S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Q1 2016 Earnings Presentation
16 slides from S&p Global's earnings presentation, Apr 26, 2016
Slide 1: 1Q 2016 Earnings Call
1Q 2016 Earnings Call April 26, 2016 Doug Peterson President and CEO Jack Callahan Executive Vice President and CFO Chip Merritt Vice President, Investor Relations McGraw Hill Financial | 1Q 2016 Earnings Conference Call Comparison of Adjusted Information to U.S. GAAP Information This presentation i
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: 2016 – Off to a Good Start with 1Q Results
Doug Peterson President and Chief Executive Officer McGraw Hill Financial | 1Q 2016 Earnings Conference Call 5 2016 – Off to a Good Start with 1Q Results • Displayed the strength of our portfolio by delivering solid EPS growth despite weak global debt issuance • Announced that we have reached defini
Slide 4: Good Start to 2016
Good Start to 2016 ($ in millions) 1Q 2016 1Q 2015 Change Revenue $1,341 $1,273 +5%* Adj. Operating Profit $550 $507 +9% Adj. Operating Margin 41.1% 39.8% +130 bps Adjusted Diluted EPS $1.20 $1.11 +8% * Organic revenue decreased 1%. Organic revenue, on a constant-currency basis, was unchanged. 1Q 20
Slide 5: Market Intelligence
Market Intelligence: (Formerly S&P Capital IQ and SNL) Delivers Significant Integration Synergies ($ in millions) 1Q 2016 1Q 2015 Change Revenue $407 $320 +27%* Adj. Segment Operating Profit $123 $68 +81% Adj. Segment Operating Margin 30.3% 21.3% +900 bps * Organic revenue increased 7%. 1Q 2016 high
Slide 6: Standard & Poor's Ratings Services
Standard & Poor’s Ratings Services: Slow Start to Quarter Leads to Revenue Decline ($ in millions) 1Q 2016 1Q 2015 Change Revenue $552 $606 (9%) Adj. Segment Operating Profit $252 $286 (12%) Adj. Segment Operating Margin 45.6% 47.2% (160 bps) 1Q 2016 highlights: • Revenue decreased 8%, excluding for
Slide 7: 1Q 2016 Global Bond Issuance Declined 14%
1Q 2016 Global Bond Issuance Declined 14% Issuance by Region ($ in billions) ‐24% $619 ‐10% $470 $442 $400 +8% $300 $278 ‐27% $82 $60 U.S. EMEA Asia Americas Ex‐U.S. All figures exclude sovereign issuance 1Q15 1Q16 McGraw Hill Financial | 1Q 2016 Earnings Conference Call 13 Issuance Decreased Year-O
Slide 8: 2016 Global Refinancing Study Points to Increase in Global Corporate Debt Maturities
2016 Global Refinancing Study Points to Increase in Global Corporate Debt Maturities and Mounting High-Yield Maturities 2015 Study Totaled $8.9 Trillion* 2016 Study Totaled $9.5 Trillion ($ Trillions) Global Corporate Debt Maturities Global Corporate High‐Yield $2.1 Debt Maturities $1.9 $1.9 $1.9 $1
Slide 9: S&P Dow Jones Indices
S&P Dow Jones Indices: Market Volatility Leads to Increased Exchange-Traded Derivative Activity ($ in millions) 1Q 2016 1Q 2015 Change Revenue $151 $143 +5% Adj. Segment Operating Profit $102 $97 +5% Adj. Segment Operating Margin 67.7% 67.6% +10 bps MHFI Share of Adj. Seg. Op. Profit* $76 $72 +5% *
Slide 10: Commodities & Commercial Markets
Commodities & Commercial Markets: Platts Leads 1Q Revenue Growth ($ in millions) 1Q 2016 1Q 2015 Change Revenue $254 $225 +13%* Adj. Segment Operating Profit $107 $89 +21% Adj. Segment Operating Margin 42.2% 39.4% +280 bps * Organic growth was 8%, excluding revenue from NADA Used Car Guide and Petro
Slide 11: 2016 – Off to a Good Start with 1Q Results
2016 – Off to a Good Start with 1Q Results • Breadth of portfolio weathers market volatility and weak issuance • Based on the strength of our portfolio we are off to a good start in 2016 and maintain our adjusted diluted EPS guidance of $5.00 to $5.15 • We made good progress with the integration of
Slide 12: Financial Highlights — Key Areas
Financial Highlights — Key Areas • Consolidated income statements results • Adjustments to Q1 earnings • Revenue mix reporting change • Balance sheet, free cash flow, and return of capital results • 2016 guidance unchanged McGraw Hill Financial | 1Q 2016 Earnings Conference Call 23 1Q 2016: Margin I
Slide 13: 1Q 2016: Non-GAAP Adjustments to Operating Profit
1Q 2016: Non-GAAP Adjustments to Operating Profit ($ in millions) 1Q 2016 Market Intelligence technology related impairment (24) charge Insurance recoveries partially offset by accruals for +12 potential legal settlements J.D. Power disposition-related costs (3) Total pre-tax loss excluded from adju
Slide 14: Short-Term Debt Increases Seasonally
Short-Term Debt Increases ($ in millions) 1Q 2016 4Q 2015 Cash and cash equivalents $1,600 $1,481 Short‐term debt $472 $143 Long‐term debt $3,469 $3,468 • Approximately 90% of cash is outside the U.S. • Incurred short‐term debt to meet U.S. cash requirements • Short‐term debt includes commercial pap
Slide 15: 2016 Guidance Unchanged
2016 Guidance Unchanged Income Statement ($ in millions) 2016 Guidance Revenue Mid to high single-digit Adjusted unallocated expense $145-150 million Deal-related amortization ~$98 million Adjusted operating profit margin increase ~50 bps* Interest expense ~$160 million Adjusted tax rate ~31% Adjust
Slide 16: 1Q 2016 Earnings Call – Replay Options
1Q 2016 Earnings Call April 26, 2016 REPLAY OPTIONS Internet: Replay available for one year Go to http://investor.mhfi.com Telephone: Replay available through May 26, 2016 Domestic: 888‐566‐0104 International: 402‐220‐9103 No password required McGraw Hill Financial | | 1Q 2016 Earnings Conference Ca
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