IHS Inc. Reports Fourth Quarter and Fiscal Year 2014 Results

IHS Inc. (NYSE: IHS), the leading global source of information and analytics, today reported results for the fourth quarter and fiscal year ended November 30, 2014.

For the fourth quarter ended November 30, 2014, IHS reported:

Revenue of $582 million, up 4 percent from the prior-year period
Total organic revenue growth of 4 percent, anchored by 6 percent subscription organic revenue growth
Adjusted EBITDA of $186 million, up 10 percent from the prior-year period, resulting in a margin expansion of 170 basis points
Adjusted earnings per diluted share (Adjusted EPS) of $1.68, up 15 percent from the prior-year period
Full-year free cash flow conversion of 74 percent

Adjusted EBITDA, Adjusted EPS, and free cash flow are non-GAAP financial measures used by management to measure operating performance. These terms are defined elsewhere in this release. Please see schedules appearing later in this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.

Fourth Quarter and Fiscal Year 2014 Financial Performance

Three months ended November 30, Change Year ended November 30, Change (in thousands, except percentages and per share data) 2014 2013 $ % 2014 2013 $ % Revenue $ 582,317 $ 559,675 $ 22,642 4 % $ 2,230,794 $ 1,840,631 $ 390,163 21 % Net income $ 60,118 $ 40,810 $ 19,308 47 % $ 194,549 $ 131,733 $ 62,816 48 % Adjusted EBITDA $ 186,455 $ 169,565 $ 16,890 10 % $ 689,804 $ 561,768 $ 128,036 23 % GAAP EPS $ 0.87 $ 0.60 $ 0.27 45 % $ 2.81 $ 1.95 $ 0.86 44 % Adjusted EPS $ 1.68 $ 1.46 $ 0.22 15 % $ 5.90 $ 5.06 $ 0.84 17 % Cash flow from operations $ 85,649 $ 151,786 $ (66,137 ) (44 )% $ 628,099 $ 496,155 $ 131,944 27 % Free cash flow $ 54,510 $ 126,463 $ (71,953 ) (57 )% $ 513,646 $ 405,421 $ 108,225 27 %

“We were pleased to see organic growth that developed as we expected and outlined on last quarter’s call,” said Scott Key, IHS president and chief executive officer. “Our growth in the period was broad-based, reflecting our strategy of being the global multi-industry business information services leader.”

“Solid second-half margin expansion and full year cash flow demonstrates the fundamental operating leverage in our business model,” said Todd Hyatt, IHS chief financial officer. “These attributes continue to provide us with significant operational flexibility.”

Fourth Quarter and Fiscal Year 2014 Revenue Performance

Fourth quarter 2014 revenue increased 4 percent compared to the fourth quarter of 2013, and fiscal year 2014 revenue increased 21 percent compared to 2013. The components of revenue growth are described below by segment and in total.

Increase in revenue Fourth quarter 2014 vs. fourth quarter 2013 2014 vs. 2013 (All amounts represent percentage points) Organic Acquisitive

ForeignCurrency

Organic Acquisitive

ForeignCurrency

Americas 4 % — % (1 )% 4 % 23 % (1 )% EMEA 4 % 2 % — % 6 % 5 % 2 % APAC 8 % 3 % (1 )% 4 % 5 % (1 )% Total 4 % 1 % (1 )% 4 % 17 % — %

Excluding the effect of the BPVC engineering standard release in the third quarter of 2013, full-year 2014 total organic revenue growth was 5 percent.

The subscription-based business grew 6 percent organically in the fourth quarter and fiscal year 2014 compared to the same periods of 2013, as described in the following table.

Three months ended November 30,

Percent change Year ended November 30, Percent change (in thousands, except percentages) 2014 2013 Total Organic 2014 2013 Total Organic Subscription revenue $ 443,769 $ 418,309 6 % 6 % $ 1,719,617 $ 1,404,984 22 % 6 % Non-subscription revenue 138,548 141,366 (2 )% (2 )% 511,177 435,647 17 % (1 )% Total revenue $ 582,317 $ 559,675 4 % 4 % $ 2,230,794 $ 1,840,631 21 % 4 %

Excluding the effect of the BPVC engineering standard release in the third quarter of 2013, full-year 2014 non-subscription organic revenue growth was 1 percent and total organic revenue growth was 5 percent.

Fourth Quarter and Fiscal Year 2014 Segment Performance

On a consolidated basis, IHS continued to deliver solid organic revenue growth. Segment results were as follows:

Americas. Fourth quarter revenue for Americas increased $11 million, or 3 percent, to $380 million, and included 7 percent organic growth for the subscription-based business. Fourth quarter Adjusted EBITDA for Americas increased $9 million, or 7 percent, to $143 million. Fourth quarter operating income for Americas increased $4 million, or 5 percent, to $95 million.

Fiscal year 2014 revenue for Americas increased $308 million, or 26 percent, to $1.470 billion. Fiscal year 2014 Adjusted EBITDA for Americas increased $77 million, or 17 percent, to $535 million. Fiscal year 2014 operating income for Americas increased $53 million, or 17 percent, to $356 million.

Americas results for fiscal year 2014 benefited from the inclusion of R. L. Polk.

EMEA. Fourth quarter revenue for EMEA increased $7 million, or 5 percent, to $145 million, and included 5 percent organic growth for the subscription-based business. Fourth quarter Adjusted EBITDA for EMEA increased $5 million, or 12 percent, to $43 million. Fourth quarter operating income for EMEA increased $11 million, or 43 percent, to $36 million. EMEA profit benefited from revenue growth and prior investment in scaled infrastructure.

Fiscal year 2014 revenue for EMEA increased $66 million, or 14 percent, to $549 million. Fiscal year 2014 Adjusted EBITDA for EMEA increased $41 million, or 35 percent, to $156 million. Fiscal year 2014 operating income for EMEA increased $49 million, or 60 percent, to $130 million.

APAC. Fourth quarter revenue for APAC increased $5 million, or 10 percent, to $57 million, and included 6 percent organic growth for the subscription-based business. Fourth quarter Adjusted EBITDA for APAC increased $2 million, or 18 percent, to $17 million. Fourth quarter operating income for APAC increased $2 million, or 16 percent, to $15 million.

Fiscal year 2014 revenue for APAC increased $17 million, or 9 percent, to $211 million. Fiscal year 2014 Adjusted EBITDA for APAC increased $9 million, or 20 percent, to $54 million. Fiscal year 2014 operating income for APAC increased $7 million, or 16 percent, to $49 million.

Outlook (forward-looking statement)

“This guidance reflects a thorough assessment of revenue risks and opportunities in each of our end markets, including anticipated slower revenue growth within the energy market,” said Mr. Hyatt. “In addition, this guidance includes current momentum and growth in the 60 percent of our business comprised of our non-energy product offerings.”

For the year ending November 30, 2015, IHS expects:

Revenue in a range of $2.36 billion to $2.40 billion, including 6-7 percent organic growth on the subscription base and neutral non-subscription organic growth;
Adjusted EBITDA in a range of $750 million to $770 million; and
Adjusted EPS in a range of $6.10 to $6.30 per diluted share.

Additionally, for the year ending November 30, 2015, IHS expects:

Depreciation expense to be approximately $82-86 million;
Amortization expense related to acquired intangible assets to be approximately $135-140 million;
Net interest expense to be approximately $70-75 million;
Stock-based compensation expense to be approximately $150-160 million;
An adjusted tax rate of approximately 27-29 percent;
An effective tax rate of approximately 23-25 percent; and
Fully diluted shares to be approximately 70 million.

The above outlook assumes no further currency movements, acquisitions, divestitures, pension mark-to-market adjustments or unanticipated events. See discussion of non-GAAP financial measures at the end of this release.

As previously announced, IHS will hold a conference call to discuss fourth quarter and fiscal year 2014 results on January 13, 2015, at 8:00 a.m. EST. The conference call will be simultaneously webcast on the company’s website: www.ihs.com.

Use of Non-GAAP Financial Measures

Non-GAAP results are presented only as a supplement to our financial statements based on U.S. generally accepted accounting principles (GAAP). Non-GAAP financial information is provided to enhance the reader’s understanding of our financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP and non-GAAP measures should not be considered in isolation or as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of the most directly comparable GAAP measures to non-GAAP measures, such as EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted EPS, and free cash flow are provided within the schedules attached to this release.

We use non-GAAP measures in our operational and financial decision-making, believing that it is useful to exclude certain items in order to focus on what we deem to be a more reliable indicator of ongoing operating performance and our ability to generate cash flow from operations. As a result, internal management reports used during monthly operating reviews feature the Adjusted EBITDA, Adjusted net income, Adjusted EPS, and free cash flow metrics. We also believe that investors may find non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures.

Because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly-titled measures of other companies. However, these measures can still be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of GAAP financial disclosures.

IHS Forward-Looking Statements:

This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “aim,” “strive,” “believe,” “project,” “predict,” "estimate," "expect," “continue,” "strategy," "future," "likely," "may," “might,” "should," "will," the negative of these terms and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding guidance relating to net income, net income per share, and expected operating results, such as revenue growth and earnings.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: economic and financial conditions, including volatility in interest and exchange rates; our ability to manage system failures, capacity constraints, and cyber risks; our ability to successfully 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 platforms to deliver our products and services, pricing, and other competitive pressures, and changes in laws and regulations governing our business; the extent to which we are successful in gaining new long-term relationships with customers or retaining existing ones and the level of service failures that could lead customers to use competitors' services; our ability to successfully identify and integrate acquisitions into our existing businesses and manage risks associated therewith; our ability to satisfy our debt obligations and our other ongoing business obligations; and the other factors described under the caption “Risk Factors” in our most recent annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission.

Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Please consult our public filings at www.sec.gov or www.ihs.com.

About IHS Inc. (www.ihs.com)

IHS Inc. (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners.

IHS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per-share amounts)

As of As of November 30, 2014 November 30, 2013 (Unaudited) (Audited) Assets Current assets: Cash and cash equivalents $ 153,156 $ 258,367 Accounts receivable, net 421,374 459,263 Income tax receivable 2,283 — Deferred subscription costs 51,021 49,327 Deferred income taxes 81,780 70,818 Other 60,973 43,065 Total current assets 770,587 880,840 Non-current assets: Property and equipment, net 301,419 245,566 Intangible assets, net 1,091,109 1,144,464 Goodwill 3,157,324 3,065,181 Other 27,991 23,562 Total non-current assets 4,577,843 4,478,773 Total assets $ 5,348,430 $ 5,359,613 Liabilities and stockholders’ equity Current liabilities: Short-term debt $ 36,257 $ 395,527 Accounts payable 52,245 57,001 Accrued compensation 101,875 89,460 Accrued royalties 37,346 36,289 Other accrued expenses 131,147 98,187 Income tax payable — 9,961 Deferred revenue 596,187 560,010 Total current liabilities 955,057 1,246,435 Long-term debt 1,806,098 1,779,065 Accrued pension and postretirement liability 29,139 27,191 Deferred income taxes 347,419 361,267 Other liabilities 51,171 38,692 Commitments and contingencies Stockholders’ equity:

Class A common stock, $0.01 par value per share, 160,000,000 sharesauthorized, 69,391,577 and 67,901,101 shares issued, and 68,372,176 and 67,382,298shares outstanding at November 30, 2014 and November 30, 2013, respectively

694 679 Additional paid-in capital 956,381 788,670

Treasury stock, at cost: 1,019,401 and 518,803 shares at November 30, 2014 and November30, 2013, respectively

(105,873 ) (45,945 ) Retained earnings 1,415,069 1,220,520 Accumulated other comprehensive loss (106,725 ) (56,961 ) Total stockholders’ equity 2,159,546 1,906,963 Total liabilities and stockholders’ equity $ 5,348,430 $ 5,359,613

IHS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per-share amounts)

(Unaudited)

Three months ended November 30, Year ended November 30, 2014 2013 2014 2013 Revenue $ 582,317 $ 559,675 $ 2,230,794 $ 1,840,631 Operating expenses:

Cost of revenue (includes stock-based compensation expense of$2,243; $2,646; $8,520 and $8,271 for the three and twelve monthsended November 30, 2014 and 2013, respectively)

221,973 217,406 879,051 748,184

Selling, general and administrative (includes stock-basedcompensation expense of $37,393; $45,011; $158,839 and $154,180for the three and twelve months ended November 30, 2014 and 2013,respectively)

215,513 215,807 828,158 680,989 Depreciation and amortization 52,798 50,950 202,145 158,737 Restructuring charges 2,869 2,175 9,272 13,458 Acquisition-related costs 884 5,369 1,901 23,428 Net periodic pension and postretirement expense 2,432 4,895 6,774 11,619 Other expense, net (1,539 ) 2,279 (99 ) 6,012 Total operating expenses 494,930 498,881 1,927,202 1,642,427 Operating income 87,387 60,794 303,592 198,204 Interest income 251 392 988 1,271 Interest expense (13,233 ) (16,226 ) (55,383 ) (44,582 ) Non-operating expense, net (12,982 ) (15,834 ) (54,395 ) (43,311 ) Income from continuing operations before income taxes 74,405 44,960 249,197 154,893 Provision for income taxes (14,287 ) (4,150 ) (54,648 ) (23,059 ) Income from continuing operations 60,118 40,810 194,549 131,834 Loss from discontinued operations, net — — — (101 ) Net income $ 60,118 $ 40,810 $ 194,549 $ 131,733 Basic earnings per share: Income from continuing operations $ 0.88 $ 0.61 $ 2.85 $ 1.98 Loss from discontinued operations, net $ — $ — $ — $ — Net income $ 0.88 $ 0.61 $ 2.85 $ 1.98 Weighted average shares used in computing basic earnings per share 68,352 67,403 68,163 66,434 Diluted earnings per share: Income from continuing operations $ 0.87 $ 0.60 $ 2.81 $ 1.95 Loss from discontinued operations, net $ — $ — $ — $ — Net income $ 0.87 $ 0.60 $ 2.81 $ 1.95 Weighted average shares used in computing diluted earnings per share 69,281 68,416 69,120 67,442

IHS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Year ended November 30, 2014 2013 Operating activities: Net income $ 194,549 $ 131,733 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization 202,145 158,737 Stock-based compensation expense 167,359 162,451 Impairment of assets — 1,629 Excess tax benefit from stock-based compensation (13,297 ) (14,334 ) Net periodic pension and postretirement expense 6,774 11,619 Pension and postretirement contributions (13,452 ) (13,299 ) Deferred income taxes (10,285 ) (34,312 ) Change in assets and liabilities: Accounts receivable, net 36,418 (24,427 ) Other current assets

(8,834

) (672 ) Accounts payable (11,425 ) (10,069 ) Accrued expenses

36,073

50,753 Income tax payable 6,254 65,887 Deferred revenue 29,713 10,378 Other liabilities 6,107 81 Net cash provided by operating activities 628,099 496,155 Investing activities: Capital expenditures on property and equipment (114,453 ) (90,734 ) Acquisitions of businesses, net of cash acquired (210,395 ) (1,487,034 ) Intangible assets acquired (714 ) — Change in other assets (4,608 ) 1,347 Settlements of forward contracts 6,159 4,524 Net cash used in investing activities (324,011 ) (1,571,897 ) Financing activities: Proceeds from borrowings 2,485,000 1,375,000 Repayment of borrowings (2,817,236 ) (268,909 ) Payment of debt issuance costs (18,994 ) (17,360 ) Excess tax benefit from stock-based compensation 13,297 14,334 Proceeds from the exercise of employee stock options — 549 Repurchases of common stock (59,928 ) (97,164 ) Net cash provided by (used in) financing activities (397,861 ) 1,006,450 Foreign exchange impact on cash balance (11,438 ) (17,349 ) Net increase (decrease) in cash and cash equivalents (105,211 ) (86,641 ) Cash and cash equivalents at the beginning of the period 258,367 345,008 Cash and cash equivalents at the end of the period $ 153,156 $ 258,367

IHS INC.

SUPPLEMENTAL REVENUE DISCLOSURE

(In thousands)

(Unaudited)

Three months ended November 30, Percent change Year ended November 30, Percent change 2014 2013 Total Organic 2014 2013 Total Organic Revenue by segment: Americas $ 379,626 $ 368,510 3 % 4 % $ 1,470,282 $ 1,162,582 26 % 4 % EMEA 145,233 138,711 5 % 4 % 549,061 483,373 14 % 6 % APAC 57,458 52,454 10 % 8 % 211,451 194,676 9 % 4 % Total revenue $ 582,317 $ 559,675 4 % 4 % $ 2,230,794 $ 1,840,631 21 % 4 % Revenue by transaction type: Subscription $ 443,769 $ 418,309 6 % 6 % $ 1,719,617 $ 1,404,984 22 % 6 % Non-subscription 138,548 141,366 (2 )% (2 )% 511,177 435,647 17 % (1 )% Total revenue $ 582,317 $ 559,675 4 % 4 % $ 2,230,794 $ 1,840,631 21 % 4 % Revenue by product category: Resources $ 236,734 $ 234,584 1 % 2 % $ 927,211 $ 865,125 7 % 5 % Industrials 198,058 181,626 9 % 7 % 736,394 427,623 72 % 4 % Horizontal products 147,525 143,465 3 % 3 % 567,189 547,883 4 % 3 % Total revenue $ 582,317 $ 559,675 4 % 4 % $ 2,230,794 $ 1,840,631 21 % 4 %

Excluding the effect of the BPVC engineering standard release in the third quarter of 2013, full-year 2014 non-subscription organic revenue growth was 1 percent, Horizontal products organic revenue growth was 4 percent, and total organic revenue growth was 5 percent.

Resources Q4 organic revenue growth includes organic subscription revenue growth of 6 percent (8 percent when normalized for Q4 2013 past due renewal revenue catchups).

IHS INC.

RECONCILIATION OF CONSOLIDATED NON-GAAP FINANCIAL MEASUREMENTS TO

MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(In thousands, except for per-share amounts)

(Unaudited)

Three months ended November 30, Year ended November 30, 2014 2013 2014 2013 Net income $ 60,118 $ 40,810 $ 194,549 $ 131,733 Interest income (251 ) (392 ) (988 ) (1,271 ) Interest expense 13,233 16,226 55,383 44,582 Provision for income taxes 14,287 4,150 54,648 23,059 Depreciation 19,106 15,104 68,347 48,799 Amortization related to acquired intangible assets 33,692 35,846 133,798 109,938 EBITDA (1)(6) $ 140,185 $ 111,744 $ 505,737 $ 356,840 Stock-based compensation expense 39,636 47,657 167,359 162,451 Restructuring charges 2,869 2,175 9,272 13,458 Acquisition-related costs 884 5,369 1,901 23,428 Impairment of assets — — — 1,629 Loss on sale of assets — — 2,654 1,241 Loss on debt extinguishment 1,422 — 1,422 — Pension mark-to-market and settlement expense 1,459 2,620 1,459 2,620 Loss from discontinued operations, net — — — 101 Adjusted EBITDA (2)(6) $ 186,455 $ 169,565 $ 689,804 $ 561,768 Three months ended November 30, Year ended November 30, 2014 2013 2014 2013 Net income $ 60,118 $ 40,810 $ 194,549 $ 131,733 Stock-based compensation expense 39,636 47,657 167,359 162,451 Amortization related to acquired intangible assets 33,692 35,846 133,798 109,938 Restructuring charges 2,869 2,175 9,272 13,458 Acquisition-related costs 884 5,369 1,901 23,428 Impairment of assets — — — 1,629 Loss on sale of assets — — 2,654 1,241 Loss on debt extinguishment 1,422 — 1,422 — Pension mark-to-market and settlement expense 1,459 2,620 1,459 2,620 Loss from discontinued operations, net — — — 101 Income tax effect on adjusting items (23,558 ) (34,396 ) (104,511 ) (105,463 ) Adjusted net income (3) $ 116,522 $ 100,081 $ 407,903 $ 341,136 Adjusted EPS (4)(6) $ 1.68 $ 1.46 $ 5.90 $ 5.06 Weighted average shares used in computing Adjusted EPS 69,281 68,416 69,120 67,442 Three months ended November 30, Year ended November 30, 2014 2013 2014 2013 Net cash provided by operating activities $ 85,649 $ 151,786 $ 628,099 $ 496,155 Capital expenditures on property and equipment (31,139 ) (25,323 ) (114,453 ) (90,734 ) Free cash flow (5)(6) $ 54,510 $ 126,463 $ 513,646 $ 405,421

IHS INC.

RECONCILIATION OF SEGMENT NON-GAAP FINANCIAL MEASUREMENTS TO

MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(In thousands)

(Unaudited)

Three months ended November 30, 2014 Americas EMEA APAC Shared Services Total Operating income $ 94,935 $ 35,540 $ 15,205 $ (58,293 ) $ 87,387 Adjustments: Stock-based compensation expense — — — 39,636 39,636 Depreciation and amortization 42,937 6,568 1,393 1,900 52,798 Restructuring charges 2,441 421 7 — 2,869 Acquisition-related costs 802 82 — — 884 Loss on debt extinguishment 1,422 — — — 1,422 Pension mark-to-market expense — — — 1,459 1,459 Adjusted EBITDA $ 142,537 $ 42,611 $ 16,605 $ (15,298 ) $ 186,455 Three months ended November 30, 2013 Americas EMEA APAC Shared Services Total Operating income $ 90,789 $ 24,789 $ 13,125 $ (67,909 ) $ 60,794 Adjustments: Stock-based compensation expense — — — 47,657 47,657 Depreciation and amortization 39,644 8,631 868 1,807 50,950 Restructuring charges 1,038 1,003 134 — 2,175 Acquisition-related costs 1,785 3,584 — — 5,369 Pension mark-to-market expense — — — 2,620 2,620 Adjusted EBITDA $ 133,256 $ 38,007 $ 14,127 $ (15,825 ) $ 169,565 Year ended November 30, 2014 Americas EMEA APAC Shared Services Total Operating income $ 356,310 $ 129,766 $ 48,792 $ (231,276 ) $ 303,592 Adjustments: Stock-based compensation expense — — — 167,359 167,359 Depreciation and amortization 167,351 22,730 4,798 7,266 202,145 Restructuring charges 5,776 3,096 400 — 9,272 Acquisition-related costs 1,498 403 — — 1,901 Loss on sale of assets 2,654 — — — 2,654 Loss on debt extinguishment 1,422 — — — 1,422 Pension mark-to-market expense — — — 1,459 1,459 Adjusted EBITDA $ 535,011 $ 155,995 $ 53,990 $ (55,192 ) $ 689,804 Year ended November 30, 2013 Americas EMEA APAC Shared Services Total Operating income $ 303,803 $ 81,048 $ 42,089 $ (228,736 ) $ 198,204 Adjustments: Stock-based compensation expense — — — 162,451 162,451 Depreciation and amortization 123,477 25,688 2,363 7,209 158,737 Restructuring charges 9,354 3,530 574 — 13,458 Acquisition-related costs 19,552 3,876 — — 23,428 Impairment of assets 1,629 — — — 1,629 Loss on sale of assets — 1,241 — — 1,241 Pension mark-to-market expense — — — 2,620 2,620 Adjusted EBITDA $ 457,815 $ 115,383 $ 45,026 $ (56,456 ) $ 561,768 (1) EBITDA is defined as net income plus or minus net interest, plus provision for income taxes, depreciation, and amortization. (2) Adjusted EBITDA further excludes primarily non-cash items and other items that we do not consider to be useful in assessing our operating performance (e.g., stock-based compensation expense, restructuring charges, acquisition-related costs, asset impairment charges, gain or loss on sale of assets, gain or loss on debt extinguishment, pension mark-to-market and settlement expense, and income or loss from discontinued operations). All of the items included in the reconciliation from net income to Adjusted EBITDA are either non-cash items or items that we do not consider to be useful in assessing our operating performance. In the case of the non-cash items, we believe that investors can better assess our operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect our ability to generate free cash flow or invest in our business. For example, by excluding depreciation and amortization from EBITDA, users can compare operating performance without regard to different accounting determinations such as useful life. In the case of the other items, we believe that investors can better assess operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance. (3) Adjusted net income is defined as net income plus primarily non-cash items and other items that management does not consider to be useful in assessing our operating performance (e.g., stock-based compensation expense, amortization related to acquired intangible assets, restructuring charges, acquisition-related costs, asset impairment charges, gain or loss on sale of assets, gain or loss on debt extinguishment, pension mark-to-market and settlement expense, and income or loss from discontinued operations, all net of the related tax effects). (4) Adjusted EPS is defined as Adjusted net income (as defined above) divided by diluted weighted average shares. (5) Free cash flow is defined as net cash provided by operating activities less capital expenditures. (6) EBITDA, Adjusted EBITDA, Adjusted EPS, and free cash flow are used by many of our investors, research analysts, investment bankers, and lenders to assess our operating performance. For example, a measure similar to Adjusted EBITDA is required by the lenders under our term loan and revolving credit agreements.

IHS Inc.News Media Contact:Dan Wilinsky, +1 303-397-2468dan.wilinsky@ihs.comorInvestor Relations Contact:Eric Boyer, +1 303-397-2969eric.boyer@ihs.com

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