S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — William Blair & Company 35th Annual Growth Stock Conference 2015
15 slides from S&p Global's conference presentation, Jun 9, 2015
Slide 1: William Blair & Company 35th Annual Growth Stock Conference
WILLIAM BLAIR & COMPANY 35TH ANNUAL GROWTH STOCK CONFERENCE Jack Callahan – EVP and Chief Financial Officer June 9, 2015 McGraw Hill Financial Comparison of Adjusted Information to U.S. GAAP Information This presentation includes adjusted financial measures that are derived from the Company’s contin
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: A Leading Provider of Ratings, Benchmarks, Analytics & Research
A Leading Provider of Ratings, Benchmarks, Analytics & Research Leading rating agency Premier provider of high quality data, analytical tools and ratings information The leading index provider Principal provider of commodity price assessments and information Primary customer satisfaction benchmark p
Slide 4: 2014: Results by Line of Business
2014: Results by Line of Business Revenue: $5,051M Adj. Segment Op. Profit: $1,968M ($ in millions) ($ in millions) Commodities Commodities & Commercial & Commercial $893 $306 S&P DJ Indices $552 S&P DJ $2,455 Indices $351** $1,074 $1,237 $237 S&P S&P S&P Capital IQ S&P Capital IQ Ratings* Ratings*
Slide 5: Double-Digit Earnings Growth; Secular Market Trends Position MHFI for Sustained Growth
Double‐Digit Earnings Growth Annual Adjusted Diluted EPS $4.35‐$4.45 +24% CAGR $3.88 $3.22 $2.65 $2.03* 2011 2012 2013 2014 2015 Guidance Note: McGraw‐Hill Education and McGraw Hill Construction reclassified to discontinued operations * Excludes gain on divestiture of Broadcasting McGraw Hill Financ
Slide 6: A Truly Global Company
A Truly Global Company North America Headcount 5,000 Revenue $ 3.1B EMEA Headcount 2,000 Revenue $ 1.3B Asia Pacific Headcount 9,500 ~40% ~80% Revenue $ 0.5B of revenue of revenue generated billed in US$ Latin America outside U.S. Headcount 500 Revenue $ 0.1B ~17,000 Employees 30 Countries 96 Global
Slide 7: Majority of Revenue is Subscription / Recurring
Majority of Revenue is Subscription / Recurring 2014 Revenue Subscription/Recurring Revenue by Business Unit 60% S&P Capital IQ 90% 40% Commodities & Commercial Markets 65% Standard & Poor’s Ratings Services 54% S&P Dow Jones Indices 20% Non‐ Subscription/Recurring Subscription/Transaction McGraw Hi
Slide 8: Consistent Progress in Every Business Unit
Consistent Progress in Every Business Unit 1Q 2015 Versus 1Q 2014 Business Unit Results Standard & Poor’s S&P Dow Commodities S&P Capital IQ Ratings Jones Indices & Commercial Services Revenue +6% +6% +5% +7% Adj. Operating +19% +18% +4% +23% Profit Adj. Operating +480 +200 (40) +510 Margin (bps) S&
Slide 9: Standard & Poor's Ratings Services: Change in Revenue Mix
Standard & Poor’s Ratings Services: Change in Revenue Mix (2007 ‒ 2014) Corporate Ratings are Now a Much Larger Portion of the Business ($ in millions) $2,455 $2,138 Corporates 27% 51% Financials 15% Governments 9% 17% Structured 9% 44% 12% CRISIL, Other 6% 11% 2007 2014 Corporates Financial Institu
Slide 10: S&P Dow Jones Indices: Revenue Mix
S&P Dow Jones Indices: Revenue Mix ETFs & Mutual Data & Custom Indices Funds Listed 2014 Derivatives OTC Derivatives & Structured Products At the forefront of trend toward passive investing: – Record ETF industry inflows of $331 billion in 2014 – $97 billion of ETF industry inflows in 1Q 2015 – Offe
Slide 11: S&P Capital IQ: Revenue Mix
S&P Capital IQ: Revenue Mix S&P Capital IQ Desktop S&P Credit S&P Capital IQ & Enterprise Solutions Solutions Markets Intelligence • S&P Capital IQ Desktop • RatingsDirect® • Global Markets • Compustat • RatingsXpress® Intelligence (GMI) • Consolidated Feeds • Leveraged Commentary • CUSIP & Data (LC
Slide 12: Commodities & Commercial Markets
Commodities & Commercial Markets • Revenue generated from • Revenue generated from subscriptions and licensing for proprietary research, brand derivative trading licensing, data and analytics • Thousands of daily price • J.D. Power expanding in Asia‐ assessments Pacific which now represents • Oil, g
Slide 13: J.D. Power Acquires NADA Used Car Guide
J.D. Power Acquires NADA Used Car Guide • Premier source of used car value benchmarks including weekly auction, and monthly trade‐in, loan and retail values • Tuck‐in acquisition fits well with the Power Information Network (PIN) business • Subscription based business • Expands JDP offerings in the
Slide 14: Strong Balance Sheet Returning Substantial Cash to Shareholders
Strong Balance Sheet Period‐End Debt & Cash Positions ($ in millions) $2,500 Debt $700,000,000 Cash 4.00% Senior Unsecured Notes $1,560 $1,256 Due 2025 $1,164 $1,176 $761 $799 $799 2012 2013 2014 1Q 2015 Payments Related to Legal and Regulatory Settlements Were Made in 1Q 2015 McGraw Hill Financial
Slide 15: McGraw Hill Financial
McGraw Hill Financial • A great portfolio of iconic global brands • Well positioned for sustained growth • Track record of delivering strong revenue growth, margin improvement, and cash returned to shareholders • 2015 guidance indicates sustained performance: – Mid single‐digit revenue growth – Adju
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