標普全球 (SPGI) 2013 Q2 法說會逐字稿

Good morning and welcome to McGraw-Hill Financial's conference call. I'd like to inform you this call is being recorded for broadcast. All participants are on a listen-only mode. We will open conference to question and answers after the presentation and instructions will follow at that time. To access the webcast and slides, go to www.mhfi.com -- that's MHFI for McGraw Hill Financial Inc, dot com -- and click on the link for the second-quarter earnings webcast. If you are listening by telephone, please note that there is an option available to synchronize the presenters slides to your telephone instead of the computer. After you log into the guest book, you will see two windows side-by-side in the webcast viewer. Along the bottom of the left-hand window, click the gear icon and select live phone from the list. A line will appear over the sound icon indicating that sound has been disabled through your computer speakers.

早安，歡迎參加麥格羅-希爾金融（McGraw-Hill Financial）的電話會議。在此提醒各位，本次通話將錄音以供播出。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.mhfi.com——也就是 McGraw Hill Financial Inc 的 MHFI，點 com——並點選第二季財報網路直播連結。若您以電話收聽，請注意可選擇將簡報者的投影片與您的電話同步，而非透過電腦。登入訪客簿後，您會在網路直播檢視器中看到並排的兩個視窗。在左側視窗底部，點選齒輪圖示，並從清單中選擇 live phone（即時電話）。音效圖示上方會出現一條線，表示已停用電腦喇叭的聲音。

(Operator Instructions)

（接線員指示）

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

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

Good morning. Thank you for joining us this morning for McGraw Hill Financial's second-quarter 2013 earnings call. Presenting on this morning's call are Harold McGraw III, Chairman, President and CEO; Doug Peterson, President of Standard & Poor's Rating Services; and Jack Callahan, Chief Financial Officer. Also joining us is Ken Vittor, our General Counsel. This morning we issued a news release with our results. I trust you have all had a chance to review the release. If you need copy of the release and financial schedules, they can be downloaded at www.mhfi.com. In today's earnings release and during the conference call, we are 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 reclassification of McGraw-Hill Education as discontinued operation.

早安。感謝各位今天早上參加麥格羅-希爾金融 2013 年第二季財報電話會議。今天早上的電話會議出席簡報者包括：董事長、總裁暨執行長 Harold McGraw III；標準普爾評級服務（Standard & Poor's Rating Services）總裁 Doug Peterson；以及財務長 Jack Callahan。同時與會的還有我們的總法律顧問 Ken Vittor。今天早上我們已發布新聞稿公布業績結果。我相信各位都已經有機會檢視該新聞稿。如需新聞稿與財務附表，可至 www.mhfi.com 下載。在今日的財報新聞稿以及本次電話會議中，我們將提供調整後的財務資訊。提供此資訊旨在使投資人能對公司各期間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檢視公司的業務。財報新聞稿包含附表，用以調節非 GAAP 指標與依美國 GAAP 計算之可比財務指標之差異。本次結果亦反映將 McGraw-Hill Education 重新分類為終止營業（discontinued operation）。

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 are subject to risks and uncertainties that may cause actual results to differ materially from results anticipated in these 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 US Securities and Exchange Commission. I would also like call your attention to a new European regulation -- any investor who has or expects to obtain ownership of 5% or more of McGraw Hill Financial should give me a call to better understand the impact of this legislation on the investor and potentially the Company. We are aware that we do have some media representatives with us on the call; however, this call is intended for investors and would ask that questions from the media be directed to Jason Feuchtwanger at our New York office at 212-512-3151, subsequent to this call. Now I would like turn the call over to Harold McGraw III. Terry?

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）所定義之前瞻性陳述，包括預測、估計及對未來事件的描述。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這些前瞻性陳述所預期之結果出現重大差異。就此，我們請聽眾參閱我們向美國證券交易委員會（SEC）提交之 Form 10-K、10-Q 及其他定期報告中所載的警示性陳述。我也想提醒各位注意一項新的歐洲法規——任何已持有或預期取得麥格羅-希爾金融 5% 或以上所有權的投資人，請致電與我聯繫，以更了解該立法對投資人及可能對公司造成的影響。我們知道本次通話中也有部分媒體代表；然而，本通話旨在面向投資人，並請媒體的提問於通話結束後，改向我們紐約辦公室的 Jason Feuchtwanger（212-512-3151）提出。現在我想把電話交給 Harold McGraw III。Terry？

Okay. Thank you, Chip and, Chip, you do such great job representing all our shareholders. I thank you for that. Good morning, everyone, and thanks for being with us and welcome to today's conference call. I'd like to begin this call by summarizing the highlights that we will cover today. Our second-quarter results contributed to the strong momentum that we have delivered since reporting McGraw Hill Financial results separately. In fact, so far this year, our revenue has increased 15% and adjusted diluted EPS has increased 30%. We will provide a legal update. I know this is a topic that many are watching closely. We also have our next President and CEO, Doug Peterson, on today's call to make some comments about his new role and discuss the results of Standard & Poor's Ratings Services, the business he is currently running and to give you a chance to ask him any questions during the Q&A. We will also discuss our plans to take a larger stake in CRISIL. This is India's largest rating agency. We will also discuss very briefly our recent announcement to sell the Aviation Week Group. And lastly, as part of Jack Callahan's financial discussion, we will share our newly increased 2013 EPS guidance. All right, so let's turn to the financial performance during the second quarter.

好的。謝謝你，Chip，而且，Chip，你在代表我們所有股東方面做得非常出色。我為此向你致謝。各位早安，感謝各位與會，歡迎參加今天的電話會議。我想先概述我們今天將涵蓋的重點。我們第二季的業績延續了自我們開始單獨揭露麥格羅-希爾金融業績以來所展現的強勁動能。事實上，截至今年目前為止，我們的營收成長 15%，調整後稀釋每股盈餘（EPS）成長 30%。我們將提供法律方面的最新進展。我知道這是許多人密切關注的議題。此外，我們下一任總裁暨執行長 Doug Peterson 也在今天的電話會議中，將就其新職務發表一些看法，並討論他目前所負責的標準普爾評級服務的業績，並在問答環節讓各位有機會向他提問。我們也將討論提高在 CRISIL 的持股比例之計畫。CRISIL 是印度最大的評級機構。我們也會非常簡要地談到近期宣布出售 Aviation Week Group 的消息。最後，作為 Jack Callahan 財務說明的一部分，我們將分享上調後的 2013 年 EPS 指引。好，那麼讓我們來看第二季的財務表現。

Our initial full-year 2013 guidance called for high single-digit revenue growth and approximately 15% diluted adjusted EPS growth. However, during the second quarter, we delivered 17% revenue growth and 31% diluted adjusted EPS growth, reaching $0.92 per share. Our three strongest benchmark businesses led the growth again this quarter -- Standard & Poor's Ratings Services, Standard & Poor's Ratings Services, Platts, and S&P Dow Jones Indices. Cost control and accelerated share repurchase program also contributed to the EPS increase. While we are clearly off to a very solid start, keep in mind that comparisons will become a little bit more difficult because of each quarter of 2012, we delivered sequential increases in revenue and diluted adjusted earnings per share. In addition, Doug will discuss recent trends in issuance of which we need to be mindful of. We shared this chart with you last quarter, but felt that it was important to share it again as the makeup of the Company has changed so dramatically. These two pie charts should help put into perspective the revenue and operating earnings contribution of each of our business segments. Not surprisingly, Standard & Poor's Ratings Services is our largest segment, with each of the remaining three contributing, a comparable level of operating profit.

我們最初對 2013 全年的指引為：營收高個位數成長，以及約 15% 的稀釋後調整 EPS 成長。然而，在第二季，我們實現了 17% 的營收成長與 31% 的稀釋後調整 EPS 成長，達到每股 0.92 美元。本季成長再次由我們三項最強的基準業務帶動——標準普爾評級服務（Standard & Poor's Ratings Services）、標準普爾評級服務（Standard & Poor's Ratings Services）、Platts，以及 S&P 道瓊指數（S&P Dow Jones Indices）。成本控管與加速庫藏股回購計畫也促成 EPS 的提升。雖然我們顯然有一個非常穩健的開局，但請記住，由於 2012 年每一季我們的營收與稀釋後調整每股盈餘皆呈現逐季增加，因此接下來的比較將會稍微更具挑戰。此外，Doug 也將討論近期發行（issuance）趨勢，而這是我們需要留意的。我們在上季已與各位分享過這張圖表，但由於公司組成已發生如此劇烈的變化，我們認為有必要再次分享。這兩張圓餅圖應有助於從整體角度理解我們各業務部門對營收與營業利益的貢獻。不令人意外地，標準普爾評級服務是我們最大的部門，其餘三個部門各自貢獻相近水準的營業利潤。

This morning, I also want to focus on some of the things that are of interest to everyone. Since our legal issues are attracting some attention of late, I thought we would bring them to the forefront of today's discussion. Let me go through some of this with you. With regard to the Department of Justice case, oral argument was held on July 8 in the Federal Court in California. On July 16, the court denied our motion to dismiss. The decision included the following statement -- quote, the court finds that the government has efficiently pleaded the intent required to support its fraud claims; any disputes over the veracity of these claims or contested facts are properly challenged at a later stage of litigation, unquote. It also stated, quote, S&P might disagree with the government's version of these facts, but the opportunity to challenge such factual allegation comes later in the litigation process, end quote. While I'm sure that all of you would like us to discuss our view in great detail and provide additional support for our position, the court has made it abundantly clear that it does not want either party trying this case in the media. Since we will adhere to that request we will not provide any additional commentary regarding the complaint except to repeat what we've said all along, that it has no merit and we look forward to demonstrating that in the court.

今天早上，我也想聚焦於一些大家都關心的事項。由於我們的法律議題近期受到一些關注，我想我們應該把它們放到今天討論的前面來談。我先帶各位逐一說明。就司法部（Department of Justice）案件而言，口頭辯論已於7月8日在加州聯邦法院舉行。7月16日，法院駁回了我們的撤訴動議。該裁定包含以下陳述——引述：法院認為，政府已有效地主張了支持其詐欺主張所需的意圖；任何關於這些主張真實性或爭議事實的爭執，應在訴訟較後階段適當提出挑戰，結束引述。裁定亦指出——引述：S&P 可能不同意政府對這些事實的說法，但挑戰此類事實主張的機會會在訴訟程序較後階段出現，結束引述。我相信各位都希望我們非常詳細地討論我們的觀點並為立場提供更多支持，但法院已非常明確表示，不希望任何一方在媒體上審理此案。因此我們將遵循該要求，除重申我們一直以來所說——該起訴毫無根據，且我們期待在法庭上證明——之外，不會就該訴狀提供任何額外評論。

With regard to the state actions, in June, the Judicial Panel on Multidistrict Litigation, that's JPML, Judicial Panel on Multidistrict Litigation, transferred most of the State AG actions to a single federal judge in Manhattan. The JPML found, quote, that these actions involve common questions of fact and that centralization of all of these actions in the Southern District of New York will serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation, end quote. The New York Federal Court must now decide whether the State AG actions were properly removed to Federal Court. Oral argument on this issue is scheduled to be held on October 4. Please note that these transferred federal actions involve most of the State Attorney General cases; however California, Illinois, and Connecticut have not been consolidated with the other State AG cases and will remain as separate actions in state courts.

就各州訴訟而言，6月時，多區訴訟司法小組（Judicial Panel on Multidistrict Litigation，簡稱 JPML）將多數州檢察長（State AG）的訴訟移轉至曼哈頓的一位聯邦法官統一審理。JPML 認定——引述：這些訴訟涉及共同的事實問題，將所有訴訟集中於紐約南區聯邦地方法院，將有助於當事人與證人的便利，並促進本訴訟公正且有效率的進行，結束引述。紐約聯邦法院現在必須決定，州檢察長的訴訟是否已被適當地移送至聯邦法院。就此議題的口頭辯論預定於10月4日舉行。請注意，這些移轉後的聯邦案件涵蓋多數州檢察長案件；然而，加州、伊利諾州與康乃狄克州並未與其他州檢察長案件合併，將仍作為州法院中的獨立案件。

In other litigations, we continue to build upon our positive track record during the quarter. 33 cases have now been dismissed outright, including the June dismissal of the Tolin case by a Federal District Court in New York City. In the Tolin case, the court stated, quote, the complaint fails by a wide margin to allege adequately that S&P did not believe the ratings when it made them. The complaint fails entirely to allege, let alone with particularity, what S&P's state-of-mind was at the time it issued the particular ratings at issue in this case, unquote. Now 11 dismissals by lower courts have been affirmed by higher courts and 10 cases have been voluntarily withdrawn. That leaves us with a few dozen non-government cases that remain outstanding. Some new cases have been filed very recently and apparently in an effort to avert the statute of limitation expirations, which is a possible defense for us after so many years passing since the issuance of the ratings at issue. Several of these new cases include other rating agencies as co-defendants, as well.

在其他訴訟方面，我們持續在本季的良好紀錄上再接再厲。目前已有33件案件被直接駁回，包括6月紐約市聯邦地方法院駁回 Tolin 案。在 Tolin 案中，法院表示——引述：該訴狀遠遠不足以充分主張 S&P 在作出評等時並不相信其評等，結束引述。引述：該訴狀完全未主張——更遑論具體主張——S&P 在發布本案所涉特定評等時的主觀心態為何，結束引述。目前已有11件下級法院的駁回裁定獲上級法院維持，另有10件案件已自願撤回。因此仍有數十件非政府案件尚未結案。近期又有一些新案件被提出，顯然是為了避免訴訟時效到期；在距離相關評等發布已過多年之後，訴訟時效可能是我們可主張的抗辯之一。其中數件新案件也將其他評等機構列為共同被告。

And in our legal and regulatory topic, the United States Supreme Court has denied the International Securities Exchange, the ISE's petition, seeking review of the Illinois Appellate Court's ruling that prohibits ISE from listing or providing an exchange market for the trading of the S&P 500 and Dow Jones Industrial Average options, and the OCC from issuing, clearing, or settling the exercise of such ISE options without permission. This ruling just reinforces the intellectual property rights of the S&P Dow Jones Indices, as well as other index providers. This ruling supports the same legal issue that our General Counsel, Ken Vittor, who is with us this morning, first successfully defended on our behalf back in 1982. Okay, with that, let's turn to the individual businesses and I will start with the S&P Dow Jones Indices.

在我們的法律與監管議題方面，美國最高法院已駁回國際證券交易所（International Securities Exchange，ISE）的聲請，該聲請尋求覆審伊利諾州上訴法院的裁定；該裁定禁止 ISE 上市或提供交易所市場以交易 S&P 500 與道瓊工業平均指數選擇權，並禁止期權清算公司（OCC）在未經許可下就該等 ISE 選擇權之行使進行發行、清算或交割。此裁定進一步強化了 S&P Dow Jones Indices 以及其他指數提供者的智慧財產權。此裁定所支持的法律議題，正是我們的總法律顧問 Ken Vittor（今天早上也在現場）早在1982年就曾代表我們首次成功辯護的同一議題。好，接下來我們轉到各個業務，我將先從 S&P Dow Jones Indices 開始。

In a second quarter, organic revenue increased 6% to $94 million and the addition of the Dow Jones Index revenue brought total revenue to $123 million. The principal driver of the organic revenue growth was a 34% increase in quarter-ending assets under management in exchange-traded funds, linked to S&P Indices, which reached more than $469 billion. Including the assets under management linked to Dow Jones Indexes, assets under management reached $546 billion at the end of the quarter. It is important to note that the revenue impact is not as pronounced as the growth in assets under management as the basis points charged are not always linear with asset growth. Trading volume of exchange-traded derivatives increased 11%. With equity prices at or near record levels, market participants increased hedging activities, thereby driving higher daily contract volume for the S&P 500 Index options and the CBOE Volatility Index, commonly known as the VIX, at the Chicago Board Options Exchange. This is the last quarter that we will be breaking out the revenue associated with the Dow Jones Indexes, as a joint venture was in placed for all of the third quarter of 2012. While the joint venture realized $80 million of adjusted operating profit, $60 million is retained by us, as 27% of the profit is forwarded to our partner, the CME.

第二季有機營收成長6%，達9,400萬美元；加計道瓊指數營收後，總營收達1.23億美元。有機營收成長的主要驅動因素，是與 S&P 指數連結之交易所交易基金（ETF）季末資產管理規模（AUM）成長34%，達到逾4,690億美元。若包含與道瓊指數連結的資產管理規模，季末 AUM 達5,460億美元。需要注意的是，營收的影響並不像 AUM 成長那麼顯著，因為收取的基點費率並不一定會隨資產成長呈線性變化。交易所交易衍生性商品的交易量成長11%。在股價處於或接近歷史高點的情況下，市場參與者增加避險活動，進而推升芝加哥期權交易所（CBOE）之 S&P 500 指數選擇權與 CBOE 波動率指數（通常稱為 VIX）的每日合約交易量。本季將是我們最後一次單獨揭露與道瓊指數相關的營收，因為自2012年第三季起，相關合資企業已於整個第三季期間生效。該合資企業實現8,000萬美元的調整後營業利益，其中6,000萬美元由我們保留，因為27%的利益會轉付給我們的合作夥伴 CME。

It is critical that we continue to invest in our benchmark businesses to keep the brand prominent and well understood. To that end, the Company launched a new advertising campaign in The Wall Street Journal, Financial Times, and another print and digital media. And while we are investing in the brand, we are also investing in the product. During the second quarter, we launched 33 new indices, many of them deviate from our core strength in US equities. Some notable examples of these new indices include Non-Sharia Compliant Indices, the S&P GSCI Roll Weight Select, the Dow Jones Real Estate Risk Control, Intermediate Duration Muni Yield, Korea and Nordic Low Volatility, and the S&P/ISDA US 150 Credit Spread. These new indices and others will help us continue to diversify and grow this important business.

我們持續投資於基準指標（benchmark）業務，以維持品牌的能見度並讓市場充分理解，這一點至關重要。為此，公司在《華爾街日報》、《金融時報》以及其他平面與數位媒體上推出新的廣告活動。在投資品牌的同時，我們也在投資產品。第二季期間，我們推出33個新指數，其中許多已偏離我們在美國股票領域的核心強項。這些新指數中較具代表性的例子包括：非伊斯蘭教法（Non-Sharia）合規指數、S&P GSCI Roll Weight Select、Dow Jones 房地產風險控制（Real Estate Risk Control）、中期存續期間市政債殖利率（Intermediate Duration Muni Yield）、韓國與北歐低波動（Korea and Nordic Low Volatility），以及 S&P/ISDA US 150 信用利差（Credit Spread）。這些新指數及其他產品將協助我們持續多元化並成長這項重要業務。

With that, let me now move on to S&P Capital IQ. In the second quarter, this business delivered top-line growth of 3%. Two key offerings, Capital IQ Desktop and RatingsXpress, led the revenue growth. These results were offset somewhat by declines in revenue from proprietary research. In a market characterized by customer employee cutback, S&P Capital IQ delivered 16% user growth, excluding government and university users, to more than 54,000. When large enterprise accounts and broad-tiered pricing are excluded, user growth increased mid-single-digit. Adjusted operating profit decreased 7% and there was a decline in the operating margin as increased investment in content and technology continue to reduce some profitability. These investments are leading to innovative, real-time solutions beyond the QuantHouse exchange data feed business that has already been launched.

接下來，我將談 S&P Capital IQ。第二季該業務的營收（top-line）成長3%。兩項關鍵產品——Capital IQ Desktop 與 RatingsXpress——帶動了營收成長。不過，專有研究（proprietary research）營收下滑在一定程度上抵銷了上述成果。在客戶縮減員工的市場環境下，S&P Capital IQ 的使用者數仍成長16%（不含政府與大學使用者），超過54,000名。若排除大型企業帳戶與廣泛分層定價（broad-tiered pricing），使用者成長為中個位數百分比。調整後營業利益下滑7%，且由於持續增加對內容與技術的投資，營業利益率亦下降，進而壓縮部分獲利能力。這些投資正推動創新、即時的解決方案，範圍已超越先前已推出的 QuantHouse 交易所數據饋送（exchange data feed）業務。

S&P Capital IQ's new Portfolio Risk solution product that I'm going to discuss in a little bit more detail in just a moment, was created from the acquisition of R-Squared coupled with considerable investment and innovation over the past year. But before I turn to that, I thought I would take a moment to add some clarity to the S&P Capital IQ business line. This chart depicts the four primary categories of the business and the capabilities that each offers. As you can see, Capital IQ is one of numerous capabilities offered within this business line. Lou Eccleston, who runs S&P Capital IQ, and his team have been working to upgrade this portfolio. The more promising pieces are receiving appropriate investment while the pieces that don't fit are being divested or shut down. For example, we have recently moved ABSXchange, European MarketScope, and FMR Australia out of the portfolio and we expect that as progress is made, this will become a higher margin, faster growing business segment.

我稍後將更詳細說明的 S&P Capital IQ 全新 Portfolio Risk 解決方案產品，是透過收購 R-Squared，並結合過去一年大量投資與創新所打造。但在我談到那之前，我想先花點時間更清楚地說明 S&P Capital IQ 的業務線。這張圖表呈現該業務的四大主要類別，以及各自所提供的能力。如各位所見，Capital IQ 只是此業務線中所提供的眾多能力之一。負責營運 S&P Capital IQ 的 Lou Eccleston 與其團隊一直在努力升級這個產品組合。較具前景的部分獲得適當投資，而不符合策略的部分則被剝離或關閉。例如，我們最近已將 ABSXchange、European MarketScope 以及 FMR Australia 自產品組合中移出；我們預期隨著進展推進，這將成為一個毛利率更高、成長更快的業務部門。

In June, S&P Capital IQ launched its new Portfolio Risk solution available through the Capital IQ Desktop. The product brings together leading risk and portfolio analytics acquired to last year's purchase of R-Squared financial technologies and Capital IQ's extensive market and reference data. This product is the only real-time, multi-asset portfolio risk system that enables internal and external collaboration, click-through transparency, and seamless access to the broad range of reference data and functionality offered within the Capital IQ Desktop. This powerful tool provides traders and portfolio and risk managers with the ability to make decisions about pricing, hedging, and capital management of multi-asset portfolios including equities, fixed income, and derivatives all in real time. Okay, with that, now let me turn to the Commodities and Commercial Markets segment.

6 月，S&P Capital IQ 透過 Capital IQ Desktop 推出其全新的 Portfolio Risk 解決方案。該產品整合了去年收購 R-Squared Financial Technologies 所取得的領先風險與投資組合分析能力，以及 Capital IQ 廣泛的市場與參考資料數據。此產品是唯一的即時、多資產投資組合風險系統，可支援內外部協作、點擊穿透式透明度，並可無縫存取 Capital IQ Desktop 所提供的廣泛參考資料數據與功能。這項強大工具讓交易員、投資組合經理與風險管理人員能夠即時就多資產投資組合（包括股票、固定收益與衍生性商品）的定價、避險與資本管理做出決策。好的，接下來我將轉到大宗商品與商業市場（Commodities and Commercial Markets）部門。

Revenue here grew 8% in the second quarter and operating profit increased 16% resulting in a record operating margin of 31.8%. Platts delivered double-digit revenue growth, well J.D. Power and Aviation Week delivered single-digit growth. In commodities, Platts recorded a 14% increase in revenue. Growth in petroleum product subscriptions continue to be the primary driver of this double-digit growth. In addition, licensing revenue from petroleum derivative trading increased more than 50%. Petroleum, petrochemical, metals, agricultural product subscriptions all delivered double-digit revenue growth, while power and gas revenue were flat. Two new price assessments for China and Greater Asia were launched during the quarter. They are designed to complement each other by providing a quick and straightforward way for traders and other interested parties to compare the prices of domestic and imported thermal coal in the Chinese market and immediately determine whether there is a price arbitrage advantage favoring one type or the other.

本部門第二季營收成長 8%，營業利益成長 16%，使營業利益率創下 31.8% 的歷史新高。Platts 營收達到兩位數成長，而 J.D. Power 與 Aviation Week 則為個位數成長。在大宗商品方面，Platts 營收成長 14%。石油產品訂閱的成長仍是這項兩位數成長的主要驅動因素。此外，來自石油衍生品交易的授權收入增加超過 50%。石油、石化、金屬、農產品訂閱皆帶來兩位數營收成長，而電力與天然氣營收則持平。本季期間推出了兩項針對中國與大中華／大亞洲地區的新價格評估。其設計可相互補充，為交易員及其他利害關係人提供快速且直接的方式，比較中國市場國內與進口動力煤價格，並立即判斷哪一種類型具有價格套利優勢。

Over the past few years, the natural gas, oil, and liquids markets have been transformed and revitalized by extraction innovation such as horizontal drilling and hydraulic fracturing. Deposits of gas and oil that were once cost prohibitive or difficult to assess have now become cost-effective and are having a profound effect on energy markets around the globe. The United States and Canada are at the center of this revolution and the Platts North American Shale Plays Map presents a holistic view of an industry that profoundly altered our energy landscape. I cite this map because it provides a quick visual example of the breadth of data that Platts provides beyond pricing. That capability is increasingly important with the growing Marcellus Shale production of natural gas. Commercial Markets' revenue increased 2% in the second quarter with J.D. Power and Aviation Week both delivering single-digit revenue growth. Within J.D. Power, the Asian business drove a double-digit revenue increase in automotive, which was partially offset by reduced licensing from past award recipients.

過去幾年，天然氣、原油與液體市場因水平鑽井與水力壓裂等開採創新而被改造並重新活絡。過去因成本過高或難以評估的天然氣與原油儲量，如今已具成本效益，並對全球能源市場產生深遠影響。美國與加拿大位於這場革命的核心，而 Platts 北美頁岩區塊地圖（North American Shale Plays Map）提供了對一個深刻改變我們能源版圖之產業的整體視角。我提到這張地圖，是因為它提供了一個快速的視覺例子，說明 Platts 除了價格之外所提供的資料廣度。隨著 Marcellus 頁岩天然氣產量增加，這項能力變得愈發重要。商業市場（Commercial Markets）第二季營收成長 2%，J.D. Power 與 Aviation Week 皆呈現個位數營收成長。在 J.D. Power 內部，亞洲業務帶動汽車領域營收兩位數成長，但部分被過往獲獎者授權收入下降所抵銷。

McGraw-Hill Construction revenue continues to be pressured by the weak US Commercial construction market with growth of new products unable to overcome declines in base business and Aviation Week revenue increased primarily due to the MRO Americas Show and the biennial Paris Air Show, which took place in the second quarter of 2013. As an example of the importance of the J.D. Power brand, GM is running numerous advertisements depicting the eight recent J.D. Power Initial Quality Study awards that it received as part of their advertising. Last week they wrapped a banner around their entire World Headquarter with a picture of the eight awards. We are very proud of that and very proud of them. And here, J.D. Power received its own award. It is celebrating its 45th year anniversary. In 1968, a wonderful individual, J.D. Power III, Dave, established J.D. Power from his kitchen table, with a primary focus on the automotive industry. Since that time, the Company has successfully influenced the everyday lives of consumers and industries worldwide and is expanding to include offices throughout North America, Europe, and Asia Pacific, and all of us here are so very, very proud of all of these accomplishments so congratulations goes out to all of our J.D. Power employees. Well done everyone.

由於美國商用建築市場疲弱，McGraw-Hill Construction 的營收持續承壓；新產品的成長無法抵消核心業務的下滑。Aviation Week 的營收增加，主要來自 MRO Americas 展會以及於 2013 年第二季舉行、每兩年一次的巴黎航展。作為 J.D. Power 品牌重要性的例證，GM 正在投放多則廣告，呈現其近期獲得的 8 項 J.D. Power 初始品質研究（Initial Quality Study）獎項，作為其廣告的一部分。上週，他們甚至在其全球總部整棟大樓外圍掛上橫幅，展示這 8 座獎項的圖片。我們對此感到非常自豪，也為他們感到非常自豪。而在這裡，J.D. Power 也獲得了自己的獎項。它正在慶祝成立 45 週年。1968 年，一位傑出人士 J.D. Power III（Dave）在自家廚房餐桌上創立了 J.D. Power，主要聚焦於汽車產業。自那時起，公司成功影響了全球消費者與產業的日常生活，並持續擴張，在北美、歐洲與亞太地區設立辦公室；我們在座各位都為這些成就感到非常、非常自豪，因此也向所有 J.D. Power 員工致上恭喜。大家做得很好。

And finally, as I mentioned previously I'd like to again introduce McGraw Hill Financial's next President and CEO. After serving as President for 20 years -- I can't believe it -- after 20 years and CEO for 15 years, it is great to have a successor of the caliber of Doug Peterson. Doug is not only a talented leader with profound industry knowledge, regulatory experience, and most importantly, unquestionable integrity. The transition is well underway. Doug and I are working through many issues and Doug will officially begin his new position in November. And of course, after this transition, I will continue as Chairman of the Board. So let me at this point turn it over to Doug to make some remarks and then after that we can go in any direction anybody would like. Doug?

最後，如我先前提到的，我想再次介紹 McGraw Hill Financial 的下一任總裁暨執行長。在擔任總裁 20 年——我真不敢相信——20 年，以及擔任執行長 15 年之後，能有 Doug Peterson 這樣等級的接班人，令人欣慰。Doug 不僅是才華洋溢的領導者，具備深厚的產業知識與監管經驗，更重要的是，他擁有無可置疑的正直品格。交接工作正在順利進行中。Doug 和我正就許多議題共同推進，而 Doug 將於 11 月正式就任新職。當然，在完成交接後，我將繼續擔任董事會主席。因此，接下來我把時間交給 Doug 發表一些談話，之後我們可以依大家想要的方向進行。Doug？

Thank you, Terry. I'm honored to be asked to lead this great Company. Terry's passion, optimism, and exceptional management of the Company have positioned us to succeed going forward. Over the last 20 years, Terry has led this Company with great success, [it seems a] consistent record of delivering shareholder value. Terry and the Board had the vision to create McGraw Hill Financial with a focus on benchmarks, ratings, and analytics, and now I look forward to leading this new, fast-growing financial intelligence Company. Before I talk about this change in leadership, let me first review Standard & Poor's Ratings Services' results for the quarter and then take a few [moments] to share some thoughts about McGraw Hill Financial and my new role. After a strong first quarter, the Business delivered an even stronger second quarter. Revenue for the segment grew 24%, setting a new, all-time record for any quarter of $599 million, surpassing the previous mark set in the second quarter of 2007. Segment operating profit increased 34% and the corresponding operating margin increased 330 basis point to more than 46%. The incremental revenue growth was a primary driver of the margin expansion.

謝謝你，Terry。能受邀領導這家卓越的公司，我深感榮幸。Terry 的熱情、樂觀，以及對公司的卓越管理，使我們在未來具備成功的有利位置。過去 20 年，Terry 以極大的成功領導這家公司，[看起來是]一貫地為股東創造價值。Terry 與董事會具備遠見，打造以基準、評級與分析為核心的 McGraw Hill Financial；如今我也期待領導這家全新、快速成長的金融情報公司。在我談這次領導階層變動之前，先回顧 Standard & Poor's Ratings Services 本季的業績，接著再花幾個[片刻]分享我對 McGraw Hill Financial 與我新角色的一些想法。在第一季表現強勁之後，本業務在第二季交出更強勁的成績。該部門營收成長 24%，創下任何季度的歷史新高，達 5.99 億美元，超越先前於 2007 年第二季創下的紀錄。部門營業利益成長 34%，相應的營業利益率提高 330 個基點至 46% 以上。增量營收成長是推動利益率擴張的主要因素。

We note that the issuance declined notably after Federal Reserve statements regarding consideration of changes to current stimulus policies were made in June. While the Company expects global issuance to remain generally robust, interruptions in issuance could occur as markets contemplate possible interest-rate increases. On our third quarter call last November, we shared a slide with you that showed high levels of Corporate maturities that were coming due over the next several years and should support continued strong issuance and we continue to publish research showing that information. On our fourth-quarter call in February, we shared a slide with you that showed the European disintermediation opportunity. Today I would like to share an interesting slide that depicts the correlation or actually lack thereof of interest rate changes to global issuance. This slide shows 10 years of global issuance with Corporate issuance in blue, structured finance in green. The dashed line is the average Corporate issuance over this time period. The solid line depicts the average 10-year Treasury yield for each year.

我們注意到，在聯準會於6月發表關於考慮調整現行刺激政策的聲明之後，發行量明顯下滑。雖然本公司預期全球發行整體仍將維持強勁，但當市場思考可能的升息時，發行可能出現中斷。在去年11月的第三季電話會議上，我們曾與各位分享一張投影片，顯示未來幾年將到期的公司債到期量處於高水準，應可支撐持續強勁的發行；我們也持續發布研究，呈現該等資訊。在2月的第四季電話會議上，我們與各位分享了一張投影片，顯示歐洲去中介化的機會。今天我想分享一張有趣的投影片，描繪利率變動與全球發行之間的相關性——或者說，實際上缺乏相關性。這張投影片呈現10年的全球發行量，其中公司債發行以藍色表示，結構性融資以綠色表示。虛線為此期間公司債平均發行量。實線則描繪每年10年期美國公債殖利率的平均值。

As interest rates rise, issuance actually increased. Then as interest rates declined, Corporate issuance showed little change. This data and other research that we perform shows that issuance in the last decade has not been correlated to changes in interest rates and that issuance was more robust when interest rates were considerably higher than they are today. Frankly there are many other forces that impact issuance including spread, liquidity, consumer sentiment, government policy, and expected growth rates to name just a few. We believe that if interest rates rise due to improvements in GDP growth and lower unemployment, it could be positive for issuance; however, that doesn't mean issuance will not be choppy as markets adjust new rates. Therefore, due to upcoming Corporate maturities, the European bank deleveraging opportunity, and emerging market expansion, we remain optimistic about issuance levels over the [next few] years.

隨著利率上升，發行量實際上增加。接著在利率下降時，公司債發行幾乎沒有變化。這些數據以及我們進行的其他研究顯示，過去十年的發行量與利率變動並無相關性，而且在利率遠高於今日水準時，發行反而更為強勁。坦白說，影響發行的力量還有很多，包括利差、流動性、消費者信心、政府政策以及預期成長率等，僅舉數例。我們認為，若利率上升是因GDP成長改善與失業率下降所致，可能對發行有利；然而，這並不代表市場在調整至新利率水準時，發行不會出現波動。因此，基於即將到來的公司債到期、歐洲銀行去槓桿化的機會，以及新興市場擴張，我們對未來[幾]年的發行水準仍保持樂觀。

Turning back to the quarter, non-transaction revenue grew 12% driven by increased entity credit rating and ratings evaluation services. Excluding the acquisition of Coalition, non-transaction revenue grew 9.9%. Growth in these products is an encouraging sign that new issuers could be coming to market. Transaction revenue increased 41% as a result of improved investment grade and high-yield issuance, increased Bank Loan Ratings, and growth in US CMBS and CDOs. Globally, growth was balanced; in fact, the revenue in each major region of the world that we tracked increased over 20%. This chart shows second-quarter year-over-year increases in both the United States and Europe of 10% and 25% respectively in issuance. Total Corporate issuance reflects an 85% increase in high-yield and a 24% increase in investment-grade. US structured issuance increased, driven by a resurgence in CMBS and CDOs -- in the CDO world, primarily CLOs -- which grew 70% and 48% respectively. This chart also makes clear the fact that in both United States and Europe, second-quarter issuance declined; yet despite this decline, our revenue actually increased sequentially. This was due to growth in Bank Loan Ratings, which are not included in issuance in this chart; Entity Credit Ratings; Ratings Evaluation Services; and CRISIL.

回到本季，非交易收入成長12%，主要由於實體信用評等與評等評估服務增加所帶動。若排除收購Coalition的影響，非交易收入成長9.9%。這些產品的成長是一個令人鼓舞的訊號，顯示可能有新的發行人將進入市場。交易收入成長41%，係因投資級與高收益發行改善、銀行貸款評等增加，以及美國CMBS與CDO成長所致。就全球而言，成長相當均衡；事實上，我們追蹤的全球各主要地區收入皆成長超過20%。此圖表顯示第二季美國與歐洲的發行量年增率分別為10%與25%。公司債總發行量反映高收益增加85%，投資級增加24%。美國結構性發行增加，主要由CMBS與CDO復甦所帶動——在CDO領域主要是CLO——其成長率分別為70%與48%。此圖表亦清楚顯示，美國與歐洲第二季發行量均下滑；然而，儘管發行下滑，我們的收入卻較前一季增加。這是因為銀行貸款評等（未納入此圖表的發行量）、實體信用評等、評等評估服務，以及CRISIL的成長所致。

Some of you will have noticed that Standard & Poor's Ratings Services launched our first major advertising campaign in our history, targeting US markets. As part of the broader McGraw Hill Financial launch, our efforts are aimed at supporting our brand in educating stakeholders throughout outreach, thought leadership, and strategic media placement including print, online, and radio. It is important that we proactively educate all our constituencies about our role and importance in the capital markets. Capital allows people to start and grow businesses, cities and states to build highways and hospitals, and manufacturers to build factories, all of which lead to job creation. Now I will make a few comments about McGraw Hill Financial and my upcoming role as President and CEO.

各位之中有些人可能已注意到，標準普爾評等服務（Standard & Poor's Ratings Services）在美國市場推出了我們史上第一個大型廣告活動。作為更廣泛的McGraw Hill Financial品牌推出的一部分，我們的努力旨在支持我們的品牌，透過外展活動、思想領導力以及策略性媒體投放（包括平面、線上與廣播）來教育各利害關係人。重要的是，我們必須主動向所有利害關係人說明我們在資本市場中的角色與重要性。資本使人們得以創業並擴大企業規模，使城市與州能建造高速公路與醫院，並使製造商能興建工廠，而這些都會帶來就業創造。接下來我將就McGraw Hill Financial以及我即將擔任總裁兼執行長的角色發表幾點看法。

McGraw Hill Financial promotes sustainable and orderly growth in the capital and commodity markets as the foremost provider of ratings, benchmarks, and analytics to financial professionals and investors worldwide. The Company has built an incredible set of businesses with iconic brands and leading market positions. With such a great collection of assets, our solid balance sheet and our strong cash flow, I don't expect to need to make any major changes to our current strategy or portfolio. However, there can be no complacency for any business in this fast-changing world. We will need to continue to upgrade the portfolio as necessary and, most importantly, ensure that we invest cash wisely. First and foremost, before embarking on any changes we will continue with the smooth and seamless transition. We need to put in place a new head of the Standard & Poor's Ratings Services business. We have some excellent internal candidates and are looking outside the Company, as well.

McGraw Hill Financial作為全球金融專業人士與投資人之評等、基準與分析的首要提供者，致力於促進資本與商品市場的永續且有序成長。本公司建立了一套令人驚豔的業務組合，擁有具代表性的品牌與領先的市場地位。憑藉如此優質的資產組合、穩健的資產負債表以及強勁的現金流，我預期不需要對我們目前的策略或投資組合做出任何重大變更。然而，在這個快速變動的世界裡，任何企業都不能自滿。我們需要在必要時持續升級投資組合，而最重要的是，確保我們明智地投資現金。首要之務，在著手任何變更之前，我們將持續確保平順且無縫的交接過渡。我們需要為標準普爾評等服務業務任命新的負責人。我們有一些非常優秀的內部候選人，同時也在公司外部尋覓人選。

In the meantime, I will be meeting with investors, clients, public officials, and employees in the coming months to discuss how McGraw Hill Financial can even better serve the financial markets. Some particular areas of focus will be on strategy and innovation, both at the business and enterprise level. We will look at Corporate governance, our regulatory environment and very, very importantly, capital allocation. As we prepare for 2014, there are several key priorities to address. I need to make sure that we have a well-understood Corporate vision and that our individual business strategies are aligned. There are important opportunities both on the revenue and the cost side for the businesses to work more closely together and I would like to ensure we understand and deliver these benefits. We are all committed to the core values of McGraw Hill Financial -- fairness, integrity, and transparency. Most importantly, I understand that we are the stewards of shareholders' assets and must maximize the return on their investment. To the people on this call, your investment. With that, let me now hand the call over to Jack Callahan, our Chief Financial Officer, for additional details on the financials. Thank you.

同時，在接下來的幾個月，我將與投資人、客戶、公職人員以及員工會面，討論McGraw Hill Financial如何能更好地服務金融市場。一些特別的重點領域將聚焦於策略與創新，涵蓋事業層級與企業層級。我們將檢視公司治理、監管環境，以及非常、非常重要的資本配置。在我們為2014年做準備之際，有幾項關鍵優先事項需要處理。我需要確保我們有一個清楚且被充分理解的公司願景，並且各個事業的策略能夠一致對齊。在收入端與成本端，讓各事業更緊密合作都存在重要機會；我希望確保我們理解並實現這些效益。我們都致力於McGraw Hill Financial的核心價值——公平、正直與透明。最重要的是，我理解我們是股東資產的受託管理者，必須將其投資報酬最大化。對於本次電話會議上的各位而言，就是各位的投資。接下來，讓我把電話交給我們的財務長Jack Callahan，就財務數字提供更多細節。謝謝。

Thank you, Doug. And good morning to everyone joining us on the call. This morning, I want to briefly discuss several lines in our performance and the outlook for 2013. First, I want to recap key financial metrics in the quarter and review the modest one-time costs that were incurred. Second, I will provide some additional detail related to that balance sheet and year-to-date cash flow. And finally, I will discuss share repurchase activity, our intent to increase our ownership of CRISIL, and the recent divestiture of Aviation Week. As Terry just discussed, while our first quarter was strong, our second quarter was even better. Revenue grew 17% to $1.25 billion with organic revenue growing 13%. Adjusted operating profit grew 29%, driven primarily by the strong results in Standard & Poor's Rating Services and Commodities and Commercial markets. Adjusted unallocated expense increased 4%. Overall, the margin expansion was significant year-on-year, as consolidated adjusted operating profit margins increased over 300 basis points to 35.7%.

謝謝你，Doug。也向所有加入本次電話會議的各位道早安。今天早上，我想簡要討論我們業績中的幾個項目以及2013年的展望。首先，我想回顧本季的關鍵財務指標，並檢視所發生的溫和一次性成本。第二，我將就資產負債表與年初至今的現金流提供更多細節。最後，我將討論庫藏股回購活動、我們提高對CRISIL持股的意圖，以及近期出售Aviation Week的交易。如Terry剛才所述，雖然我們第一季表現強勁，但第二季更佳。營收成長17%至12.5億美元，其中有機營收成長13%。調整後營業利益成長29%，主要由標準普爾評等服務以及大宗商品與商業市場的強勁表現所帶動。調整後未分攤費用增加4%。整體而言，利潤率擴張在年對年比較下相當顯著，因合併調整後營業利益率提高超過300個基點至35.7%。

The tax rate declined 250 basis points to 35% while non-controlling interest grew $20 million, both primarily due to the impact of the S&P Dow Jones Indices joint venture. The tax rate also benefited from certain ongoing tax planning activities. Adjusted net income from continuing operations increased 28% and the impact of our accelerated share repurchases can be seen in the adjusted diluted earnings per share growth of 31%. Our Growth and Value Plan costs continue to wind down. During the second quarter, we reported $10 million of cost related to professional fees and outsourcing. We continue to maintain an exceptionally strong balance sheet. At the end of the quarter, we had $1.9 billion of cash and approximately $800 million of long-term debt. We intend to maintain a strong balance sheet going forward, balancing investments targeted at building the Business and, as appropriate, returning cash to shareholders.

稅率下降250個基點至35%，同時非控股權益增加2,000萬美元，兩者主要皆因S&P Dow Jones Indices合資企業的影響所致。稅率亦受惠於若干持續進行的稅務規劃活動。持續營運的調整後淨利增加28%，而我們加速股票回購的影響可從調整後稀釋每股盈餘成長31%中看出。我們的「成長與價值計畫」成本持續下降。第二季期間，我們認列與專業費用及外包相關的成本1,000萬美元。我們持續維持極為強健的資產負債表。截至季末，我們持有19億美元現金及約8億美元長期負債。展望未來，我們打算維持強健的資產負債表，在以投資支持業務建設為目標與在適當情況下回饋股東現金之間取得平衡。

Our free cash flow during the first six months was $145 million. This was negatively impacted year-on-year by two large items. First, because of Hurricane Sandy, the IRS allowed fourth-quarter estimated tax payments that are normally made in December to be paid in February. This payment was $130 million and was paid in the first quarter. The second item was the $77 million payment associated with the legal settlement that was included in our first-quarter results. Including the impact of these items, our operating cash flow guidance remains $650 million to $700 million. I am pleased to announce that the $500 million accelerated share repurchase transaction was completed earlier this week. As we noted in our first-quarter conference call, we received 8.6 million shares at the end of March. This week we received an additional 700,000 shares to close out the transaction. In total, we repurchased 9.3 million shares at a volume weighted average price of $53.80 per share. And right now, approximately 7.6 million shares remain under our existing share repurchase authorization and we plan to continue to repurchase shares in the open market as appropriate.

前六個月我們的自由現金流為1.45億美元。年對年表現受到兩個大型項目的負面影響。首先，由於珊迪颶風，國稅局（IRS）允許通常於12月支付的第四季預估稅款延至2月支付。該筆款項為1.30億美元，並已於第一季支付。第二項為與法律和解相關的7,700萬美元付款，已包含在我們第一季的結果中。在納入上述項目影響後，我們的營運現金流指引仍為6.50億至7.00億美元。我很高興宣布，5.00億美元的加速股票回購交易已於本週稍早完成。如同我們在第一季電話會議中所提到的，我們在3月底收到860萬股。本週我們額外收到70萬股以完成該交易。合計而言，我們以每股53.80美元的成交量加權平均價格回購了930萬股。目前，在既有的股票回購授權下仍剩約760萬股，我們計畫在適當情況下持續於公開市場回購股份。

During the quarter, we also announced plans to purchase an additional 22% of the outstanding shares of CRISIL. CRISIL is the leading rating agency in India and we currently own approximately 53% of the Company. Earlier this week on July 24, the Company initiated the voluntary tender offer for up to 15.7 million shares. The tender will close on August 6. If the tender is fully subscribed, this would represent an additional investment of approximately $320 million at current exchange rates. And lastly just yesterday, we announced the sale of Aviation Week to Penton further increasing our focus on high-growth, high-margin benchmark businesses. The sale of Aviation Week will reduce the Company's annualized revenue by almost $50 million per year. The bottom-line impact will be minimal. Summing up, we have delivered an excellent first half with 15% revenue growth and 31% adjusted diluted earnings per share growth. We are a bit cautious about the balance-of-year growth due to issuance volatility and challenging second half year-on-year comparisons, especially in the fourth quarter. That being said, we are maintaining our free cash flow guidance of $650 million to $750 million(sic-see presentation slides "$700 million") and we are raising our 2013 adjusted diluted earnings per share guidance by $0.05 to $3.15 to $3.25 per share. The first year of McGraw Hill Financial continues to look very promising. With that, let me now turn the call back over to Terry.

本季期間，我們也宣布計畫額外收購CRISIL已發行股份的22%。CRISIL為印度領先的評等機構，而我們目前持有該公司約53%的股權。本週稍早的7月24日，公司啟動自願性公開收購（tender offer），最多收購1,570萬股。本次收購將於8月6日截止。若全數認購，按目前匯率計算，將代表約3.20億美元的額外投資。最後，就在昨天，我們宣布將Aviation Week出售給Penton，進一步提升我們對高成長、高毛利基準型業務的聚焦。出售Aviation Week將使公司年化營收每年減少近5,000萬美元。對最終獲利的影響將很小。總結而言，我們上半年表現優異，營收成長15%，調整後稀釋每股盈餘成長31%。由於發行量波動以及下半年年對年比較基期較具挑戰，尤其在第四季，我們對全年剩餘期間的成長略為審慎。儘管如此，我們維持自由現金流指引為6.50億至7.50億美元（原文如此—見簡報投影片「7.00億美元」），並將2013年調整後稀釋每股盈餘指引上調0.05美元至每股3.15至3.25美元。McGraw Hill Financial的第一年持續展現非常可期的前景。接下來，我把電話交回給Terry。

Okay. Thanks, Jack, and again we have indeed delivered excellent first-half results. We are deploying cash into global ratings opportunities as well as share repurchases and we are continuing to refine our portfolio of high-growth, high-margin businesses. With that, let me end it there, and let's go to Q&A. We can go in any direction you'd like and to give some instructions on how to ask your questions, let me turn it over to Chip to provide that. Chip?

好的。謝謝你，Jack，再次強調，我們確實交出了非常出色的上半年成果。我們正將現金投入全球評等業務機會以及股票回購，同時持續精煉我們高成長、高毛利業務的投資組合。我就先說到這裡，接著進入問答。你們想往任何方向提問都可以；為了提供一些提問方式的說明，我把時間交給Chip來說明。Chip？

All right, just a couple of instructions for our phone participants.

好的，給電話與會者幾點說明。

(Caller Instructions)

（來電者指示）

And now, operator, we will take the first question.

現在，接線員，我們將接第一個問題。

William Bird, Lazard.

William Bird，Lazard。

First, Terry and Doug, congratulations to each of you. Question on the outlook. What does guidance assume for stock buybacks and the macro context particularly as it relates to S&P Ratings?

首先，Terry和Doug，恭喜你們兩位。關於展望的問題。指引對股票回購以及總體環境（特別是與S&P Ratings相關的部分）作了哪些假設？

Okay, thanks, Bill. Let me come over to Jack on share repurchases. We obviously completed what we said we were going to do in terms of the $500 million in the first half. And as Jack was saying, we fully intend to complete the year -- continuing share repurchases and we still have an authorization level out there and we will go back to the Board for more as seen fit. And just in terms of the ratings guidance in terms of an outlook -- again, issuance albeit that slowed a little bit in June was awfully strong in April and May. We see no abatement in terms of the drive for capital demand and therefore issuance will be strong. Again, comparisons to last year are going to be a little bit of an issue so we will see how that goes from that standpoint. Let me ask Jack -- Jack, do you want to add anything on the share repurchase?

好的，謝謝你，Bill。關於股票回購，我先請Jack來回答。就上半年5.00億美元的部分，我們顯然已完成我們所說要做的事。正如Jack所說，我們完全打算在今年內完成——持續進行股票回購；我們仍有既定的授權額度，並會視需要再回到董事會申請更多授權。至於評等業務指引的展望——再次強調，雖然6月發行量稍有放緩，但4月與5月非常強勁。我們未見資本需求驅動力有任何減弱，因此發行活動將維持強勁。同樣地，與去年相比的比較基期會帶來一些影響，我們將從這個角度觀察後續發展。我想問Jack——Jack，你要補充任何關於股票回購的內容嗎？

Bill, we still have about 7.6 million shares under our existing authorization, that's about $400 million. We will selectively work through that over the balance of the year. Some part of that is included in our guidance, but particularly, as you start to get in the back half of year most of that has a bigger impact as you get into 2014.

Bill，我們在既有授權下仍有約760萬股，約相當於4.00億美元。我們將在今年剩餘期間有選擇地執行。其中一部分已納入我們的指引，但特別是當你進入下半年時，其中多數的影響會在進入2014年時更為明顯。

Great. Thank you.

很好。謝謝。

But very strong commitment, Bill, to that. Let me -- Doug, you want to add anything more in terms of issuance?

不過我們對此有非常強的承諾，Bill。我再問——Doug，你要就發行量再補充一些嗎？

On issuance, I'd mention two additional factors. As we mentioned before, between the first quarter and second quarter these have been very robust issuance. Although there are certain asset classes -- an example in the European structured finance market has been down and with very, very low issuance with the exception of covered bonds. The last few days into last week and this week we've seen a resurgence of volume and a strong pipeline coming up but that's a short-term view. With a longer-term view, we published different works over the last three or four months, looking at the longer-term pipeline of brief financing and growth needs. In the Corporate issuance alone between now and 2017, there's an $8.3 trillion debt maturities that is outstanding and whether that we see choppiness and how that comes into the markets we will have to watch carefully. But between the overall corporate financial institutions, government refinancing pipeline which is large, the need for new capital and new investment, we see that there will be in the immediate term very robust issuance going into the markets.

關於發行量，我想再提兩個額外因素。如同先前提到的，第一季與第二季之間的發行活動都非常強勁。雖然某些資產類別——例如歐洲結構性融資市場——表現下滑，除擔保債券（covered bonds）外，發行量非常、非常低。過去幾天、從上週末到本週，我們看到成交量回升，且有強勁的待發行案源（pipeline），但那是短期觀察。從較長期的角度，我們在過去三到四個月發布了不同研究，檢視更長期的融資與成長需求管線。僅就企業發行而言，從現在到2017年，尚未到期的債務到期量合計達8.3兆美元；至於我們是否會看到波動，以及這些需求如何進入市場，我們必須密切觀察。但綜合企業、金融機構與政府的再融資管線規模龐大，加上新增資本與新投資的需求，我們認為短期內進入市場的發行活動將非常強勁。

Thank you.

謝謝。

Manav Patnaik, Barclays.

Manav Patnaik，巴克萊。

I'd also like to first congratulate Terry and Doug on their new roles. If I can start off on this C&C side. Clearly Platts continues to perform well and I just wanted an update on the inquiries going on in Europe, like what was the latest that you guys have heard in terms of how that was proceeding?

我也想先恭喜 Terry 和 Doug 擔任新職務。如果我可以先從 C&C 這一塊開始。顯然 Platts 持續表現良好，我只是想了解一下歐洲那邊正在進行的調查進展，例如你們最近聽到的最新消息是什麼、目前進行得如何？

Okay, let me -- again, all of that is as you say proceeding and we are very much on top of that. The fact that Ken Vittor, our General Counsel, is here -- let me ask Ken, would you talk on the Platts issue for a second?

好的，讓我——再說一次，正如你所說，那些事項正在推進中，我們也都非常掌握。Ken Vittor，我們的總法律顧問，也在現場——我請 Ken 來談一下 Platts 的議題，可以嗎？

Sure, Terry. We were a party to an inspection by EC in May, as were many other parties. No allegations of wrongdoing have been made against Platts. We are cooperating with the regulators and this is the initial stage of this proceeding. We are planning to make a presentation to the EC early in the fall, probably in September, to lay out the Platts MOC process and how we go about assessing prices and doing our reporting activities so it is very early stages and that matter will go on for some time.

當然，Terry。我們在 5 月接受了歐盟執委會（EC）的稽查，許多其他公司也同樣接受了稽查。目前並未對 Platts 提出任何不當行為的指控。我們正配合監管機構，而這仍是程序的初期階段。我們計畫在初秋向 EC 進行簡報，可能在 9 月，說明 Platts 的 MOC 流程，以及我們如何評估價格並進行報導活動；因此目前仍在非常早期的階段，而此事還會持續一段時間。

Okay, fair enough. And then in the margin performance, the division was obviously very impressive. Was that driven mainly by the transactional increase on the Platts side and then looking forward, how sustainable is that level and also, taking into account Aviation Week, it seems like didn't have much of a margin contribution there balancing those two, how should we think about what the sustainability of that margin is?

好的，了解。另外在利潤率表現方面，該事業部顯然非常亮眼。這主要是由 Platts 端的交易量增加所帶動嗎？再往前看，這樣的水準有多可持續？另外，考量到 Aviation Week，看起來它對利潤率的貢獻不大，在兩者之間平衡之下，我們應該如何看待這個利潤率的可持續性？

Well, at this point, Manav, it is very sustainable. Platts' business is very strong. We are getting an increased contribution from McGraw-Hill Construction and J.D. Power as well. J.D. Power, especially, in terms of its success in China and as we expand into more geographic regions with that. That's going to be very sustainable with not as much investment dollars as some other areas. So it is very supportable at that level.

Manav，就目前而言，這是非常可持續的。Platts 的業務非常強勁。我們也從 McGraw-Hill Construction 與 J.D. Power 獲得更高的貢獻。尤其是 J.D. Power，在中國的成功，以及我們擴展到更多地理區域。在不需要像其他領域那樣投入那麼多資本的情況下，這將會非常可持續。因此在這個水準上是很有支撐力的。

Okay, and if I can just sneak in one last one on the rating agency side and margin-related as well. It seems like, sequentially, it was about the same year-over-year improved nicely. Is it fair to characterize most of that year-over-year improvement due to the reentrance into the CMBS market based on last year?

好的，如果我可以再偷偷問最後一題，關於評級機構那邊以及同樣與利潤率相關。看起來按季比較大致相同，但年對年改善得很不錯。是否可以說，年對年的改善主要是因為相較去年重新回到 CMBS 市場所致？

Manav, that's a contributor. It certainly helps as you get some stepped-up revenue on that part of the Business, but I would also -- we've also had very strong growth on the Corporate side so the revenue is, being as robust as it is, is certainly incrementally profitable. But the Business has also done a very good job in controlling year-on-year expense growth, particularly as it relates to headcount addition so I would say it is a combination of very strong top-line fundamentals combined with prudent management of costs.

Manav，那確實是一個因素。當該業務部分的收入提高時，當然會有所幫助；但我也要補充——我們在企業端（Corporate）也有非常強勁的成長，因此在收入如此強勁的情況下，增量利潤自然相當可觀。同時，該業務在控制年對年費用成長方面也做得很好，特別是在新增人力方面；所以我會說，這是非常強勁的營收基本面，加上審慎的成本管理，兩者共同作用的結果。

Okay, fair enough. Thank you, guys. Good job.

好的，了解。謝謝各位。做得很好。

Alex Kramm, UBS.

Alex Kramm，瑞銀（UBS）。

Just maybe starting going back to the product portfolio. It sounds like, Doug, you will give us a little bit more detail going forward, but obviously Aviation Week is getting -- you are leaving that business. What else is in the product portfolio right now? Is there anything more non-core that you're looking at a little bit harder to maybe -- not as good of a fit anymore? Then on the other side, you said there might be still room for some tuck-in acquisitions -- so first of all, in terms of tuck-in and what do you mean in terms of sizes and then secondly, what areas do you think interest you in particular?

我想先回到產品組合的問題。Doug，聽起來你之後會提供更多細節，但很明顯 Aviation Week 正在——你們正在退出那項業務。目前產品組合裡還有哪些？是否還有其他比較非核心的業務，你們正在更仔細地評估，可能——不再那麼適配？另外一方面，你提到可能仍有一些補強型（tuck-in）併購空間——首先，就 tuck-in 而言，你指的規模大概是多大？其次，你特別感興趣的領域有哪些？

Okay, well Alex, first of all, we don't comment on any aspect within the portfolio pending or anything like that. We are very committed to the businesses that we are in. The nice aspect for Aviation Week is that it is a particularly strong strategic fit and an excellent home with Penton Media. And of course, they have an aviation business as well. So they are a very nice fit there, but no, we obviously are always looking at the portfolio. But there's nothing further at this point to discuss that way. In terms of tuck-in acquisitions, remember now that for the most part and we are very proud of this because of the talent that we have, the majority of our businesses are organic businesses. And we've taken them in terms of changes in market and have been able to transform certain aspects [and the like].

好的，Alex，首先，我們不會評論產品組合中任何尚在進行或待定的事項或其任何面向。我們對目前所處的業務領域非常投入。Aviation Week 的好處在於，它與 Penton Media 之間具有特別強的策略契合度，也是一個非常合適的歸宿。當然，他們也有航空相關業務。所以在那裡是非常好的匹配；但不，我們當然一直都會檢視產品組合。只是目前沒有更多可以在這方面討論的內容。至於補強型併購，請記得，多數情況下——我們也為此感到非常自豪，因為我們擁有的人才——我們的大部分業務都是有機成長的。我們也因應市場變化推動它們，並能夠轉型某些面向[等等]。

But for the most part, they are there -- now, we will always continue to be active in the market for tuck-ins -- smaller acquisitions in size that bring new skill sets or capabilities to us. And I mentioned a couple of them QuantHouse, R-Squared, CMA for Capital IQ. But Jack was talking about the additional tendering opportunity in CRISIL. We like those opportunities a lot. And through globalization and the expansion of capital markets around the world and the introduction of new bond markets and the like, we plan to be very aggressive in terms of being able to expand our global footprint. So tuck-in acquisitions that give us new little skill sets or capabilities are always important to us, but for the most part, our businesses are organically driven.

但大體而言，它們就在那裡——而我們也會持續在市場上積極尋找補強型併購——也就是規模較小、能為我們帶來新技能組合或新能力的收購。我提過幾個例子：為 Capital IQ 收購的 QuantHouse、R-Squared、CMA。但 Jack 也談到在 CRISIL 還有額外的要約收購機會。我們非常喜歡這類機會。隨著全球化、全球資本市場的擴張，以及新債券市場等的引入，我們計畫在擴大全球版圖方面採取非常積極的策略。因此，能帶來新的小型技能組合或能力的補強型併購，對我們一直都很重要；但就大方向而言，我們的業務主要仍由有機成長所驅動。

All right, fair enough. Thank you. And then secondly, maybe talk a little bit more about the outlook for Capital IQ. I don't think there has been a lot of focus here in the prepared remarks so first of all client user growth continues pretty nicely, your organic growth is decent, but maybe you can talk a little bit more with the outlook there in terms of the hiring market seems to be looking a little bit better both on the sell side and buy side and then obviously with the new product offering of the Risk Analytics, maybe just a little bit of color of what you've heard so far in terms of early interest in the product and then also how do you think you can compete with your competitors there?

好的，了解。謝謝。第二個問題，能否再多談一點 Capital IQ 的展望？我覺得在事先準備的講稿裡，這部分著墨不多；首先，客戶使用者數的成長仍相當不錯，你們的有機成長也算穩健，但也許你可以多談談那邊的展望：就業／招募市場看起來在賣方與買方都稍微好轉；另外，隨著新的 Risk Analytics 產品推出，能否分享一些目前聽到的早期市場興趣，以及你們認為要如何在那裡與競爭對手競爭？

Yes. We are obviously very excited about the prospects of Capital IQ going forward. We took a little bit of a step back in terms of the acquisitions of those three capabilities --QuantHouse, R-Squared, and CMA from last year. But all of that was done to accelerate the top line. And you are exactly right, customer acquisition is what it is all about. We have been able to provide some tremendous traction there. And that will accelerate the top line. We still have a little bit of year-over-year comparisons to get through in terms of the second half, but we fully expect that the investments that we've made and the continued customer acquisition will get us to a much higher level.

是的。我們對 Capital IQ 未來的前景顯然非常興奮。去年我們在收購那三項能力——QuantHouse、R-Squared 與 CMA——方面，確實在節奏上稍微放慢了一點。但這些都是為了加速營收成長。而你說得完全正確，關鍵就在於客戶獲取。我們在那方面已經取得非常好的動能。而這將會推動營收加速成長。在下半年，我們仍有一些年對年的比較基期需要度過，但我們完全預期，我們所做的投資以及持續的客戶獲取，將把我們帶到更高的水準。

Yes, it, looking forward -- it is our hope, with the benefit of some of these new product introductions, by the time we at least get to the fourth quarter, we'd see some modest pick-up in top-line growth and would set us up for a stronger year of top-line growth as we get into 2014. We're in the midst of our early planning around the more of the specifics of that next year.

是的，我們期待——我們希望，藉由其中一些新產品的推出，至少到第四季時，我們能看到營收（top-line）成長有些許回升，並在進入2014年時，為更強勁的營收成長奠定基礎。我們正處於針對明年更具體細節的早期規劃階段。

Great, great, thank you and maybe lastly on the rating side, maybe this is a little bit too detailed but when I look at market share in high-yield, it looks like you lost a little bit of ground in the last few months and there were a couple of high-profile deals that you weren't actually on as far as we can tell. So just wondering is there anything different in the competitive environment that you're seeing in particular as it relates to high-yield that we should beware of?

很好、很好，謝謝。最後可能想問一下評等這邊，或許有點太細，但我看高收益（high-yield）的市占，似乎你們在過去幾個月流失了一點，而且有幾筆市場矚目的交易，就我們所知你們並未參與。所以想請教，你們是否看到競爭環境有任何不同之處，特別是與高收益相關、我們需要留意的？

Alex, we are not losing any market share in high-yield. In fact, it is pretty aggressive. But given that Doug is here, Doug, do you want to add anything to that?

Alex，我們在高收益並沒有流失任何市占。事實上，競爭相當激烈。不過既然Doug也在，Doug，你要不要補充一下？

The only thing I would add is that we've not seen any specific slip in market share. We had very strong issuance throughout the quarter and, as you have seen, our pick-up back into the structured finance market, in particular with CMBS and COOs has been quite successful. So I don't have any additional comments on that.

我唯一想補充的是，我們沒有看到市占有任何特定的下滑。整個季度的發行量非常強勁，而且如你所見，我們重返結構性金融市場的動能，特別是在CMBS和COOs方面，相當成功。所以我沒有其他補充。

No and Bank Loan Ratings, as well.

沒有，而且銀行貸款評等（Bank Loan Ratings）也是如此。

Bank Loan Ratings, as well.

銀行貸款評等也是如此。

It has been very good on that part.

那一塊表現非常好。

And again, that's fair enough and we can follow up on the specific deals, if you want to. Just to squeeze in one for Jack real quick. Just want to make sure I heard you correct on your response on the share buybacks earlier. You basically said that 7.6 million should be extinguished by the remainder -- by the end of year, did I hear that right?

再說一次，這樣也合理；如果你願意，我們也可以針對特定交易再跟進。我想快速再塞一題問Jack。只是想確認我先前聽你談庫藏股回購的回答是否正確。你基本上是說，剩餘的——到年底為止，應該可以註銷7,600,000股，我聽得對嗎？

We had that possibility. I wouldn't be -- we will work that in as we go through the year depending on market conditions. But unless we get an additional authorization that would certainly be the maximum we could do this year.

我們有那種可能性。我不會——我們會視市場狀況，在一年當中逐步執行。但除非我們獲得額外授權，否則那當然會是我們今年最多能做的上限。

All right, fair enough.

好，了解。

That would be the plan.

那會是計畫。

All right, thanks again.

好，再次謝謝。

Craig Huber, Huber Research Partners.

Craig Huber，Huber Research Partners。

Want to focus first on your non-transaction revenues within your Ratings business, up about 11.5%. I'd be curious to hear what drove that and also, can you talk about this change in billing that your press release talks about, can you quantify for that and when did that part start? That change start?

我想先聚焦在你們評等業務中的非交易收入（non-transaction revenues），成長約11.5%。我想了解是什麼驅動了這個成長；另外，你們新聞稿提到非交易收入的開立帳單方式有所變更，能否量化其影響，以及那部分是何時開始的？那個變更是何時開始的？

Can you repeat the second part of that question, Craig?

Craig，你可以重複一下問題的第二部分嗎？

You mentioned in your press release that there was a change in the billing of your non-transaction revenue within Rating -- be curious when that actually started and can you quantify that [positive impact]?

你們在新聞稿中提到，評等業務中的非交易收入在開立帳單方式上有變更——我想知道那實際上是何時開始的，以及你們能否量化那個【正面影響】？

Okay, going back to the high level, first of there is an impact in there from the Coalition acquisition and CRISIL, which is about 2 points of growth. Another major driver of the growth is the strong growth in new entity ratings, new companies coming to market for a rating. And there's been some -- the point in terms of the release-- there has been over time some restructuring in terms of some of the way certain things are billed between that impact -- the non-transaction. I believe that worked its way into -- worked our way into about a year ago so this is essentially the last quarter where we would have a significant year-on-year benefit. Obviously, we have that now change moving forward, but I doubt it will make as significant a contributor to growth in future quarters.

好的，先從高層次來看，裡面有一部分影響來自於收購Coalition以及CRISIL，約貢獻2個百分點的成長。另一個主要成長動能是新實體評等（new entity ratings）的強勁成長，也就是有新的公司進入市場尋求評等。至於新聞稿提到的部分——隨著時間推進，我們在某些項目的計費方式上做了一些重整，涉及交易與非交易之間的歸類影響。我認為那大約在一年前就已逐步反映，因此這基本上是最後一個仍會有顯著年對年受益的季度。當然，往後這項變更仍會存在，但我不認為它在未來幾季會再成為成長的重大貢獻來源。

And again, Craig, as the release stated, non-traction (sic -- see press release, "non-transaction") revenue increased 12% and represented 52% of S&P Ratings' total revenue and that compared, that 52% to 58% in the same period last year.

另外，Craig，如新聞稿所述，非交易（sic——見新聞稿「non-transaction」）收入增加12%，占標普評等（S&P Ratings）總收入的52%；相較之下，去年同期該占比為58%。

Did this billing change, sorry to belabor this, but did it add a few percentage points of the growth year-over-year here?

這個計費變更，不好意思我再追問一下，但它是否讓這次年對年的成長多了幾個百分點？

It made a contribution.

它確實有貢獻。

Okay. For the whole Company, what was the incentive compensation for the second quarter and what was it in the first quarter, please?

好的。就整個公司而言，第二季的獎酬性薪酬（incentive compensation）是多少？第一季是多少？麻煩了。

Craig, we really haven't gone on the path of being that explicit in the past. It is not a -- I would say though in terms of year-on-year comparisons, year-to-date it is modestly up this year. So it is a bit dilutive to growth.

Craig，我們過去其實沒有走到那麼明確揭露的路徑。不過就年對年比較而言，今年截至目前是小幅增加。所以它對成長有些許稀釋效果。

But, Jack, you might want to put in the context of last year, how we calendarized percent over the over the quarters, as this year seems to be a little more upfront.

不過，Jack，你或許可以放在去年的脈絡下說明一下，我們去年是如何把比例分配到各季；因為今年看起來比較偏前段。

This year is a bit more balanced than last year. Last year it was because our performance really zoomed up in the third and fourth quarter. The timing of incentive compensation year-on-year feathered in more in the third and particularly the fourth quarter of 2012. This year we are off to a stronger start than anticipated. I do suspect the year-on-year accruals right now may be a bit more front-end loaded. And we don't anticipate as significant an increase in incentive accruals in the third and fourth quarter that we saw last year.

今年比去年更平均一些。去年是因為我們的表現真的在第三、第四季大幅躍升。因此，年對年的獎酬性薪酬認列時點，更多落在2012年的第三季，尤其是第四季。今年我們的起步比預期更強。我確實懷疑目前年對年的提列（accruals）可能比較偏前段。而我們不預期第三、第四季的獎酬提列會像去年那樣大幅增加。

Craig, if you want to circle back with Chip, we will give you some specific numbers on that for what we've got.

Craig，如果你想再回頭跟Chip聯繫，我們會把目前掌握的一些具體數字提供給你。

If I could just ask on the DOJ case, is your sense if this thing does actually go to trial, you're thinking roughly three years out from when it first became public knowledge in early February?

如果我可以再問一下司法部（DOJ）案件，你的看法是：如果這件事真的進入審判，你們認為大概會是在它於2月初首次成為公開資訊之後、約三年左右嗎？

Well, the only thing that I would say on DOJ and again, remember, the judge was very explicit and he didn't want this going back and forth in media circles or public circles and all of those things so we'll -- we obviously are going to honor that. Let me just say that we look forward to getting our side of the story out there and the facts and figures on this thing and we feel very confident and comfortable with that.

嗯，關於DOJ我只能說一點，而且請記得，法官講得非常清楚，他不希望這件事在媒體圈或公共領域來回炒作等等，所以我們——我們當然會遵守。我只想說，我們期待把我們這邊的說法，以及相關事實與數據呈現出來；對此我們非常有信心，也很安心。

Let me just add that--

我再補充一下——

This is Ken Vittor, General Counsel.

我是總法律顧問Ken Vittor。

Thanks, Terry. The timeline is not clear yet because the government still has to decide what case it will be bringing. It needs to narrow and specify the case. In its current form, we are unable to advise the court and the court would be unable to set a firm trial date because we don't know yet what the case is going to look like. As it is refined and narrowed, and there's a status conference on Monday the 29th to begin that process of how to shape the pre-trial phase of the case, we will be better able to give you a timeline. But right now it is still dependent on the government refining its allegations.

謝謝你，Terry。目前時間表還不明確，因為政府仍必須決定要提出什麼樣的案件。它需要把案件範圍縮小並具體化。以目前的形式，我們無法向法院提出建議，而法院也無法設定確定的開庭日期，因為我們還不知道案件最終會長什麼樣子。隨著指控內容被進一步精煉與限縮，而且在29日（週一）會有一場狀態會議，開始討論如何塑造案件審前階段的流程，我們將能更好地提供時間表。但就目前而言，仍取決於政府是否會進一步精煉其指控。

Great, thank you.

很好，謝謝。

Peter Appert, Piper Jaffray.

Peter Appert，Piper Jaffray。

Jack, in the last couple quarters, or at least last quarter, you talked about some orphaned cost left over from the Education divestiture. I'm wondering what the -- what's left there -- what the magnitude of that overhang might be and then on the growth and value costs, restructuring costs, you noted that those numbers are going down, should we continue to expect some costs in the third and fourth quarter?

Jack，在過去幾個季度，或至少上一季，你提到教育業務剝離後仍留有一些遺留的閒置成本。我想了解那裡還剩下什麼——那個負擔的規模大概是多少？另外，關於成長與價值計畫（Growth and Value Plan）的成本、重整成本，你提到那些數字正在下降；我們是否仍應預期第三、第四季會有一些成本？

Yes, Peter, in terms of -- we came into the year with Education with stranded costs in the range of $20 million to $25 million. They are still in our run rate. So we have yet to -- but we are working on those, but I suspect that we will -- it'll take us some time as we get into 2014 to really address those more fully. So we are still overcoming those stranded costs right now in our performance. And in terms of relative to the Growth and Value Plan costs, I probably right now would point you towards some continuation of those cost, but I would keep them at the more modest end, like we've seen here, and now in a second quarter of approximately $10 million. As we are working through the final stages of some of our outsourcing activities that relate to some of the decisions that we took last year.

是的，Peter，就——我們在年初時，教育業務的閒置成本約在2,000萬到2,500萬美元的區間。它們仍然反映在我們的常態化費用水準（run rate）中。所以我們尚未——不過我們正在處理這些，但我猜想，隨著進入2014年，我們要更完整地解決它們還需要一些時間。因此，我們目前的表現仍在克服這些閒置成本。至於成長與價值計畫成本，我現在大概會指引你預期這些成本會持續一段時間，但我會把它們維持在較溫和的水準，就像我們在這裡看到的，第二季約1,000萬美元。因為我們正在完成部分外包活動的最後階段，這些活動與我們去年所做的一些決策相關。

Got it, thank you. And Terry or Doug, the decision to increase the ownership of CRISIL, I understand the appeal of that business given it is very rapid growth, but what are the strategic benefits to you -- in the roughly 50% to 70%-ish and is there a road map that could take you to 100%?

了解，謝謝。另外，Terry或Doug，提高CRISIL持股的決定，我理解該業務成長非常快速、很有吸引力；但對你們而言，在持股大約從50%提高到70%左右的戰略效益是什麼？是否有一個路線圖可以讓你們走到100%？

Well, again, it is a public Company. And as a public Company, once you start getting above 75%, you're going to be at issues of delisting and things like that so we are very, very excited about CRISIL. And it is performing extremely well in a marketplace that is going to be adding, what, $1 trillion of infrastructure over the next five years and all the financing mechanisms associated with that. It also represents a launch pad for other geographic expansion outside of India. So we are very excited about it. And we are in our tender offer period at this point and probably shouldn't comment any further on that, but very excited about it.

嗯，再次強調，它是一家上市公司。作為上市公司，一旦你的持股開始超過75%，就會涉及下市等問題，所以我們對CRISIL感到非常、非常興奮。而且它在一個市場中表現極佳——該市場未來五年將新增，怎麼說，1兆美元的基礎建設，以及與之相關的所有融資機制。它也代表我們在印度以外進行其他地理擴張的起跳平台。所以我們非常興奮。目前我們正處於要約收購期間，可能不宜再多做評論，但我們對此非常期待。

Just for context, Peter, this -- our previous -- our last investment in CRISIL probably, if you look at, probably has delivered a 10 times return when we went from about 9% ownership to over 50%. It may be one of the best investments this Company has ever made. So that's just a little bit of historical context. But beyond the financial criteria, increasingly we are just doing more working together and with the increased ownership it just gets easier as we work together to broaden out the business both within India and more broadly. But right now, let's be very clear, it is our long-term intent to maintain it as an independent public Company in India, which means our ownership is maxed out at that 75% level. So that's what we are targeting.

提供一些背景，Peter，我們先前——我們上一次對CRISIL的投資，如果你回頭看，當我們把持股從約9%提高到超過50%時，可能帶來了10倍的報酬。這也許是本公司做過最好的投資之一。這只是一些歷史背景。但除了財務標準之外，我們也越來越多地一起合作；隨著持股提高，當我們共同推動業務在印度境內以及更廣泛地擴張時，協作也會更容易。但現在，必須非常清楚地說，我們的長期意圖是讓它在印度維持為一家獨立的上市公司，這意味著我們的持股上限就是75%。所以這就是我們的目標。

Got it, thank you. And last thing, the -- if I've done this calculation correctly -- the full-year EPS guidance would suggest that you're going to be up somewhere between 0% and 7% in a second half -- obviously I understand the comp issue S&P, are there any of the things you would call out in terms of variables here in a second half in terms of year-to-year comps that would drive some slower growth?

了解，謝謝。最後一點——如果我計算正確——你們的全年EPS指引意味著下半年大概會落在0%到7%的成長區間；我當然理解S&P的比較基期問題。就下半年而言，在年對年比較的變數上，有沒有什麼你們會特別點出的因素，可能導致成長較慢？

Well it is just the math impact of now, once we get into the third quarter, well we will now have -- the JV will now have been formed for over a year so that will now -- you'll get a more complete view of the JV -- it will be more apples-to-apples comparison. Obviously because it was only -- it was formed in the early third quarter of a year ago so that's just -- but that's just the math impact of it. You are raising the big point, which is just the extraordinarily difficult overlap that we have particularly in the fourth quarter led by Ratings. So that's -- and the current volume with that just gives us some caution as we look at the balance of the year.

嗯，這主要就是數學上的影響：一旦進入第三季，我們的合資企業（JV）就已成立超過一年，因此——你會看到更完整的JV表現——比較會更像是蘋果對蘋果。顯然，因為它是在去年第三季初才成立，所以——這只是它的數學影響。你提到的重點很大，也就是我們面臨極其艱難的比較基期，特別是在第四季，主要由評級業務帶動。所以——再加上目前的業務量，讓我們在看今年剩餘期間時會更為審慎。

And as always, Peter, as we go, we will be looking at it very hard and we will give you any guidance that we see as we go.

而且一如既往，Peter，隨著進展，我們會非常仔細地觀察；若我們看到任何需要提供的指引，我們會在過程中告訴你。

Thank you.

謝謝。

Doug Arthur, Evercore Partners.

Doug Arthur，Evercore Partners。

Just on Dow Jones Indices. I'm trying to reconcile the pro-forma growth of 6% with the -- you cite assets under management ex Dow Jones Indices up 34% and trading volume -- derivatives up 11%. So what's missing in that puzzle?

關於道瓊指數（Dow Jones Indices）。我試著把備考（pro-forma）6%的成長，和——你們提到的（不含道瓊指數的）資產管理規模（AUM）成長34%，以及交易量——衍生品成長11%——做對照。所以這個拼圖裡少了什麼？

Yes, that's a good question. Just a couple points. One, as it relates to assets under management -- in our contract there is some, let's call them, some breakpoints, as more assets get under management, our return goes down a little bit, as you'd expect, it's a volume discount, that's one. Two, we are paid not on assets under management at the end of the quarter but how it builds, how it averages in, over the course of the quarter. And also, let's see, so there's some noise in a second quarter and you'll see that, it will be clear as we get into the third. There was some benefits of some contract negotiations a year ago that we were able to retrospectively recognize from revenue a year ago that's suppressing the year-on-year growth rate. As you get into the third and fourth quarter, based on at least right now what we are seeing on assets under management, we think this Business is going to have pretty strong balance-of-year top -line growth in aggregate of double-digit growth in both the third and fourth quarter if assets under management stay in this range. So we will get this noise behind us and it'll be a bit clearer as we move forward.

是的，這是個好問題。幾點說明。第一，關於資產管理規模——在我們的合約裡有一些，我們姑且稱之為，一些分段點（breakpoints）；隨著管理資產增加，我們的回報會稍微下降一些，如你所預期，這是一種量大折扣，這是其一。第二，我們的收費不是以季末的資產管理規模計算，而是看它在整個季度中的累積方式、以及季度內的平均水準。另外，讓我想想，所以第二季會有一些雜訊；等進入第三季你會看得更清楚。去年有一些合約談判帶來的效益，我們能夠在去年追溯認列部分收入，這壓低了年對年成長率。當你進入第三、第四季，至少以我們目前看到的資產管理規模來看，如果AUM維持在這個區間，我們認為這項業務在今年剩餘期間的營收（top-line）整體會有相當強勁的成長，第三、第四季合計都會是雙位數成長。所以我們會把這些雜訊拋在後面，隨著往前推進，情況會更清楚一些。

Great. Thank you.

很好。謝謝。

Patrick O'Shaughnessy, Raymond James.

Patrick O'Shaughnessy，Raymond James。

My first question is on CRISIL, can you just talk about how you think of using cash to increase your stake in CRISIL versus other options whether that's share repurchases or anything else that you might look at and obviously keeping in mind that the cash that you are going to use for that is held from your non-US subsidiaries?

我的第一個問題是關於CRISIL。你能否談談你們如何看待使用現金來提高在CRISIL的持股，相較於其他選項，例如庫藏股回購或你們可能考慮的其他作法？當然也要考量到，你們將用於此的現金是由你們的非美國子公司持有。

Well, it is always obviously a balancing of considerations of that. And Patrick, I cannot state any more clearly how enthusiastic we are and excited about the share repurchase program we have in place and what we've been able to accomplish to date in all of that. But the opportunity for CRISIL and using offshore cash was particularly welcoming because of what we wanted to do in and what we want to represent in that marketplace.

嗯，這顯然一直是在各項考量之間取得平衡。Patrick，我再清楚不過地說明：我們對目前的庫藏股回購計畫，以及迄今為止所達成的成果，都感到非常熱忱且興奮。但CRISIL的機會，以及使用境外現金（offshore cash），特別受到歡迎，因為這符合我們想在該市場做的事，以及我們希望在那個市場中所代表的定位。

And, look, I would just add, the first place we would want to deploy capital is building up our core business and, at our core, CRISIL is our rating agency and with the global business and so the first place we're going to deploy capital is to build out that network and I would just reiterate point I made earlier. Our last investment in CRISIL, which was only eight years ago, to date has delivered from -- the expansion -- relative to the expansion of the market capitalization of CRISIL, has delivered roughly a 10 times return. So those -- we will do those all day long. And you should expect us to continue if -- there's not that many opportunities where we can deploy capital of this magnitude in the Ratings business, I wish there were more, but we still have this as a great opportunity, particularly given the formation of the new Company.

而且，你看，我只想補充，我們最先想要部署資本的地方，是強化我們的核心業務；而在核心層面，CRISIL 是我們的評等機構，並且具有全球業務，因此我們首先要部署資本的地方，就是擴建那個網路；我也想重申我先前提到的觀點。我們對 CRISIL 的上一筆投資，其實也才八年前；截至目前，從——擴張——相對於 CRISIL 市值的擴張而言，已帶來約 10 倍的報酬。所以那些——我們會一直做下去。而你應該預期我們會持續這麼做；如果——在評等業務中，能讓我們以這種規模部署資本的機會其實不多，我希望能更多，但我們仍把這視為一個很好的機會，尤其是在新公司成立的背景下。

I understand, thank you. And then last one for me and I apologize if you already talked about this, but with record quarter for S&P Ratings, I would have expected a little bit operating margin expansion but it was pretty much flat quarter-over-quarter. Can you talk about margin on that business and what drove cost a little bit higher this quarter and what we should expect going forward?

我了解，謝謝。然後我最後一個問題，也抱歉如果你們已經談過：在 S&P Ratings 創下紀錄的一季之下，我原本預期營業利益率會有些擴張，但它幾乎是季對季持平。你能談談那項業務的利潤率情況、這一季是什麼推動成本略高，以及我們未來應該如何預期嗎？

We are actually quite pleased. We've had now two consecutive quarters of mid-40%s margins, which has been pretty good expansion relative to where we were. As in our overall expense control relative to headcount adds has been quite good, particularly given the amount of business that has come in. And so I did -- there is -- business is doing so well -- there is some impact year-on-year as it relates to incentive compensation. But all in all, the business is doing a very good job of managing its cost and we continue to both -- we hear the opportunity of margins going forward, but that is a balance of both top-line growth and managing of the overall cost base.

其實我們相當滿意。我們現在已連續兩季維持在 40% 中段的利潤率，這相較於我們先前的水準，已是相當不錯的擴張。就我們整體費用控管相對於人力增補而言，表現相當好，尤其考量到進來的業務量。因此我確實——有——業務表現非常好——在與獎勵性薪酬相關的部分，年對年會有一些影響。但總體而言，這項業務在成本管理上做得非常好；我們也持續——我們看到未來利潤率的機會，但那需要在營收成長與整體成本基礎的管理之間取得平衡。

All right, thank you very much.

好的，非常感謝。

David Reynolds, Jefferies.

David Reynolds，Jefferies。

Just one question from me. I wonder if you could talk about Capital IQ -- the proprietary research business? Seem to be some comments suggesting that it was a difficult quarter. I just wondered what you saw in that domain in terms of the longer-term view?

我只有一個問題。我想請你談談 Capital IQ——專有研究業務？似乎有一些評論暗示那是一個艱難的季度。我只是想知道，從較長期的觀點來看，你們在那個領域看到了什麼？

We did lose a bit of business there. So it was dilutive to the growth rate to some degree, but we like that business. And we are trying to rethink a little bit how we do this on the global business so we don't have all the answers right now, but it is an area of some focus for us right now as we start to get ready for 2014. But we do think it is an interesting piece of our overall portfolio. Not a big one, but an interesting little piece.

我們在那裡確實流失了一些業務。所以在某種程度上，它對成長率有稀釋作用，但我們喜歡那項業務。而且我們正試著重新思考，在全球業務上我們要如何做這件事；目前我們還沒有所有答案，但在我們開始為 2014 年做準備之際，這是我們現在的一個重點關注領域。不過我們確實認為，它是我們整體投資組合中一個有意思的部分。不是很大的一塊，但算是一個有趣的小部分。

That's great, thank you.

太好了，謝謝。

Ed Atorino, Benchmark.

Ed Atorino，Benchmark。

Terry, you may have covered this [circumventionally] or something like that, you're getting to a good size in financial services -- you are concentrated in a couple areas, do you see the need to diversify and make some acquisitions and broaden the base in the financial service area?

Terry，你可能已經以某種方式提過這點或類似的內容；你們在金融服務領域的規模正在變得不小——但你們集中在幾個領域，你是否看到有必要進一步多元化、做一些併購，並在金融服務領域擴大基礎？

Yes, Ed, again, in terms of the whole notion of data content benchmarks and analytics, we obviously are looking at all things that could be constructive to the portfolio. As this point, I would suggest that if we are doing any acquisitions they are going to be relatively small and they are going to give us different skills or capabilities that would enhance our portfolio. The portfolio now is largely organic driven. And we are very excited about that because of the talent that we have and those capabilities. But there are no plans at this point for expansion. We are very focused on share repurchase. We are very focused on strategic things like the tender opportunity with CRISIL.

是的，Ed，再次就資料內容、基準與分析這整個概念而言，我們當然在看所有可能對投資組合有建設性的事情。就目前而言，我會說如果我們要做任何併購，它們會相對較小，並且會帶來不同的技能或能力，以強化我們的投資組合。目前的投資組合主要是由內生成長所驅動。而我們對此非常興奮，因為我們擁有的人才與那些能力。但就目前而言，沒有擴張的計畫。我們非常專注於股票回購。我們也非常專注於策略性事項，例如與 CRISIL 相關的要約收購機會。

Got it, thanks.

了解，謝謝。

That concludes this morning's call. A PDF version of the presenter's slides is available now for downloading from www.mhfi.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 Financial's website for 12 months from today and for 1 month from today by telephone. On behalf of McGraw Hill Financial, we thank you for participating and wish you good day.

今天上午的電話會議到此結束。簡報者投影片的 PDF 版本目前已可從 www.mhfi.com 下載。本次電話會議的重播（包含問答環節）將在約兩小時後提供。重播將自今日起在 McGraw-Hill Financial 的網站上保留 12 個月，並可透過電話保留 1 個月。我謹代表 McGraw Hill Financial，感謝各位參與，並祝各位有美好的一天。