S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Jefferies 2015 Global Technology, Media & Telecom Conference
15 slides from S&p Global's conference presentation, May 12, 2015
Slide 1: Jefferies TMT Conference
JEFFERIES TMT CONFERENCE Chip Merritt – Vice President, Investor Relations May 12, 2015 McGraw Hill Financial 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 in
Slide 2: 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, which express management’s current views concerning future events, trends,
Slide 3: A Leading Provider of Ratings, Benchmarks, Analytics & Research
A Leading Provider of Ratings, Benchmarks, Analytics & Research Leading rating agency Premier provider of high quality data, analytical tools and ratings information The leading index provider Principal provider of commodity price assessments and information Primary customer satisfaction benchmark p
Slide 4: MHFI Customer Engagement: Diverse Customer Set
Essential Intelligence McGraw Hill Financial 6 MHFI Customer Engagement: Diverse Customer Set Revenue by Customer Segment 16% Corporates Investment Management Commercial Banks, Insurance, Specialty 17% 2014 48% Investment Banks 19% McGraw Hill Financial 7 4
Slide 5: A Proven Track Record of Growth
A Proven Track Record of Growth Annual Revenue Growth Adjusted Operating Margin ($ in millions) Mid +680 bps >125 bps +10% CAGR single‐digit 35.9% $5,051 33.1% $4,702 31.4% 29.1% $4,270 $3,762 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Guidance Guidance McGraw‐Hill Education and McGraw Hill C
Slide 6: A Truly Global Company
A Truly Global Company North America Headcount 5,000 Revenue $ 3.1B EMEA Headcount 2,000 Revenue $ 1.3B Asia Pacific Headcount 9,500 ~40% ~80% Revenue $ 0.5B of revenue of revenue generated billed in US$ Latin America outside U.S. Headcount 500 Revenue $ 0.1B ~17,000 Employees 30 Countries 96 Global
Slide 7: Double-Digit Earnings Growth; 1Q 2015 Results
Double‐Digit Earnings Growth Annual Adjusted Diluted EPS $4.35‐$4.45 +24% CAGR $3.88 $3.22 $2.65 $2.03* 2011 2012 2013 2014 2015 Guidance Note: McGraw‐Hill Education and McGraw Hill Construction reclassified to discontinued operations * Excludes gain on divestiture of Broadcasting McGraw Hill Financ
Slide 8: Consistent Progress in Every Business Unit
Consistent Progress in Every Business Unit 1Q 2015 Versus 1Q 2014 Business Unit Results Standard & Poor’s S&P Dow Commodities S&P Capital IQ Ratings Jones Indices & Commercial Services Revenue +6% +6% +5% +7% Adj. Operating +19% +18% +4% +23% Profit Adj. Operating +480 +200 (40) +510 Margin (bps) S&
Slide 9: Standard & Poor's Ratings Services: Financial Snapshot
Standard & Poor’s Ratings Services: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +12% CAGR $2,455 47%* $2,274 44%* 41% 41%* 42%* $2,034 $1,767 $606 2011 2012 2013 2014 1Q 2015 2011 2012 2013 2014 1Q 2015 * Shared operating services allocated to the segments McGraw Hill Financ
Slide 10: S&P Dow Jones Indices: Financial Snapshot
Standard & Poor’s Ratings Services • Revenue generated by: – Entity credit ratings – Bond and bank loan ratings – Surveillance – Ratings evaluations services • Well positioned to capitalize on opportunities provided by structural changes in capital markets: – Additional companies turning to the capi
Slide 11: S&P Dow Jones Indices: Revenue Mix; S&P Capital IQ Snapshot
S&P Dow Jones Indices: Revenue Mix ETFs & Mutual Data & Custom Indices Funds Listed 2014 Derivatives OTC Derivatives & Structured Products • At the forefront of trend toward passive investing: – Record ETF industry inflows of $331 billion in 2014 – $97 billion of ETF industry inflows in 1Q 2015 – Of
Slide 12: S&P Capital IQ Revenue Mix; Commodities & Commercial Markets
S&P Capital IQ: Revenue Mix S&P Capital IQ Desktop S&P Credit S&P Capital IQ & Enterprise Solutions Solutions Markets Intelligence • S&P Capital IQ Desktop • RatingsDirect® • Global Markets • Compustat • RatingsXpress® Intelligence (GMI) • Consolidated Feeds • Leveraged Commentary & Data (LCD) • Equ
Slide 13: Commodities & Commercial Markets; Platts Price Discovery
Commodities & Commercial Markets • Revenue generated from • Revenue generated from subscriptions and licensing for proprietary research and brand derivative trading licensing • Thousands of daily price • J.D. Power expanding rapidly assessments in Asia‐Pacific • Oil, gas, petrochemicals, steel, agri
Slide 14: Returning Substantial Cash to Shareholders; Strong Balance Sheet
Returning Substantial Cash to Shareholders ($ in millions) Returned $1,796 $5.8 Billion since start of 2010 $1,279 $1,286 Special $688 $548 Dividend $204 2010 2011 2012 2013 2014 1Q 2015 Share Repurchase Dividend Announced 50 Million Share Repurchase Authorization in December 2013 McGraw Hill Financ
Slide 15: McGraw Hill Financial
McGraw Hill Financial • A great portfolio of iconic global brands • Intensive focus on growth and performance • Operating with emphasis on integrity, independence and robust controls and compliance • Track record of delivering strong revenue growth and margin improvement • 2015 guidance indicates su
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