S&p Global Inc. · NYSE:SPGI
S&p Global — Investor Day (December 2022)
113 slides from S&p Global's investor day presentation, Dec 1, 2022
Slide 1: Powering Global Markets – Investor Day 2022
ASR WAS caysaeee , Sieaaes WW | \ 3 Win ~~ 7 ~ Powering Global Markets | Investor Day 2022 S&P Global
Slide 2: Welcome
Welcome Mark Grant Senior Vice President, Investor Relations S&P Global 2
Slide 3: 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 4: Comparison of adjusted information to U.S. GAAP information
Comparison of adjusted information to U.S. GAAP information This presentation includes Company financials on Reconciliations of certain forward looking non- periods, and management also uses these an as-reported basis, and on a pro forma basis as GAAP financial measures to comparable GAAP measures i
Slide 5: EU regulation affecting investors in credit rating agencies
EU regulation affecting investors in credit rating agencies European Union Regulation 1060/2009 (as Any person obtaining direct or indirect ownership or amended) applies to credit rating agencies control of 5% or more or 10% or more of the shares (CRAs) registered in the European Union (“EU”) in S&P
Slide 6: Investor Day Agenda: December 1, 2022
Investor Day Agenda: December 1, 2022 12:00pm–1:00pm Registration, Lunch & Product Showcase 2:35pm–2:55pm Refreshment Break 1:00pm–1:05pm Welcome 2:55pm–3:10pm S&P Global Commodity Insights Mark Grant, Senior Vice President, Investor Relations Saugata Saha, President, S&P Global Commodity Insights 1
Slide 7: Product Showcases
Product Showcases S&P Global S&P Global S&P Global S&P Global S&P Dow Jones Market Intelligence Ratings Mobility Commodity Insights Indices S&P Capital IQ Pro Ratings360® CARFAX Platts Dimensions Liquid Index Pro Energy Transition Ecosystems iLEVEL Portfolio Monitoring Software Energy Studio: Impact
Slide 8: Powering Global Markets
Powering Global Markets Doug Peterson President and Chief Executive Officer S&P Global 8
Slide 9: By Powering Global Markets, We Accelerate Progress
By Powering Global Markets, We Accelerate Progress Today, the right decisions lead to progress, for organizations and for the world. Our Essential Intelligence is a catalyst to accelerate progress. Powering Global Markets 9
Slide 10: Key secular trends in complex and evolving global markets
Key secular trends in complex and evolving global markets S&P Global is uniquely positioned to capitalize on these new trends Transformation of capital Supply chain dislocation markets and trading, and and uncertainty demand for risk solutions Sustainability and Shift to passive, energy transition i
Slide 11: Our Strengths
Our Strengths Brand Credit Analytics ClearPar Ratings360® Loan Platforms VIX S&P GSCI The Dow RatingsDirect® EDIN CDX S&P 500 iBoxx iTraxx KY3P® Enterprise CRISIL Kingdom® Data Management Harmony Enterprise iLEVEL Global Markets Group (GMG) Powering Global Markets 11
Slide 12: Our Strengths
Our Strengths Brand People Customer Benchmarks Relationships & Ratings Platforms & Best in Class Data Science Workflows Data & Analytics Capabilities Global Capital Execution Powering Global Markets 12
Slide 13: Executive Committee
Executive Committee Douglas L. Peterson Ewout Steenbergen Adam Kansler Martina L. Cheung Saugata Saha Edouard Tavernier Dan Draper President and Executive Vice President, President, President, President, President, Chief Executive Officer, Chief Executive Officer, Chief Financial Officer, S&P Global
Slide 14: Consistent creation of shareholder value
Consistent creation of shareholder value SPGI Share Price & Price-to-Earnings SPGI Acquisitions Merger Share Price SNL Financial SAM IHS Markit Appreciation1 PIRA IRI cFLOW TruCost 451 Research Enerdata +409% Kensho Greenwich Peers Associates Panjiva The Climate +183% Rate Watch Service 25 SPGI Dive
Slide 15: Customer at the Core
Powering Global Markets Customer at the Core Grow & Innovate Data & Technology Lead & Inspire Execute & Deliver Powering Global Markets 15
Slide 16: We connect global scale and deep market understanding to deliver customer value
We connect global scale and deep market understanding Customer at the Core to deliver customer value Customer needs and customer value drive every decision we make Value 100k customers in 150+ countries across all industry verticals 43 countries with direct presence Innovation Trust 99% of US Fortun
Slide 17: We connect innovation and experience to drive growth
We connect innovation and experience to drive growth Grow & Innovate Invest in the Core Key Areas of Strategic Growth Private Markets CUSTOMERS Sustainability Climate DATA New MARKETS Energy Transition Credit & Risk Management PRODUCTS Emerging Markets Revenue synergies: Compelling cross-sell and gr
Slide 18: Investments fueling growth in transformational areas
Investments fueling growth in transformational areas Grow & Innovate Private Markets Sustainability Industry leading private company coverage Wide-ranging solutions helping customers understand sustainability risk and opportunities Comprehensive data assets across Ratings IP, corporate credit pricin
Slide 19: We connect differentiated data and leading technologies
We connect differentiated data and leading technologies Data & Technology to build digital ecosystems and essential solutions Enterprise Data and Technology Strategy Data & Technology Priorities Accelerate Innovation Deploy AI and Machine Learning Infrastructure, Data Platforms & Content Software Cl
Slide 20: We connect people and purpose to foster growth and leadership
We connect people and purpose to foster growth and leadership Lead & Inspire Enterprise Values: 4,300 Discovery, employees volunteered their time which equates to $1.4M Partnership, in economic value Integrity 1,700 employees participating in Career Coaching >35k 14,000 employees People Resource Gro
Slide 21: Execute & Deliver
Powering Global Markets Execute & Deliver The future state of S&P Global Shared enterprise vision and strategy Accelerated pace of Faster revenue growth innovation Higher adjusted Greater Enterprise technology to operating margin shareholder deliver transformation value Disciplined capital Greater o
Slide 22: Powering Global Markets
ASR WAS caysaeee , Sieaaes WW | \ 3 Win ~~ 7 ~ Powering Global Markets | Investor Day 2022 S&P Global
Slide 23: S&P Global Market Intelligence
S&P Global Market Intelligence Adam Kansler President S&P Global Market Intelligence 23
Slide 24: Our goal
Our goal The foremost provider of information services and solutions to global markets How we get there Embedded, market-leading, and proprietary capabilities Deep and broad customer relationships Culture of innovation and growth Global expertise coupled with scaled, modern data and technology S&P G
Slide 25: Powering Global Market Intelligence
Powering Global Market Intelligence S&P Global Market Intelligence 25
Slide 26: Accelerated growth opportunity in key strategic areas
S&P Global Market Intelligence Accelerated growth opportunity in key strategic areas Customer Total Addressable Market Key Market Drivers at the Core Strong demand for comprehensive financial desktop solutions $70B Evolving client workflows and new technology requiring flexible data discovery and di
Slide 27: Division Highlights
S&P Global Market Intelligence Division Highlights Customer Geographic Diversification1 Key Customer Personas at the Core Risk & Compliance | Portfolio Managers | Bankers | Investor Relations EMEA End Markets1 Americas 25% APAC Investment Banking 31% 65% 10% Investment Management 25% Corporates 13%
Slide 28: Strong embedded businesses with innovative high growth products
Strong embedded businesses with innovative high growth products Established Capabilities Market-driven High Growth Stable, high margin, Industry platforms driven by Double-digit growth recurring revenue base market activity and issuance products across strategic growth areas ClearPar iLEVEL KY3P® Lo
Slide 29: Powering Global Growth
Powering Global Growth S&P Global Market Intelligence 29
Slide 30: Positioned well to execute in core areas of strategic growth
Positioned well to execute in core areas of strategic growth Grow & Innovate Private Markets Supply Chain Sustainability Credit and Risk Actionable intelligence Providing data and Delivering information Management across investment solutions the market and analytics on drivers Industry-leading credi
Slide 31: Power of our unparalleled data capabilities and scalable technology
Power of our unparalleled data capabilities and scalable technology Data & enables our differentiated value proposition Technology Vast Data Domain Advanced Technology Estate Expertise Solutions 4 trillion+ 1,500+ 3/4 Data Points Managed Client-Facing Expert Analysts Cloud-based Product Applications
Slide 32: Leveraging the power of S&P Global
S&P Global Market Intelligence Leveraging the power of S&P Global Grow & Innovate Global Reach Thought Commercial Innovation & Distribution Leadership & IP Collaboration Collaboration Partner Illustrative Financial and ESG Data discovery RatingsDirect® Cross-sell Mobility Examples Data for Private v
Slide 33: Financial Outlook
Financial Outlook S&P Global Market Intelligence 33
Slide 34: Medium-term outlook
S&P Global Market Intelligence Medium-term outlook Execute & Deliver Strategic and Operational Goals 2025/2026 Target Model Partner across S&P Global to drive growth in key strategic areas of Private Markets, Supply 7%-9% Chain, Sustainability, and Credit & Risk Annual Organic Revenue Growth Managem
Slide 35: S&P Global Ratings
S&P Global Ratings Martina Cheung President S&P Global Ratings 35
Slide 36: Our goal
Our goal Powering global debt & credit markets through independent and transparent credit ratings & research How we get there Enable issuers, investors, & markets to drive growth & progress around the world Help the market understand & measure risk Our deeply experienced pool of credit analysts & st
Slide 37: Powering Global Debt Markets
Powering Global Debt Markets S&P Global Ratings 37
Slide 38: The fixed income market is large & resilient
The fixed income market is large & resilient, historically lending long-term stability and growth to our business Fixed income is the largest capital market, Our revenue has grown steadily and rebounded with steady growth after previous down years Global Market Outstanding Value 2010-2021 Total Reve
Slide 39: We are well positioned to capture future growth
We are well positioned to capture future growth Approximately $2T+ corporate debt rated by We expect revenue growth over the next 3-4 S&P matures each year for the next 6 years years to be driven by 4 key factors Global Corporate Maturity Wall ($Billions) 3000 Corporate maturity wall remains healthy
Slide 40: Division Highlights
S&P Global Ratings Division Highlights Customer at the Core Geographic Diversification1 Customer Personas C Suite | States & Municipalities | Intermediaries | Portfolio Managers | Analysts / Researchers | Bankers | NAM EMEA Risk & Compliance Managers | Heads of Sustainability 61% 26% End Markets1 AP
Slide 41: We power global debt & credit markets
We power global debt & credit markets We enable issuers, investors, We help the market We have a deeply experienced & markets to drive growth & understand & measure risk pool of credit analysts & strong progress around the world stakeholder relationships Credit Risk >35,000 Issuers helped access cap
Slide 42: Our analytics and benchmarks are used by issuers and investors
Our analytics and benchmarks are used by issuers and investors to access capital markets globally Revenue Drivers Example Use Cases & Customer Needs Transaction Debt Ratings Market Issuance Public Finance Issuer/Investor: issuance for a What is the rating and 42% new hospital key credit factors, now
Slide 43: Powering Global Growth
Powering Global Growth S&P Global Ratings 43
Slide 44: Multiple levers driving incremental revenue
Multiple levers driving incremental revenue Grow & Innovate Contributors to Incremental Annual Growth over 3-4 Years Transaction Transaction volumes Refinancing Infrastructure / Structured Wall Project Finance Finance High Yield & Bank Energy Private Loan Volumes Transition Markets Surveillance & Fr
Slide 45: Financial Outlook
Financial Outlook S&P Global Ratings 45
Slide 46: Medium-term outlook
S&P Global Ratings Medium-term outlook Execute & Deliver Strategic and Operational Goals 2025/2026 Target Model Optimize our core business growth potential by capturing issuance volume, expanding coverage, 6%-9% and growing annual fees Annual Organic Revenue Growth Continue to diversify revenue thro
Slide 47: Q&A
Q&A 47
Slide 48: Advanced Technology & Differentiated Data
Advanced Technology & Differentiated Data A panel discussion: Swamy Kocherlakota Yaacov Mutnikas Bhavesh Dayalji Executive Vice President Chief Technology Officer Chief Executive Officer, and Chief Information Officer, and Head of Data Science, Kensho S&P Global S&P Global Market Intelligence 48
Slide 49: Refreshment Break
Refreshment Break investor Day 2022 aT 7, 7 Sf 7 Win
Slide 50: S&P Global Commodity Insights
S&P Global Commodity Insights Saugata Saha President S&P Global Commodity Insights 50
Slide 51: Our goal
Our goal Be the leading provider of benchmarks and differentiated, integrated data & insights for global commodity markets How we get there Evolve and grow core benchmarks, data & insights Invest in innovation and capture Energy Transition opportunities Deliver a superior customer experience Focus o
Slide 52: Powering Global Commodity Markets
Powering Global Commodity Markets S&P Global Commodity Insights 52
Slide 53: We operate in fast-evolving and complex commodity markets
S&P Global Commodity Insights We operate in fast-evolving and complex commodity markets Customer Total Addressable Market Key Market Drivers at the Core Robust commodity prices and volatility $10.6B Geopolitical uncertainty Significant supply chain disruptions Interconnected, complex markets Need to
Slide 54: The core markets we serve will remain essential
The core markets we serve will remain essential, and we have a strong position in the high-growth energy transition data & information business Oil markets will continue to be Capacity of renewable energy essential to the energy mix expected to increase Million barrels / day Million barrels-equivale
Slide 55: Steady growing business with ~90% subscription revenue
Steady growing business with ~90% subscription revenue and expanding operating margins By the numbers Key capabilities and markets served Notable Brands Products & Services Commodities ~$1.8B Mid-40s Advisory Solutions Agriculture 2022E Revenue1 2022E Margin1 Biofuels Analytics Coal 6% ~90% Assessme
Slide 56: Our products help our customers solve challenges
Our products help our customers solve some of their most pressing challenges across a spectrum of industries Price Energy & Resources Assessments Data & Insights What is today’s physical price for What is the demand-supply outlook iron ore? for different types of refined products and fuels? What pri
Slide 57: Division Highlights
S&P Global Commodity Insights Division Highlights Customer Key Customer Personas at the Core Geographic Diversification 1 Analysts | Brokers | C-Suite | Compliance | Engineers | Exchange Operators | Geoscientists | NAM EUROPE Risk Managers | Strategic Planners | Traders 41% 28% End Markets1 APAC Int
Slide 58: Our competitive advantages will enable us to deliver our strategy
Our competitive advantages will enable us to deliver our strategy and value creation plans Leading provider of independent, trusted and 15K+ 250+ 30+ transparent benchmarks price assessments produced daily IOSCO benchmarks countries our where people are located Breadth and depth of talent, data & in
Slide 59: Powering Global Growth
Powering Global Growth S&P Global Commodity Insights 59
Slide 60: From vision to value creation strategy
From vision to value creation strategy Be the leading provider of benchmarks and differentiated, integrated data & insights for global commodity markets Major Growth and Value Creation Drivers for Multi-Year Outlook Evolve and grow Invest in Deliver a Focus on Fulfill the core benchmarks, innovation
Slide 61: We will drive growth by expanding our core
We will drive growth by expanding our core, developing innovative Customer solutions for Energy Transition, and enhancing the customer experience at the Core Grow & Innovate Core benchmarks, Innovation and Superior customer data & insights Energy Transition experience Benchmarks Emissions management
Slide 62: Our commitment to operational excellence
Our commitment to operational excellence, advancements in technology Execute & data, and disciplined execution of the merger will accelerate growth & Deliver Data & Technology Operational excellence, Fulfill the potential of the merger technology & data On track to Key focus areas to Further automat
Slide 63: Leveraging the power of S&P Global
S&P Global Commodity Insights Leveraging the power of S&P Global Grow & Innovate Global Reach Thought Commercial Innovation & Distribution Leadership & IP Collaboration Collaboration Partner Illustrative S&P Global Core Distribution via The Future of Mobility & Energy Examples Battery Metals Index S
Slide 64: Financial Outlook
Financial Outlook S&P Global Commodity Insights 64
Slide 65: Medium-term outlook
S&P Global Commodity Insights Medium-term outlook Execute & Deliver Strategic and Operational Goals 2025/2026 Target Model Optimize long-term growth potential via leadership in benchmarks, data & insights, 7%-9% investing in innovation, and delivering a Annual Organic Revenue Growth superior custome
Slide 66: S&P Global Mobility
S&P Global Mobility Edouard Tavernier President S&P Global Mobility 66
Slide 67: Our goal
Our goal The world’s leading provider of actionable data and insights for the mobility sector How we get there Enabling customers through the disruptions that are reshaping the world of mobility Continued innovation in must-have products Investing in data leadership, in our customer partnerships, an
Slide 68: Powering Global Mobility Markets
Powering Global Mobility Markets S&P Global Mobility 68
Slide 69: Operating in a large, evolving industry
S&P Global Mobility Operating in a large, evolving industry in which data plays Customer at the Core an ever more prominent role Total Addressable Market Key Market Drivers Electrification: ~50% of all new vehicles globally will be electric by 20301 $12.2B Retail Revolution: ~80% of car buyers consi
Slide 70: Division Highlights
S&P Global Mobility Division Highlights Customer Geographic Diversification1 Key Customer Personas at the Core Car dealers | Car makers | Auto suppliers | Banking & Insurance | Consumers (Car owners) EMEA NAM 6% 91% End Markets1 APAC Dealer 58% 3% Manufacturer Financial & Other 25% 17% 1Revenue brea
Slide 71: Our growth priorities are being driven by customer questions
In a fast-changing environment, our growth priorities are being driven by Grow & the fundamental questions that our customers are asking us Innovate Vehicle Lifecycle 1 New Mobility Strategy & Used vehicle sales Forecasting New vehicle sales Clients product planning & marketing & services “What vehi
Slide 72: Powering Global Growth
Powering Global Growth S&P Global Mobility 72
Slide 73: Our leading market position presents multiple growth opportunities
New Mobility Forecasting Our leading market position presents multiple growth opportunities in the Grow & Innovate New Mobility Era The emergence of a "New Mobility Era"… …dramatically expands our set of growth opportunities Vehicle Vehicle Today New Mobility Era Planning Selling Volume $300+ billio
Slide 74: As consumer preferences shift, our data and analytics enable transactions
Enabling Digital Retail As consumer preferences shift, our data and analytics enable Grow & Innovate transactions in a new digital retail paradigm As consumers increasingly We help our customers Our analytics deliver higher buy cars online engage car buyers sales at a lower cost ~80% • Polk conquest
Slide 75: In the Used Car Lifecycle, we will build an audience of 100M consumers
Revenue growth initiative – Scaling the audience Scaling the Consumer Audience In the Used Car Lifecycle, we will build an audience of 100M consumers Grow & Innovate by extending our focus to the ownership of the vehicle Content is Key Reaching the audience Focusing on ownership Accident history SEO
Slide 76: Leveraging the power of S&P Global
S&P Global Mobility Leveraging the power of S&P Global Grow & Innovate Global Reach Thought Commercial Innovation & Distribution Leadership & IP Collaboration Collaboration Partner Illustrative New product concepts Repackaging of Mobility & Energy Cross-referral Examples Supply chain Mobility data F
Slide 77: We have high levels of confidence in our ability to execute
We have high levels of confidence in our ability to execute Execute & Deliver Data Leadership Customer Partnerships Trusted Brands 8+ billion 100% registration records of top global automakers 30+ billion 45,000 dealer customers vehicle history records 28 million 67 million CARFAX Car Care users 1,2
Slide 78: Financial Outlook
Financial Outlook S&P Global Mobility 78
Slide 79: Medium-term outlook
S&P Global Mobility Medium-term outlook Execute & Deliver Strategic and Operational Goals 2025/2026 Target Model Drive sustainable growth by investing in core capabilities - data leadership, customer 7% ̵ 9% partnerships, and trusted brands Annual Organic Revenue Growth Continue to innovate in must-
Slide 80: S&P Dow Jones Indices
S&P Dow Jones Indices Dan Draper Chief Executive Officer S&P Dow Jones Indices 80
Slide 81: Our goal
Our goal Innovate trusted solutions that unleash the potential of capital markets for everyone, everywhere How we get there Deepen customer relationships to extend the core Innovate in high growth segments Deliver operational excellence S&P Dow Jones Indices 81
Slide 82: S&P DJI Differentiators
S&P DJI Differentiators Liquid Ecosystems One-stop shop Our indices underlie the most liquid financial products in the U.S. Equities Sustainability market for both equity and credit through broad ecosystems of Global Equities Factors complementary instruments Multi-Asset Thematics Fixed Income Indic
Slide 83: Powering Global Market Indices
Powering Global Market Indices S&P Dow Jones Indices 83
Slide 84: Tremendous runway for asset-linked fees
Tremendous runway for asset-linked fees in the switch Grow & from active to passive Innovate S&P Dow Jones Indices is a global leader in cross-asset capabilities to create innovative solutions for ETFs, mutual funds, and structured products 36% of global (registered) investible assets are ETF AUM is
Slide 85: Rapid growth in volume in index-based trading and hedging vehicles
Rapid growth in volume in index-based trading and hedging vehicles Grow & Exchange traded derivative (ETD) products based upon our indices have Innovate leading volumes and liquidity Liquidity, efficiency, and transparency Structural and cyclical growth drivers Stock index futures volume Market vola
Slide 86: Division Highlights
S&P Dow Jones Indices Division Highlights Customer Geographic Diversification1 Key Customer Personas at the Core Exchange Passive Structured Passive Active product ETF product and mutual & asset EMEA sponsors sponsors derivative institutional managers 13% trading desks fund sponsors and analysts Ame
Slide 87: Powering Global Growth
Powering Global Growth S&P Dow Jones Indices 87
Slide 88: Our fixed income capabilities enable S&P DJI to win share
Our fixed income capabilities enable S&P DJI to win share Grow & in the high growth markets for ETFs and Multi-asset indices Innovate Fixed Income ETF …we are expanding …while building upon our AUM is expected to & diversifying our leading market position in grow to $5T by 2030… credit offering… Mul
Slide 89: Investing behind existing strength in Sustainability, Factors & Thematics
Investing behind existing strength in Sustainability, Factors & Thematics Grow & to define the next generation Innovate Sustainability, Factors & Thematic indices …where S&P DJI has leading index families are high growth market segments… and continues to invest in new innovations Addressable Market
Slide 90: Leveraging data & technology to deliver for our global clients
Leveraging data & technology to deliver for our global clients and partners Data & Technology 75+ Real-time infrastructure Index and data Calculation of 100s of capabilities supporting infrastructure serving 18 91 global redistributors 1,000s supported with daily global exchange of the top 100 globa
Slide 91: Leveraging the power of S&P Global
S&P Dow Jones Indices Leveraging the power of S&P Global Grow & Innovate Global Reach Thought Commercial Innovation & Distribution Leadership & IP Collaboration Collaboration Partner Illustrative S&P GSCI Index data via iBoxx EUR S&P Kensho Examples Electric Vehicle S&P Global Corporates Net Zero Ne
Slide 92: Financial Outlook
Financial Outlook S&P Dow Jones Indices 92
Slide 93: Medium-term outlook
S&P Dow Jones Indices Medium-term outlook Execute & Deliver Strategic and Operational Goals 2025/2026 Target Model Drive expansion of the liquid ecosystems surrounding our core equity and fixed income 10%+ indices via deep customer relationships Annual Organic Revenue Growth Accelerate innovation an
Slide 94: Q&A
Q&A 94
Slide 95: Financial Strategy
Financial Strategy Ewout Steenbergen Executive Vice President and Chief Financial Officer S&P Global 95
Slide 96: Agenda
Agenda 1. Exceptional track record of value creation 2. Resilient financial model and disciplined capital allocation strategy 3. Continued investments and enterprise advantages to further accelerate revenue growth 4. Confidence in opportunities ahead as expressed by financial targets S&P Global Fina
Slide 97: Exceptional track record of financial execution
Exceptional track record of financial execution with significant capital returned to shareholders and ~22% annual total shareholder return1 Diluted Earnings Per Share2 Dividend Paid Weighted Shares Outstanding (in $) (in million $) (shares, in millions) 2021 in blue includes post-merger recast EPS 1
Slide 98: Revenue model more resilient to short-term shocks
Revenue model more resilient to short-term financial and market shocks During times of volatility, recurring revenue 72% 76% base enhances revenue resiliency 69% 72% Post merger, recurring Renewal rates are up revenue increased from 2022 year-to-date, 69% to 72% despite economic and market dynamics
Slide 99: Strong cash conversion; reaffirming capital allocation framework
Strong cash conversion; reaffirming capital allocation framework Strong Cash Capital Return to Balance Sheet Investments Generation Shareholders Health Net Income to FCF Continue to target Target adjusted gross Opportunity exists for conversion historically at least 85% return to leverage to adjuste
Slide 100: Track record of disciplined expense management through the cycle
Track record of disciplined expense management through the cycle Experience: Execution: Flexibility: History of expedited $400M in management Further levers in a deeper execution on productivity actions taken year-to-date or longer recession programs Pull-forward synergies Variable spend $100M Produ
Slide 101: Powering Global Markets
Powering Global Markets Customer at the Core Grow & Innovate Data & Technology Lead & Inspire Execute & Deliver S&P Global Financial Strategy 101
Slide 102: Focusing on multiple areas to accelerate revenue growth
Focusing on multiple areas to accelerate revenue growth Grow & Innovate ---- Merger Related ---- 1 2 3 4 5 Merger Revenue Business Technology Organic Transformational Synergies Rationalization Innovation Investments Adjacencies What we Robust planning to Re-organize portfolio to Plan developed to sh
Slide 103: Strong commercial momentum in the first 9 months post close
Merger Revenue Synergies 1. Strong commercial momentum in the first 9 months post close Grow & Innovate 3,500+ $70M 350+ $16M Referrals Active Pipeline Deals Closed Run-Rate Synergies Select Private Markets examples Select Sustainable1 examples CIQ and iLEVEL bundled for private equity firms to Prod
Slide 104: A multi-year effort to optimize technology expense mix
Technology Innovation 3. A multi-year effort to optimize technology expense mix Grow & Innovate 18% New Frontiers & Adjacencies ~25% New products increasing value proposition to customers and big, 9% of total spend 2022 bold bets with potential to transform business in the long run 73% Core R&D ~15%
Slide 105: Vitality Index to drive enterprise-wide growth
Organic Investments 4. Vitality Index to drive enterprise-wide growth Grow & Innovate Definition A metric measuring the percentage of revenue Vitality Index1 derived from innovation in the form of new or enhanced products of total applicable revenue base >20% 8% >10% Purpose Encourage pursuit of hig
Slide 106: Strategic investments to drive organic revenue growth
Organic Investments 4. Strategic investments to drive ~80 bps of organic revenue growth Grow & Innovate Select Organic Select Acquisitions / Investments Partnerships / Investments Sustainability Harmonizing scores Energy Hydrogen, Carbon, etc. Transition Private Markets Kensho capabilities 80 bps Or
Slide 107: Investments fueling growth in transformational areas
Transformational Adjacencies 5. Investments fueling growth in transformational areas Grow & Innovate 1 2 Private Market Solutions Sustainability & Energy Transition Description Leading private company coverage Comprehensive evaluations, and proprietary analytics scores and physical risk analysis Glo
Slide 108: We are continuing to accelerate synergy execution
We are continuing to accelerate synergy execution, Execute with ~50% of run-rate cost synergies already actioned & Deliver 2022 expected Realized run-rate Targets achievement1 through 3Q22 Cost Synergies ~$600M ~$255M ~$311M ~80% achievement in 2023 ~$165M achieved YTD Revenue Synergies ~$350M ~$15M
Slide 109: Continuing to invest in growth and remain committed to our capital return framework
Continuing to invest in growth and remain committed to our capital Execute return framework during transition year & Deliver 2023 Preliminary Look 1 Investing through the cycle $150M $110M Organic 6.5%-8.0% Strategic Core Revenue Growth Investments Innovation Operating 45% to 47% Commitment to capit
Slide 110: Continue to drive superior shareholder returns
Continue to drive superior shareholder returns via a clear strategy that is Execute backed by financial strength and strong execution & Deliver Enterprise 2025 / 2026 Target Model Divisional 2025 / 2026 Target Model Financial Annual Organic Adjusted Revenue Growth Operating Margin Organic Revenue ~7
Slide 111: Conclusion
Conclusion Exceptional track record of value creation Resilient financial model and disciplined capital allocation strategy Continued investments and enterprise advantages to further accelerate revenue growth Confidence in opportunities ahead as expressed by financial targets S&P Global Financial St
Slide 112: Enterprise Q&A
aT 7, 7 Sf 7 Win Enterprise Q&A Investor Day 2022 S&P Global
Slide 113: Powering Global Markets
ASR WAS caysaeee , Sieaaes WW | \ 3 Win ~~ 7 ~ Powering Global Markets | Investor Day 2022 S&P Global