kl ANNUAL REPORT 2017 ZLetter to Shareholders Z2017 Annual Report on Form 10-K Letter to Shareholders Dear Fellow Shareholders: IHS Markit enjoyed a successful 2017. We are proud of our accomplishments as we completed our first full fiscal year as a merged company, delivered strong financial results and successfully transitioned the Chairman and CEO role. We look forward to even greater things to come in the year ahead. IHS Markit is a global information powerhouse with unrivalled information, analytics and talent. We have leading positions in the Energy, Financial Services, Technology, and Transportation industries, among others, and we have deep, senior and strategic relationships with our corporate, government and financial services customers. IHS Markit is well positioned with strong financial attributes, including 83% recurring revenues in 2017, a diversified revenue base, significant operating leverage with increasing margin and profitability, and substantial free cash flow. The strategic and financial benefits from the merger were clear in 2017. We realized cost synergies above our target, which afforded us the opportunity to begin incrementally investing in our technology, products, customers and people. We also ended 2017 with growing revenue synergy momentum, which will serve us well in the years ahead. Finally, we returned $1.4 billion of capital to shareholders through share repurchases. Business Highlights In 2017, we made solid progress across our businesses and delivered strong financial results. Some of our business highlights include: • Within Transportation, we had another strong year, driven by our Auto business. The new auto supply chain portion of our business continued to expand product offerings, leading to robust growth in areas including supply chain forecasting, vehicle emissions analytics, digital marketing, and recall services. In the used car portion of our business, Carfax delivered strong growth from our core Vehicle History Report offering, our Used Car Listings service, and from market expansion in banking and insurance. Finally, we acquired automotiveMastermind, which provides another source of complementary future growth. Within our Maritime and Trade business, we accelerated our move into new customer markets, specifically cargo owners, investors and insurance underwriters. Our Aerospace and Defense business continued its transformation from publisher to provider of global threat intelligence and achieved a significant milestone with the launch of a new geospatially- enabled intelligence solution leveraging a broad range of proprietary terrorism, defense and security data assets. • In Resources, it was encouraging to see a return to revenue growth in the fourth quarter of 2017. After a challenging external market for our upstream business over the last three years, we experienced modest growth in our underlying annual contract value in the second half of the year, supporting our view for a return to revenue growth in 2018. Resources also continued to enjoy strong revenue growth from our downstream, chemicals, OPIS and power sectors in 2017. • Across Financial Services, we experienced solid growth in all three business lines. Within our Information offerings, we continue to strengthen our pricing business, with large win momentum for Bond pricing offerings and stable growth in our CDS and Loan pricing products. Our Indices franchise continued strong growth as ETF AUMs grew by nearly 30%, and our Index Administration business and PMI country coverage continued to expand. Our Processing business delivered growth for the full year, driven by new offerings for our Derivatives processing customers and strength in the loan issuance and refinancing markets. Solutions also had broad-based strength, with particular contributions from our data and portfolio management and regulation and compliance products. • Within Consolidated Markets and Solutions, we introduced a number of new offerings. Our Product Design business released Engineering Workbench 2.0, a completely refreshed platform that was well received and adopted by all of our standards customers. In our Technology, Media & Telecom business, we completed product portfolio changes to better position us for growth in our market intelligence offerings. Our Economics & Country Risk business focused on integrating a new acquisition, Macroeconomic Advisers, into our U.S. Economics portfolio. Financial Performance In our first full fiscal year as IHS Markit, we delivered financial results at the upper-end of our guidance and delivered significant value to shareholders: 2017 2016 % Change Revenue (in millions) (1) $3,599.7 $3,450.9 4% Adjusted EPS (2) $2.07 $1.80 15% Share Price as of November 30 $44.62 $35.94 24% (1) We operate on a November 30 fiscal year end. Unless otherwise indicated, references to an individual year means the fiscal year ended November 30 of that year. Accounting rules require that we report financial information as a consolidated company only from the date of the completion of the merger. To facilitate understand- ing of year-over-year changes, IHS Markit 2016 revenue in the table above represents 12 months of combined 2016 results. Please see note 3 to our audited financial statements in our annual report on Form 10-K for the year ended November 30, 2017 for further information on our pro forma 2016 revenue. This information is presented for informational purposes only, and is not necessarily indicative of actual operating results that would have occurred for 2016. (2) Adjusted EPS for 2016 is for the IHS Markit fiscal year from December 1, 2015 to November 30, 2016, and includes the results from the Financial Services segment for the period from the completion date of the merger until November 30, 2016. The definition of Adjusted EPS and the most recent reconciliation to the most directly comparable GAAP measure can be found in our most recent earnings release furnished as an exhibit to our Form 8-K filed on January 16, 2018. It is also available on our website (http://investor.ihsmarkit.com). Shareholder Return The ability to drive stronger and quicker returns to shareholders was one of the compelling reasons for the merger. As shown below, our Total Shareholder Return since the time of the merger announcement was 13% higher than the S&P 500 Index. A $100 investment made in our shares on March 18, 2016 would be worth approximately $151 as of November 30, 2017, whereas the same investment in the S&P 500 Index would be worth approximately $134. Total Shareholder Return represents the cumulative price appreciation plus reinvestment of dividends on the ex-dividend date. Shareholder Return Comparison IHS Markit S&P 500 Peer Group $180 $160 $151 $140 $127 $122 $120 $117 $100 $100 3/18/2016 5/31/2016 8/31/2016 11/30/2016 11/30/2017 Source: IHS Markit If we benchmark to the value at the time of the Markit IPO in June 2014, we have likewise driven strong returns. As shown below, our Total Shareholder Return since the Markit IPO was 15% higher than the S&P 500 Index. A $100 investment made on June 19, 2014 in our shares would be worth approximately $167 as of November 30, 2017, whereas the same investment in the S&P 500 Index would be worth approximately $145. Total Shareholder Return Since IPO vs. S&P 500 IHS Markit S&P 500 $180 $167 +15% vs. $160 S&P 500 $135 $145 $140 $120 $106 $110 $100 $118 $100 $109 $95 $80 6/19/2014 11/30/2014 11/30/2015 11/30/2016 11/30/2017 Source: IHS Markit For 2017, our Total Shareholder Return was in line with the S&P 500 Index. A $100 investment made on December 1, 2016 in our shares would be worth approximately $124 as of November 30, 2017, whereas the same investment in the S&P 500 Index would be worth approximately $123. Total Shareholder Return During 2017 vs. S&P 500 $180 IHS Markit S&P 500 $160 $140 $124 +1% vs. $120 $100 $123 S&P 500 $100 $80 $60 $40 $20 $0 11/30/2016 11/30/2017 Source: IHS Markit Looking to the Future IHS Markit was formed with the idea of creating an information powerhouse to provide even greater value to our customers and shareholders. In 2017, IHS Markit strategically and deliberately completed a significant portion of key merger integration activities and our management transition. This provides a strong foundation to continue to execute on our longer-term financial goals and forward strategy including incremental investments in technology, products, customers and people. Technology and Products Changes in technology will continue to accelerate for our customers and across our businesses. We intend to stay at the forefront of this change and will seek to adapt our business models to position IHS Markit as the disruptor, not the disrupted, to ensure our continued business success. Innovation will be driven by our product teams and supported by our newly-formed data science team, which is working on a number of key initiatives that will assist product development and help drive the continued growth of our business. Customers We have always been a customer-focused organization, and that will continue to be at the forefront of our strategy. Our firm-wide Customer First program will increase the frequency of our engagements with customers and aim to provide a complete post- sales service model. We believe that staying close to our customers and continuing to deliver on their needs will fuel added business growth over time. People We are an organization that values integrity and respect, and takes pride in the diversity of our colleagues. We will continue to invest in our people by expanding our learning and development activities, focusing on management training and leveraging our intern program to grow our skilled teams around the world. We will also support our culture of volunteerism in our communities by working hard in 2018 to exceed the over 48,000 hours of volunteering completed in 2017.