Welcome. I'm Chip Merritt, Vice President of Investor Relations for McGraw Hill Financial. I would like to welcome you all to our inaugural Investor Day. For those of you on the webcast, we're broadcasting here from the Hilton in Midtown Manhattan. For those of you in the room, thanks for joining us. We know we've got about 11 states represented. Got eight people here from London, two from Hong Kong, but the winner of the most traveled investor goes to Rob Pointer from Australia. Thank you, Rob. We hope we put together a really informational day for you. For the newer investors out there, you'll get a chance to understand how the businesses work. For those who've followed us for a while, we hope that each of the presentations will reveal some things that you didn't know before.
That's really the intent of today's session, to get a sense for the businesses and the growth opportunities that we have before us. A couple logistical things. The restrooms, out the door there in this hallway or out the back. Those doors in the back open as well, and they're back there. Refreshments. If you need something, go out the back door. There'll be refreshments during the session. I have the obligatory legal slides to make. Many of the presentations will contain adjusted information, and we're sharing this adjusted information with you so you can get a chance to see how management views and manages our operations. If you want a reconciliation of those adjusted numbers to the GAAP numbers, please look at any of our quarterly press releases on earnings days for that reconciliation.
I'm sure a lot of our speakers will make forward-looking statements, things like, I hope, we expect, we anticipate, and things may not turn out the way we'd like or that we hope or anticipate. We caution you not to place undue reliance on our forward-looking statements and to see our SEC filings for other risks associated with investing in the company. Lastly, this may be new to some of you, there's new EU regulations out there. If any of your firms are approaching 5% ownership or 10% ownership of our company, first, I thank you, but secondly, please give me a call, because there's some obligations you may have and you need to understand. If you're approaching 5% or 10%, please give me a call.
The schedule today, we have anticipated that we've got lots of sell side guys in the room who can't sit long without asking a question. We've broken it up for you. Doug Peterson, our President CEO, will speak first, then we'll have two businesses. We'll have a Q&A then for just those two businesses. Two more businesses, Q&A for those two. Two more, Q&A for those two. At the end, we'll have a wide-open Q&A for all the businesses and legal questions and questions for Doug and Jack, our CEO and CFO. Okay? Lots of chances, but let's save those individual Q&As for the two businesses that just presented. Not on the agenda, but joining us is Paul Sheard, our Chief Economist. Paul, can you stand up?
If any of you guys have any questions that you'd like to discuss with Paul, he'll be available in the other room afterwards. Just want to introduce you to Paul. Thank you, Paul. Hopefully, you got a chance to go into the demo room prior to this session. Those demonstrations will continue after this main session. From 4:30 to 5:30, roughly, we can go back over there, have a cocktail, hopefully a Guinness, if that's available, if you didn't get enough yesterday, and get a chance to meet not only with the executives who've spoken and presented today, but also with, more importantly, the folks who are behind the panels giving deep dives in some of the products that we have. With that, after a brief video, our first speaker will be Doug Peterson. Thank you.
Combined, we are the leader in ratings, benchmarks, and analytics. We are the architects of financial intelligence in a world under construction. We are Standard & Poor's Ratings Services, 1,400 dedicated analysts covering 127 countries, turning knowledge into insight. S&P Capital IQ, a leading provider of real-time data, analytics, and research. S&P Dow Jones Indices, the world's most followed indices. We are Platts, the premier source of benchmark price assessments for the energy, petrochemicals, metals, and agricultural markets. J.D. Power, the voice of 20 million consumers. McGraw Hill Construction, providing actionable intelligence for more than one million industry professionals. Combined, our insights help emerging markets emerge stronger. Our essential intelligence not only informs the world but also betters it. Combined, we are McGraw Hill Financial.
Thank you for joining us for our inaugural Investor Day. It's great to see everybody here. I'm going to start with act one and talk to you briefly about the last three years and how we transformed McGraw Hill into a deep analytics global growth company. Throughout the day, you're going to hear from us in the second chapter of our discussions today about creating growth and driving performance. We have a remarkable story to tell you. You're going to get to meet our senior management from our executive committee, and we want to share with you that journey and how we've made it.
As we went through the last three years, we announced a Growth and Value Plan in 2011, that Growth and Value Plan had specific measurements and metrics and goals and objectives. It was around creating a new company by divesting assets which were better off being managed and held by somebody else. We completed the divestitures of Education, Broadcasting, and Aviation Week for $2.7 billion. Of that cash, along with the cash we generate from operations, we returned $4.4 billion cash to shareholders through share buybacks and dividends. We had a goal, which we exceeded, of achieving productivity saves. We reached a goal above it, and we reached $175 million in cost saves. All throughout that time, we formed a new joint venture with CME to form the S&P Dow Jones Indices business, and we also completed nine other small tuck-in acquisitions.
All the time that we did that, this chart shows you what did that mean for the business. By taking the slower growth, higher capital-intensive businesses, if you look at 2011, including the Education business and the Broadcasting businesses, our growth rate was 2.9%. By taking those out, our growth rate was 8.6%, which helped fuel, through our new position businesses, an 11% compounded annual growth rate from 2011 to 2013. Through that period, we began our journey of delivering exceptional shareholder returns. Our revenue, of course, declined when we sold our Education and Broadcasting and Aviation businesses, 22%, in fact. Our operating profit increased by 7% to $1.6 billion in 2013. Our operating margin at 24% increased nine points to 33% across our entire portfolio.
Our EPS grew 14% over that time period, and as you can see, our CapEx and our asset intensity to our businesses decreased the requirements for capital investments. Over that time period, our total shareholder return was over 140%, with the share price itself going up 114%. As I said, we returned $4.4 billion to our shareholders, to you, through dividend and share repurchases, including a special dividend of $2.50 a share in 2012. As we completed that program, we had to start thinking about, well, what about the future? Where are we going to head for the future, and how are we going to take this great portfolio of companies and find a way to generate growth and create value? We took a step back. We thought about the markets. We thought it was important to revisit our vision, our purpose, our core values.
We built a foundation based on our markets and our customers, and through that, talked a lot about our capabilities, our ratings, our benchmarks, our analytics, and the way we serve global capital markets, commodity markets, and corporate markets. Our core values, which come from many years across all of our legacy companies and are the right thing to do, of fairness, integrity, and transparency, as we promote sustainable growth and transparent markets. All of this is underlying a foundational approach to essential intelligence being something that brings us all together. Why are we an exceptional investment opportunity? We have great brands. We have deep core analytics. We're truly global, and we're starting from a position of incredible financial strength. Our brands are brands that all of you in here know and use every day.
The bridges, the tunnels, the roads, the rails that you took today to get here were probably financed by debt that was rated by Standard & Poor's. The gasoline and the fuel that was used to fuel the transport that you got here was probably priced from crude oil price measurements that came from Platts. If you came in a car, it's highly likely that it was assessed by J.D. Power in an Initial Quality Study. If these were other types of screens that we're watching right now, you would see the S&P 500 and the Dow Jones scrolling across the bottom of the screen all day as key market benchmarks. At the core of those types of products are deep analytics.
We employ people that use their brains, their intellectual capacity to provide these products and services, keeping up to date of everything going on in technology and analytics and big data to produce these products. People run CapIQ models. They run it the eighth time, the 15th time. I've even seen version number 33 when people are doing an M&A analysis, and they keep going back to dig and mine more and more of the CapIQ database to do another run to see what's the right price of this acquisition. People ask every day, why did S&P upgrade or downgrade that bond? Every day, we ask the question, where did the market close?
We ask that question, where did the market close, we're asking about the S&P 500 and the Dow Jones, and there's great intellectual capital behind that through David Blitzer, and you'll hear more about this later. We're a truly global company. We have 17,000 employees in 29 countries and 94 global offices, and we're already positioned for global growth. 41% of our revenues in 2013 came from our international operations, and we have a plan to grow that even faster. We start our new company with compelling financial advantages. We have strong fundamental recurring revenue through subscriptions. Our margins are high and improving. We have goals to improve them, and have you seen them improving consistently the last three years. We have low capital and asset intensity, and very importantly, we generate strong free cash flow. Shifting to the second part of our story.
Throughout the rest of this afternoon, you're going to be meeting our team to talk about creating growth and driving performance. Let me spend a few minutes on this specific slide, because these are targets that we're laying out for one year and three-year goals that are going to drive shareholder value focused on our customers in the markets. We're setting annual growth goals of mid to high single-digit revenue growth, sustained margin expansion, mid-teens EPS growth, and $1 billion per year of free cash flow. We have an operating model to get there, and we'll talk about that. We will maintain disciplined approach to allocating capital. We will continue to pursue attractive acquisitions, and Jack will talk more about that later. We will continue to fund dividend growth and share repurchases. In order to do this, we have to drive our performance.
We need to have the right approach to managing and measuring our performance. First of all, we're going to shift from a holding company approach to management to an actively managed company. We're completing our portfolio rationalization with the evaluation of alternatives for McGraw Hill Construction, and we're targeting at least $100 million a year in productivity saves. $100 million in productivity saves, not a year, over the three years. We have continued significant recurring revenue. When you look at this chart, you can see that we're targeting mid to high single-digit growth coming off a very strong revenue growth. What's important here is that over 60% of our revenue in our business model is coming from subscription and recurring revenue, giving us a solid base for growth. As we build our model for strategic planning, we look at secular trends in the markets.
We need to understand what's going on outside so that we can plan for the right investments and have the right resources marked up against the best opportunities. For example, in the debt markets, debt maturities over a three to five year, 10-year period point to a lot of activity in the capital markets. At the same time in Europe, there is a deleveraging going on and a deleveraging of the bank market, which means that more and more people are having to go to the capital markets to raise debt. In addition, there's questions. What's happening with the LTRO? What's happening with the asset quality reviews that are starting to take place? There are many trends in the capital markets that we look at very carefully all the time. There's an infrastructure requirement around the world.
S&P published a report at the end of January, which showed that there's a $57 trillion requirement for infrastructure financing over the next 17 years. It's likely that there's a $500 billion gap in that financing requirement that will likely come from the private sector, from insurance companies and pension funds. There will be a requirement for analytics and data and ratings in that space. Finally, in the commodity world, there's a requirement all the time for more and more transparency and benchmarks in the very fast-moving and volatile commodity world, especially after the post-LIBOR world.
As we look at all of these opportunities for our customers, taking into account market trends, our values, and our capabilities, we put in place a strategic planning model, which we're using in our organization that looks at where we're going to allocate capital and how we're going to build businesses accountable. Our new model looks at our growth across different market and different product segments. We look at our core markets with our core clients. How can we get more penetration? How do we think about pricing? How do we think about getting more clients like the ones we have? We look at extending new products into our existing client base. We look at extending into international markets. We want to have a way to understand where we can grow internationally profitably.
Of course, in this day and age, with technology moving as fast as it is, with the users that we have upgrading their needs and their understanding all the time, we have to look at disruptive innovation and all innovation. How do we get there? We get there through active management to deliver performance. We're shifting from the operating model of a holding company to an actively managed company. That means that there's metrics, there's a way we drive our business, that we allocate capital. Very importantly, that company, which has ways that we're interrelated across the group, drives that active management through operational excellence, customer engagement, and great talent. What is operational excellence? For us, it means there's a data flow, a workflow across every one of our businesses that is similar.
On this slide, you can see the depiction of that workflow that starts with acquiring data, mining it, protecting it, translating it, analyzing it, doing analytics, editorial benchmarks, innovating product development and models, then distributing it and delivering it, whether it's through Cap IQ and our own proprietary channels, or we do it also through third-party channels. In order to deliver that model, we have key enablers. We have technology. We have a technology and data committee across the entire company that's facilitating our technology growth. Risk management is critical for us and becoming more important all the time, especially for our own businesses and also as a business opportunity. Don Howard, who's here today, is on our executive committee and runs our risk management area.
Don has over 30 years of experience in risk management as a regulator, as a banker, and in risk management in banking, securities, and insurance. Our global support network is also important, and we leverage that across the group. Our media relations, our public affairs, our government relations. Ted Smith runs that group with over 30 years of private sector experience and public sector experience, taking advantage of our knowledge and our scale in that area. We won't exist without our clients. It's our clients that fuel our business, and it's our clients that we all think about every day. I wonder how many of you would have thought before you came here today that over 40% of our revenue comes from the corporate sector. In order to engage with our clients, we have strong outreach. We have many ways we do that.
We deliver our data through data feeds, through PDFs, through information that goes directly to desktops, through face-to-face communications, through the type of information you see here. One of our key thought leaders is Paul Sheard. Paul Sheard is our chief economist, and Paul Sheard is an expert in macroeconomics in Japan, in Asia, and especially in central banking. He can talk to you more about the taper than anybody I know. Paul leads a team of economists, of researchers and quants around the globe to ensure that we are engaged in the most relevant topics in the world, as well as translating that and taking it back to our analytical businesses. Finally, the foundation of our business and what truly fuels our business is great people and great talent.
We've taken this business model that we've talked about, which starts with a vision, a mission, and a purpose, our essential intelligence, translated that into a strategy based on the needs of our customers, changes going on in the market, secular trends, turn those into specific business strategies, taken those into scorecards that are relevant to our teams across the globe. We have a great partner in human resources, John Beresford, who has over 25 years of experience in human resources management. In particular, he's putting a major focus on leadership and development, ensuring that we have the best talent deployed across our businesses everywhere in the globe. For the rest of this afternoon, you are going to be meeting our best talent. You're going to be meeting some of our top leaders in the organization. This afternoon, you'll have people on the stage.
You're going to listen to some of their presentations, have an opportunity to do Q&A. I hope everyone has a chance afterwards to step across the hall to learn more about specific products and capabilities that we have. Also look at the people that are there. The people who are there are also some of our top talent who will be listening to you, and you could be learning and listening to them. With that, let me turn it over to the President of Platts, Larry Neal. Thank you.
Today, we provide professionals around the globe with oil news, commentary, market data, analysis, and thousands of daily price assessments, a term we use to refer to the market value we publish for commodities. Our price assessments are used as a basis for pricing spot transactions and long-term contracts to identify patterns in supply and demand and to protect against risk. Market participants choose to adopt many of our price assessments as industry-standard benchmarks. A key distinction here is that Platts does not set oil prices. We provide price assessments for the market to make its own judgments as to oil's market value. As a neutral market observer, our independence means we have no vested interest in the price or value of oil or where the market is heading.
Platts' source of revenue comes from subscriptions to our range of market data, assessments, news, and analysis services, licensing our assessments for use in financial instruments and from conferences and events.
Well, good afternoon. It's a pleasure to be here with you this afternoon and have an opportunity to talk to you about the Platts business. At Platts, our focus is to bring transparency to the world's commodity markets that by nature are not inherently transparent. We're a leading provider of benchmark price assessments, news, analysis, and analytics covering five major commodity sectors: petroleum and the related refined petroleum products, petrochemicals, power, which includes natural gas, coal, and electricity, metals, both ferrous and non-ferrous, and most recently, our entrée into the agricultural market. We publish more than 12,000 price assessments each day that form the basis for more than 1,400 exchange-traded futures contracts. It's estimated that our price assessment for North Sea crude oil, Brent, comprises and is the benchmark for more than 60% of the world's crude oil.
In the past three years, we conducted and completed three important acquisitions that extended our capabilities. In 2011, we acquired Bentek Energy, a leading provider of analytics in the North American natural gas space, strengthening our position in North American natural gas, and giving us a footprint of capability and analytics to extend into other sectors. In 2011, we completed the acquisition of Steel Business Briefing, solidifying our leadership position in steel and in iron ore in particular. Lastly, in 2012, we completed the acquisition of Kingsman, which established a foothold and a leadership position in the sugar and biofuels market, and provides us with a platform by which to extend further into the agricultural sector. For the discussion today, I'd like to focus a bit on the price assessment side of the business, as that's the major driver of growth for the Platts business.
What we have depicted here is the supply chain for petroleum products. Similar supply chains exist across all of the commodity sectors. If we look at the supply chain from points of production and refinement to distribution, ownership of a commodity as it flows through the supply chain changes hands and changes ownership throughout that process. It's necessary, as the ownership changes hands, for a market price to be established to facilitate that transfer of ownership. However, unlike regulated financial markets, the commodity markets have no ready mechanism similar to an exchange that allows for a price to be discovered and a transaction to occur. The vast majority of commodities trade as private bilateral transactions.
This puts a premium on the availability of a price assessment, such as those produced by Platts, to form the basis for the transfer and trade that occurs as commodities flow across global supply chains. Platts publishes more than 12,000 daily price assessments to reflect the global complexity of production, distribution, and trade flow across these various commodities. New needs and new forms of trade flow are occurring constantly, creating demand for more and additional price assessments. If we take the recent trends of increased consumption of energy and materials in Asia, particularly in China and India, this is creating demand for price points that reflect the flow of trade into these regions.
If we look at the explosion in supply of petroleum, natural gas liquids, and natural gas in the U.S. as a result of the technology to extract these materials from shale in North America, this is creating a vast new source of supply, which again creates a remapping of the trade flows of commodities and creates demand for price assessments. We serve a variety of customers across these global supply chains, from producers to processors to end users. Basically, anyone who has an exposure to the price of a commodity and has a need to manage fluctuations in the price of the underlying commodities. These include integrated major oil companies, national oil companies, mining companies, steel mills, all the way through to manufacturers and airlines.
In fact, we serve more than 10,000 customers across 170 countries, making us the most global of the McGraw Hill Financial businesses, with 60% of our revenue being sourced outside of the U.S. We serve these customers from 20 Platts offices around the globe. I want to spend a little bit of time on talking about how the use of price assessments evolves in the marketplace. I think this sets up an important understanding of the future growth potential for the Platts business. In the very early stages of using assessed prices, these are used as a basis for negotiating fixed term, fixed price contracts. Much of the industry, if you rewind in time, operated by setting up fixed price agreements for a fixed term and a fixed amount of supply of that commodity, which all works well and good when there's very little volatility in the market.
This mechanism of having locked-in fixed prices does not allow for management of price fluctuations and risk and exposure due to price volatility. As the market begins to trust published prices and assessed prices such as those from Platts, they begin to utilize those as the basis for their contracts. The market evolves to establishing contracts where the price that's referenced for settlement of that transaction is a floating price that references a published price from Platts. This, in addition to the creation of a futures product that references that same published price, allows for an active derivative market to exist for hedging to occur of any fluctuations in price throughout that supply chain. This provides customers with a ready mechanism to manage price volatility, an ever-increasing challenge in the commodity markets today.
The other point worth noting is the phenomenon of what happens to price providers, such as ourselves, throughout this evolution. It's often characteristic that in the early stages, there are many price providers offering price assessments to the market. As the market begins to rely on certain price assessments that they feel best reflect market value, they coalesce around one or two key providers and in effect create a network effect where all of the trade of that commodity exists referencing that particular price provider. If we look at where each market is in its stage of evolution, if you look at the upper left-hand corner, you can see that natural gas and petroleum products are very well established in their use of these floating price systems and actively hedge against price risk.
This is best reflected if you look at the chart on the right, where we're illustrating the ratio of notional financial derivative value traded to the underlying production value of the commodity. In the case of natural gas, the notional value of derivatives traded is 50 times that of the value of the underlying commodity. In oil, it's 10 times that. If we look at some of the other markets that are much earlier in their evolution towards using these types of pricing systems, and we look at iron ore and steel in particular, you can see that it's a fraction of the underlying production value.
If we look at the lower half of the chart on the left-hand side, you can see that agriculture, coal, iron ore, I would add LNG into that, petrochemicals, and steel are all markets that are still in the early phases of evolution of using assessed prices. This gives us great belief in the future potential of these additional sectors of the business. Our strategy, as a result, is to establish Platts price assessments as the benchmark across the whole variety of physical markets. Increasingly, we deliver our data and our information to customers in the form of market data feeds. These feeds are deeply embedded into the front, middle, and back-office systems, such as risk management systems, invoicing systems, and transfer pricing systems that our customers utilize.
As you can see in the chart on the right, market data feeds represent the largest portion of our product delivery and by far the fastest-growing portion of our product set. In addition, we deliver real-time information that includes intraday market news and commentary, live bids and offers, and intraday transactions in the markets. Then as well, we deliver content in the form of newsletters and reports that can include a whole range of comprehensive information covering price data, company news, M&A activity, and changes in legislation. If we look at how the business has performed over the past several years, you can see we've had very strong mid-teen double-digit growth in our top line. In addition, I think it's very important to note that the vast majority, approximately 90% of our business, is recurring in the subscription base, and we have renewal rates in excess of 90%.
On the right-hand side, you can see that petroleum continues to be the largest segment, roughly two-thirds of our revenue mix, followed by power and gas. While petrochemicals and metals and agriculture are still a relatively small portion of our contribution, the growth rates of these are exceeding the average growth rates of the business and are quite healthy. Just to comment on two fundamental trends that underlie both the current growth that we've achieved as well as the future growth that we can expect. Again, price volatility and the need to manage that price volatility-based risk continues to be a major driver. That's evidenced and has existed over time, and we certainly fully expect that that trend is likely to continue. We can see that through the increased use of commodity features that are based on underlying published prices, as shown in the upper right-hand corner.
In addition, the demand for energy and materials by emerging economies and developing economies, combined with increased trade flows, creates constant need for new assessments to be created. As we look ahead, we see significant opportunities for growth. We're going to focus on continuing to strengthen our emerging benchmarks. We're investing in our web-based capabilities to provide even more flexibility and capability for customers to integrate our content and our price assessments into their internal systems and into their workflow needs. We're investing in building upon the Bentek acquisition and creating analytic capabilities that provide supply, demand data, and insights across other sectors and other regions. We're expanding into new commodity sectors. In particular, building upon the strength of our position in the sugar market, we will expand into wheat, corn, soy, and other agricultural commodities, as well as into dry bulk shipping of those commodities.
In addition, we're relocating the headquarters of Platts to London to better reflect and be able to manage a truly global business. I will be personally relocating over to London in a few weeks to lead that effort. We're investing in developing world-class price reporting systems and data operations to fuel our future growth and capabilities. We actively engage regulators around the globe as their interest in both the commodity markets and the use of benchmarks increases. To sum up, we're very pleased with the results that we have achieved to date. We feel very good about the underlying fundamental trends in the business and the opportunities for future growth and expansion. We're investing in expanding to additional sectors and to providing additional capabilities to our customers and are very pleased and excited about the progress and the results we believe this can produce. Thank you.
With that, I'm going to turn it over to Alex Matturri, the CEO of S&P Dow Jones Indices.
Thank you, Larry. Good afternoon, everybody. Today, I'd like to give you a little bit of a overview on S&P Dow Jones Indices. We are the largest index provider in the world, certainly in terms of both benchmarked products that are used for investment performance, so many of you that are active managers use our benchmarks to measure your own portfolios, but also as importantly as the basis of investment products. There is over 1 million indices that we calculate on a daily basis. Clearly, people know the S&P 500 and the Dow Jones Industrial Average. These are our iconic brands that everybody knows. Our product offering is much broader than that. We actually have offerings both in U.S. equities, global equities, strategy indices, which people nowadays also refer to as smart beta or alternatively weighted indices.
Fixed income, which is an area that we see tremendous growth potential as the market is going to go through some pretty dramatic changes. Also in commodities with the S&P GSCI, which is a leading benchmark used for trading of commodity index products. Finally, we have our economic indices. These include the S&P Case-Shiller, which really defines prices of housing in the U.S. Most recently, we launched the S&P Healthcare Cost Index, which we think someday will allow people to hedge healthcare cost exposure in the marketplace. The S&P 500 alone is clearly one of the most used benchmarks, with over $5.7 trillion in benchmark assets and over $1.6 trillion directly indexed to that. We also have the leading volatility-traded products with the VIX that trades on the CBOE.
Of course, futures and options that trade on the CME, which average over 2 million contracts every day. That's a little bit of what we're about. What about what other people think of our business? As you can see, we win many awards for innovation is a key part of our strategy. We need to continue to develop new concepts that investors can use, both as benchmarks and also as a basis for investment products. As you can see, we have a very global business with customers in 69 countries and people on the ground in 18 different offices worldwide. In any place where there's a financial marketplace, you'll find some of our staff so that they can be close to our customers, whether they be the product issuers or the asset managers that are using our indices.
Also importantly, you'll notice that we have many exchange relationships, 13 in total, including the CME and CBOE here in the U.S., just as importantly, in many of the new emerging markets. We look to use exchanges for two reasons. Number one, they're a good way for us to commercialize their own content outside of their home market. Through our distribution platforms, we could actually take their indices and make sure that when people are thinking of how to invest in Canada, whether they're sitting in Japan or whether they're sitting in South Africa, they're going to think of the S&P/TSX 60. In a global business, it's very easy to manage a sort of flow when you have the right infrastructure. Another important part of our exchange partnership is that these exchanges also give us the inroads into the local marketplace.
Especially once you get outside of the U.S. and Europe, exchanges are still the dominant player in the world capital marketplaces. If you go to any of these markets, the exchanges are the pillar of the local investment community, and being associated with them gets us into with the local asset managers, the knowledge of the local regulators, understanding of the local marketplace. In that case, we're able to cross-sell our existing global products into those local markets also. As you will see, our revenue is about 80% in the U.S. and 20% or so internationally. That's not really truly reflective of our actual revenue stream. The reason is that many products are now accessed all over the world out of U.S.-based customers. Our largest customers in the ETF space, for example, BlackRock and State Street.
They're U.S.-based customers, regardless of where their ETFs are traded, they're accounted for as U.S.-based revenue. More and more nowadays, investors all over the world have easy access to U.S. marketplaces, whether they're trading futures on the S&P 500 out of Tokyo or accessing ETFs out of Latin America that are traded here in the U.S. How do we make money? We make money in several different ways, we look at the world really in terms of how we distribute our indices. The biggest category really is ETFs and mutual funds, where we get paid basis points for assets under management. As assets grow, our revenues continue to grow.
Similarly, in over-the-counter and derivative structured products, whether they be retail structured products out of Europe, OTC trading here in the U.S., we get paid, again, based on the assets underlying the notional value of these contracts. In some cases, it's pure basis points, in some cases, it might be blanket agreements so that dealers could trade some swaps, for example, based on our indices very easily. Third, we have listed derivatives. These are options and futures that trade on exchanges. Primarily the CME and the CBOE, but also in Australia, Toronto, in India, in Brazil. Our products trade there, and every time somebody trades a derivative contract based on one of our indices, we again earn some revenue. These three categories account for about 75% of our revenue.
We like this approach because as our customers become more successful, as their assets grow, as their trading volumes grow, our revenues also grow. It gives us an incentive to be very supportive of our customers. The final categories are what we refer to as data and custom indices. Data is either the terminal charges to receive real-time price feeds on the S&P 500 and the Dow Jones Industrial Average and some of our other leading real-time indices that you'll see in your Bloomberg terminals or also on your Reuters terminals. But also the underlying constituent data that becomes necessary for you to measure performance of your portfolios against our indices, or for index fund managers to actually know what needs to be traded on a daily basis to maintain the index.
The final category is custom indices, and this is an area that we think there's going to be a lot of opportunity. Here, we can either customize one of our existing indices. So for example, you could take the S&P 500 and exclude all tobacco stocks. Very popular with church groups, for example. But also for people that develop their own ideas, their own intellectual property, and they need an independent calculation agent. This is becoming more and more important as people understand the conflicts of interest that could exist if an asset manager is also calculating their own index for use in products or worse, in the case of things like LIBOR, where people were actually trading and manipulating the indices themselves. As you can see, we've had pretty strong growth over the last few years with a 24% compounded annual growth rate since 2011.
That, of course, includes the acquisition of the Dow revenue stream, which half came in 2013 and the other half was added in last year in 2014. Even without factoring in Dow, our growth rate over these past three years has been about 8% compounded. And our growth rate last year alone on an organic basis would have been about 12%. And we're able to do this at very high margins in the 60% range. As you can see on the right-hand side, same product split that I showed you earlier with about three-quarters of our revenue coming from investment products that again, go up and down in line with our customer success. So what have been some of the underlying drivers of our business? Clearly, we've benefited from the growth of passive investing.
In passive investing, the definition of an index has really grown tremendously, There's still plenty of room for this business to continue to grow. We estimate that there's about 26% of retail mutual funds or institutional mutual funds that are held as either index funds or ETFs. Again, while there has been a lot of growth there over the last 10 years, still plenty of opportunity to continue to capture market share. Clearly, ETFs have been a tremendous success story over the last 10 years with assets under management globally now approaching $2.4 trillion. Tremendous growth of 27% annually over the past 10 years. In this marketplace, we have over a 30% market share with over $660 billion in assets under management tied to our indices as of the end of last year. Even here, we see a lot of opportunity for continued growth.
Most of the ETF assets are still sitting in the U.S. In some cases, as I said, it's foreign investors that are investing in U.S.-based products because of the liquidity, the transparency of our marketplaces. There's still plenty of opportunity to grow in Europe and in Asia, where the underlying factors that are driving the success of ETFs are only starting to develop. These are all the markets that we're operating in today. What's going to drive our growth strategy going forward? Importantly will be the development of additional indices. Last year alone, we created almost 400 new indices. The question might be asked, do people really need that many new indices? As you can see, the definition of an index has changed significantly. When most of us were in business school, we understood that an index really was a representation of the market portfolio.
Today, an index is really anything that can be developed into a quantitative strategy that has rules based around it that needs to be in a transparent fashion. Even active managers nowadays may be trading Sector SPDRs. They may be investing in thematic new ideas. Again, there's opportunity to continue to grow. We will also continue to expand our business globally, especially in emerging markets, especially in higher growth markets, either through our exchange relationships or with native business growth in those marketplaces. Just in this past year, we developed new offices in South Africa and in Mexico City. We continue to see Latin America as a marketplace that's got potential because again, it's still very early days in terms of the sophistication of their investment knowledge. We will continue to look at strategic partnerships with exchanges.
As I mentioned, we are the largest provider of exchange partnerships, We see that as a good way to continue to expand our footprint globally. Finally, we will be investing in our brand. The S&P brand, the Dow Jones Industrial brand are known all over the world. We have a strategy that we call Build From the Core, which is to take a core index, something like the S&P 500, and continue to build new versions of it. Originally, we had growth and value versions of the 500 and sector versions of the 500. These all became bases for products and index funds, but more importantly, we can start up tying up new concepts. Last few years, we've had a lot of success with a low volatility version of the S&P 500, minimum variance versions of this index.
We can take the same concept and apply it not just to the 500, but to many other products that we have, both at our own and with our exchange partnerships. Why is this strategy important? Because while many people could develop a similar concept, they can't develop that same brand. Okay? Anybody can develop an index that maybe looks like it represents a U.S. marketplace, but it's not going to be the S&P 500. We will continue to develop new concepts that we could apply to these brands and to get this network effect that strengthens the core brand. One of the things that has made some of the ETFs tied to our indices very successful is that there's very liquid futures markets.
One of the things that made VIX very successful was that index options traded on the S&P 500, and they in turn became successful because there are futures that traded on and people indexed to it. This network effect can drive growth going forward. You'll see us continuing to advertise and educate the marketplace. We think it's important that people understand the use of indices. While we have both active and passive customers, we think knowledge is very important to getting people to understand our products and take us to the next level. Finally, continuing to manage our indices in light of the future regulation, potential regulation of the index business in light of LIBOR.
We've always operated very much as if we're regulated with transparency around our methodology and governance chaired by David Blitzer and the index committees that are very much walled off from the commercial side of our business. This is going to be more and more important going forward as people have come to appreciate the risks of when you don't have independent indices used in financial products. With that, this has been a brief overview of our business. I'd ask that Chip and Larry come back up here for our first Q&A session.
All right. A couple of ground rules, please. Unlike the investor earnest calls, let's really keep it to one question, if we could. Please, for the webcast, if you could state your name and your company's name prior to asking your question. Okay? Let's see. Microphone, folks. Okay. Sorry, right there.
Yeah. Doug Arthur, Evercore. Larry, I think it was about a year ago that the EU started a probe on oil pricing. It was sort of unclear if Platts was a part of the discovery or actually a focus. Any update?
This occurred, there was a sort of fact-finding and information gathering that took place May of last year by the EU, collecting information from ourselves as well as a handful of oil companies that are active in the North Sea. There's been no activity since that. We don't believe we're a substitute to that investigation, there's been really no interaction or follow-on requests from the EU following that initial information gathering. Okay. Yes, sir. Here. Manav.
Hey, this is Manav Patnaik with Barclays. Alex, you mentioned that your share of the entire indices market, you put it, was 30%. Could you help us elaborate sort of the competition out there and what the need for consolidation or just your desire maybe the consolidation in that space is?
Sure. Well, the market share of the entire industry is kind of hard to measure because many customers will take indices from ourselves and certainly some of our competitors. The 30% market share that I was referring to was of the ETF marketplace, where we're the number 1 provider. Certainly, as far as consolidation, it's something that we think that over time we'd be interested in looking at potential businesses that become available, we're looking to grow the business both organically and potentially inorganically.
Yeah. Way in the back.
Thank you. Craig Huber, Huber Research. Question index business. You talked about the opportunity long term for growing more into fixed income. Could you just elaborate on that, please?
Sure. The fixed income index business right now is dominated by bank-owned index businesses that were set up initially to drive trading to their trading desks. If you wanted to measure the index, you wanted to track it exactly, you were forced to trade with that firm's trading desk to get the prices that was used in the index. We think that post LIBOR, that model is going to have to change. There's too much after, as we saw from the LIBOR situation, where people could potentially manipulate prices that are used in an index, especially if they're turning around and have a vested interest in products or creating swaps on that same index. Firms like ourselves, and certainly we're not the only one, we're independent providers of indices.
We think that there's going to be a movement, and again, it's been rumored in the papers, that we think some of the banks may choose to get out of the index business, which will allow firms like ourselves to continue to expand. Right now, we actually generate not an insubstantial amount of revenue from fixed income indices and products, but we think that that's one of the areas in terms of our asset class coverage, where there's a tremendous amount of growth potential.
In the middle.
Thanks. Alex Kramm, UBS. This is for Larry, sorry, it's a two-part question on natural gas. One, basically, the outlook for that part, which I think is 25% of Platts business. In the near term, I think natural gas has been super volatile, maybe you can just elaborate what that means in the near term. Do you see a lot of new subscriptions coming in? Are people really interested in the market, do you see something coming out of that? In the long term, I think there's a lot of different prices around the world, very cheap in the U.S., very expensive in Asia. We're talking about LNG and things like that. What does that mean for Platts long term? That looks to me like a big long term, more prices, more new benchmarks for you. Just maybe elaborate on that trend in particular.
Sure. I think I may have counted three parts, let's see how well I do at remembering what parts. I think overall, a couple things about the business and volatility in general. We're not really impacted by short-term swings in volatility. We're a subscription model, we generate recurring revenues on that basis. It does speak to the underlying health of the industry, when we see periods of low volatility and low price levels for decent periods of time, as we've seen in the U.S. natural gas market, it does start to impact the industry. There's less trading. There's fewer players. There's players that are exiting. What we look for is the long-term health of volatility.
I think the main point, though, that you pointed out that we see as well is the price discrepancy for natural gas around the globe between the U.S., Europe, and Asia is very significant. That's creating what we believe will relatively soon be an export market for the U.S. That should begin to move prices in the U.S. to reflect a better balance of supply and demand and mobility of gas around the world. It's going to be a period of time before the volumes are significant, even once marginal delivery starts to occur, we believe that'll start to equalize prices and probably introduce some volatility into the market. An exciting long-term trend, I think, for the market and for the U.S. in natural gas.
Did that get all four parts there? All right, I can see the front row. Peter?
Yeah. Larry, sort of related to that, the oh, it's Peter Appert at Piper Jaffray, sorry. How do we think about the scale of the market opportunity? How big is the market for Platts? How do you get there? Do you have to do more big acquisitions? I'm particularly interested in the ag market, if that could be as big as the oil market is currently. Thanks.
It's a great question. It's a tricky thing to assess, Peter, because there's a couple of different factors. We can look at the aggregate value of what's produced. It's also what's transported and shipped. If it's put on a ship and moved, the farther it's moved, the more supply and demand dimensions come into it, and the more the need for price assessments from that occur. What the fact is we tend to look at are what's the underlying production value relative to other commodities? How many players are active in it? How active are the derivative markets now and likely to be? These are dimensions that allow us to get a sense for it.
I would just say all of these markets are large, complex global markets that we see over time evolving to utilize the tools and capabilities that are utilized in the oil and gas markets to great effect. What we're excited about is for the long term, these large markets, we believe, will evolve to utilize these systems as just a better way to manage price risk and volatility. To put a real dimension on it is tough. The second part of your question around acquisitions, we're always looking at and very interested in acquisitions, particularly those that can tuck in where someone's got a benchmark position established.
There's a big first-mover advantage in this market that if once you get the share of mind and you're embedded, as I described, into the contracts and into the fabric of the way the industry trades, that's a difficult position to unseat. Wherever we can work with a firm or acquire a business where they've established that foothold, we're real excited about pursuing that type of opportunity as a way to continue to expand the presence of the business.
Okay, thanks.
Jane in the back there.
Follow-up question from Alex Kramm. With the shale gas
I'm sorry, your name?
It's Jonathan Lu from Canaccord Genuity.
Thank you, Jonathan.
With the shale gas revolution, are producers and users of gas still seeing Henry Hub gas as a adequate benchmark? Are you actually seeing another potential price point coalesce for shale gas as distinct from Henry Hub gas?
I think it's a bit soon to tell. I think both. You take natural gas liquids, you take petroleum, and you take natural gas as well coming out of shale. I think as we see those flows continue to increase and map toward different locations and head toward the West Coast and the Gulf Coast, we may see more of that as a benchmark emerge. I think for now, Henry Hub's pretty well established as a highly liquid available benchmark. Things are changing. We're certainly watching the space carefully. We're very active in producing investments that reflect these shifts. Whether or not the market fully adopts these, that's something we have to wait and see how the market evolves on these.
Our view is we always want to be there with a solution for the market if that's where the market wants to move in terms of their use of a price assessment.
Okay. Bill?
Hi, Bill Bird from FBR. Alex, can you talk about what you're seeing competitively on pricing and how you see pricing developing in your market? Thank you.
Sure. Well, I think really this relates to what's happened in the ETF business. I don't think there's a lot of businesses nowadays that don't see a very competitive environment. We've always had, I think, pretty partner-friendly pricing policies to make sure that our partners are comfortable. As I said, our pricing model, without getting into a lot of details, involves things like price breaks as assets continue to grow. In terms of how the ETF providers are looking at it, certainly we see the world as kind of premium-branded products and lesser-branded products. Premium-branded products, again, continue to get very high pricing. These are products that are not substitutable. Where there is a little bit more competition, I think, is more on generic-type products.
I think a lot of the brands that we have, a lot of the products that we have fit squarely into that premium category.
Way in the back.
Yes. Tim McHugh with William Blair. I guess two questions on Platts. One is, I guess directionally speaking, what type of growth is still achievable in your most mature part of that business, I guess, in petroleum, if we wanted to think of it that way? If we thought about either historical or kind of future growth in terms of number of customers versus growth with existing customers, can you help us how we should think about that?
Sure. The second part of your question is again with the core business?
Overall.
Overall. Okay. What I would say is we've continued to see the core set of customers and the core business of petroleum to be a major source of growth, that's really reflected by the increasing use of prices within the firms. As I mentioned in the presentation, particularly in risk management systems, but just in general, embedding all of this data into the various systems that they utilize. This is just broadening usage. Many of the large customers are the same customers. We're not seeing new major integrated oil companies popping up. We are seeing increased use of our assessments in various forms, and our ability is to capture revenue growth as a result of that increased use. That we're quite encouraged by.
In terms of overall market expansion, we continue to bring on a significant number of what we call new logos and new customers that are new trading houses, various players that are not major producers or consumers necessarily, but are intermediaries in the business in one form or another. That continues to be a source of growth from a new client set. Certainly when we get out of the more mature markets like oil, those are much more of a green space for us in terms of customer sets that we haven't penetrated before.
We'll take one more question from Hamza in this session. These two folks will be back at the very end. Hamza.
Yeah, question for Alex. You spoke about consolidation in the market within indices. Maybe help us understand how we should think about synergies from an indices deal. How is equity different versus fixed income? How much incremental capacity do you have in the JV before you need to add headcount? Maybe help us understand that dynamic. Thanks.
Sure. Well, for someone like ourselves, where we're already calculating fixed income indices and equity indices, we think we have the platform in place that's certainly necessary to grow organically. In the equity space, depending on the types of indices, it is a very scalable business. When we went through the Dow acquisition, we literally took all of the Dow indices and brought them onto our platform. Our platform is fairly new, it's very robust. It allows us to handle multiple numbers of indices, both in real time and on an end-of-day basis. At some point, you do start needing to add people. It's index managers that'll manage the actual daily process. Also, as you continue to add customers, you need to have the customer relationships. When you get into some of the other asset classes, again, the technology's a little bit different.
The customer base is a little bit different. Something like a fixed income merging with an equity-type business, again, there's less scale, but even there, you're still dealing with a lot of the same customers and a lot of the same infrastructure.
Great. Alex, Larry, thanks. Next up is going to be Finbarr O'Neill, the President of J.D. Power.
Dean ranks highest in member satisfaction.
Among commercial health plans in the Minnesota Wisconsin region.
By J.D. Power and Associates.
Not once, not twice, but four years in a row. Got to love Dean.
Take the Silverado HD. It's the highest-ranked large heavy-duty pickup and initial quality in the U.S.
See the people screaming out more and more. I create the feeling that keep them coming back. Yeah, I create the feeling that keep them coming back. No cap, they say it when I get it on the floor. Know y'all been patiently waiting. I know you need me
The newest member of the Quicken Loans family. J.D. Power and Associates has ranked Quicken Loans highest in the nation in customer satisfaction. I say family because we've been blessed with this honor for three years in a row.
Who's got J.D. Power?
They really want more. More. Really I got it. You feel me on the floor.
Well, 200,000 commercials on TV and cable per year, 2 billion print ad impressions. It's no wonder that American consumers have an aided awareness of the J.D. Power brand of over 80%. The question we ought to ask is, why do companies promote the fact that they are number one in our studies?
Well, really, it's about the trust that's been built up over 46 years. Our core business is not the commercials. Our core business is what we call syndicated studies. We design, we field, we analyze, then, and only then, do we publish and sell all at our own expense, then we get the revenue back. It's that core data that we provide to the industries that we serve that provides the value that has built the trust over time. I'll tell you a little story. We didn't start out with the commercials. 16 years into the business, 1984, Dave Power, the founder of the business, is sitting watching the 1984 Super Bowl. The screen goes black and up scrolls the words, "According to J.D. Power, Subaru is second only to Mercedes-Benz in vehicle quality." That was the first commercial.
Our core is all about the research, the syndicated research. That's allowed us to expand through a number of industries. There's energy, there's telecom, hospitality, our core focus is automobiles, financial service, and insurance. We've now expanded globally. We do that syndicated research in 16 countries and four continents around the world. In fact, it may surprise you that we are the largest business for McGraw Hill Financial in China. We have become the benchmark in many industries. Our metrics around customer satisfaction not only allows companies to compare themselves to how their competitive set is doing, but also to establish KPIs within the industry, within the company, I should say, and tie compensation to that. A great example is from the automobile industry. Some of you may, in fact, have taken the IQS or Initial Quality Survey here.
What we do is survey new car owners in the first 90 days of ownership about the quality of their vehicle. It drives great metrics. The OEMs can't get enough of it, and they integrate it into the manufacturing process. If you go to General Motors factories around the world or Mercedes-Benz, you go to Mercedes-Benz, where they build the S model in East London, South Africa, or Hyundai. You'll see IQS as a metric. We are all about benchmarks. We help our clients measure and understand the drivers of customer satisfaction that are clearly tied to growth and profitability. That, folks, is essential intelligence. In an economy where consumers drive 70% of the economy, what do companies need to know? They need to know what motivates the consumer, what drives their loyalty, what makes them advocates of the brand.
I personally can't think of more essential intelligence than that. When you look at our business, you can see on the left-hand side, there are 3 buckets that it fits into. The first and biggest is research. It consists of the syndicated research, which we fund directly, which I talked about, the ad claims, which come from those clients that choose to promote the fact that they were number 1 in our surveys, and then something we call proprietary or tracking research. Essentially, that's a business where clients come to us and say, "We want you, J.D. Power, to do the research because of your benchmarks or because of your expertise." We take the sample from them, we do the analysis, and we provide the results to them. That's not published. That is contractual with the client. It's a sizable business across industries and around the globe.
The second bucket is the Power Information Network, we have a sample outside if you'd like to see it later. J.D. Power captures 30% of all the new and used retail car transactions at franchise dealers in the U.S. and Canada every day. That's a powerful database. It's used by the industry to understand demand, to understand pricing with incentives. Imagine that you are a Toyota executive, and you've been so rash as to say that the Camry is going to be number 1 in the mid-size segment. Sales velocity is slowing. Inventory is piling up. Let's say you got 60 days, and for the Camry, that's about 60,000 units on the ground. In the automobile industry, decisions are made in $500 or $1,000 increments when it comes to incentives. You're looking at a $60 million decision.
You don't want to make that based on some anecdote. You want to know what's going to give you the maximum lift for the minimum investment. That's where we come in. This is what our analytics on top of the PIN database provides. It's powerful stuff in the automotive industry. The third category is data-driven consulting. Essentially, we've built domain knowledge around what drives customer satisfaction. That allows us not only to help our clients measure and understand, but to integrate these benchmarks into their business, into their workflows. Whether it's customer satisfaction benchmarks or even the IQS benchmark, the one that I gave you the example of, that's integrated, becomes part of the fabric of how they do business.
All of this has led to some solid growth, and the top line would even be higher if we hadn't exited certain businesses that were, for us, unprofitable, like forecasting. We have changed the product mix. It's a much richer, higher margin mix, and the bottom line has grown substantially. We also wanted you to take a look at the profile of our business. About 60% comes from the automotive market globally, another 15% or so from financial services and insurance, and then the rest from the diversified group of businesses that we serve. You remember I mentioned energy, telecom, et cetera. Global growth is important to J.D. Power. Our growth is increasingly coming from abroad. You can see that right now, 41% of our revenue is sourced from abroad.
You can also see from this map that we are situated and do our syndicated research in economies that are critical to the automotive industry. China, the U.S., Brazil, India, Germany, Japan. We're right there with the metrics. That's important because it gives us confidence in our future growth. The U.S. automotive industry, by all accounts, has recovered. Transaction prices are at all-time highs, rebates or incentives are under control, inventories are well managed. Europe is now starting an upturn. It's leveled, and it's returning to health. The center of gravity in the automotive market has clearly shifted to Asia, and the big story there is China. You can see that China is growing at about a 7% CAGR over the rest of the decade, compared to 4% for the U.S. By the end