S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Q3 2013 Earnings Presentation
17 slides from S&p Global's earnings presentation, Oct 22, 2013
Slide 1: 3Q 2013 Earnings Call
Harold McGraw III 3Q 2013 Earnings Call Chairman, President and CEO October 22, 2013 Doug Peterson President and CEO Designate Jack Callahan Executive Vice President and CFO Chip Merritt Vice President, Investor Relations Comparison of Adjusted Information to U.S. GAAP Information This presentation
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: Highlights of Today’s Call
HAROLD MCGRAW III CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER Highlights of Today’s Call •Next week Doug Peterson becomes President and CEO •Increased investment in CRISIL to 67.8% •Completed sale of Aviation Week •S&P Capital IQ and S&P Dow Jones Indices delivered record quarterly revenue •Comm
Slide 4: MHFI: Solid Growth Despite Difficult Comparison
MHFI: A New Company With a 125‐Year Heritage • Launched branding campaign in major financial centers: • New York • Boston • London • Singapore 6 MHFI: Solid Growth Despite Difficult Comparison ($ in millions) 3Q 2013 3Q 2012 Change Revenue $1,194 $1,116 +7% Adj. Operating Profit $396 $356 +12% Adj.
Slide 5: 3Q 2013 Segment Results
3Q 2013 Segment Results Revenue: $1,194 million Adj. Operating Profit: $448 million ($ in millions) ($ in millions) $255 $82 $540 $124 $227 $80* $293 $59 Standad & Poor's Ratings Standard & Poor's Ratings S&P Capital IQ S&P Capital IQ S&P Dow Jones Indices S&P Dow Jones Indices Commodities & Commerc
Slide 6: S&P Dow Jones Indices: Comparable YOY Comparisons
S&P Dow Jones Indices: Comparable YOY Comparisons ($ in millions) 3Q 2013 3Q 2012 Change Revenue $124 $109 +14% Adj. Segment Op. Profit $80 $65 +23% MHFI Share of Op. Profit* $58 $47 +23% Adj. Segment Op. Margin 64.4% 59.9% 450 bps 3Q highlights: • Entire incremental revenue of $15 million realized
Slide 7: S&P Capital IQ Launches Event Driven Alerts
S&P Capital IQ Launches Event Driven Alerts • Enterprise Solutions launches low latency, machine‐readable feed that leverages the QuantHouse global fiber optic network, delivering S&P Capital IQ and S&P Ratings’ opinions in real‐time Event Driven Alerts contain credit rating actions, including: • Up
Slide 8: Commodities: Continued Double-Digit Growth
Commodities: Continued Double‐Digit Growth Commodities ($ in millions) 3Q 2013 3Q 2012 Change Revenue $142 $121 +17% 3Q highlights: • Platts YOY revenue growth exceeded all segments • Growth in petroleum product subscriptions continued to be the primary driver of double‐digit growth • Licensing reve
Slide 9: Commercial: Revenue Increased, Excluding Aviation Week
Commercial: Revenue Increased, Excluding Aviation Week Commercial ($ in millions) 3Q 2013 3Q 2012 Change Revenue $113 $118 (4%)* * 1% organic growth excluding the sale of Aviation Week 3Q highlights: • McGraw Hill Construction’s revenue decline may be nearing an end as new data and analytics product
Slide 10: Standard & Poor’s Ratings Services: Growth Despite Decreased Issuance
DOUG PETERSON PRESIDENT AND CEO DESIGNATE Standard & Poor’s Ratings Services: Growth Despite Decreased Issuance ($ in millions) 3Q 2013 3Q 2012 Change Revenue $540 $502 +8% Adj. Segment Op. Profit $227 $217 +5% Adj. Segment Op. Margin 42.0% 43.2% (120 bps) 3Q highlights: • Increased revenue was not
Slide 11: Standard & Poor’s Ratings Services: Balanced Global Growth
Standard & Poor’s Ratings Services: Balanced Global Growth ($ in millions) 3Q 2013 3Q 2012 Change Non‐transaction $313 $287 +9% Transaction $227 $215 +6% ($ in millions) 3Q 2013 3Q 2012 Change International $250 $227 +10% Domestic $290 $275 +6% • Non‐transaction growth was driven by entity credit ra
Slide 12: Commitment to Shareholders
Commitment to Shareholders “Our commitment to our shareholders is to increase shareholder value by serving our markets aggressively and ethically and, like our customers, striving to reach our full potential.” —Terry McGraw 1998 Annual Report Since 1998 the Company has: • Delivered a total return of
Slide 13: Jack Callahan, EVP and CFO
HAROLD MCGRAW III CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER JACK CALLAHAN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 13
Slide 14: McGraw Hill Financial: 13% Adjusted EPS Growth in 3Q 2013
McGraw Hill Financial: 13% Adjusted EPS Growth in 3Q 2013 3Q 3Q % Change ($ in millions, except earnings per share) 2013 2012 Revenue $1,194 $1,116 +7% Adjusted Segment Operating Profit $448 $403 +11% Less: Adjusted Unallocated Expense (52) (47) +10% Adjusted Consolidated Operating Profit $396 $356
Slide 15: 3Q 2013 Adjustments to Earnings
3Q 2013 Adjustments to Earnings (Pre‐Tax) ($ in millions) 3Q 2013 Gain on sale of India Index Services $16 Gain on sale of Aviation Week 11 Loss on sale of Financial Communications (3) Growth and Value Plan (GVP) Costs (10) Restructuring (3) Total Net Gain $11 Excluded from Adjusted Results 28 Free
Slide 16: Share Repurchase Activity and 2013 Guidance and Outlook
Share Repurchase Activity • Repurchased 5.7 million shares in the open market during the third quarter at an average price of $61.42 per share • Repurchased approximately 15 million shares YTD at an average price of $56.70 • Approximately 1.9 million shares remain under our existing authorization •
Slide 17: 3Q 2013 Earnings Call Replay Options
Harold McGraw III 3Q 2013 Earnings Call Chairman, President and CEO October 22, 2013 Doug Peterson President and CEO Designate Jack Callahan NOTE: A replay of this webcast will Executive Vice President and CFO be available approximately two hours after the end of the call from Chip Merritt www.mcgra
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