S&p Global Inc. · NYSE:SPGI
S&p Global — Stifel 2021 Virtual Cross Sector Insight Conference
33 slides from S&p Global's conference presentation, Jun 9, 2021
Slide 1: Stifel 2021 Virtual Cross Sector Insight Conference
Stifel 2021 Virtual Ewout Steenbergen Cross Sector Insight CFO Chip Merritt Conference SVP Investor Relations June 9, 2021 Copyright © 2021 by S&P Global. All rights reserved.
Slide 2: Disclaimer regarding announcement of S&P Global and IHS Markit's definitive merger agreement
Disclaimer regarding announcement of S&P Global and IHS Markit's definitive merger agreement S&P Global announced on March 11, 2021 that its shareholders overwhelmingly voted to approve the Company's proposed transaction with IHS Markit at a special meeting of the Company's shareholders. Approximate
Slide 3: 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, including statements about COVID-19 and the merger (the “Merger”) between
Slide 4: Comparison of adjusted information to U.S. GAAP information
Comparison of adjusted information to U.S. GAAP information This presentation includes adjusted financial measures that are derived from the Company’s continuing operations. This non-GAAP information is provided in order to allow investors to make meaningful comparisons of the Company’s operating pe
Slide 5: Data into insights
Data into insights. Essential intelligence for an ever-changing world. We provide data & analytics, research & commentary, benchmarks, credit ratings and ESG solutions through the collective strength of our divisions. 5
Slide 6: Revenue by business for the past 15 years
Revenue by business for the past 15 years S&P Global Ratings S&P Global Market 3,606 Intelligence (1, 2) 3,106 2,988 2,883 2,455 2,428 2,535 2,274 2,139 (2) 1,952 2,034 1,695 1,767 250 1,583 1,537 224 163 188 137 2,106 86 100 116 1,833 1,959 62 1,661 1,683 50 1,124 1,170 1,237 1,319 865 880 916 1,03
Slide 7: 1Q 2021 results by segment
1Q 2021 results by segment Adjusted segment operating Revenue: $2,016 million profit: $1,190 million $225 $131 Market $181 Intelligence $539 $192 $270 Ratings1 S&P Dow Jones Indices2 $686 $1,017 Platts ($ in millions) ($ in millions) Notes: Revenue chart excludes consolidating adjustments 1) Include
Slide 8: Consistent revenue growth
Consistent revenue growth Revenue 4-year CAGR: 7% $8,000 $7,442 $7,000 $6,699 $6,063 $6,258 $6,000 $5,661 $5,000 $4,000 +13% $3,000 $1,786 $2,016 $2,000 $1,000 $0 ($ in millions) 2016 2017 2018 2019 2020 1Q20 1Q21 8
Slide 9: Adjusted operating profit margin improvement continues
Adjusted operating profit margin improvement continues Adjusted Operating Profit Margin 70% 60% 57.6% 50.2% 53.3% 53.1% 46.5% 48.8% 50% 42.4% 40% 30% 20% 10% 0% 2016 2017 2018 2019 2020 1Q20 1Q21 9
Slide 10: Adjusted diluted earnings per share growth continues
Adjusted diluted earnings per share growth continues Adjusted Diluted Earnings Per Share 4-year CAGR: 22% $14.00 $11.69 $12.00 $10.00 $9.53 $8.50 $8.00 $6.89 $6.00 $5.35 +24% $4.00 $3.39 $2.73 $2.00 $0.00 2016 2017 2018 2019 2020 1Q20 1Q21 10
Slide 11: Secular market trends position S&P Global for sustained long-term growth
Secular market trends position S&P Global for sustained long-term growth Total corporate debt outstanding continues China capital markets reform to grow over time Investors searching for Assets continue to shift to unique data with ubiquitous index-related investments delivery ESG investing Trade fl
Slide 12: Consistent track record of returning cash to shareholders
Consistent track record of returning cash to shareholders RETURNED $8.9 Billion $2,163 SINCE START OF 2016 $1,800 $1,809 Due to the pending $1,503 $1,422 merger with IHS Markit there were no share repurchases during 1Q21 $186 Share Repurchases Dividends 2016 2017 2018 2019 2020 1Q21 ($ in millions)
Slide 13: Cash position temporarily elevated
Cash position temporarily elevated Period-end debt and cash positions $4,527 $4,110 $4,131 $4,111 $3,948 $3,564 $3,569 $3,662 $2,791 $2,914 $2,400 $1,976 2016 2017 2018 2019 2020 1Q21 ($ in millions) Debt Cash, cash equivalents, restricted cash, and short-term investments 13
Slide 14: IHS Markit merger strengthens and accelerates our Powering the Markets of the Future strategy
IHS Markit merger strengthens and accelerates our Powering the Markets of the Future strategy Enhances customer value proposition with unique, highly complementary assets Builds scale and joint offerings in high growth markets and leverages innovation and technology capability, including Kensho and
Slide 15: 2021 key strategic initiatives
2021 key strategic initiatives • Build on recent product launches in China • Expand Platts and Ratings capabilities in Asia Global • Deliver on the S&P Global Platform initiatives • Augment Indices solutions to address evolving market needs • Expand Platts offerings in Ag, shipping, and petrochemica
Slide 16: Kensho capabilities embedded throughout the Company with a robust pipeline of projects
Kensho capabilities embedded throughout the Company with a robust pipeline of projects Automation Reduced Time Enhanced to Market Capabilities ▪ OmniSearch – New search tool added to MI platform uses machine-learning to enable intuitive search capabilities ▪ Kensho Link – Facilitated dataset expansi
Slide 17: 2020 new product launches showcase technology expertise
2020 new product launches showcase technology expertise • Marketplace: Offers more than 100 content and solution tiles including Kensho Scribe and Link • Snowflake partnership: Provides clients cloud-agnostic delivery options • RiskGauge: Includes data on over 50 million SMEs • ProSpread™: Automates
Slide 18: In 2019, S&P Global officially launched its domestic credit-rating business in China
In 2019, S&P Global officially launched its domestic credit-rating business in China • First approval for a company wholly owned by an international CRA to rate domestic Chinese bonds • Authorized to rate issuers and issuances from: – Financial institutions – Corporates – Structured finance bonds –
Slide 19: Ratings financial snapshot
Ratings financial snapshot Revenue Adjusted Operating Profit 3-year CAGR: 6% Margin** $3,606 $2,988 $2,883$3,106 67.5% 62.4% 63.1% 56.8% 57.8% 53.6% +23% $1,017 $825 ($ in millions) ** 2018 and 2019 results reflect the recast for the allocation methodology change of technology-related expenses in 1Q
Slide 20: Global ratings by S&P Global Ratings reflect full breadth of ratings spectrum
Global ratings by S&P Global Ratings reflect full breadth of ratings spectrum Bond Ratings (Global Corporates) 2,500 1,952 2,000 Number of Issuers 1,847 1,500 1,405 1,192 1,000 2Q 454 500 289 1Q 8 0 AAA AA A BBB BB B CCC/C Outstanding Ratings as of 12/31/2020 20
Slide 21: Ratings help investors gauge the risk of default
Ratings help investors gauge the risk of default Global Corporates Average Cumulative Default Rates, 1981 - 2020 60 50 AAA 40 Percentage AA A 30 BBB 20 BB B 10 2Q CCC/C 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1Q 1Q Time horizon, years Source: S&P Global Ratings Research, “Default, Tra
Slide 22: U.S. corporate debt as a share of U.S. GDP
U.S. corporate debt as a share of U.S. GDP (nominal) Financial Corporate Debt (Ex GSE) / U.S. GDP Non-Financial Corporate Debt (Ex GSE) / U.S. GDP 1H 2020 increase 120% beginning to recede 100% 80% 60% 40% 20% 0% Credit market instruments including bonds, commercial paper, and loans, excluding agenc
Slide 23: S&P Dow Jones Indices financial snapshot
S&P Dow Jones Indices financial snapshot Adjusted Operating Revenue Profit Margin** 3-year CAGR: 11 % $989 68.3% 69.5% 69.1% 70.6% 71.3% $918 66.4% $837 $728 +4% $259 $270 ($ in millions) ** 2018 and 2019 results reflect the recast for the allocation methodology change of technology-related expenses
Slide 24: S&P Dow Jones Indices revenue mix
S&P Dow Jones Indices revenue mix At the forefront of passive investing AREAS OF FOCUS: Data & Custom Subscriptions Continue index innovation (e.g. factors, Asset-Linked smart beta, ESG) Exchange- Fees Traded 2020 Expand local presence Derivatives in emerging markets Increase global indices awarenes
Slide 25: Market Intelligence financial snapshot
Market Intelligence financial snapshot Revenue Adjusted Operating 3-year CAGR: 8% Profit Margin** $2,106 $1,959 $1,833 $1,683 32.1% 31.7% 32.1% 32.4% 30.9% 33.5% +4% $519 $539 ($ in millions) ** 2018 and 2019 results reflect the recast for the allocation methodology change of technology-related expe
Slide 26: S&P Global Market Intelligence
S&P Global Market Intelligence AREAS OF FOCUS: Desktop Deliver on S&P Global platform initiatives Data Management Solutions Transition Capital IQ users to the new platform Credit Risk Solutions Continue to add unique content and analytical tools RECENTLY ACQUIRED: 451 Research – Technology industry
Slide 27: S&P Global Platts financial snapshot
S&P Global Platts financial snapshot Revenue Adjusted Operating Platts 3-year CAGR: 4% Profit Margin $844 $878 58.1% $774 $815 51.4% 52.4% 54.7% 52.9% 47.1% +5% $215 $225 ($ in millions) ** 2018 and 2019 results reflect the recast for the allocation methodology change of technology-related expenses
Slide 28: S&P Global Platts
S&P Global Platts Revenue generated from subscriptions and licensing for derivative trading AREAS OF FOCUS: Thousands of daily price Create world-class capability in assessments trade flow analytics Comprehensive coverage Pursue unique benchmarks in new across commodity markets regions and markets D
Slide 29: S&P Global has a growing range of ESG solutions linked to a centralized production of content
S&P Global has a growing range of ESG solutions linked to a centralized production of content ESG Solutions Ratings Market Intelligence Indices Platts Fixed Income, Equity, Any Entity Corporates, Equity, Fixed Income Equity & Fixed Income Passive Corporates • ESG Evaluations • ESG Scores • ESG indic
Slide 30: ESG performance highlights
ESG performance highlights We see ESG as an essential component of sustainable company performance Environmental Social Governance Introduced commitment to Net-Zero Ensuring a diverse & inclusive All directors (other than the CEO) emissions by 2040 culture is set from the top through are independent
Slide 31: Key governance highlights
Key governance highlights Accountability Board Independence & Compensation & Risk Refreshment Management Annual elections for directors Independent Chairman of the Equity Ownership Board Requirements for directors and executive officers Majority voting in uncontested All directors except our CEO are
Slide 32: ESG awards & recognition
ESG awards & recognition SBL ils corporate Responsibility Magazine's 100 NATIONAL ORGANIZATION ON A DISABILITY SS ootttco, ‘ 5: United Nations wees Global Compact Corporate Responsibility rated by ISS-oekom> S&P Global CEO [ACTION] FOR WORKING DIVERSITY & INCLUSION MOTHER 0 vn 100 BEST Le ADOPTION-F
Slide 33: Stifel 2021 Virtual Cross Sector Insight Conference
Stifel 2021 Virtual Ewout Steenbergen Cross Sector Insight CFO Chip Merritt Conference SVP Investor Relations June 9, 2021 Copyright © 2021 by S&P Global. All rights reserved.
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