JP Morgan SMid Cap Conference Michael J. Sullivan IHS EVP and CFO December 5, 2008

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1 JP Morgan SMid Cap Conference Michael J. Sullivan IHS EVP and CFO December 5, 2008

2 Safe harbor Statements in this presentation that are not reported financial results or other historical information are forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of They include, for example, statements about our business outlook, assessment of market conditions, anticipated trends in our business strategies, future plans, future sales, prices for our major products, capital spending, and tax rates. These forward-looking statements are not guarantees of future performance. They are based on management s current expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The risks and uncertainties relating to the forward-looking statements in this presentation include, but are not limited to, our ability to successfully integrate acquisitions and manage risks associated with changes in demand for our products and services as well as changes in our targeted industries, our ability to develop new products and services, pricing and other competitive pressures, changes in laws and regulations governing our business, and the other factors described under the caption Risk Factors in IHS Inc. s most recent quarterly report on Form 10- Q along with our other filings with the U.S. Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements to conform our prior statements to actual results or revised expectations. 2 JP Morgan SMid Cap Conference

3 IHS highlights Leading position in attractive markets Primarily subscription-revenue model delivering recurring revenue and high levels of cash flow Diversified and global customer base Scalable business model with significant operating leverage Compelling strategies driving continued profitable growth Experienced management team 3 JP Morgan SMid Cap Conference

4 IHS is the Source for Critical Information and Insight Information Insight Nearly 75% of revenue subscription-based Information/Insight % of revenue: 79%/21% Products Services 73% 13% 6% 8% Composition of 2007 revenue Product/Service % of revenue: 86%/14% Serve a broad range of industries and governments, large multinationals, smaller companies, and technical professionals More than 55,000 customers and hundreds of thousands of end-users in over 100 countries TTM revenue and adjusted EBITDA: $810.9M and $212.2M, respectively 4 JP Morgan SMid Cap Conference

5 We have targeted specific information domains where IHS has the best opportunity to be the Source An information domain is a collection of related and often inter-linked information that is critical to our customers These domains represent significant opportunities globally, and address customer needs in virtually every industry, in all regions Our vision is to be the Source for Critical Information and Insight; the source our customers trust, rely on and come to first We are focused on four key information domains: Energy Product Lifecycle Security Environment 5 JP Morgan SMid Cap Conference

6 Each of these 4 strategic information domains represents a significant market opportunity From design engineering to maintenance and disposition Security From risk assessment to defense intelligence and logistics Product Lifecycle Energy From material selection to hazardous waste disposal to emissions Environment From exploration to consumption 6 JP Morgan SMid Cap Conference

7 There are also significant customer opportunities where the domains intersect Sourcing & Supply Security becomes a key driver of Product Cost Security Global Threats: Energy Security becomes the largest driver of Energy Cost Product Lifecycle Energy Environmental & Regulatory Compliance becomes more important than Product Cost Environment Environmental Impact becomes more important than Energy Cost 7 JP Morgan SMid Cap Conference

8 Acquisitions play a key role in IHS growth strategy and have strengthened IHS domain offerings We have acquired 18 transactions since the beginning of 2007, deploying nearly $685 million dollars of capital Security Jane's Documental Solutions Product Lifecycle 50% interest in Lloyd s Register Fairplay Global Insight EnvironMax GCS RapidData GDS JFA Herold SDG EDS RVI Energy PCNAlert Dolphin ESP McCloskey Divestco USA The size of the circle is indicative of relative transaction size Environment 8 JP Morgan SMid Cap Conference

9 Global Insight is a strong strategic fit for IHS Puts IHS at the center of the most critical business decisions Creates market-leading position in economic forecasting and modeling Unrivalled level of proprietary information and insight into global markets, key industries, and every emerging/regional economy Uniquely supports customers strategic business, investment and policy decisions, from board level to individual strategy, technical and operating end-users Links macro-economic factors to industry markets where we have deep domain expertise 9 JP Morgan SMid Cap Conference

10 Key initiatives: Driving profitable growth 1. Customers First and marketing excellence, focused on high-impact marketing programs built on process excellence and customer delight 2. Global customer-focused teams, creating global account teams to better serve our customers across all of our products and services 3. Seizing the Asia-Pacific opportunity, to take advantage of the customer and product demand in these high-growth markets 10 JP Morgan SMid Cap Conference

11 Key initiatives: Driving profitable growth 4. IT and product development, creating a world-class IT environment that enables better/faster product development and a more efficient ERP system 5. Data accumulation, transforming the way we accumulate and process data and content with a focus on quality, as a shared service 6. Consolidating our quote-to-cash & general ledger systems, focused on simplifying the process to make it easier for our customers to do business with us and to improve our transaction efficiency 7. Purchasing, focused on tapping the additional opportunity to improve margins through purchasing savings 11 JP Morgan SMid Cap Conference

12 Our strategies drive our structure 1. Putting customers first and finding the best ways to address their needs, wherever they are around the world 2. Creating a best-in-class work environment that provides growth opportunities for colleague success 3. Providing customers with the full breadth of our Information and Insight products and services, across the domains 4. Transforming our operations to improve quality, become easier to do business with and improve efficiency 12 JP Morgan SMid Cap Conference

13 IHS is organized regionally with each region delivering globally managed products and leveraging shared services Executive Governance AMERICAS EMEA APAC Information Products and Services Insight Products and Services Shared Services 13 JP Morgan SMid Cap Conference

14 Subscription model is base for continued strong top-line growth ($ in millions) Annual Revenue % (11.6% Organic) % $688 (12.7% Organic) YTD Revenue % (8.1% Organic) (a) $476 $551 $491 $ YTD 07 YTD 08 Nearly 75% of our revenue is of a recurring nature (a) 8.1% Organic growth when adjusted for once-every-3-year BVPC product 14 JP Morgan SMid Cap Conference

15 Sources of TTM Revenue ($ in millions) Trailing Twelve Months Growth by Product Type $13 +$120 +$11 +$34 Other Transact Consulting Subscription $811 Total 16% $85 Other 74% of Total Revenue $633 Total $598 Subscription *TTM data as of 8/31/ JP Morgan SMid Cap Conference

16 Organic Revenue Growth Rolling Quarter Organic Growth % by Product Type Subscription Consulting Transaction Other Subscription based organic growth % 10.3% 11.1% 10.3% 11.4% 10.6% Transact 16 JP Morgan SMid Cap Conference

17 Business model continues to drive Adjusted EBITDA growth and margin expansion ($ in millions) Annual Adjusted EBITDA (a) YTD Adjusted EBITDA (a) % % $ % $118 $161 $87 $ % 21.4% 24.3% 23.8% 26.3% YTD 2007 YTD 2008 Adjusted EBITDA Adjusted EBITDA Margin (a) Adjusted EBITDA is defined in IHS most recent earnings release. 17 JP Morgan SMid Cap Conference

18 IHS vs. Peer Group: Adjusted EBITDA Margin and Expansion TRAILING 12 MONTHS Adjusted EBITDA %: Adjusted EBITDA basis point expansion: (1) For the purpose of year on year consistency, Risk Metrics and Thomson Reuters metrics are 18 based upon trailing 9 months of pro forma data. JP Morgan SMid Cap Conference

19 Our business is not tied to the price of oil Must-have products and services Our energy offerings are essential to the core workflows of our customers. You can t get it anywhere else We offer critical information and insight which, in some cases, you cannot find anywhere else. Energy customers operate using long-term horizons The cycle of leasing, permitting, drilling, refining, transporting and marketing commodities can take up to decades. Short-term price volatility is part of the day-to-day existence in the energy industry. Opportunistic Customers are often opportunistic in downtimes, putting a premium on our offerings. Oil is only a part of the story Our energy domain offerings are only ~50% of our revenue and include natural gas, alternatives, coal, and nuclear. Our other domains include product lifecycle, security and environment. 19 JP Morgan SMid Cap Conference

20 Free cash flow (FCF) per share represents a premium to EPS TTM EBITDA/FCF Conversion % (a) TTM Earnings at Q3 08 (b) $225 $175 $125 $75 $25 $(25) $199.8 $212.2 $167.6 $182.3 $152.8 $178.2 $157.4 $139.5 $129.8 $ % 79% 77% 78% 66% Conversion Rate % Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 $2.83 $1.94 $1.44 FCF/share Adjusted EPS GAAP EPS TTM Adjusted EBITDA TTM Free Cash Flow (a) (b) FCF defined as net cash provided by operating activities less capital expenditures on property, plant, and equipment, each as detailed in the consolidated statements of cash flows included in IHS most recent earnings release. Adjusted earnings per diluted share, or adjusted EPS, excludes non-cash items, gains and losses on sales of assets and other items that management does not utilize in assessing our operating performance. 20 JP Morgan SMid Cap Conference

21 We have a healthy balance sheet ($ in millions) 08/31/08 11/30/07 Cash $87 $148 Total Assets $1,336 $1,324 Deferred Subscription Revenue $264 $239 LT Debt $ 0 $ 0 Shareholders Equity $855 $ JP Morgan SMid Cap Conference

22 Guidance Reaffirmed 2008 Guidance: All-in revenue growth of 21-23% All-in adjusted EBITDA growth of 31-33% Updated 2009 Guidance: All-in revenue growth of 16-18% All-in adjusted EBITDA growth of 21-24% Changes to guidance are due to changes in FX rates since our last earnings call 22 JP Morgan SMid Cap Conference

23 Summary IHS is a trusted brand serving a diversified, global customer base Our vision to be the Source for Critical Information and Insight represents a significant global opportunity We have the right strategies and now the right structure to achieve this vision and deliver profitable growth We have made much progress since our IPO; we still have much opportunity ahead We have a strong and experienced management team committed to delivering value for all of our constituencies 23 JP Morgan SMid Cap Conference

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