Slide 1: CRISIL Analyst Presentation April 2022
Creating © 2022 CRISIL Ltd. All rights reserved. possibilities CRISIL Analyst Presentation April 2022 1
Slide 2: Disclaimer / safe harbour
Disclaimer / safe harbour 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 correctn
Slide 3: Agenda
Agenda 1. Introduction 2. Business environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance update 4. Financials 5. Segment performance 6. Thought leadership & Corporate social responsibility 7. Risks 3
Slide 4: CRISIL: Over 30-year journey of innovation and excellence
CRISIL: Over 30-year journey of innovation and excellence 11% 8% 11 2011-21 Revenue CAGR 2011-21 EPS CAGR Countries where we have global presence © 2022 CRISIL Ltd. All rights reserved. 4,200+ 38% 42+ Employees globally as of Female employees globally Nationalities and global March 31, 2022 as of Ma
Slide 5: Agenda
Agenda 1. Introduction 2. Business environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance update 4. Financials 5. Segment performance 6. Thought leadership & Corporate social responsibility 7. Risks 5
Slide 6: Global growth to moderate amid rising risks
Global growth to moderate amid rising risks GDP growth (%) 3.2 3.3 2.4 4.9 5.7 5.2 1.7 8.1 US Eurozone © 2022 CRISIL Ltd. All rights reserved. Japan China India World 7.8 2019World - 2.8 8.9 2022: 2020 3.6 - -3.9 2021: 6.0 2021E 2022F E: Estimated; F: Forecast; Source: S&P Global (March 2022); India
Slide 7: Overall market trends positive, but risks remain
Overall market trends positive, but risks remain Market trends Business environment trends Moderating economic growth Capital market activity losing momentum © 2022 CRISIL Ltd. All rights reserved. Expected capex cycle revival Increased emphasis on credit and non- financial risk Geopolitical uncerta
Slide 8: Agenda
Agenda 1. Introduction 2. Business environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance update 4. Financials 5. Segment performance 6. Thought leadership & Corporate social responsibility 7. Risks 8
Slide 9: Robust performance driven by…
Robust performance driven by… • Strong financial show in the first quarter (Q1) ended March 31, 2022 ‒ Income from operations up 20.1% and for the year 2021 up 16.1% ‒ Profit before exceptional items and tax up 53.2% and for the year 2021 up 24.9% ‒ Profit after tax up 45.6% and for the year 2021 up
Slide 10: …customer-centric innovation and solutions
…customer-centric innovation and solutions Launched several products, Delivered multiple new Assigned new including pricing engine, asset risk transformation ratings across classification tool, new industry projects for global stressed assets reports and risk benchmarking banks and financial and str
Slide 11: …investments in talent and technology
…investments in talent and technology Talent Technology Launched ‘Manager of the Future’ Programme to upskill people managers on new Accelerated growth through cutting- and evolved skills needed to be effective in edge tech solutions hybrid work environment © 2022 CRISIL Ltd. All rights reserved. Si
Slide 12: …commitment to sustainability…
…commitment to sustainability… Launched a comprehensive ESG Integrated ESG analytics, compendium and ESG scores for research and benchmarks for global top 225 Indian companies financial institutions © 2022 CRISIL Ltd. All rights reserved. CRISIL Ratings has commenced Thought leadership through discl
Slide 13: Recognition through multiple awards and honours
Recognition through multiple awards and honours Great Place to Work Recognition Diversity Recognition Diversity Recognition Marketing Impact Recognition © 2022 CRISIL Ltd. All rights reserved. Part of “2021 Working Mother & Avatar Best Companies for Women Awarded 2nd year in a row in India” Part of
Slide 14: Agenda
Agenda 1. Introduction 2. Business environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance update 4. Financials 5. Segment performance 6. Thought leadership & Corporate social responsibility 7. Risks 14
Slide 15: Continued healthy performance for full year 2021 and Q1 2022
Continued healthy performance for full year 2021 and Q1 2022 Income from operations Profit before exceptional items and tax Profit after tax ₹ crore ₹ crore ₹ crore +20.1% +53.2% +45.6% 495.2 594.9 169.3 121.6 110.5 83.5 © 2022 CRISIL Ltd. All rights reserved. Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021
Slide 16: Agenda
Agenda 1. Introduction 2. Business environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance update 4. Financials 5. Segment performance - Ratings 6. Thought leadership & Corporate social responsibility 7. Risks 16
Slide 17: Bond issuance drops further amid uncertain environment and risk aversion
Bond issuance drops further amid uncertain environment and risk aversion; wholesale credit growth remains muted Bond issuance quantum (₹ billion) Credit growth (%) -23% 8,000 © 2022 CRISIL Ltd. All rights reserved. 7,000 6,000 12.3% 5,000 4,000 7.9% 3,000 -22% 2,000 6.1% 1,000 0 2020 2021 Q1CY21 Q1C
Slide 18: Our differentiated analytical rigour
Our differentiated analytical rigour Long-run one-year default rates (average for the 10 years ending FY2021) AAA category AA category A category BBB category CRISIL 0.01% 0.09% 0.18% 0.71% OCRA1 0.70% 0.50% 0.60% 1.50% © 2022 CRISIL Ltd. All rights reserved. OCRA2 0.10% 0.10% 0.30% 1.70% OCRA3 0.21
Slide 19: Ratings: Highlights
Ratings: Highlights Financials Particulars (₹ cr) Q1 2021 Q1 2022 Growth Particulars (₹ cr) 2020 2021 Growth Income from Income from operations 148.9 163.3 9.7% 565.0 604.1 6.9% operations Segment profit 70.3 77.8 10.7% Segment profit 226.7 252.7 11.5% © 2022 CRISIL Ltd. All rights reserved. Margin
Slide 20: Agenda
Agenda 1. Introduction 2. Business environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance update 4. Financials 5. Segment performance ― Research 6. Thought leadership & Corporate social responsibility 7. Risks 20
Slide 21: Global CIB revenue normalises; RoE expected to improve
Global CIB revenue normalises; RoE expected to improve Global CIB revenue pools CIB return on equity (%) $ billion 20.0% 600 500 15.0% 400 10.0% © 2022 CRISIL Ltd. All rights reserved. 100 5.0% 0 0.0% 2018 2019 2020 2021 2022F 2018 2019 2020 2021E Revenues Pools analysis includes revenues from all I
Slide 22: Evolving regulations present opportunities
Evolving regulations present opportunities Global themes • ESG integration, reporting • FCC/AML • Stress Testing • Cyber security • Third-party risk USA • Customer and Conduct risk • BSA / AMLA Europe, including the UK © 2022 CRISIL Ltd. All rights reserved. • CECL • DFAST • BASEL III finalization •
Slide 23: Indian markets continue strong run, ends fiscal 2022 on a high
Indian markets continue strong run, ends fiscal 2022 on a high India mutual funds AUM* Alternative Investment Funds (AIFs) ₹ ‘000 crore ₹ ‘000 crore 609 3,864 442 2,687 2,993 2,366 348 2,237 267 239 185 142 93 © 2022 CRISIL Ltd. All rights reserved. 2017 2018 2019 2020 2021 2018 2019 2020 2021 Commi
Slide 24: Research: Highlights
Research: Highlights Financials Particulars (₹ cr) Q1 2021 Q1 2022 Growth Particulars (₹ cr) 2020 2021 Growth Income from operations 312.2 394.2 26.3% Income from operations 1282.7 1543.7 20.3% Segment profit 53.2 95.6 79.7% Segment profit 209.0 324.1 55.1% © 2022 CRISIL Ltd. All rights reserved. Ma
Slide 25: Agenda
Agenda 1. Introduction 2. Business environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance update 4. Financials 5. Segment performance — Advisory 6. Thought leadership & Corporate social responsibility 7. Risks 25
Slide 26: Focus on infrastructure and technology adoption to create needs for advisory services
Focus on infrastructure and technology adoption to create needs for advisory services, analytics and digital solutions Business Intelligence and Risk Infrastructure Advisory Solutions • • © 2022 CRISIL Ltd. All rights reserved. Higher budgeted Infra capex proposed for 2022 - areas of Demand for inte
Slide 27: Advisory: Highlights
Advisory: Highlights Financials Particulars (₹ cr) Q1 2021 Q1 2022 Growth Particulars (₹ cr) 2020 2021 Growth Income from Income from 34.0 37.4 10.0% 134.1 152.9 14.0% operations operations © 2022 CRISIL Ltd. All rights reserved. Segment profit 2.6 4.1 57.7% Segment profit 10.1 16.6 64.4% Margin 7.6
Slide 28: Agenda
Agenda 1. Introduction 2. Business Environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance Update 4. Financials 5. Segment Performance - Advisory 6. Thought leadership & Corporate social responsibility 7. Risks 28
Slide 29: A 'trusted' voice in media
A ‘trusted’ voice in media Media Reports © 2022 CRISIL Ltd. All rights reserved. Webinars and events Social media 29
Slide 30: Driving social impact via CRISIL Foundation for the past years
Driving social impact via CRISIL Foundation for the past 9 years 2013-14 2015-16 2017-20 2021-22 Ideation and Tapping the Impact focus, Scale-up in pilot testing of social value agile Covid-19 18 states / UTs with key CSR Initiatives within CRISIL response RBI’s support • Formally registered as the
Slide 31: Agenda
Agenda 1. Introduction 2. Business environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance update 4. Financials 5. Segment performance ― Advisory 6. Thought leadership & Corporate social responsibility 7. Risks 31
Slide 32: Risks
Risks Geopolitical environment Evolving regulatory landscape © 2022 CRISIL Ltd. All rights reserved. Information security and cyber-related risks People cost inflation Currency movement Reputation risk 32
Slide 33: About CRISIL Limited
About CRISIL Limited 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