S&p Global Inc. · NYSE:SPGI
S&p Global — Q2 2016 Earnings Presentation
18 slides from S&p Global's earnings presentation, Jul 28, 2016
Slide 1: 2Q 2016 Earnings Call
7/28/2016 2Q 2016 Doug Peterson President and Chief Executive Officer Earnings Call Jack Callahan Executive Vice President and CFO Chip Merritt Vice President, Investor Relations Copyright © 2016 by S&P Global. All rights reserved. July 28, 2016 Comparison of adjusted information to U.S. GAAP inform
Slide 2: "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995
7/28/2016 “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 event
Slide 3: 2016 momentum builds
7/28/2016 Doug Peterson President and Chief Executive Officer 5 2016 momentum builds • Delivered revenue growth in every segment • Reported an adjusted operating profit margin improvement of 210 basis-points as the Company continues to focus on productivity • Continued progress on SNL integration an
Slide 4: Brexit – no immediate implications for Company
7/28/2016 Brexit – no immediate implications for Company • The forthcoming British exit from the EU has no immediate implications for our European operations • It is business as usual for S&P Global • However, we do expect that because of the uncertainty it creates, Brexit could hamper issuance • We
Slide 5: S&P Global Ratings and S&P Global Market Intelligence lead adjusted operating margin gains
7/28/2016 S&P Global Ratings and S&P Global Market Intelligence lead adjusted operating margin gains 2Q 2016 S&P Global S&P Global S&P Global S&P Dow Market Platts vs. 2Q 2015 Ratings Jones Indices Intelligence (includes J.D. Power) Revenue +4% +29%* +4% +9%* Adj. Operating +12% +48% +4% +7% Profit
Slide 6: S&P Global Ratings: Transaction revenue turns positive
7/28/2016 S&P Global Ratings: Transaction revenue turns positive ($ in millions) 2Q 2016 2Q 2015 Change Non-transaction $339 $330 +3% Transaction $343 $328 +5% 2Q 2016 highlights: • Non-transaction revenue increased 3% from growth in surveillance, CRISIL, commercial paper activity, and royalties fro
Slide 7: 2Q 2016 Asian bond issuance supports 3% global increase
7/28/2016 2Q 2016 Asian bond issuance supports 3% global increase ‐11% Issuance by Region ($ in billions) $656 $586 0% +55% $371 $372 $315 $204 ‐4% $66 $63 U.S. EMEA Asia Americas Ex‐U.S. 2Q15 2Q16 All figures exclude sovereign issuance 13 Historical global issuance and forecast Nonfinancials Financ
Slide 8: S&P Global Market Intelligence continues to deliver integration synergies
7/28/2016 S&P Global Market Intelligence continues to deliver integration synergies ($ in millions) 2Q 2016 2Q 2015 Change Revenue $416 $324 +29%* Adj. Segment Operating Profit $118 $80 +48% Adj. Segment Operating Margin 28.4% 24.7% +370 bps * Organic revenue increased 8%. 2Q 2016 highlights: • Cont
Slide 9: S&P Global Market Intelligence user growth drives improved revenue
7/28/2016 S&P Global Market Intelligence user growth drives improved revenue Risk Research Financial Data & Analytics Services & Advisory Desktop & Enterprise SNL 2Q Revenue 2Q Revenue 2Q Revenue 2Q Revenue +8% +10%* +9%* +10% (12%) Both S&P Capital IQ Desktop RatingsXpress® had Decrease due t
Slide 10: S&P Dow Jones Indices: Record quarter ending ETF AUM
7/28/2016 S&P Dow Jones Indices: Record quarter ending ETF AUM Transaction (Exchange-Traded Derivatives): • Revenue growth was primarily due to a 24% increase in average daily volume of products based on S&P DJI’s indices • E-mini S&P 500 futures, CBOE Volatility Index options and futures (VIX), and
Slide 11: DJIA: The Daily Symbol of the U.S. Stock Market
7/28/2016 Dow Jones Industrial Average® celebrates 120 years DJIA: The Daily Symbol of the U.S. Stock Market Dow Presses On to Historic Peak (2016, July 13) Wall Street Journal p. A1. 21 S&P Global Platts: (includes J.D. Power) Platts delivers 2Q revenue growth ($ in millions) 2Q 2016 2Q 2015 Change
Slide 12: Platts: Global Trading Services led growth during the quarter
7/28/2016 Platts: Global Trading Services led growth during the quarter • Global Trading Services’ double-digit revenue increase was primarily due to the timing of license fees and strong license revenue from the Singapore and ICE exchanges • The core subscription business delivered mid-single digit
Slide 13: Summary
7/28/2016 Summary • All segments delivered revenue growth • Bond issuance recovered from a weak start to the year • We continue to focus on margin improvement • Integration of SNL remains a top priority for the Company • We expect Brexit to have no immediate implications for the Company • Our adjust
Slide 14: Financial highlights — key areas
7/28/2016 Jack Callahan Executive Vice President and Chief Financial Officer 27 Financial highlights — key areas • Consolidated income statement results • Adjustments to Q2 earnings • Balance sheet, free cash flow, and return of capital results • 2016 guidance update 28 14
Slide 15: 2Q 2016: Organic revenue growth, margin gains, and share repurchases drive EPS increase
7/28/2016 2Q 2016: Organic revenue growth, margin gains, and share repurchases drive EPS increase ($ in millions, except earnings per share) 2Q 2016 2Q 2015 Change Revenue $1,482 $1,342 +10%* Total expense 830 779 +6% Operating profit $652 $563 +16% Operating profit margin 44.1% 42.0% +210 bps Inter
Slide 16: Net debt snapshot
7/28/2016 Net debt snapshot ($ in millions) 2Q 2016 4Q 2015 Cash and cash equivalents $1,567 $1,481 Short-term debt $309 $143 Long-term debt $3,470 $3,468 • Approximately 95% of cash is outside the U.S. • Reduced short-term debt by $163 million since 1Q 2016 • Short-term debt includes commercial pap
Slide 17: 2016 now assumes close of J.D. Power sale in 3Q and EPS guidance increased
7/28/2016 2016 now assumes close of J.D. Power sale in 3Q and EPS guidance increased Income Statement ($ in millions) Updated 2016 Guidance Revenue Mid single-digit increase Adjusted unallocated expense $145-150 million Deal-related amortization ~$98 million Adjusted operating profit margin increase
Slide 18: 2Q 2016 Earnings Call
7/28/2016 2Q 2016 Doug Peterson President and Chief Executive Officer Earnings Call Jack Callahan Executive Vice President and CFO Chip Merritt Vice President, Investor Relations Copyright © 2016 by S&P Global. All rights reserved. July 28, 2016 2Q 2016 Doug Peterson President and Chief Executive Of