Slide 1: S&P Global Quarterly Update: 4Q and Full-Year 2023
S&P Global Quarterly Update February 8, 2024 4Q and Full-Year 2023 1
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 Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in for
Slide 3: Comparison of adjusted information to U.S. GAAP information
Comparison of adjusted information to U.S. GAAP information This presentation includes Company financials on an as-reported basis, and on a pro forma basis as if The Company's non-GAAP measures include adjustments that reflect how management views our the merger had closed on January 1, 2021, for pe
Slide 4: European regulations affecting investors in credit rating agencies
European regulations affecting investors in credit rating agencies European Union Regulation 1060/2009 (as amended) applies to credit rating agencies Any person obtaining direct or indirect ownership or control of 5% or more or 10% (CRAs) registered in the European Union (“EU”) and therefore to the
Slide 5: Quarterly Update Call Presenters
Quarterly Update Call Presenters Doug Ewout Mark Peterson Steenbergen Grant President and CEO Executive Vice Senior Vice President, President and CFO Investor Relations 5
Slide 6: Strategy, Vision, and Execution
Strategy, Vision, and Execution Doug Peterson President and CEO 6
Slide 7: Full-year 2023 highlights
Full-year 2023 highlights Financial highlights 1 Additional highlights Revenue increased 8% y/y, excluding the impact of Creation of formal AI Accelerator, launch of multiple divestitures, with growth in all divisions, and Gen AI products and features, and appointment of acceleration in 4 of 5 divis
Slide 8: Customer at the Core, Grow & Innovate, Lead & Inspire, Execute & Deliver
Customer at the Core Grow & Innovate Data & Technology Lead & Inspire Execute & Deliver 8
Slide 9: Success in 2023 creates a strong foundation for 2024
Customer at the Core Success in 2023 creates a strong foundation for 2024 2023 success factors 2024 outlook • Strong customer retention rates • Ongoing macro questions drive strong across divisions demand for S&P Global’s unique data and insights in global markets • New products and features at an a
Slide 10: Issuance growth driven by Bank Loans & High-Yield
Customer at the Core Issuance growth driven by Bank Loans & High-Yield Billed issuance +19% in 4Q Billed issuance +8% in 2023 ($ in billions) ($ in billions) $596 $2,533 $2,344 $502 $225 $1,102 $1,038 $248 $58 $163 $258 Investment Grade $35 High-Yield $312 $1,144 $1,172 $219 Other 1 4Q '22 4Q '23 20
Slide 11: Surpassed Vitality Index target of 10%+ in 2023
Grow & Innovate Surpassed Vitality Index target of 10%+ in 2023 2023 Vitality revenue1 Key contributors of Vitality revenue ($ in millions) +18% CARFAX Car Listings (Mobility) $1,418 $1,202 Energy Transition and Climate Products (CI) Thematics & Factors Indices (SPDJI) Vitality 11.5% Index 2 10.5% P
Slide 12: 2023 was a year of innovation and development
Grow & Innovate 2023 was a year of innovation and development S&P Global Platts Connect 2 Capital IQ Pro Power Evaluator 1 Enhancements 3 • AI-enabled search • ChatIQ functionality • Country Risk Scores • Loan and Pricing & Economic Data and Analytics Insights Supplier Risk Indicator 4 Stablecoin S&
Slide 13: Accelerating Artificial Intelligence capabilities
Data & Technology Accelerating Artificial Intelligence capabilities Enterprise Technology and AI Leadership Swamy Kocherlakota Bhavesh Dayalji Chief Digital Solutions Officer, S&P Global Chief Artificial Intelligence Officer, S&P Global Chief Executive Officer, Kensho AI Vision for 2024 & Beyond Enh
Slide 14: Proprietary data & tools enabling AI flywheel
Data & Technology Proprietary data & tools enabling AI flywheel Natural language Content Functional Intelligent search Embedded AI query summarization copilots Capabilities Hyperscale Proprietary LLMs 3rd Party LLMs Vendor Agnostic cloud providers Open Ecosystem Proprietary Tools Proprietary Data an
Slide 15: Fostering growth and leadership
Lead & Inspire Fostering growth and leadership For all our stakeholders External Recognition Corporate Equality Index INvolve Launched Accelerate Progress LIVE across Human Rights Campaign Foundation 2023 Outstanding LGBTQ+ Role Model enterprise to reinforce our commitment to 2016-2023 Lists featuri
Slide 16: Delivered strong revenue growth in 2023
Execute & Deliver Delivered strong revenue growth in 2023 1 2023 Revenue 2023 Adjusted 2023 Adjusted Financial Performance Growth 2 Operating Margin 3 Operating Margin Y/Y 3 +7% 33.0% +120 bps +9% 56.5% +60 bps +10% 46.1% +180 bps +10% 38.8% (20) bps +4% 68.9% +50 bps Total S&P Global +6%1,4 45.9% +
Slide 17: Delivering the power of the merger
Execute & Deliver Delivering the power of the merger Capital Returns & Earnings Power Select Integration Achievements $17.5 billion in share repurchases and 800+ 3rd-party contracts renegotiated dividends Accretive to adjusted EPS in 2023 40 offices consolidated or closed Synergy Program Portfolio &
Slide 18: Financial Strategy and 4Q Results
Financial Strategy and 4Q Results Ewout Steenbergen Executive Vice President and CFO 18
Slide 19: Fourth quarter enterprise financial results
Fourth quarter enterprise financial results Revenue 1 Adjusted Operating Profit & Expense 1 ($ in millions) ($ in millions) y/y y/y $3,152 $3,152 $2,937 $360 5% $2,937 $344 $377 9% $345 $1,390 15% $1,211 Indices $497 10% $451 Mobility 45.2% 41.2% 44.1% 41.2% Commodity Insights Adjusted Operating Pro
Slide 20: Continued growth in strategic investment areas
Continued growth in strategic investment areas Sustainability & Private Market Vitality Energy Transition 1 Solutions 2 Revenue 3 ($ in millions) ($ in millions) ($ in millions) +17% +18% +19% $84 $113 $380 $72 $96 $320 Vitality 12.0% Index 4 11.3% 4Q '22 4Q '23 4Q '22 4Q '23 4Q '22 4Q '23 Note: Cat
Slide 21: Cost synergy program exceeded target, revenue synergies tracking ahead of plan
Cost synergy program exceeded target, revenue synergies tracking ahead of plan Outperformed Cost Synergy Targets Revenue Synergies ($ in millions) ($ in millions) Targeted $600 million Targeting $350 million run-rate in 2023, run-rate in 2026 $350 $619 $600 exceeded by $19M Targeting 45% achieved in
Slide 22: 4Q 2023 Expense Bridge
4Q 2023 Expense Bridge Total Adjusted Expenses1 ($ in millions) 4Q2022 4Q2023 1. Refers to non-GAAP adjusted expenses in the current period and the year-ago period 22
Slide 23: S&P Global Market Intelligence
S&P Global Market Intelligence Revenue Adjusted Operating Profit & Expense 1 ($ in millions) ($ in millions) y/y y/y $1,127 $1,127 $1,037 $1,037 7% $386 18% $282 $265 $326 Desktop 34.2% 31.4% $356 8% Data & Advisory Solutions $329 Adjusted Operating Profit Enterprise Solutions Adjusted Expense $711
Slide 24: S&P Global Ratings
S&P Global Ratings Revenue Adjusted Operating Profit & Expense 2 ($ in millions) ($ in millions) y/y y/y $838 $838 $705 $145 11% $705 $52 13% $131 $447 32% 30% CRISIL, Other 1 $46 $108 $338 Governments $83 $138 6% Adjusted Operating Profit 53.4% Structured Finance $129 48.0% Financials Adjusted Expe
Slide 25: S&P Global Commodity Insights
S&P Global Commodity Insights Revenue Adjusted Operating Profit & Expense 1 ($ in millions) ($ in millions) y/y y/y $497 $497 $451 $44 8% $451 Advisory & Transactional $41 $220 Services $107 3% $201 10% $103 Upstream Data & Insights Adjusted Operating Profit $170 44.6% 44.4% Price Assessments $152 1
Slide 26: S&P Global Mobility
S&P Global Mobility Revenue Adjusted Operating Profit & Expense 1 ($ in millions) ($ in millions) y/y y/y $377 $377 $345 $345 $62 5% $58 $127 8% $117 $89 2% $87 34.0% 33.7% Financials & Other Adjusted Operating Profit Manufacturing Adjusted Expense $228 $250 10% Dealer Adjusted Operating Margin $199
Slide 27: S&P Dow Jones Indices
S&P Dow Jones Indices Revenue Adjusted Operating Profit & Expense 1 ($ in millions) ($ in millions) y/y y/y $344 $360 $344 $360 $68 $71 4% Data & Custom $56 $68 22% $214 $238 11% Subscriptions Exchange-Traded Adjusted Operating Profit 66.1% Derivatives 62.2% Adjusted Expense Asset-Linked Fees Adjust
Slide 28: 2023 finance highlights
2023 finance highlights Robust capital allocation framework Continued investments in organic, strategic initiatives Returned $4.4B in capital to ~$140M of investments into enterprise shareholders through share buybacks strategic initiatives, including in private and dividends, more than 100% of 2023
Slide 29: 2024 Outlook and Initial Guidance
2024 Outlook and Initial Guidance Doug Peterson President and CEO 29
Slide 30: 2024 economic factors facing the Company
2024 economic factors facing the Company Macroeconomic Environment: + Soft landing as inflation eases – Geopolitical and supply chain risks +/– Energy transition/IRA Equity Markets: + Continued flows from active to passive +/– Changes in market volatility Fluctuation in average asset prices in +/– g
Slide 31: 2024 macroeconomic assumptions underlying guidance
2024 macroeconomic assumptions underlying guidance Real GDP United States Platts Dated Billed Issuance 4 Growth 1 CPI 2 Brent 3 +2.8% +2.4% $83 +3% to +7% Global Average Per Barrel United States +1.5% Eurozone +0.8% China +4.6% India +6.4% Note: S&P Global Ratings billed issuance includes the impact
Slide 32: January 2024 Global Refinancing Study
January 2024 Global Refinancing Study $12 trillion of global corporate debt maturities expected over next 5 years, up 11% compared to the same study last year ($ in billions) $3,000 $2,500 As of 1/1/2023 $2,000 As of 7/1/2023 $1,500 As of 1/1/2024 $1,000 $500 $0 2024 2025 2026 2027 2028 2029 2030 20
Slide 33: Initial 2024 GAAP guidance
Initial 2024 GAAP guidance Revenue Growth 5.5% - 7.5% Operating Profit ~500 bps Margin Expansion Diluted EPS $10.70-$10.95 33
Slide 34: Initial 2024 adjusted guidance
Initial 2024 adjusted guidance Revenue Growth 5.5% - 7.5% 7% - 9% organic1 Operating Profit ~ 100 bps Margin Expansion Diluted EPS $13.75-$14.00 +9% to +11% y/y 1. Organic revenue excludes contributions from divestitures in all periods 34
Slide 35: Initial 2024 division outlook
Initial 2024 division outlook Revenue Adjusted Operating Growth Profit Margin Outlook 6.0% - 7.5% 33.5% - 34.5% 6.0% - 8.0% 57.5% - 58.5% 8.0% - 9.5% 46.5% - 47.5% 8.5% - 10.0% 39.0% - 40.0% 7.0% - 9.0% 68.5% - 69.5% 35
Slide 36: 4Q and Full-Year 2023 Earnings Call
4Q and Full-Year 2023 Earnings Call Doug Peterson Adam Kansler President and CEO President, S&P Global Market Intelligence Ewout Steenbergen Martina Cheung Executive Vice President and CFO President, S&P Global Ratings and Executive Lead, Sustainable1 Mark Grant Senior Vice President, Investor Relat
Slide 37: 4Q and Full-Year 2023 Earnings Call
4Q and Full-Year 2023 Earnings Call Doug Peterson REPLAY OPTIONS President and CEO Internet: Replay available for one year Ewout Steenbergen Go to http://investor.spglobal.com Executive Vice President and CFO Mark Grant Telephone: Replay available through March 8, 2024 Senior Vice President, Investo