S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — William Blair Growth Stock Conference 2014
14 slides from S&p Global's conference presentation, Jun 11, 2014
Slide 1: William Blair Growth Stock Conference
WILLIAM BLAIR GROWTH STOCK CONFERENCE Jack Callahan ‐ CFO June 11‐12, 2014 McGraw Hill Financial Comparison of Adjusted Information to U.S. GAAP Information This presentation includes adjusted financial measures that are derived from the Company’s continuing operations. This non‐ GAAP information is
Slide 2: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward‐looking statements, including without limitation statements relating to our businesses and our prospects, new products, sales, expenses, tax rates, cash flows, and operating and capi
Slide 3: Growth & Performance Goals for 2014–2016
Growth & Performance Goals for 2014–2016 Creating Growth & Driving Performance • Set annual growth goals: • Shifting from a holding company – Mid to high single‐digit revenue growth to an active management model – Sustained margin expansion • Completing portfolio – Mid teens EPS growth rationalizati
Slide 4: A Leading Provider of Ratings, Benchmarks, Analytics & Research
A Leading Provider of Ratings, Benchmarks, Analytics & Research Leading rating agency Premier provider of high quality data, analytical tools and ratings information Foremost index provider Principal provider of commodity price assessments and information Primary quality benchmark provider with deep
Slide 5: A Truly Global Company
A Truly Global Company North America Headcount 5,900 Revenue $ 3.1B EMEA Headcount 1,800 Revenue $ 1.2B Asia Pacific Headcount 8,800 Revenue $ 0.5B Latin America Headcount 500 ~17,000 Employees Revenue $ 0.1B 29 Countries 94 Global Offices McGraw Hill Financial 88 MHFI: A Proven Track Record of Grow
Slide 6: New Productivity Target >$100M
New Productivity Target 2014–2016 Cost Reduction Initiatives Other Corporate / Stranded Restructuring Data Acquisition Costs >$100M Technology Leverage Real Estate Procurement McGraw Hill Financial 10 MHFI: Double‐Digit Earnings Growth Annual Adjusted Diluted EPS +22% CAGR $3.75 ‐ $3.85 $3.33 $2.75
Slide 7: MHFI: 1Q 2014 Results
MHFI: 1Q 2014 Results ($ in millions) 1Q 2014 1Q 2013 Change Revenue $1,236 $1,181 +5%* Adj. Operating Profit $430 $399 +8% Adj. Operating +100 34.8% 33.8% Margin bps Adj. Diluted EPS $0.89 $0.80 +12% * Organic growth was 6% excluding lost revenue from 2013 portfolio rationalization McGraw Hill Fina
Slide 8: Standard & Poor's Ratings Services
Standard & Poor’s Ratings Services • Well positioned to capitalize on opportunities provided by structural changes in capital markets: – Developing capital markets – Bank deleveraging in developed markets – Recovery in structured finance • 1Q 2014 results driven primarily by – Strength in frequent i
Slide 9: S&P Dow Jones Indices
S&P Dow Jones Indices • Revenue generated from: – ETF and mutual fund contracts – Licensing of indices for derivative trading – Profit sharing with exchange partner – Data subscriptions • 1Q 2014 results driven by: – Assets under management in ETFs which increased 27% to $667B at end of the quarter
Slide 10: S&P Capital IQ
S&P Capital IQ • Revenue generated from: S&P Capital IQ Desktop S&P Credit S&P Capital IQ & Enterprise Solutions Solutions Markets Intelligence • S&P Capital IQ Desktop • RatingsDirect® • Global Markets • Portfolio Risk • RatingsXpress® Intelligence (GMI) • Compustat • Leveraged Commentary • Consoli
Slide 11: Commodities & Commercial (C&C) Markets
Commodities & Commercial (C&C) Markets Premier source of benchmarks, high‐value information, data, and analytic services • Revenue generated from • Revenue generated from subscriptions and licensing for subscriptions, proprietary derivative trading research, and brand licensing • 12,000+ price asses
Slide 12: Enhanced Balance Sheet Strength
Enhanced Balance Sheet Strength Year‐End Debt & Cash Positions $1,560M $1,265M $1,198M $864M $761M $799M Debt Cash 2011 2012 2013 Debt / EBITDA 1.0x 0.8x 0.5x McGraw Hill Financial 22 Investing to Expand Portfolio: 2011–2013 MHFI Transactions S&P Dow Jones Indices S&P Capital IQ (2012) (2012) (2012)
Slide 13: Returning Substantial Cash to Shareowners
Returning Substantial Cash to Shareowners ($ in millions) Announced new 50 million share repurchase authorization $1,796 in December $1,279 $1,297 $548 $256 2010 2011 2012 2013 1Q 2014 Dividend Share Repurchase McGraw Hill Financial 24 McGraw Hill Financial • A new company with a 125‐year heritage ‒
Slide 14: Intelligence
Intelligence 14
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