S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Barclays Global Financial Services Conference 2014
15 slides from S&p Global's conference presentation, Sep 8, 2014
Slide 1: Barclays Global Financial Services Conference
BARCLAYS GLOBAL FINANCIAL SERVICES CONFERENCE Doug Peterson – President & CEO September 8, 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
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: 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 4: MHFI: A Proven Track Record of Growth
MHFI: A Proven Track Record of Growth Annual Revenue Growth Adjusted Operating Margin +9% CAGR Mid > 100 bps 33% single‐digit 31% $4,875 28% $4,450 $3,954 2011 2012 2013 2014 2011 2012 2013 2014 Guidance Guidance McGraw Hill Financial 6 Growth & Performance Goals for 2014–2016 Creating Growth & Driv
Slide 5: An Exceptional Investment Opportunity
An Exceptional Investment Opportunity LEADING BRANDS UNPARALLED ANALYTICS COMPELLING TRULY GLOBAL FINANCIAL ADVANTAGES McGraw Hill Financial 8 Secular Market Trends Position MHFI for Sustained Growth Significant debt maturities will lead to strengthened issuance Major refinancing required for infras
Slide 6: A Truly Global Company
A Truly Global Company North America Headcount 6,000 Revenue $ 3.1B EMEA Headcount 2,000 Revenue $ 1.2B Asia Pacific Headcount 9,500 Revenue $ 0.5B Latin America Headcount 500 Revenue $ 0.1B ~18,000 Employees 30 Countries 95 Global Offices Revenue by Region as of 12/31/2013; Other totals as of Aug 2
Slide 7: MHFI: Double-Digit Earnings Growth
MHFI: Double‐Digit Earnings Growth Annual Adjusted Diluted EPS +23% CAGR $3.80 ‐ $3.90 $3.33 Recently increased $2.75 $2.09 2011(1) 2012 2013 2014 Guidance Anticipate free cash flow of approximately $1 billion in 2014 (1) 2011 adjusted EPS excludes gain on divestiture of Broadcasting McGraw Hill Fin
Slide 8: 1H 2014 Results by Line of Business
1H 2014 Results by Line of Business Revenue: $2,581M Adj. Segment Op. Profit: $988M ($ in millions) ($ in millions) Commodities Commodities & Commercial & Commercial $514 $159 S&P DJ $1,233 S&P DJ $269 $174(1) Indices Indices $548 $608 $107 S&P S&P S&P S&P Capital IQ Ratings Capital IQ Ratings 1) Op
Slide 9: 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 • 1H 2014 results driven primarily by – Strength in frequent i
Slide 10: 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 • 1H 2014 results driven by: – Assets under management in ETFs which increased 32% to a record $719 billion at end
Slide 11: 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 • Compustat • RatingsXpress® Intelligence (GMI) • Consolidated Feeds • Leveraged Commentary & Dat
Slide 12: 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 • Thousands of daily
Slide 13: Enhanced Balance Sheet Strength
Enhanced Balance Sheet Strength Year‐End Debt & Cash Positions $1,635M $1,560M $1,265M $1,198M $864M $799M $799M $761M Debt Cash 2011 2012 2013 1H 2014 Debt / EBITDA 1.0x 0.8x 0.5X McGraw Hill Financial 24 Investing to Expand Portfolio: 2011–2014 MHFI Transactions S&P Dow Jones Indices S&P Capital I
Slide 14: Returning Substantial Cash to Shareowners
Returning Substantial Cash to Shareowners ($ in millions) Announced new 50 million share repurchase authorization $1,796 in December $1,279 $1,297 $548 $525 2010 2011 2012 2013 1H 2014 Share Repurchase Dividend McGraw Hill Financial 26 McGraw Hill Financial • A new company with a 125‐year heritage ‒
Slide 15: Intelligence
Intelligence 15
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