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  "documentTitle": "The McGraw-Hill Companies (MHP)",
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  "presentationDate": "2011-08-22 00:00:00",
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  "notes": "Includes a table comparing financial metrics (Revenue, EBIT, CapEx, margins) for 2008-2010.",
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      "kind": "callout",
      "text": "Education is a core competency / most attractive business for the competition; this leaves MH Education inherently disadvantaged.",
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      "text": "Note: in millions. (1) For MHP, adjusted EBIT and CapEx include allocations for adjusted corporate costs based on % EBIT contribution (pre-corporate). (2) Represents PSON NA and Professional only for comparison with MH Education, other than as noted in footnote 3. EBIT adjusted for acquisition costs of £3mm in 2010. (3) For PSON, includes NA, Int'l and Professional. Excludes Interactive Data Corporation.",
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      "text": "MH Education has underperformed principal peer Pearson (\"PSON\") on an operational basis, a reflection of MH Education's position within the McGraw-Hill conglomerate structure (only ~23% of total EBIT). PSON has spent 10 years managing its portfolio to focus on education / learning as its core competency. As part of its portfolio reshuffling, PSON has sold over $5bn of assets - including high-quality and growing but still non-core businesses - and used the proceeds to acquire over $4bn of assets that enhanced its core strategy, with a particular focus on complementary education businesses. As a result, education now accounts for ~80% of PSON's total EBIT vs. ~35% 10 years ago. With clear focus, PSON has made the investments and acquisitions needed to become the leader in the attractive areas of the education market and to grow its emerging markets education business",
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      "text": "EBIT % Margin: 221 bps",
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      "text": "Also Disadvantaged Against More Focused Competition",
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