Slide 1: 2020 Analyst presentation
2020 Analyst presentation © 2021 CRISIL Ltd. All rights reserved. February 2021 July 2020 1
Slide 2: 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 3: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Summary 3
Slide 4: CRISIL is a leading global analytics company
CRISIL is a leading global analytics company driven by its mission of making markets function better Ratings Benchmarking Insights © 2021 CRISIL Ltd. All rights reserved. Global Research Risk Solutions Empowering decision- Services making with cutting-edge #Analytics Market Insights & Analytics #Glo
Slide 5: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Summary 5
Slide 6: How Covid-19 struck an economic blow
How Covid-19 struck an economic blow External 2020 GDP Growth (%) Global recession © 2021 CRISIL Ltd. All rights reserved. Covid- Global -4.0 19 Supply chain disruption India -7.7 Domestic US -3.9 Fall in commodity prices and discretionary spend Eurozone -7.2 Containment Uncertainty, Financial measu
Slide 7: Bank credit growth to fall to a multi-year low this fiscal
Bank credit growth to fall to a multi-year low this fiscal 125 12 11% 10 100 9% © 2021 CRISIL Ltd. All rights reserved. 8 75 6% 6 50 4 25 2% 2 0 0 FY18 FY19 FY20 9M FY21 Credit growth (%) - RHS Gross Advances (Rs. Lakh Crores) - LHS Source: RBI, CRISIL 7
Slide 8: Proactive response to the pandemic ensured business continuity
Proactive response to the pandemic ensured business continuity Maintained ‘People first’ Focus on technology Ensured high customer approach ensured seamless operations engagement • Mandatory WFH for most of 2020 • 99%+ workforce remotely connected • High impact research papers, analysis, • Launched
Slide 9: 2020 Highlights
2020 Highlights 1 Stood resilient and relevant amidst externalities to deliver revenue growth of 14.4% and PAT growth of 3.1%* 2 Continued to win new clients and mandates across markets © 2021 CRISIL Ltd. All rights reserved. 3 Acquired Greenwich Associates 4 Completed SEBI-mandated segregation of r
Slide 10: Greenwich Associates
Greenwich Associates Greenwich accelerates our strategy to be the leading player in the global benchmarking analytics across financial services Business strengths • Nearly five decades of proven track record in benchmarking analytics © 2021 CRISIL Ltd. All rights reserved. • Most trusted brand for s
Slide 11: A 'TRUSTED' voice
A ‘TRUSTED’ voice On point and thought provoking impact pieces © 2021 CRISIL Ltd. All rights reserved. Our SMEs shaping digital discussions Digital webinars Discussion papers Podcasts Knowledge partnerships 11
Slide 12: CSR initiatives continue to drive tangible and sustainable impact
CSR initiatives continue to drive tangible and sustainable impact Financial capability building in Assam, Rajasthan, Haryana and Maharashtra • Over 2.2 lakh beneficiaries trained for financial literacy • Provided financial inclusion services through 860+ Sakhis in over 1,300+ villages • RBI’s CFL pi
Slide 13: Key business trends that will shape the medium term
Key business trends that will shape the medium term © 2021 CRISIL Ltd. All rights reserved. Economic revival Buoyant capital markets Financial and credit AI/ML adoption stress Accelerated digital Emphasis on social and Increasing focus on non- Remote working and transformation sustainable practices
Slide 14: Global economy: Moving towards a brighter 2021
Global economy: Moving towards a brighter 2021 GDP growth (%) 4.8 4.2 -7.2 2.7 7.0 -3.9 -5.5 2.1 © 2021 CRISIL Ltd. All rights reserved. US Eurozone Japan China India World World -7.7 2.9 2019 - -4.0 2020: 2020 - -2.4 2021: 5.0 11.0 2020 2021 Source: S&P Global, December 2020; India outlook is fisca
Slide 15: Indian economy to catch-up to pre-Covid level by Q2FY22
Indian economy to catch-up to pre-Covid level by Q2FY22 120 115 Pre-Covid trend Seasonally adjusted Real GDP (Q4FY20=100) 110 105 © 2021 CRISIL Ltd. All rights reserved. 11% growth 100 Pre-Covid level 95 90 85 80 75 70 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 15
Slide 16: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Summary 16
Slide 17: Q4 2020 Financial results
Q4 2020 Financial results Income from Operations Profit After Tax ₹ crore ₹ crore +28.6% +15.4% © 2021 CRISIL Ltd. All rights reserved. 597.2 110.0 464.3 95.3 Q4 2019 Q4 2020 Q4 2019 Q4 2020 • Income from operations for the quarter up 28.6% • Profit after tax for the quarter grew by 15.4% • Final di
Slide 18: FY 2020 Financial results
FY 2020 Financial results Income from Operations Income from Operations – excl. Greenwich Associates ₹ crore ₹ crore +14.4% +1.4% 1,731.7 1,981.8 1,731.7 1,756.1 © 2021 CRISIL Ltd. All rights reserved. 2019 2020 2019 2020 Profit After Tax Profit After Tax – excl. Greenwich Associates ₹ crore ₹ crore
Slide 19: Consistent track record of high dividend payment
Consistent track record of high dividend payment Total dividend# (in ₹ / Share) Dividend payout* (as a % of PAT) © 2021 CRISIL Ltd. All rights reserved. 32 33 30 66% 67% 67% 28 65% 27 60% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 # Per equity share of face value of Re. 1 each *Excludes Divid
Slide 20: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance - Ratings 5. Summary 20
Slide 21: Capital markets issuers saw decline during the year, overall credit growth remains subdued
Capital markets issuers saw decline during the year, overall credit growth remains subdued due to dip in industry credit Bond Issuance Quantum (₹ billion) Credit Growth (%) +8% 24.0% 8,000 7,719 7,152 19.0% © 2021 CRISIL Ltd. All rights reserved. 6,000 5,750 14.0% 9.5% 4,000 9.0% 5.9% 2,000 4.0% 3.4
Slide 22: Pandemic grips credit quality leading to fewer upgrades weakening credit ratio
Pandemic grips credit quality leading to fewer upgrades weakening credit ratio Credit ratio 2.5 2.0 1.5 © 2021 CRISIL Ltd. All rights reserved. 1.0 0.5 0.0 H1-15 H2-15 H1-16 H2-16 H1-17 H2-17 H1-18 H2-18 H1-19 H2-19 H1-20 H2-20 H1-21 Source: CRISIL Credit ratio is defined as the ratio of number of u
Slide 23: Ratings: Highlights
Ratings: Highlights Financials Business update • The Ratings segment registered healthy growth driven by performance of Large Corporate Ratings Particulars (₹ cr) Q4 2019 Q4 2020 • During the year, the bond market increased by 8% y-o-y by in quantum with lower no. of issuers (-18%) Income from 141.5
Slide 24: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance - Research 5. Summary 24
Slide 25: Indian MF AUM end the year on a high; Globally, CIBs benefited from trading
Indian MF AUM end the year on a high; Globally, CIBs benefited from trading revenues, however pressure continues ₹ ‘000 crore 2,993 2,687 2,237 2,366 1,693 13.5 India 1,341 11.3 mutual fund India - Gross 9.1 8.5 8.3 AUM* NPA (%) © 2021 CRISIL Ltd. All rights reserved. 2015 2016 2017 2018 2019 2020 F
Slide 26: Evolving regulations present opportunities
Evolving regulations present opportunities USA: Maturing • CCAR © 2021 CRISIL Ltd. All rights reserved. • DFAST Europe: Tightening • FRTB • EBA/PRA Stress Testing Asia: Nascent • IBOR • BASEL III • IFRS9 • CECL • FRTB • IBOR • UMR (Phase V and VI) • TRIM • Stress Testing • IBOR • UMR (Phase V and VI
Slide 27: Research: Highlights
Research: Highlights Financials Business update • Research segment grew strongly driven by Global Research & Analytics (GR&A) performance and acquisition of Greenwich Particulars (₹ cr) Q4 2019 Q4 2020 • GR&A saw growth with addition of new logos in traditional areas such as model and traded risk. T
Slide 28: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance - Advisory 5. Summary 28
Slide 29: Focus on infrastructure and technology adoption to create emerging needs
Focus on infrastructure and technology adoption to create emerging needs for analytics, risk and infra solutions Infrastructure Advisory Risk Solutions © 2021 CRISIL Ltd. All rights reserved. • ₹100 trillion spend on Infra over next 4 to 5 years with • Need for integrated credit and risk solutions,
Slide 30: Advisory: Highlights
Advisory: Highlights Financials Business update • The Advisory segment witnessed good traction during the Particulars (₹ cr) Q4 2019 Q4 2020 quarter • New mandates won in areas of regulatory reporting, credit Income from risk and select city infrastructure projects 34.0 39.8 Operations • However, th
Slide 31: Risks
Risks Prolonged impact of Covid-19 pandemic and delay in economic revival Evolving regulatory environment © 2021 CRISIL Ltd. All rights reserved. Information security and cyber-related risks Adverse currency movement Intense competition Reputation risk 31
Slide 32: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Summary 32
Slide 33: In Summary,
In Summary, CRISIL’s businesses demonstrated resilience underpinned by its strong and increasing relevance of best in class insights, opinions and analytics in a year of uncertainty CRISIL’s financial performance in 2020 was driven by its differentiated positioning, new © 2021 CRISIL Ltd. All rights
Slide 34: 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