這些訴訟。本公司立場為，其關於客觀性與獨立性的陳述不應成為主張欺瞞的依據。

The Company has recently received a very favorable ruling on this issue from the United States Court of Appeals for the Second Circuit. In addition, the United States Court of Appeals for the Sixth Circuit recently dismissed a civil lawsuit brought by the Ohio Attorney General against S&P, Moody's, and Fitch arising from its pension funds purchase of RMBS rated by the three rating agencies.

本公司近期就此議題自美國第二巡迴上訴法院獲得極為有利的裁定。此外，美國第六巡迴上訴法院近日亦駁回俄亥俄州檢察總長對標普、穆迪（Moody's）與惠譽（Fitch）提起的民事訴訟；該訴訟源於其退休基金購買了由上述三家評等機構評等之RMBS。

In short, we believe that we have strong defenses in the DOJ and the state lawsuits and expect to prevail. Now let me turn the call back to Terry.

總之，我們相信在司法部（DOJ）及各州訴訟中我們具備強而有力的抗辯理由，並預期將勝訴。現在我把電話交回給Terry。

Okay. Thanks, Ken, and we can follow up on that. At this point, though, I am going to turn it over to Doug Peterson. Doug is the President of Standard & Poor's Ratings Services, and Doug is going to provide a view of the action S&P has taken to strengthen the ratings process since the financial crisis began in 2007, which is an ongoing and continuous process as markets change. And so, Doug?

好的。謝謝你，Ken，我們可以再就此追蹤。不過此刻，我要把時間交給Doug Peterson。Doug是標準普爾評等服務（Standard & Poor's Ratings Services）的總裁，他將就自2007年金融危機開始以來、隨市場變化而持續進行的流程中，標普為強化評等流程所採取的行動提供觀點。那麼，Doug？

Thank you, Terry. I appreciate the opportunity to be here this morning. It has been nearly 18 months since I joined Standard & Poor's as President. This follows a 25-year career with Citibank, where I most recently served as chief operating officer of Citibank NA.

謝謝你，Terry。我很感謝今天上午能有機會在此。自我加入標準普爾擔任總裁以來，已將近18個月。在此之前，我在花旗銀行（Citibank）服務25年，最近的職務是Citibank NA的營運長（COO）。

Over my career at Citi I worked with S&P in various ways and was impressed by the rigor, knowledge, and professionalism of S&P analysts. Since joining S&P I have developed an even greater appreciation of the tremendous talent we have in our organization.

在我於花旗的職涯中，我以各種方式與標普合作，並對標普分析師的嚴謹、專業知識與專業精神印象深刻。加入標普後，我對我們組織所擁有的卓越人才更是深感敬佩。

Obviously, we are facing a significant legal challenge; but I am confident that this team of professionals will not let it distract them from the task at hand. They are an extremely committed group who care about the quality of the ratings they provide and are continually focused on how they can do their jobs even better.

顯然，我們正面臨重大的法律挑戰；但我有信心，這支專業團隊不會讓其分散對當前任務的專注。他們是一群極為投入的人，重視所提供評等的品質，並持續專注於如何把工作做得更好。

Today I would like to talk with you about both the past and the future. It is important for you to know the many changes that have taken place at S&P and what is in store going forward.

今天我想與各位談談過去與未來。重要的是讓各位了解標普已發生的諸多變革，以及未來的規劃。

To begin, let me say that we have taken to heart the lessons learned from the financial crisis and made extensive changes that reinforce the integrity, independence, and performance of our ratings. We brought in new leadership, instituted new governance, and enhanced our risk management.

首先，我要說的是，我們已深刻汲取金融危機的教訓，並進行了廣泛的變革，以強化我們評等的誠信、獨立性與表現。我們引進新領導團隊、建立新的治理架構，並強化風險管理。

Long before the financial crisis we had in place policies and procedures to manage potential conflicts of interest, including a separation of analytical and commercial activities, and a ban on analysts from participating in fee negotiations. And analyst compensation has never been based on the volume of securities they rate or the type of ratings they give out.

早在金融危機之前，我們就已建立政策與程序以管理潛在的利益衝突，包括將分析與商業活動分離，並禁止分析師參與費用協商。而且，分析師的薪酬從未以其評等的證券量或其給出的評等等級類型為依據。

Since 2008 we have taken many steps to enhance our ability to provide independent, high-quality ratings. They can be summarized under four headings.

自2008年以來，我們採取了許多措施，以提升提供獨立且高品質評等的能力。這些措施可歸納為四個面向。

First, we reinforced our analytical independence by rotating analysts assigned to a particular issuer and by enhancing analyst training on issuer interactions.

第一，我們透過輪調負責特定發行人的分析師，以及加強分析師在與發行人互動方面的訓練，來強化分析獨立性。

Second, we updated our methodologies and models. We reassessed the principles underlying the way we rate debt. Based on what we learned, we changed the way we are rate almost every type of security that was affected by the financial crisis.

第二，我們更新了方法論與模型。我們重新檢視支撐我們債務評等方式的基本原則。根據所學到的內容，我們改變了幾乎所有受金融危機影響之證券類型的評等方式。

For all mortgage-related securities, we significantly increased the credit enhancement required to achieve a AAA rating and in general have made it more difficult for securities to achieve high ratings. We also strengthened our risk management by instituting a model validation process independent of any commercial considerations, and we brought in a new Chief Risk Officer.

對於所有與房貸相關的證券，我們大幅提高取得AAA評等所需的信用增強（credit enhancement），並且整體而言使證券更難取得高評等。我們也透過建立不受任何商業考量影響的模型驗證流程來強化風險管理，並延攬新的首席風險長（Chief Risk Officer）。

Third, we enhanced our global connectivity on interpreting and responding to credit conditions. Specifically, we established what we call Credit Conditions Committees around the world to identify and monitor risks to the interconnected global credit systems across all asset classes.

第三，我們強化了在解讀與回應信用狀況方面的全球連結。具體而言，我們在全球各地成立我們稱之為「信用狀況委員會」（Credit Conditions Committees）的組織，以辨識並監測跨所有資產類別、相互連結的全球信用體系之風險。

Lastly, we bolstered our governance, compliance, and risk functions. We strengthened our governance structure to meet the requirements of the newly instituted regulatory regimes in the US, Europe, and the rest of the world. In doing so we increased staffing across all independent control functions.

最後，我們強化了治理、法遵與風險職能。我們強化治理架構，以符合美國、歐洲及世界其他地區新建立的監管制度要求。在此過程中，我們在所有獨立控制職能上增加了人力配置。

All told, S&P invested approximately $400 million in the systems, governance, analytics, and the methodologies we use to rate securities.

總體而言，標普在系統、治理、分析能力以及我們用於評等證券的方法論上，投資約4億美元。

One topic that we have given a great deal of thought to is our business model, in which the issuer pays for the rating. Along with many others we have studied the different model options.

我們深思熟慮的一個議題，是我們的商業模式——由發行人支付評等費用。我們與許多其他人一樣，研究了不同的模式選項。

We believe the issuer pay model is not just best for our business, but also best for the market. It is the only business model that provides a level playing field in terms of disclosure; and transparency is critical to well-functioning markets.

我們相信「發行人付費」模式不僅最適合我們的業務，也最有利於市場。就資訊揭露而言，這是唯一能提供公平競爭環境的商業模式；而透明度對於市場有效運作至關重要。

Anyone can go to our website and see how we rate a company, country, or security -- free of charge. That is not the case with the subscriber model, which allows only those who pay to see a rating and promotes selective disclosure.

任何人都可以到我們的網站，免費查看我們如何對公司、國家或證券進行評等。訂閱者模式則非如此；該模式僅允許付費者查看評等，並助長選擇性揭露。

We have learned many valuable lessons from the regrettable fact that we did not anticipate the 34% collapse in US housing prices, and we continue to find ways to improve our ratings and our business. Toward that end, three months after I joined S&P we created a new organizational structure to enable us to better focus on three priorities to drive growth and consistency around the globe.

我們從一個令人遺憾的事實中學到許多寶貴教訓：我們未能預見美國房價34%的崩跌；我們也持續尋求改善評等與業務的方法。為此，在我加入標普三個月後，我們建立了新的組織架構，使我們能更聚焦於三項優先事項，以推動全球的成長與一致性。

The first is ratings excellence. We strive to differentiate S&P by being the premier source of global benchmarks and research that help our customers identify, measure, and manage credit risk.

第一項是評等卓越（ratings excellence）。我們致力於透過成為全球基準與研究的首要來源來凸顯標普的差異化，協助客戶辨識、衡量並管理信用風險。

The second is service excellence. We are sharpening our focus on investors and other market participants by enhancing the way we serve and respond to them.

第二項是服務卓越（service excellence）。我們透過強化服務與回應方式，將焦點更集中於投資人及其他市場參與者。

Lastly, we are delivering with discipline. We are executing with operational excellence through the efficient use of our resources and an even stronger commitment to quality control and compliance.

最後，我們以紀律交付成果（delivering with discipline）。我們透過有效運用資源，以及對品質控管與法遵更強的承諾，來落實營運卓越。

To support these three priorities, we realigned several areas and brought in a new leadership to strengthen the management team. These include Don Howard, who joined us last June as S&P's Chief Risk Officer, a newly created role. Don brings years of experience of management in a variety of financial institutions around the globe.

為支持這三項優先事項，我們重新調整了數個領域，並引進新的領導人以強化管理團隊。其中包括Don Howard，他於去年六月加入我們，擔任標普首席風險長，這是一個新設職位。Don在全球多家金融機構擁有多年管理經驗。

To improve our thought leadership in macroeconomic forecasting, we welcomed Paul Sheard as S&P's Chief Global Economist. Paul is an internationally known economist, thinker, and author.

為提升我們在總體經濟預測方面的思想領導力，我們延攬Paul Sheard擔任標普首席全球經濟學家（Chief Global Economist）。Paul是國際知名的經濟學家、思想家與作者。

To strengthen the management oversight of our analytical units, we appointed Paul Coughlin as head of Global Analytics to ensure that we have common policies, processes, and platforms around the world. In addition, Paul assumed worldwide responsibility for our structured finance business.

為強化對分析單位的管理監督，我們任命Paul Coughlin擔任全球分析（Global Analytics）主管，以確保我們在全球具備一致的政策、流程與平台。此外，Paul也承擔我們結構性金融業務的全球責任。

As we look forward, we see an even greater role for independent rating agencies to sustain global economic growth. Banks are deleveraging and rebuilding their balance sheets while also complying with new regulatory requirements. That means the debt capital markets are going to have to provide more of the funding for public and private sector growth.

展望未來，我們認為獨立評等機構在維持全球經濟成長方面將扮演更重要的角色。銀行正在去槓桿並重建資產負債表，同時也需遵循新的監管要求。這意味著債務資本市場將必須為公部門與私部門的成長提供更多資金。

Emerging market countries are developing credit cultures in order to finance schools, roads, energy, and hospitals, where our ratings facilitate access to more investors. And the outlook for both new issuance and refinancing is positive. Overall, these are favorable trends for the global economy and for our business.

新興市場國家正建立信用文化，以便為學校、道路、能源與醫院等提供融資；在此過程中，我們的評等有助於其接觸更多投資人。而無論是新發行或再融資的前景皆為正向。整體而言，這些都是對全球經濟與我們業務有利的趨勢。

Standard & Poor's has a long history of serving markets and investors. We trace our origins back to 1860 when Henry Varnum Poor published a book called the History of Railroads and Canals in the United States. His goal was to help investors better understand the securities they were buying.

標準普爾（Standard & Poor's）長期以來一直為市場與投資人提供服務。我們的起源可追溯至1860年，當時亨利・瓦納姆・普爾（Henry Varnum Poor）出版了一本名為《美國鐵路與運河史》（History of Railroads and Canals in the United States）的書。他的目標是協助投資人更了解他們所購買的證券。

While we always have to work through challenges, we see excellent opportunities in our business by continuing to serve markets and investors. We look forward to discussing these opportunities with you in the days ahead. And with that, I will pass it back to Terry.

雖然我們始終必須克服各種挑戰，但透過持續服務市場與投資人，我們在業務上看見了極佳的機會。我們期待在接下來的日子裡與各位討論這些機會。那麼，我把時間交回給Terry。

Yes. Thanks, Doug. Doug, in your last point you're talking about some of the infrastructure. Between now and 2030 we are going to have to raise worldwide some $70 trillion in infrastructure financing, which is largely going to be coming from the capital markets and bringing a lot of enhancements. So it is very exciting on that part.

是的。謝謝你，Doug。Doug，你最後一點提到一些基礎建設。從現在到2030年，我們必須在全球籌措約70兆美元的基礎建設融資，這在很大程度上將來自資本市場，並帶來許多提升。所以這一塊非常令人振奮。

Okay, before we go to questions let me just make a few summary remarks. First, McGraw-Hill Financial had a very strong year -- 13% revenue growth, 32% growth in adjusted diluted earnings per share. Second, our new guidance demonstrates our expectation for continued growth in 2013. Third, we delivered tremendous value through the execution of the Growth and Value Plan, which included the sale of McGraw-Hill Education, which again closed in the first quarter; the achievement of $175 million of cost reductions; the distribution of $3.1 billion through share repurchases and dividend; and the investment in numerous acquisitions to add to the future growth of the Company.

好的，在進入提問之前，我先做幾點總結。第一，McGraw-Hill Financial度過了非常強勁的一年——營收成長13%，調整後稀釋每股盈餘成長32%。第二，我們新的指引顯示我們預期2013年將持續成長。第三，我們透過執行「成長與價值計畫」創造了巨大的價值，其中包括出售McGraw-Hill Education（再次強調，該交易已於第一季完成交割）；達成1.75億美元的成本削減；透過庫藏股回購與股利發放回饋31億美元；以及投資多項併購，以增添公司未來成長動能。

Simply put, 2012 was an outstanding year and we look forward to continuing that progress in 2013. As we also -- as we head into 2013 we have heard that we're confronted with new litigation. We have put the best people on the case to defend the interests of our customers and our shareholders; and rest assured we will vigorously defend against these erroneous claims.

簡而言之，2012年是非常出色的一年，我們期待在2013年延續這樣的進展。同時——在邁入2013年之際，我們也聽到我們正面臨新的訴訟。我們已安排最優秀的人員投入此案，以捍衛客戶與股東的利益；請放心，我們將積極有力地抗辯這些錯誤的主張。

And with that, we will now take your questions. So let me turn back over to Chip. Chip, will you provide everyone with dial-in instructions?

接下來，我們將開始回答各位的問題。我把時間交回給Chip。Chip，你可以向大家提供撥入說明嗎？

Sure, Terry. Just a couple instructions. (Operator Instructions) And now we will take the first question. Operator?

當然可以，Terry。先說幾點說明。（接線員說明）現在我們開始第一個問題。接線員？

William Bird, Lazard.

William Bird，Lazard。

Good morning. Was wondering if you could talk about the amount of buybacks assumed in the outlook and also whether a component of it is accelerated. Thank you.

早安。想請教你們在展望中假設的回購金額，以及其中是否包含加速回購的部分。謝謝。

Yes. Hi, Bill. Go ahead, Jack.

是的。嗨，Bill。Jack，你來回答。

Bill, right now we are just affirming that today share repurchase is part of the 2013 program. In terms of the specific amounts, we want to retain some flexibility as the year transpires.

Bill，目前我們只是確認：截至今天，股票回購是2013年計畫的一部分。至於具體金額，我們希望在一年推進的過程中保留一些彈性。

Your question about will we consider it an accelerated action, that is a possibility; but we haven't made any definitive conclusion on that. But again, we are not -- we don't intend to be back into the market until we actually receive the proceeds from Education, which will be towards the end of the first quarter. We will give you a more complete update as we get through the year.

你問到我們是否會考慮採取加速回購，這是有可能的；但我們尚未做出任何明確結論。不過再次強調，在我們實際收到Education交易的款項之前——大約在第一季末——我們不打算回到市場進行回購。隨著年度進展，我們會提供更完整的更新。

As a follow-on, would you be willing to add leverage to buy back more stock?

延伸追問一下，你們是否願意提高槓桿來回購更多股票？

I don't really feel a need to do that over the near term, Bill, right now. But I certainly understand the opportunity from a longer-term point of view.

Bill，就短期而言，我目前不覺得有這個必要。但從較長期的角度來看，我當然理解其中的機會。

Yes. And, Bill, the cash generation capability is so strong that we think that, even if we go to an accelerated position, that we would be in pretty good shape for that. But again, we will wait for the proceeds in March and we will go from there. But share repurchase is going to be a very important activity for us in 2013.

是的。而且，Bill，我們的現金創造能力非常強，因此即使我們採取加速回購的方式，我們也認為財務狀況會相當穩健。但同樣地，我們會等到3月收到款項後再往下推進。不過，股票回購將會是我們2013年非常重要的一項活動。

Could you share what the next steps are in the DOJ process?

你們能分享一下司法部（DOJ）流程接下來的步驟嗎？

Let me ask Ken to do that. Ken?

我請Ken來回答。Ken？

Yes. There will be a schedule established by which we will be required to respond to the complaint; and that will be probably in the next 60 to 90 days.

好的。接下來會訂出一個時程，要求我們對起訴狀作出回應；這大概會在接下來60到90天內進行。

Thank you.

謝謝。

Manav Patnaik, Barclays.

Manav Patnaik，Barclays。

Thank you. First, just a question on the legal side. In terms of all the states teaming up together in many ways for the lawsuit, can you maybe help us understand what the difference is between what happened in Ohio -- which you noted obviously went in favor of all the rating agencies -- and Connecticut, which is leading, I guess, the coalition here? And their specific case I guess is heading to trial next year. So I just wanted to understand what the difference there between Ohio and the rest of these guys are now.

謝謝。首先是法律方面的問題。就多個州在許多方面聯手提起訴訟而言，你們能否協助我們理解：你們提到的俄亥俄州案件——顯然結果對所有評等機構都有利——與由康乃狄克州領頭、我想是這個聯盟的案件之間，有什麼不同？而且他們的具體案件似乎將在明年進入審理。所以我想了解俄亥俄州與現在其他這些州之間的差異。

Yes, I would be happy to do that. The Ohio case related to investments made by pension funds, and they were suing for their alleged losses, hundreds of millions of dollars of alleged losses. Both the District Court and the Court of Appeals in the Sixth Circuit dismissed those cases for a variety of legal reasons.

好的，我很樂意說明。俄亥俄州案件與退休基金所做的投資有關，他們就其所稱的損失提告——據稱損失達數億美元。第六巡迴區的地方法院與上訴法院，基於多項法律理由，均駁回了這些案件。

The state attorney general cases that we are now addressing and some that have already been brought by Connecticut and other states are not brought on behalf of investors, except in one case which we can talk about, the California case. Generally these deal with consumer deception claims -- that consumers in each of these states were allegedly deceived by representations made by S&P and in some case other rating agencies that they were independent, that they were objective in arriving at their ratings.

我們目前正在處理的州檢察長案件，以及康乃狄克州與其他州已提起的一些案件，並非代表投資人提起——除了其中一案我們可以再談，也就是加州案件。一般而言，這些案件涉及消費者欺瞞主張——也就是指稱各州的消費者因標普（S&P）以及某些情況下其他評等機構所做的陳述而受到欺瞞，例如他們是獨立的、在給出評等時是客觀的。

So these are different cases. These are deception cases brought based on statements about independence and objectivity. The Ohio case you refer to was relating to investment losses brought by various pension investors.

因此，這些是不同的案件。這些是基於關於獨立性與客觀性的陳述所提出的欺瞞案件。你提到的俄亥俄州案件，則是由各類退休金投資人就投資損失所提起。

I guess then related to Connecticut, can you just explain? I guess it has been two years or so since the case has been ongoing, and now they have been sent to trial. Can you help us understand what the decision was to send it to trial? Like it seems like you guys disagree clearly.

那麼回到康乃狄克州的部分，你能否再解釋一下？我想這個案子已進行了兩年左右，現在被送去審理。你能幫我們理解把它送交審理的決定是什麼嗎？看起來你們顯然不同意。

There was a threshold ruling or rulings on motions to dismiss, and so the case is now in the next phase. There is no decision on the merits in that case. We are just in the next phase, which involves discovery and elements leading up to whether there will be another motion to try to dismiss the case.

先前有一項門檻性的裁定——或多項裁定——是針對駁回動議所作出的，因此案件現在進入下一階段。該案目前並沒有就實體作出任何判決。我們只是進入下一階段，包含證據開示，以及後續是否會再提出動議以嘗試駁回案件的相關程序。

So there is no decision on the merits in that case. There were preliminary decisions on dismissal motions.

所以該案並沒有就實體作出任何判決。先前只是就駁回動議作出初步決定。

Okay, thank you. Just one question on the guidance. In the Indices section, the plus 20% I guess revenue growth you guys guided to seems like it is a little light than the $500 million you had noted when you first made the acquisition. Am I reading that right? And maybe, why so?

好的，謝謝。再問一個關於指引的問題。在指數（Indices）部門，你們指引的營收成長「20%以上」看起來似乎比你們最初宣布收購時提到的5億美元要來得保守一些。我這樣理解對嗎？如果是，原因是什麼？

Yes, it is probably a little bit lighter relative to the initial start. I just think some of the market activity that we have seen particularly relative to volatility in the third or fourth quarter has -- it's not quite as robust as we had seen in the back half of '11 into '12.

是的，相較於最初的起點，可能確實稍微保守一些。我認為我們看到的一些市場活動，特別是相對於第三季或第四季的波動性——其強勁程度不如我們在2011年下半年到2012年所看到的那樣。

So it is probably a bit. But again, we are being conservative about our outlook there, again, because this is so hard to predict the volatility in the marketplace there. But we are still very, very excited about how those two businesses have come together, and we are really looking forward to accelerated growth over the long term.

所以這可能會有一點影響。但再說一次，我們對那邊的展望仍然採取保守態度，因為市場波動實在很難預測。不過，我們仍然對這兩項業務的整合感到非常、非常振奮，也非常期待長期加速成長。

Yes, and Manav, it's a little early on; but one of the things that I was talking about is the switch from outflows to inflows, from actively managed equity funds into indexed funds, it is a trend that is not only taking place here domestically, but worldwide. And we see tremendous uplift in terms of volumes on this line.

是的，Manav，現在談可能還稍早；但我一直在談的一點是，資金正從流出轉為流入，從主動管理的股票型基金轉向指數型基金，這個趨勢不僅在國內發生，也在全球發生。而我們看到這條業務線的交易量有非常顯著的提升。

One of the reasons that we wanted to break out S&P Dow Jones Indices so that you could see those numbers, and we will keep those in front of us as we go forward, is so that you can see not only the growth but the value creation in those. And we are very, very excited about this business.

我們之所以想把標普道瓊指數（S&P Dow Jones Indices）單獨拆出來，讓你們能看到那些數字，而且未來也會持續把它們放在我們的重點之中，是因為這樣你們不僅能看到成長，也能看到其中的價值創造。而我們對這項業務感到非常、非常興奮。

Got it. Then the last question. Just to understand obviously in terms of use of cash going forward, just on your M&A strategy. Should we be expecting more tuck-ins like we have seen at Cap IQ and then I guess Kingsman at C&C? Or I guess can you maybe just help us understand your pipeline and maybe appetite for larger deals?

了解。那最後一個問題。想更清楚了解未來現金運用，特別是你們的併購策略。我們是否應該預期會有更多像我們在 Cap IQ 看到的那種補強型併購（tuck-ins），以及我想在 C&C 的 Kingsman 那樣的交易？或者你能否幫我們理解一下你們的案源管線，以及對較大型交易的意願？

Well, again, you know the four uses of cash. We have focused on dividend and share repurchases, both of those. No change, and we are going to be very active in both.

嗯，再說一次，你知道現金有四種用途。我們一直聚焦在股利與庫藏股回購，兩者都會做。沒有改變，而且我們會在這兩方面都非常積極。

In terms of transactions and organic growth, we like to focus more on the organic growth, and that is why we break it out. So what we are looking for is more specific capabilities in terms of transactions that can help some of our platforms and some of our data and analytic platforms in our businesses.

至於交易與內生成長，我們更偏好把重點放在內生成長，這也是我們為什麼把它拆開來揭露。因此我們在交易方面尋找的是更具體的能力，能夠協助我們某些平台，以及我們業務中的部分資料與分析平台。

So to that extent, tuck-ins is probably a good word. But what we are looking for is added skills and capabilities to enhance the platforms that we have.

所以在這個意義上，「補強型併購」大概是個貼切的說法。但我們要找的是新增的技能與能力，用來強化我們既有的平台。

All right. Thank you, guys.

好。謝謝各位。

Peter Appert, Piper Jaffray.

Peter Appert，Piper Jaffray。

Thanks. Two questions for Ken. Ken, I was hoping you might give us a little more color in terms of the process and timeline on the DOJ case, beyond the response to the complaint here in the next 60 days.

謝謝。有兩個問題想請教 Ken。Ken，我希望你能就司法部（DOJ）案件的流程與時間表提供更多細節，除了接下來 60 天內對起訴狀的回應之外。

Then secondly on the state cases, can they be addressed on a global basis, or do you have to address them one at a time?

第二個是關於各州案件：它們能否以整體方式一併處理，還是必須逐案處理？

Well, on the DOJ, as I said, we will be required to respond to the complaint sometime within the next 90 days. And depending on what happens at that stage, then there will either be motion practice or discovery. And we intend to defend this case vigorously, so we will be pursuing all relevant discovery to defend against these claims of fraud against the Company.

關於 DOJ，如我所說，我們必須在接下來 90 天內的某個時間點對起訴狀作出回應。而視那個階段的進展而定，接下來要嘛進入動議程序，要嘛進入證據開示（discovery）。我們打算強力抗辯此案，因此我們會進行所有相關的證據開示，以對抗針對本公司提出的這些詐欺指控。

As to the states, it is still early days. We will be exploring whether there is a possibility of coordinating with respect to some discovery activities, so that witnesses can testify once for several state proceedings. But it is early days, so that has not yet been resolved.

至於各州，目前仍在初期階段。我們會評估是否有可能在部分證據開示活動上進行協調，讓證人可以一次作證，適用於多個州的程序。但現在還很早，所以尚未定案。

Okay. How about just in terms of -- as we think about the timeline around DOJ, would this be potentially going to trial in 2014?

好的。那就 DOJ 的時間表而言——我們在思考時程時，是否可能在 2014 年進入審判？

It is hard to predict because we're still at the outset of scheduling and determining how much discovery will be necessary and what motion practice will be necessary. But I think two to three years would be a reasonable estimate, if not more, depending on how those various stages of litigation go in the calendar of the court.

很難預測，因為我們仍在排程的起步階段，還要決定需要多少證據開示，以及需要哪些動議程序。但我認為兩到三年會是合理的估計，甚至可能更久，取決於訴訟各階段的進展以及法院的行事曆安排。

Okay, thank you. On the fundamental front, Terry, your Company has posted very impressive margin improvement in the Commodity & Commercial and the Cap IQ Index business in the last couple of years, and the guidance implies some further upside. How do we think about the next couple of years?

好的，謝謝。回到基本面，Terry，你們公司在過去幾年於「大宗商品與商業」（Commodity & Commercial）以及 Cap IQ 指數業務的利潤率改善非常亮眼，而你們的指引也暗示還有進一步上行空間。我們該如何看待未來幾年？

Are we approaching target levels in terms of margin? How meaningful is there room for further upside?

我們是否正接近利潤率的目標水準？進一步上行的空間有多大、意義有多大？

Well again, I think that for McGraw-Hill Financial, there is a couple things. The first one is revenue growth. We see very, very strong revenue growth here.

再說一次，我認為對 McGraw-Hill Financial 而言，有幾件事。第一是營收成長。我們在這裡看到非常、非常強勁的營收成長。

And with that kind of capability, we think that from an expense standpoint, that if we can manage that very efficiently, that we could get higher operating profits and therefore margin expansion. So I wouldn't put targets at this point; I am more focused on the revenue growth generation.

在具備這樣的能力之下，我們認為從費用角度來看，如果能非常有效率地管理費用，就能帶來更高的營業利益，進而推動利潤率擴張。所以此刻我不會設定目標；我更專注在營收成長的創造。

And again, I think that one of the things that we have been breaking out and we have been very successful at is the organic part. So our own creativity and ingenuity is at the forefront. So we are pushing aggressively on that, but I see margin expansion.

而且我認為我們一直拆分揭露、也做得非常成功的一點，是內生成長的部分。也就是我們自身的創意與巧思站在最前線。因此我們會積極推進，但我確實看到利潤率擴張。

Okay, great. Thanks. And one thing I forgot to ask Ken. On the California case, to the extent that that superficially looks like the Ohio case, what is distinct about it?

好的，很好。謝謝。還有一件我忘了問 Ken。關於加州案件，若表面上看起來與俄亥俄州案件相似，它的不同之處是什麼？

Well, it will be governed by California law. It does raise an interesting question, though, because it does allege losses for CalPERS which are the same losses that we are defending a lawsuit against brought by CalPERS. So an initial procedural question will be -- we are in two courts with respect to the same claimed losses, one brought by the California Attorney General and the other brought by CalPERS. So that will need to be addressed as we defend the case.

嗯，它將受加州法律所規範。不過它確實提出一個有意思的問題，因為它主張 CalPERS 的損失，而這些損失與我們正在抗辯、由 CalPERS 提起的訴訟所主張的損失相同。因此一個初步的程序問題會是——針對同一筆主張的損失，我們同時在兩個法院應訴：一個是由加州檢察總長提起，另一個是由 CalPERS 提起。所以在我們抗辯此案時，這點需要被處理。

But the short answer to your question, is it is different law. State law governs each state actions. And the Ohio case was in a federal court as well. So we are dealing with California state law, and that will be what law is applied to the claims in that case.

但對你問題的簡短回答是：適用法律不同。各州的訴訟行動各自受州法管轄。而俄亥俄州案件也在聯邦法院。所以我們現在處理的是加州州法，而該案的主張將適用加州州法。

And the state attorney general cases are all under state law?

那各州檢察總長的案件都是依州法提出的？

That's correct.

沒錯。

Okay, thank you.

好的，謝謝。

Craig Huber, Huber Research Partners.

Craig Huber，Huber Research Partners。

Yes, good morning. A couple legal questions, please. Can you update us on the New York Attorney General? What is going on there potentially? And updates on the Martin Act part of it as well, please.

是的，早安。想請教幾個法律問題。你能否更新一下紐約州檢察總長（New York Attorney General）的情況？那邊可能發生了什麼？也請更新一下其中關於《馬丁法案》（Martin Act）的部分。

Well, as you may know, we entered into an agreement with the New York Attorney General back in 2008, and we are in full compliance with that agreement. And that is the current status.

如你可能知道的，我們在 2008 年與紐約州檢察總長達成一項協議，而我們完全遵守該協議。目前狀態就是如此。

We are in frequent dialog with all of -- law enforcement agencies across the country and respond to requests for information. But with respect to that agreement, which is a confidential agreement, we are in full compliance with that agreement.

我們與全國各地的——執法機關保持頻繁對話，並回應資訊提供的要求。但就那份協議而言——那是一份保密協議——我們完全遵守該協議。

So does that mean then with the New York Attorney General that they cannot file a case against S&P McGraw-Hill?

所以這是否表示，紐約州檢察總長就不能對標普 McGraw-Hill 提起訴訟？

I really can't speak to the agreement because it is a confidential agreement.

我真的無法就該協議發表意見，因為那是一份保密協議。

Okay. Then on the Department of Justice lawsuit against you guys, why do you think that they are singling out S&P here and not Fitch and Moody's?

好的。那關於司法部對你們提起的訴訟，你認為他們為什麼只針對標普，而不是 Fitch 和 Moody's？

We can't speculate on the Department of Justice's motivations in deciding to sue Standard & Poor's and no other entity in connection with this lawsuit. The facts are that, as I indicated in my remarks, our ratings, the S&P ratings for the CDOs at issue in this lawsuit, are identical to the ratings issued by other rating agencies. So we don't have an explanation, and you will have to ask the Department of Justice as to the motivation.

我們無法揣測司法部決定起訴標準普爾（Standard & Poor's），而未就本案起訴任何其他實體的動機。事實是，正如我在發言中所指出的，我們的評級——也就是本案所涉 CDO 的 S&P 評級——與其他評級機構所出具的評級完全相同。因此我們沒有解釋，你們必須向司法部詢問其動機。

For us, the question is less the why than the how. How will the Department of Justice prove a fraud claim against S&P's analysts for arriving at ratings through a committee process that are identical to the ratings issued independently by other rating agencies? So that to us is the burden that we don't believe the Department of Justice can sustain.

對我們而言，問題與其說是為什麼，不如說是怎麼做。司法部將如何證明 S&P 分析師存在詐欺主張，因為這些評級是透過委員會流程得出，且與其他評級機構獨立出具的評級完全一致？因此在我們看來，這就是我們不認為司法部能夠承擔得起的舉證負擔。

So as to the why, that is for the Department of Justice to answer it. The how is the question we are addressing. How will they prove the case of fraud against S&P Ratings when the ratings that were arrived at through a committee process were identical to ratings issued by other rating agencies who are not parties to this lawsuit?

至於為什麼，那要由司法部來回答。我們正在處理的是「怎麼做」這個問題。當這些透過委員會流程得出的評級與其他並非本案當事方的評級機構所出具的評級完全相同時，他們要如何證明對 S&P Ratings 的詐欺指控？

Then on the fundamentals, please, Terry, the $60 million or so cost savings throughout your Financial services operation last year is about a third of the $175 million. I mean that is roughly about 2% of your cost base excluding Education for 2012. Do you think you have more to go of ripping out cost over the next couple years here?

接著談基本面，Terry，去年你們金融服務業務約 6,000 萬美元的成本節省，大概是 1.75 億美元的三分之一。我的意思是，若以 2012 年不含教育業務的成本基礎來看，這大約是 2%。你認為未來幾年還能再進一步大幅削減成本嗎？

Oh, definitely. Definitely. I mean, again, we are in the early stages. Maybe for Jack not such early stages, but we are in the early stages of standing up McGraw-Hill Financial.

喔，當然。當然。我的意思是，再次強調，我們仍在早期階段。也許對 Jack 來說不算那麼早期，但我們確實仍在建立 McGraw-Hill Financial 的早期階段。

And again, as I was saying to Peter, again, we are focused now with McGraw-Hill Financial on the top line. We believe that we have terrific upside in terms of revenue growth; and if that is right and we manage those expense bases very, very carefully, I think that we can get the margin improvement.

再者，正如我剛才對 Peter 說的，我們現在在 McGraw-Hill Financial 的重點放在營收端。我們相信在營收成長方面有非常好的上行空間；如果這點成立，且我們非常、非常謹慎地管理費用基礎，我認為我們就能帶來利潤率改善。

So, yes. I think that we were conservative when we said that we thought we could get $100 million of cost savings. We had to get into it, and as we did get into it we found more opportunities and we were able to get up to $175 million. So, yes, I think that there is more to come.

所以，是的。我認為我們當初說可以節省 1 億美元成本時是保守的。我們必須深入推動，而在推動過程中我們發現更多機會，並且能把目標提高到 1.75 億美元。所以，是的，我認為後面還會有更多。

So can you put a number around that? Are you looking for maybe another $50 million annualized to rip out of the business?

那你能給個數字範圍嗎？你是否在尋求再額外削減、年化大約 5,000 萬美元的成本？

No, Craig, it's a little premature right now to do that. Look, we're going to let the dust settle and get separation behind us. Stand up McGraw-Hill Financial.

不，Craig，現在要這麼做還有點太早。你看，我們會先讓塵埃落定，把分拆的事情處理好。把 McGraw-Hill Financial 建立起來。

But we completely recognize, while the first priority is going to be driving top-line growth, that we now have our productivity Phase 2, more focus on McGraw-Hill Financial. And we will be back to update you more on the specific initiatives and the benefits of that program as we go through the year.

但我們完全認知到，雖然第一優先是推動營收成長，但我們現在也有生產力第二階段，會更聚焦在 McGraw-Hill Financial。我們會在今年進行的過程中，針對具體措施以及該計畫帶來的效益，再回來向各位更新。

Then one last minor housekeeping question. What is your plans for pricing for S&P Ratings for this new year and Capital IQ?

最後一個小小的例行問題。你們對新年度 S&P Ratings 和 Capital IQ 的定價有什麼計畫？

For Cap IQ?

Cap IQ 嗎？

And for S&P Ratings as well.

以及 S&P Ratings 也是。

Well, I don't think there is anything unusual about the pricing (multiple speakers)

嗯，我不認為定價方面有什麼不尋常的（多位發言者）

Are you expecting to bring it up, take it up by roughly, say 4 to 5 percentage points this year, like you have done in the past?

你們是否預期今年會像過去一樣，把價格上調大約 4 到 5 個百分點？

I think we're probably in the range of 3% to 4%, which is generally in line with a lot of the -- let's face it, the biggest part of the cost structure is people. You are looking at -- between merit and healthcare benefits you probably have an inherent inflation around that same level. So right now we are in that 3% to 4%.

我想我們大概會在 3% 到 4% 的區間，這通常與許多——坦白說，成本結構中最大的一部分是人員——相當一致。你看——在績效調薪與醫療保健福利之間，你可能本來就有大約同等水準的內生通膨。所以目前我們就在 3% 到 4% 這個區間。

Very good, thank you.

很好，謝謝。

Bill Warmington, Raymond James.

Bill Warmington，Raymond James。

Good morning, everyone. Question for you on Capital IQ. Just wanted to comment that the mid to high single-digit sub growth I think is pretty impressive in this environment; and wanted to ask what is driving that growth. Share gains? New firm formation? If you could talk a little bit about that.

各位早安。我有一個關於 Capital IQ 的問題。我想先評論一下，在這樣的環境下，中到高個位數的訂閱成長我覺得相當令人印象深刻；也想請教是什麼在推動這個成長。市占提升？新公司成立？如果可以的話，請稍微談談。

Well, there's a couple things. One, with the acquisitions that we have gone after -- R2, QuantHouse, CMA -- what we are doing is expanding the customer base and expanding the skill set in terms of the platform. So you are getting growth in terms of customer retention and you are getting some market share because of the new capabilities on that.

嗯，有幾個因素。第一，透過我們所進行的收購——R2、QuantHouse、CMA——我們正在擴大客戶基礎，並在平台能力方面擴充技能組合。因此你會看到客戶留存帶來的成長，也會因為新增能力而取得一些市占。

Again, it is not just acquisition. It is also the organic component of being able to understand customer drives and needs and to be able to satisfy them.

再說一次，這不只是收購。也包括有機成長的部分，也就是能夠理解客戶的驅動因素與需求，並能滿足它們。

If we can do that without a transaction, so be it. If we can do it faster through a transaction, we will on that part. But the attention is on those skill sets.

如果我們不透過交易也能做到，那也很好。如果透過交易能更快做到，我們就會在那部分採取交易。但重點在於那些技能組合。

One other question I have been getting frequently is one about legal costs, in terms of -- to try to get a sense for -- what were costs in 2012? What is being built into the budget in 2013 in terms of legal costs?

我還常被問到另一個問題，是關於法律費用——想要掌握一下——2012 年的成本是多少？2013 年預算中對法律費用編列了多少？

And are we seeing an uptick in 2013 because we are heading into what is typically more expensive in terms of discovery and trial phases? Your thoughts on that.

以及我們是否會在 2013 年看到上升，因為我們正進入通常在證據開示與審判階段更昂貴的時期？你對此有何看法？

Well, let me ask Jack to handle that; but first of all, again, the suits that we have received from the 2007 period, as Ken was saying, 41 of these suits representing hundreds of billions alleged damages, have been dismissed or voluntarily withdrawn. The problem, Bill, is that we do everything at the federal level. And when there is so much litigation out there, that it takes two years, two and a half years to get before a federal judge.

嗯，我先請 Jack 來回答；但首先，再次強調，我們在 2007 年期間收到的訴訟，如 Ken 所說，41 件訴訟代表數千億美元的主張損害賠償，已被駁回或自願撤回。問題在於，Bill，我們所有案件都在聯邦層級處理。而當外面有這麼多訴訟時，要排到聯邦法官面前往往需要兩年、兩年半。

In most of the cases with these suits they were dealt with almost the same day that the judge has seen them in terms of being dismissed. So we feel very good about the 41 suits that have been dismissed on all that part.

在多數案件中，這些訴訟幾乎在法官看到的同一天就被處理並駁回。因此，對於已被駁回的那 41 件訴訟，我們在各方面都感到非常有信心。

But in terms of legal expense, they just haven't gone forward, so they just sort of sit in waiting on this part. Now, again, in terms of -- and again these suits aren't going to trial on that part. So that's good; that is where the costs build up. But, Jack, do you want to --?

但就法律費用而言，因為案件尚未往前推進，所以它們就只是處於等待狀態。再者，就——而且這些訴訟也不會進入審判。所以這是好事；因為成本通常是在那裡累積。不過，Jack，你要不要——？

It is not our practice to specifically disclose legal expense. However, I would say that it is not an insignificant line item in our income statement right now.

我們的慣例是不具體揭露法律費用。不過我會說，這在我們目前的損益表上並不是一個微不足道的項目。

We do recognize that perhaps there could be some pressure on that expense going forward into '13. But we have considered that both in our overall guidance, in our margin expectations for Ratings next year. So, I think we would like to believe at this point in time that we can manage it, but we will update you as appropriate if necessary as we go through the year.

我們確實認知到，進入 2013 年後該費用可能會面臨一些上行壓力。但我們已在整體財測指引中、以及明年 Ratings 的利潤率預期中，把這點納入考量。因此，我想我們目前希望相信我們能夠加以管理；但若有必要，我們會在今年進行過程中適時向各位更新。

Very helpful. Then one last question on the legal side. I know that the focus of the discussion so far really has been on defense of the case, and I wanted to just ask a question, a theoretical question that has popped up from time to time about a potential settlement. The question is -- are there any restrictions potentially on structuring such a settlement?

非常有幫助。那麼最後一個關於法律面的問題。我知道到目前為止討論的重點其實一直放在案件的抗辯上，但我想問一個理論性的問題，這個問題不時會出現，關於潛在的和解。問題是——在安排這樣的和解架構時，是否可能會有任何限制？

How would such a settlement theoretically be structured? If you could talk about some of the options there based on some of the previous precedents you have seen.

理論上，這樣的和解會如何設計架構？如果可以的話，請根據您過去看到的一些先例，談談其中的一些選項。

Well, we are always open to a reasonable settlement. And in fact, S&P in the past has reached reasonable settlements in cases such as the Orange County case and the case brought by Connecticut with respect to municipal finance ratings, and other cases. So we are open to reasonable settlements and discussing reasonable settlements. That will vary from case to case.

嗯，我們一向對合理的和解持開放態度。事實上，S&P 過去在橙縣案，以及康乃狄克州就市政融資評等所提起的案件等，還有其他案件中，都曾達成合理的和解。因此，我們願意對合理的和解保持開放並討論合理的和解。這會因個案而異。

So the answer is if there is a reasonable settlement opportunity made available to us in any case, we are open to discuss it.

所以答案是：如果在任何案件中有合理的和解機會提供給我們，我們都願意討論。

Okay. Thank you very much for the insight.

好的。非常感謝您的見解。

David Reynolds, Jefferies.

David Reynolds，Jefferies。

Morning. Yes, I wonder if I could ask a question on the Education business, please. I guess it would be fair to say the closure, the completion of the trade sale has slipped somewhat. Could you just perhaps shed some light on why that has happened?

早安。是的，我想請教一個關於教育業務的問題。我想可以說，交易出售的完成、交割時間似乎有些延後。您能否說明一下為什麼會發生這種情況？

No, I think it is just the normal process. In terms of Apollo, they first had to go out and get their credit ratings. They have been completing that process, and now they are securing the financing aspect of it. There was some desire for some more audited results.

不，我認為這只是正常流程。就 Apollo 而言，他們首先必須去取得信用評等。他們一直在完成這個流程，現在則在落實融資部分。另外也有人希望能有更多經審計的結果。

So it took a little bit of slippage. But as Jack was saying, we are looking for a first-quarter event here and maybe a little sooner. Who knows?

所以時間上有一點點延後。但正如 Jack 所說，我們預期會在第一季發生，甚至可能更早一些。誰知道呢？

But everything is on track. So again it's maybe a little bit longer, a few weeks, but everything is on track.

但一切都在軌道上。所以同樣地，可能只是多花一點時間、延後幾週，但一切都在軌道上。

Yes, David, just technically, it was just a pragmatic determination to go off the fourth-quarter numbers, not the third-quarter numbers for the audit. So once that is together I suspect everything will move forward.

是的，David，從技術面來說，這只是務實地決定審計要以第四季數字而不是第三季數字為基礎。所以一旦那部分完成，我想一切就會往前推進。

If I could just slip a follow-on in there then, I have obviously worked through as much of the press release today as I can, but in terms of any indication of how the Education business fared in the fourth quarter, how was business?

那我再追問一個問題。我當然已經盡可能把今天的新聞稿看過了，但就第四季教育業務的表現而言，有沒有任何指標？業務狀況如何？

It was a challenging finish to the year. The top line was down. It was down around the 10%, 11%, in line with where full-year results where. But in particularly it was a little challenged in the higher ed section. But --

年末收官相當具挑戰。營收下滑。大約下滑 10%、11%，與全年結果的水準一致。但特別是在高等教育板塊方面，確實更具挑戰。不過——

Great. Perhaps then just one final question, a question which has cropped up with a number of investors, I think. I guess we are clearly not as close to you -- as close to the credit rating agency business model as you are.

很好。那麼最後一個問題，這也是我想不少投資人都提過的問題。我想我們顯然不像你們那樣——那麼貼近信用評等機構的商業模式。

In terms of looking forward, do you believe or do you sense that the DOJ lawsuit has any impact whatsoever on your competitive position within the marketplace? Or is it of no relevance?

就未來展望而言，您是否認為或感受到 DOJ 的訴訟對你們在市場中的競爭地位有任何影響？還是完全無關？

Well, actually, we had this discussion yesterday. Doug is very close to our clients, and the comment has been that there has been no impact. In fact, there is a growing appreciation for S&P's positions on it.

嗯，事實上，我們昨天才討論過這件事。Doug 與我們的客戶互動非常密切，而回饋是沒有任何影響。事實上，市場對 S&P 在此事上的立場反而越來越認同。

Given the capital flows that are going to be required, the capital demand on that part, there is a broadening need in all quadrants whether it be structured, government, corporates. And Doug feels quite good. You want to add anything, Doug?

考量到未來所需的資本流動，以及那一端的資本需求，不論是結構型產品、政府或企業，各個象限的需求都在擴大。Doug 對此感覺相當不錯。Doug，你要補充什麼嗎？

Let me just add that, as you know, last year the global markets, especially in the fixed-income area for governments, for financial institutions in both investment-grade and non-investment-grade was up over 18%; 29% in the US. Terry mentioned earlier that there is a very big backlog globally of financial needs as banks deleverage, as countries develop their infrastructure in the emerging markets.

我補充一下：如你所知，去年全球市場，特別是固定收益領域，政府與金融機構（包含投資級與非投資級）的發行量成長超過 18%；在美國則成長 29%。Terry 先前提到，隨著銀行去槓桿，以及新興市場國家發展其基礎建設，全球仍有非常龐大的資金需求積壓。

We showed a slide earlier that the European markets are still heavily bank funded. So we see that the demand and the relevance of ratings and research continues to be very high. We have built excellent controls, governance, and ways to ensure that our global insights are shared across all of our teams.

我們先前展示的一張投影片顯示，歐洲市場仍高度依賴銀行融資。因此我們看到，評等與研究的需求與相關性仍然非常高。我們已建立優良的控制機制、治理架構，以及確保我們的全球洞見能在所有團隊間共享的方法。

And in the last week we have received very supportive comments from our issuers and from investors about the type of quality of research we produce. So we are still moving forward. Our team is dedicated, they are committed, and we are continuing to support the markets.

而且在過去一週，我們從發行人與投資人那裡收到非常支持性的回饋，肯定我們所產出的研究品質。所以我們仍在持續向前。我們的團隊專注且投入，我們也會持續支持市場。

Yes, thanks, Doug. The capital demand side of all of this, David, is stunning. The nonfinancial corporate securities market, you are seeing huge refundings as well as new monies.

是的，謝謝你，Doug。David，這一切背後的資本需求面令人震撼。非金融企業證券市場方面，你會看到大量再融資以及新增資金需求。

India alone has got to do about $1 trillion of infrastructure financing over the next five years, and hence our CRISIL operation in India. I mean, it is a very robust picture and it is following the capital demand needs.

光是印度在未來五年就必須進行約 1 兆美元的基礎建設融資，因此我們在印度有 CRISIL 的業務。我的意思是，整體圖景非常強勁，而且是跟隨資本需求而來。

Sure, that's great. Thanks so much.

當然，很好。非常感謝。

Ed Atorino, Benchmark.

Ed Atorino，Benchmark。

Ed, if you can hear us, we can talk off-line as well. So if you are having trouble getting through, we can talk whenever you need.

Ed，如果你聽得到我們，我們也可以線下再談。所以如果你在接通上有困難，我們可以在你需要的任何時候再談。

That concludes this morning's call. A PDF version of the presenters' slides is available now for downloading from www.McGraw-Hill.com. A replay of this call including the Q&A session will be available in about two hours. The replay will be maintained on McGraw-Hill's website for 12 months from today and for one month from today by telephone.

今天早上的電話會議到此結束。簡報投影片的 PDF 版本現在可從 www.McGraw-Hill.com 下載。包含問答環節的本次電話會議重播將在約兩小時後提供。重播將自今日起在 McGraw-Hill 的網站上保留 12 個月，並自今日起透過電話保留 1 個月。

On behalf of The McGraw-Hill Companies we thank you for participating and wish you good day.

我謹代表 The McGraw-Hill Companies 感謝各位參與，並祝各位有美好的一天。