13000711 .... its H1C Anr Lid oport ..4 12 VruJ Ic frI ..1 C1 it Fo mu ..I 4Jh %h4OG 88a00 on LJC ThreeYear Trend Share Price at Fiscal Year End 2010 2011 2012 Revenue1t milhons Adjusted EE3ITDA1 millions Adjusted Free Cash Flowt mt 2010 2011 2012 12010 Revenue ard Adjusted EBITDA figuien have been recast ford scont rtued operat one attended ft RB IDA arc non GAAP Enanota measures to supplement our financial statements accourtttng pnrtctples GAAP Deftattions of our nonGMP measures as mel as reconcil at ors not GAAF measaws are ov dad with the schedules to our quarter yea it ng releas Our were furnished as ar ext htt to to at or Jut wiry 2013 md ate avat able at webSt CAGR Cowpou id Ann ial Growth Rate rs/ MIX opoflCbiernune FSc2Cl0I537 Letter to Shareowners Dear Fellow Shareowner delivered 2012 was milestone year for IHS one in which we to invest in our future against our goals while continuing heavily Since 2008 each of my annual letters to you has been written economic against backdrop of challenging times worsening have macro-environment volatility and uncertainty spoken business about the impact of the global economy on both our and our customers businesses In many ways operating in the this complex and changing global economy has become new normal and has afforded us the opportunity to innovate and and find methods of operating our company in different ahead .. efficient manner lHS has successfully more pushed ..l guided by our vision and our values adjusting and re-prioritizing as necessary to ensure that we deliver sustainable long-term customers and profitable growth for our colleagues our you our shareowners consider the To evaluate the future potential of company it is critical to and four Ps does the company have the right people platforms processes as we have products Since 2008 have updated you annually on our progress foundation of IHS in our people platforms invested significantly in the core time has witnessed the largest transformation processes and products This period and value-creation exercise in our companys history the level of investment This past year 2012 was notable as it marked highest with in these critical areas If can leave you one and greatest progress achieved about it had more confidence our ability thought to take away is this have never than do today to execute and deliver sustainable long-term profitable growth and And because we now have the right people platforms processes products investment amid challenging although this year will be another year of significant than at other economic conditions we are in better position to succeed any could not be of colleagues point in our companys history prouder my Performance against our Five Company Objectives During 2012 we made great progress against our five company objectives Colleague success Customer Delight Profitable top- and bottom-line growth Shareowner success relative to our peer group and Corporate Sustainability These objectives are interdependent one drives another and achieving all five is critical All important decisions are made with focus on these goals as they are how measure our To that we success ensure our senior leaders are universally focused we tie their incentive compensation to the achievement of these this is objectives and compensation significantly at risk if the objectives are not achieved Colleague Success are We creating something significant and new at IHS together This is measured in the part by professional opportunity and experience we create for every colleague and the impact that these efforts have on our global workforce We achieved record level of Colleague Engagement with 14 percent improvement from 2011 We had with high participation over 95 percent of our colleagues taking the survey and 85 percent of our colleagues in the highest levels of engagement Customer Delight Placing our Customers First each day is fundamental to who we are at IHS We have strong passion for and commitment to enabling our customers success and have we made tremendous progress in delighting our customers as measured our First by Customer surveys The hard work of our colleagues has allowed us to set record here at IHS with Customer ...4-1 Delight score of 66 percent for 2012 Since 2008 we have improved Customer Delight for our customers by 37 percent This year most global companies scores are flat or down in their customer surveys In fact for the top 10 percent of companies known as Best-In-Class scores on average dropped from 81 percent to 76 percent which makes our performance all the more notable We improved in all regions and across all of our workf lows We continue to be focused on our customers externally as we pursue our goal of becoming global Best-in-Class company by putting the right investments and actions into place Profitable Top- and Bottom-Line Growth This past year was record year for IHS in terms of revenue adjusted EBITDA adjusted EBITDA margin and adjusted free cash flow Our revenue grew over 15 percent in 2012 on the strength of five percent organic and nine also growth strategic acquisitions We continued to expand our profit margin measured divided as by adjusted EBITDA by revenue increasing it by 150 basis in 2012 points alone and 1350 basis points since our initial public offering in 2005 Importantly we generated more than $300 million of adjusted free cash flow in 2012 All of this growth occurred despite the fact we continued to invest millions of dollars in internal infrastructure and acquisitions to ensure the future long-term success of IHS Shareowner Success Relative to Our Peer Group Our financial results are directly connected to our overall performance and highlight the shareowner value we create in connecting colleague and customer metrics to shareowner returns with our equity-based incentives We continue to drive substantial value for shareowners delivering compounded annual return of 28 since initial percent our public offering well above that of our peers and the overall market Corporate Sustainability in added fifth Beginning 2012 we corporate objective Corporate Sustainability At IHS Corporate Sustainability is core to the way we do business and is characteristic which is into our values and integrated our culture Our Sustainability mission starts with long-term profitable growth By incorporating sustainable into thinking every decision that we make we will gain competitive advantage while simultaneously improving the social and economic conditions of the communities in which we operate We have reason to be very proud of the progress weve made in just one year progress that has been largely driven by our global network of Site Sustainability Champions This network is comprised of IHS colleagues in each of our offices around the world with for colleagues passion all of the tenets of corporate sustainability and with belief that we CAN make the world better place One of the ways we measure our success in Corporate Sustainability is through the Sustainable Asset Management SAM corporate assessment We not only achieved our measure for reached corporate objective 2012 we our stretch target of 55 improving seven points over our 2011 score of 48 Some of the notable highlights in this years results were For Customer Relationship Management our score improved by 24 points and we are now ranked in the 100th percentile and we are For Brand Management our score improved by 24 points now ranked in the 93rd percentile and and For Citizenship Philanthropy our score improved by 50 points we now rank in the 83rd percentile MSCI sustainability indices In addition IHS was named to three different flagship further evidence of our progress to of 2013 fiscal we announced our colleagues Finally at the beginning our year the addition of Volunteer Paid Time-Off Benefit This benefit gives every IHS colleague paid day off to volunteer in their community Collectively skill We are excited to colleagues possess wealth of expertise and passion very communities better to live and work leverage those attributes to make our places 2013 Priorities and our Looking ahead to help ensure we achieve our 2013 goals delight that our externally benchmarked customers we will focus on four priorities support objectives accounts and enhanced Accelerate organic growth targeting high potential lead generation and conversion at all levels Create and deliver new products and common platforms that converge all IHS capabilities infrastructure and Complete the global transformation of IHS management systems and across all operational Align capacity to our highest-growth opportunities and functional and support areas to create new efficiencies growth investment tactics that will us We have teams aligned around strategies and help successfully will be able to achieve these priorities and am confident that we provide very in time positive progress update years is terrific with 2012 was certainly not an easy year But IHS company strong vision foundational values and with talented collaborative and passionate achieve colleagues We understand that we will only sustainable long-term the of our customers and profitable growth by enabling and ensuring success thanks to our shareowners for shareowners So let me close by saying you and your trust in us and for your continued interest commitment support With great appreciation Jerre Stead Chairman and CEO IHS Inc The Source fliS INC 15 bwress Way East Engkwood golorado 80112 wwwihscom February 22 2013 Dear IHS Stockholder We are pleased to invite you to attend our 2013 Annual Meeting of Stockholders
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