2008 McGRAW-HILL RYERSON AnnuAl RepoRt

Table of Contents Company ProfileMcGraw-Hill Ryerson Limited has a long and illustrious history. It is built on the solid foundations oftwo respected publishing companies: McGraw-Hill Book Company, now known as The McGraw-HillCompanies, Inc., and The Ryerson Press.In 1944, the McGraw-Hill Book Company, which had begun publishing in the United States in 1909,bought the Embassy Book Company of Toronto, incorporating it as a franchised distributor for McGraw-Hill, Inc. in Canada. It was called the Embassy Book Company Limited until 1947 when it was thenestablished as a wholly-owned subsidiary of the parent company and renamed the McGraw-Hill Companyof Canada Limited.In 1829, the Methodist Church established the Methodist Book and Publishing House, the very firstpublishing company in Canada. Egerton Ryerson, known as the father of Ontario’s public school system,was given the responsibility of founding the press and took it from religious publishing into the area ofsecular books. In 1919, the press took on his name and continued to publish in many areas: religious,educational, and trade. In December 1970, the McGraw-Hill Company of Canada Limited bought TheRyerson Press from the United Church of Canada and in 1971, the company became McGraw-Hill RyersonLimited (sometimes referred to herein as “MHR” or “McGraw-Hill Ryerson” or the “Company”).The Company publishes and distributes educational and professional products in both print and nonprintmedia. These products are designed to fulfill the individual needs of customers by providing effectiveand innovative educational and learning solutions. Product offerings include text and professionalreference books, multimedia tools, and teaching, assessment, support, and monitoring solutions. TheCompany is committed to providing Canadians with material of the highest quality for their education andenjoyment.The Company is structured on a market-focused basis and operates in three primary market areasthrough the following revenue divisions:• Higher Education Division: post-secondary education, including universities, community, and career colleges.• School Division: secondary and elementary schools.• Professional Division: retailers (online and bricks and mortar), wholesalers, libraries, professionals.McGraw-Hill Ryerson is a public company, operated independently, in close cooperation with variousdivisions and international subsidiaries of its majority shareholder, The McGraw-Hill Companies, Inc.Through this cooperation the Company benefits from its access to the significant product, market, andoperational expertise of The McGraw-Hill Companies, Inc.Company Profile:Who and What McGraw-Hill Ryerson Limited Is 1McGraw-Hill Ryerson at a Glance 2• A quick look at McGraw-Hill Ryerson’s three businesssegments, including: key markets, primary programs,key issues and trends, and outlookVision, Mission, Culture, and Values Statements 3Financial Highlights 4• A look at McGraw-Hill Ryerson’s financial performanceMessage to the Shareholders 5• A letter to McGraw-Hill Ryerson’s shareholders fromH. Ian Macdonald, Chairman, reviewing the Company’sperformance and looking to the futureManagement’s Discussion and Analysis ofOperating Results and Financial Position 11Financial Statements 17• McGraw-Hill Ryerson’s 2008 financial statementsand notesDividend Policy 292008 Corporate Social Responsibility 29Corporate Governance and Management Team 30Shareholder and Corporate Information 32International Affiliates 33McGraw-Hill Ryerson Annual Report 20081An Overview of McGraw-Hill Ryerson’s Business Unitsand Markets• Higher Education Division 6• School Division 7• Professional Division 8• Chenelière/McGraw-Hill (“DLC”) 9• Major Support Initiatives 10