Slide 1: Cover letter to stock exchanges: Corporate Presentation Q2 2020
July 27, 2020 Listing Department Listing Department National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, 5th floor P J Towers Plot No. C/1, G Block Dalal Street Bandra-Kurla Complex Mumbai 400 001 Bandra (East) Mumbai 400 051 Dear Sirs, Sub.: Corporate Presentation Q2 2020 We are enclos
Slide 2: Q2 2020 Analyst presentation
Q2 2020 Analyst presentation July 2020 © 2020 CRISIL Ltd. All rights reserved. July 2020 1
Slide 3: Disclaimer / Safe Harbor
Disclaimer / Safe Harbor This presentation has been prepared solely as a concise update of Company’s quarterly and/or annual results. By reading the presentation slides, you agree to be bound by the following limitations: (a) CRISIL Ltd. (“CRISIL” or “Company”) cannot give assurance to the correctne
Slide 4: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2020 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 3
Slide 5: CRISIL, a leading global analytics company
CRISIL, a leading global analytics company Graded and assessed #Agile 33,000+ $1.88 Trillion Ratings for large Over 150,000 to market needs and mid-scale of Indian debt ₹ micro, small and securities valued corporates and medium enterprises by us Financial institutions (MSMEs) in India Unleashing © 2
Slide 6: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2020 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 5
Slide 7: Deep impact of Covid-19 on economy, both for India and globally
Deep impact of Covid-19 on economy, both for India and globally Indicator FY2018 FY2019 FY2020 FY2021f Real GDP (y-o-y %) 7.0 6.1 4.2 -5.0 Investments (y-o-y %) 7.2 9.8 -2.8 -12.5 10 year G-sec yield (%, March) 7.6 7.5 6.2 6.5 © 2020 CRISIL Ltd. All rights reserved. Fiscal deficit (% of GDP) 3.5 3.4
Slide 8: Disruption of business environment due to the pandemic
Disruption of business environment due to the pandemic © 2020 CRISIL Ltd. All rights reserved. Global recession Heightened risk averseness Increased market volatility Emergence of new risks Accelerated digitization Remote working and Supply chain disruptions Geo-political risks ESG as an investment
Slide 9: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2020 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 8
Slide 10: Q2 2020 income from operations at ₹471.8 cr.; PAT at ₹66.3 cr.
Q2 2020 income from operations at ₹471.8 cr.; PAT at ₹66.3 cr. Income from Operations# ₹ crore +13.5% +8.2% 471.8 899.6 415.8 831.6 © 2020 CRISIL Ltd. All rights reserved. Q2 2019 Q2 2020 H1 2019 H1 2020 # Excluding Greenwich Associates, consolidated income from operations for Q2 2020 was higher by
Slide 11: Proactive response to Covid-19 pandemic
Proactive response to Covid-19 pandemic ‘People first’ and tech driven approach Leading independent voice People Customer engagement • High impact research papers, analysis and thought papers on • Continued employee support through medical expert emerging trends sessions and wellness sessions • Digi
Slide 12: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2020 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance - Ratings 5. Thought Leadership 6. Corporate Social Responsibility 11
Slide 13: Bond volumes driven by high investment grade frequent issuers; sharp slowdown in credit growth
Bond volumes driven by high investment grade frequent issuers; sharp slowdown in credit growth Bond Issuance Quantum (₹ billion) Credit Growth (%) NBFC crisis Covid-19 Bond issuance quantum +23% 8,000 © 2020 CRISIL Ltd. All rights reserved. 24.0% 7,092 7,000 19.0% 6,000 5,750 14.0% 5,000 9.0% 4,000
Slide 14: Ratings: Q2 2020 highlights
Ratings: Q2 2020 highlights Financials Business update • Ratings business revenues continued its strong growth trajectory and grew by 16.8%, driven by new client additions and higher issuances Particulars (₹ cr) Q2 2020 Q2 2019 • Global Analytical Center (GAC) saw increase in support coverage for In
Slide 15: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2020 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance - Research 5. Thought Leadership 6. Corporate Social Responsibility 14
Slide 16: Indian MF AUM subdued, banking costs increase due to provisions; Globally, CIB RoE under pressure
Indian MF AUM subdued, banking costs increase due to provisions; Globally, CIB RoE under pressure ₹ ‘000 crore 3.7 2,687 3.6 2,366 2,477 2,237 1,693 1,341 India Indian Banks’ © 2020 CRISIL Ltd. All rights reserved. mutual fund Credit Costs (%) AUM* 2015 2016 2017 2018 2019 Apr-Jun 2020 FY2015 FY2016
Slide 17: Research: Q2 2020 highlights
Research: Q2 2020 highlights Business update Financials • Performance of the Research segment, was led by robust growth in our Global Research & Analytics business and contribution from Particulars (₹ cr) Q2 2020 Q2 2019 Greenwich • New wins in our model and traded risk offerings were driven by Inco
Slide 18: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2020 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance - Advisory 5. Thought Leadership 6. Corporate Social Responsibility 17
Slide 19: Advisory: Q2 2020 highlights
Advisory: Q2 2020 highlights Financials Business update • Covid-19 pandemic led to delay in closure of new business, collections Particulars (₹ cr) Q2 2020 Q2 2019 and the segment saw a de-growth of 4.2% during the quarter Income from • Both Infrastructure Advisory and Business Intelligence and Risk
Slide 20: Risks
Risks Covid-19 pandemic and threat of second wave Global recession and sharp slowdown in India © 2020 CRISIL Ltd. All rights reserved. Uncertain regulatory environment Information security and cyber-related risks Adverse currency movement Intense price competition Reputation risk 19
Slide 21: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2020 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance Franchise and thought 5. Leadership 6. Corporate Social Responsibility 20
Slide 22: Leading provider of independent opinion and research
Leading provider of independent opinion and research © 2020 CRISIL Ltd. All rights reserved.
Slide 23: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2020 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 22
Slide 24: Supporting the community during the Covid-19 crisis
Supporting the community during the Covid-19 crisis Building greater resilience among communities in Assam, Rajasthan, Maharashtra and Haryana The 10k Meals Project Gram Sahay Helpline Facilitating bank and COVID19 Prevention digital transactions and Relief © 2020 CRISIL Ltd. All rights reserved. 50
Slide 25: About CRISIL
About CRISIL CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footpri