Slide 1: Exchange filing cover letter for analyst call
April 19, 2023 Listing Department Listing Department National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, 5th floor P J Towers Plot No. C/1, G Block Dalal Street Bandra-Kurla Complex Mumbai 400 001 Bandra (East) Mumbai 400 051 Dear Sirs, Sub.: Analyst Call We are enclosing herewith our
Slide 2: Onwards and Upwards - CRISIL analyst presentation
ELEV∧TING IMPΔCT © 2022 CRISIL Ltd. All rights reserved. Onwards and Upwards CRISIL analyst presentation April 2023
Slide 3: Disclaimer / Safe harbor
Disclaimer / Safe harbor This presentation has been prepared solely as a concise update of the 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 correc
Slide 4: Agenda
Agenda 1. CRISIL overview 2. Business environment 3. Performance update © 2023 CRISIL Ltd. All rights reserved. 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility 8. Risks 3
Slide 5: CRISIL overview
CRISIL overview Ratings Ratings India’s premier ratings agency having rated 35,000+ large and medium-scale entities Global Analytical Centre Research and analytics partner for S&P Global We accelerate progress by © 2023 CRISIL Ltd. All rights reserved. providing intelligence, Research, Analytics & S
Slide 6: Global presence
Global presence 4,700+ employees globally - 40+ nationalities across 12 countries; ~39% women employees UK Poland USA China London Wroclaw New York, NY Hangzhou Stamford, CT Hong Kong © 2023 CRISIL Ltd. All rights reserved. Switzerland Mühlebachstrasse Japan UAE Tokyo India Dubai Singapore Mumbai (H
Slide 7: Agenda
Agenda 1. CRISIL overview 2. Business environment 3. Performance update © 2023 CRISIL Ltd. All rights reserved. 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility 8. Risks 6
Slide 8: Macroeconomic environment
Macroeconomic environment Continued global uncertainties, lag effect of past rate hikes, and inflation to have a bearing on trends this year 7.0 GDP growth (%) 6.0 5.5 2022 2023F © 2023 CRISIL Ltd. All rights reserved. 3.4 3.5 3.0 2.7 2.1 1.1 1.0 0.7 0.3 World US Eurozone India* China Japan Interest
Slide 9: Key trends amid uncertain market environment
Key trends amid uncertain market environment Global Heightened activity in alternatives and Financial system fragility deployment of private capital © 2023 CRISIL Ltd. All rights reserved. Continued spends for regulatory requirements, Emergence of data and technology risk management and business tra
Slide 10: Agenda
Agenda 1. CRISIL overview 2. Business environment 3. Performance update © 2023 CRISIL Ltd. All rights reserved. 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility 8. Risks 9
Slide 11: Robust performance despite challenging environment
Robust performance despite challenging environment Highlights of Q1 2023 business performance 20.2% • Ratings Services delivered revenue growth supported by higher corporate bond Q1 2023 issuances (both, by quantum and number of issuers), and robust bank credit growth, which drove bank loan ratings
Slide 12: Elevating customer centricity
Elev∧ting customer centricity Enhanced client engagement across businesses © 2023 CRISIL Ltd. All rights reserved. Maintained market-leading position in the Expanded wallet share with top clients in Ratings business, driven by investor global CIBs and asset managers, and domestic preference for our
Slide 13: Elevating tech agility and talent
Elev∧ting tech agility and talent Ramped up digital and foundational infrastructure with sharp focus on cloud and infosec Driving a shared sense of purpose, encouraging all employees to create impact through meaningful work and make a difference Rolled out Q2, the integrated Qualitative and © 2023 C
Slide 14: Agenda
Agenda 1. CRISIL overview 2. Business environment 3. Performance update © 2023 CRISIL Ltd. All rights reserved. 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility 8. Risks 13
Slide 15: Continued healthy performance for full year 2022 & Q1 2023
Continued healthy performance for full year 2022 & Q1 2023 Income from operations Profit before exceptional items and tax* PAT excl. the impact of exceptional item* ₹ crore ₹ crore ₹ crore +20.2% +14.4% +19.8% 594.9 714.9 169.3 193.6 121.6 145.8 © 2023 CRISIL Ltd. All rights reserved. Q1 2022 Q1 202
Slide 16: Agenda
Agenda 1. CRISIL overview 2. Business environment 3. Performance update © 2023 CRISIL Ltd. All rights reserved. 4. Financials Segment performance – 5. Ratings Services 6. Thought leadership 7. Corporate social responsibility 8. Risks 15
Slide 17: Corporate bond issuances grew in Q1 2023; wholesale bank credit growing
Corporate bond issuances grew in the first quarter of 2023; Wholesale bank credit continues to grow at a healthy pace Bond issuance quantum (₹ billion) Credit growth (%) 8,000 +12% 25.0% 20.4% 7,000 20.0% 6,000 15.5% © 2023 CRISIL Ltd. All rights reserved. 5,000 15.0% 4,000 +48% 13.6% 3,000 10.0% 2,
Slide 18: Our differentiated analytical rigour
Our differentiated analytical rigour Long-run one-year default rates (average for 10 years ended FY2022) Rating CRISIL Ratings OCRA1 OCRA2 OCRA3 OCRA4@ category AAA 0.01% 0.6% 0.2% 0.19% 0.48% © 2023 CRISIL Ltd. All rights reserved. AA 0.06% 0.4% 0.1% 0.16% 0.98% A 0.15% 0.6% 0.3% 0.80% 1.65% BBB 0.
Slide 19: Ratings Services performance highlights
Ratings Services performance highlights Financials Particulars (₹ cr) Q1 2022 Q1 2023 Growth Particulars (₹ cr) 2021 2022 Growth Income from Income from 160.7 186.5 16.1% 592.4 663.4 12.0% operations operations © 2023 CRISIL Ltd. All rights reserved. Segment profit 77.6 89.7 15.6% Segment profit 253
Slide 20: Agenda
Agenda 1. CRISIL overview 2. Business environment 3. Performance update © 2023 CRISIL Ltd. All rights reserved. 4. Financials Segment performance – 5. Research, Analytics & Solutions 6. Thought leadership 7. Corporate social responsibility 8. Risks 19
Slide 21: Financial sector's growth driven by banking stability and financialisation
Financial sector’s growth to be driven by stability in the banking sector and momentum in financialisation Banking sector gross NPAs India mutual funds AUM* 11.3% ₹ ‘000 crore 4,085 4,113 © 2023 CRISIL Ltd. All rights reserved. 9.0% 3,864 8.5% 9 year 7.4% low 2,993 5.9% 2,687 2,366 4.2% FY18 FY19 FY
Slide 22: Government spending, PLI scheme to drive corporate and MSME growth
Government spending, Production-Linked Incentive scheme to drive corporate and MSME growth Sectoral growth of government capex investments Corporate and MSME revenue growth FY’18 - FY’22 Sector FY’23 E FY’24 P CAGR 25% © 2023 CRISIL Ltd. All rights reserved. 16-18% Infrastructure 7% 18-22% 12-15% 21
Slide 23: CIB revenues and profitability impacted by fall in capital market activity
CIB revenues and profitability impacted by fall in capital market activity, but remain above pre-pandemic levels Global CIB revenue pools CIB return on equity (%) $ billion 600 20% © 2023 CRISIL Ltd. All rights reserved. 15% 400 10% 200 5% 0 0% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022E Reve
Slide 24: Opportunities in an evolving global market
Opportunities in an evolving global market Regulations Market infrastructure Sustainability Digitalisation spend © 2023 CRISIL Ltd. All rights reserved. Regulatory mandates Platform simplification Increased demand for Demand for analytics following heightened and integration to sustainability leadin
Slide 25: Research, Analytics & Solutions performance highlights
Research, Analytics & Solutions performance highlights Financials Particulars (₹ cr) Q1 2022 Q1 2023 Growth Particulars (₹ cr) 2021 2022 Growth Income from Income from operations 434.3 528.4 21.7% 1708.3 2105.3 23.2% operations Segment profit 99.9 109.3 9.4% Segment profit 339.6 457.1 34.6% © 2023 C
Slide 26: Agenda
Agenda 1. CRISIL overview 2. Business environment 3. Performance update © 2023 CRISIL Ltd. All rights reserved. 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility 8. Risks 25
Slide 27: Thought leadership
Thought leadership Media Coverage Outreach – webinars, events and reports CRISIL’s 7th edition of India Outlook Seminar © 2023 CRISIL Ltd. All rights reserved. # Credit Risk Modelling Event in NY, USA * CRISIL Ratings released knowledge report at ASSOCHAM’s event on ARC B-EPIC Climate risk workshop
Slide 28: Agenda
Agenda 1. CRISIL overview 2. Business environment 3. Performance update © 2023 CRISIL Ltd. All rights reserved. 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility 8. Risks 27
Slide 29: Delivering social impact through CSR initiatives
Delivering social impact through CSR initiatives The CRISIL Board and leadership team visited Rajasthan to understand the operations and impact created by our flagship programme, Mein Pragati. CRISIL Foundation celebrated completion of 10 years. Building financial capability of rural women and commu
Slide 30: Agenda
Agenda 1. CRISIL overview 2. Business environment 3. Performance update © 2023 CRISIL Ltd. All rights reserved. 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility 8. Risks 29
Slide 31: Risks
Risks Geopolitical and market environment Evolving regulatory landscape © 2023 CRISIL Ltd. All rights reserved. Information and cyber security risks Currency movement Reputation risk People cost inflation 30
Slide 32: 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