Slide 1: 2Q 2017 Earnings Conference Call
2Q 2017 Earnings Conference Call Doug Peterson President and CEO Ewout Steenbergen Executive Vice President and CFO Chip Merritt Vice President, Investor Relations July 27, 2017 Comparison of adjusted information to U.S. GAAP information This presentation includes adjusted financial measures that ar
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,” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future events, trends,
Slide 3: 2Q 2017 highlights
Doug Peterson President and Chief Executive Officer 2Q 2017 highlights • Attained strong organic revenue and adjusted operating profit growth in every segment • Achieved outstanding revenue growth of 20% from S&P Dow Jones Indices • Delivered 330 basis points of adjusted profit margin improvement an
Slide 4: 10% organic revenue growth propelled results
10% organic revenue growth propelled results 2Q 2017 2Q 2016 Change Revenue $1,509 $1,482 +2% Organic revenue $1,504 $1,364 +10% Adjusted operating profit $715 $652 +10% Adjusted operating margin 47.4% 44.1% +330 bps Average diluted shares outstanding 259.9 266.7 (6.8) shares Adjusted diluted EPS $1
Slide 5: Bank loan ratings revenue growth accelerated in 1st half of 2017
Bank loan ratings revenue growth accelerated in 1st half of 2017 for S&P Global Ratings $300 $250 $200 2Q $150 $100 1Q $50 $0 2010 2011 2012 2013 2014 2015 2016 2017 (revenue, $ in millions) 9 Global issuance decreased slightly versus 2Q16 despite strength in structured finance issuance United State
Slide 6: Forecast 2017 global issuance to decline by 5%
Forecast 2017 global issuance to decline by 5% due to decline in International Public Finance $7,000 International Public Finance Forecast $6,000 U.S. Public Finance Structured Finance** $5,000 Financial Services $4,000 Nonfinancials $3,000 $2,000 $1,000 $0 2012 2013 2014 2015 2016 2017* ($, billion
Slide 7: S&P Dow Jones Indices Annual Survey of Assets
S&P Dow Jones Indices Annual Survey of Assets $11.7 trillion in assets globally track indices managed by SPDJI – $7.5 trillion benchmarked – $4.2 trillion indexed via investment products (37% increase over 12/31/15) Index Investment Category Highlights S&P 500 Smart Beta Fixed Income (assets in tril
Slide 8: Platts continues to expand its reach
Platts continues to expand its reach • Platts celebrates 10 year anniversary of eWindow Operating in more than 100 markets across oil, refined products, 10th ANNIVERSARY petrochemicals, metals and agriculture Platts eWindow ® involving more than 2,000 traders • CME to launch Australian Wheat Futures
Slide 9: 2Q 2017: Marked by improvements in revenue, profit margin, tax rate, and shares outstanding
Ewout Steenbergen Executive Vice President, Chief Financial Officer 17 2Q 2017: Marked by improvements in revenue, profit margin, tax rate, and shares outstanding 2Q 2017 2Q 2016 Change Revenue $1,509 $1,482 +2% Organic revenue $1,504 $1,364 +10% Adjusted total expense $794 $830 (4%) Adjusted operat
Slide 10: Minimal impact of foreign exchange rates on 2Q 2017 results
Minimal impact of foreign exchange rates on 2Q 2017 results Market and S&P Dow Favorable (Unfavorable) Ratings Commodities Jones Indices Intelligence Revenue ($6) ($2) – Adj. operating profit ($1) +$2 +$1 ($ in millions) Key factors mitigating impact of currency changes • Approximately ½ of internat
Slide 11: Strong organic revenue growth in every segment
Strong organic revenue growth in every segment 2Q 2017 vs. 2Q 2016 Market and S&P Dow Ratings Commodities Jones Indices Intelligence Reported revenue +10% (10%) +20% Organic revenue +10% +8% +19% Adjusted operating profit +8% +5% +18% 2Q 2017 adjusted operating 53.3% 37.5% 65.1% margin Adjusted oper
Slide 12: S&P Dow Jones Indices: All businesses delivered double-digit revenue growth
S&P Dow Jones Indices: All businesses delivered double-digit revenue growth $200 Revenue $184 $180 $160 $153 $37 +16% $140 $32 $33 Data & Custom $120 +12% Subscriptions $100 $29 Exchange-Traded $80 Derivatives +24% Asset Linked Fees $60 $114 $40 $92 $20 $0 2Q 2016 2Q 2017 ($ in millions) Details may
Slide 13: S&P Dow Jones Indices: Exchange-traded derivatives revenue increased 12%
S&P Dow Jones Indices: Exchange-traded derivatives revenue increased 12% Transaction (exchange-traded Key Contracts derivatives): (Average Daily Volume) • Revenue increased 12% with 3,000 gains in S&P 500 index options 2,500 S&P 500 and VIX futures & options activity Index Options 2,000 (up 8% and 1
Slide 14: Market Intelligence: Recent divestitures mask solid organic growth
Market Intelligence: Recent divestitures mask solid organic growth 2Q 2017 2Q 2016 Change Revenue $414 $416 (1%) ($ in millions) 2Q 2017 HIGHLIGHTS: • Organic revenue increased 9% with growth across all major businesses • Realized an 11% increase in Market Intelligence desktop users • On track to ac
Slide 15: Platts: Delivered modest organic revenue growth despite difficult commodity markets
Platts: Delivered modest organic revenue growth despite difficult commodity markets 2Q 2017 2Q 2016 Change Revenue $192 $175 +10% ($ in millions) 2Q 2017 HIGHLIGHTS: • Organic revenue increased 4% due to modest growth in subscriptions bolstered by strong growth in Global Trading Services – The core
Slide 16: Ratings: Delivered strong revenue growth
Ratings: Delivered strong revenue growth 2Q 2017 2Q 2016 Change Revenue $747 $682 +10% Adjusted segment operating profit $398 $369 +8% Adjusted segment operating margin 53.3% 54.1% (80 bps) Trailing four quarters adjusted 51.4% 48.2% +320 bps segment operating margin ($ in millions) 2Q 2017 HIGHLIGH
Slide 17: Ratings: Corporate and structured revenue led 2Q growth
Ratings: Corporate and structured revenue led 2Q growth $800 Revenue $747 $700 $682 $83 +10% $75 $59 $600 (9%) $65 $74 $64 +14% CRISIL, Other* $500 $113 $107 +6% Governments $400 Structured $300 Financials $419 Corporates $200 $370 +13% $100 $0 2Q 2016 2Q 2017 ($ in millions) *Other includes interse
Slide 18: YTD free cash flow up over prior period
YTD free cash flow up over prior period 2Q 2017 YTD 2Q 2016 YTD Cash provided by operating activities $674 $640 Capital expenditures (56) (36) Distributions to noncontrolling interest holders (54) (57) Free cash flow $564 $547 Tax on gain from sale of SPSE and CMA 67 - After-tax legal settlements an
Slide 19: Our guiding principles
Our guiding principles Our capital allocation framework • We routinely explore and analyze internal and inorganic growth opportunities in order to deliver upon our strategic goals and enhance our competitive positioning • Management conducts an in-depth review of each potential opportunity within a
Slide 20: 2017 GAAP guidance: Changes highlighted below
2017 GAAP guidance: Changes highlighted below Previous Guidance New Guidance Reported revenue Low single-digit increase Mid single-digit increase Organic revenue N.A. N.A. Unallocated expense $130 – $140 million $130 – $135 million Deal-related amortization N.A. N.A. Operating profit margin 42.5% -
Slide 21: 2Q 2017 Earnings Conference Call
2Q 2017 Earnings Conference Call Doug Peterson President and CEO Ewout Steenbergen Executive Vice President and CFO Chip Merritt Vice President, Investor Relations July 27, 2017 2Q 2017 Earnings Conference Call REPLAY OPTIONS Internet: Webcast replay available for one year Go to http://investor.spgl