S&p Global Inc. · NYSE:SPGI
S&p Global — Jefferies Global Business Services Conference 2021
32 slides from S&p Global's conference presentation, Mar 25, 2021
Slide 1: Jefferies Global Business Services Conference
Jefferies Global Doug Peterson President and CEO Business Services Chip Merritt SVP Investor Relations Conference March 25, 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” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securit
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. Essential intelligence for an ever-changing world.
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: 2020 results by segment
2020 results by segment Adjusted segment operating Revenue: $7,442 million profit: $4,095 million $878 $480 Market Intelligence $2,106 $683 $989 $684 Ratings1 S&P Dow Jones Indices2 $2,249 $3,606 Platts ($ in millions) ($ in millions) Notes: Revenue chart excludes consolidating adjustments 1) Includ
Slide 8: Consistent revenue growth
Consistent revenue growth Revenue 5-year CAGR: 7% $8,000 $7,442 $7,000 $6,699 $6,063 $6,258 $6,000 $5,661 $5,313 $5,000 $4,000 $3,000 $2,000 $1,000 $0 ($ in millions) 2015 2016 2017 2018 2019 2020 8
Slide 9: Adjusted operating profit margin improvement continues
Adjusted operating profit margin improvement continues Adjusted Operating Profit Margin 60% 53.3% 48.8% 50.2% 50% 46.5% 39.7% 42.4% 40% 30% 20% 10% 0% 2015 2016 2017 2018 2019 2020 Notes: Beginning in 2016, the Company began excluding deal-related amortization from its non-GAAP results. The excluded
Slide 10: Adjusted diluted earnings per share growth continues
Adjusted diluted earnings per share growth continues Adjusted Diluted Earnings Per Share 5-year CAGR: 20% $12.00 $11.69 $10.00 $9.53 $8.50 $8.00 $6.89 $6.00 $5.35 $4.69 $4.00 $2.00 $0.00 Notes: Beginning in 2016, the Company began excluding deal-related amortization from its non-GAAP results. The ex
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 $8.7 Billion $2,163 SINCE START OF 2016 $1,800 $1,809 $1,503 $1,422 Share Repurchases Dividends 2016 2017 2018 2019 2020 ($ in millions) Note: Shares repurchased are reported on a settlement-date basis 12
Slide 13: Cash position temporarily elevated
Cash position temporarily elevated Period-end debt and cash positions $4,110 $4,131 $3,948 $3,564 $3,569 $3,662 $2,791 $2,914 $2,400 $1,976 2016 2017 2018 2019 2020 ($ in millions) Debt Cash, cash equivalents, restricted cash, and short-term investments 13
Slide 14: IHS Markit merger strengthens and accelerates our 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: 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 18: Ratings financial snapshot
Ratings financial snapshot Revenue Adjusted Operating Profit 4-year CAGR: 9% Margin** $3,606 62.4% $2,988 $3,106 $2,883 56.8% 57.8% $2,535 53.6% 49.6% ($ in millions) ** 2018 and 2019 results reflect the recast for the allocation methodology change of technology-related expenses in 1Q 2020 18
Slide 19: 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 Number of Issuers 2,000 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 19
Slide 20: Ratings help investors gauge the risk of default
Ratings help investors gauge the risk of default Global Corporates Cumulative Default Rates, 1981 - 2019 2Q 1Q 1Q Source: S&P Global Ratings Research, “Default, Transition, and Recovery: 2019 Annual Global Corporate Default Study and Rating Transitions,” April 29, 2020, Chart 4 20
Slide 21: 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 22: S&P Dow Jones Indices financial snapshot
S&P Dow Jones Indices financial snapshot Adjusted Operating Revenue Profit Margin** 4-year CAGR: 12% $989 68.3% 69.5% 69.1% $918 65.6% 66.4% $837 $728 $638 ($ in millions) ** 2018 and 2019 results reflect the recast for the allocation methodology change of technology-related expenses in 1Q 2020 22
Slide 23: 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 24: Market Intelligence financial snapshot
Market Intelligence financial snapshot Revenue Adjusted Operating 4-year CAGR: 6% Profit Margin** $2,106 $1,959 $1,833 $1,661 $1,683 29.9% 32.1% 31.7% 32.1% 32.4% ($ in millions) ** 2018 and 2019 results reflect the recast for the allocation methodology change of technology-related expenses in 1Q 20
Slide 25: 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 26: S&P Global Platts financial snapshot
S&P Global Platts financial snapshot (Comparisons impacted by the sale of J.D. Power in September 2016) Revenue Adjusted Operating Platts 4-year CAGR: 5% Profit Margin 52.4% 54.7% $214 51.4% $844 $878 47.1% $774 $815 41.2% $711 ($ in millions) J. D. Power revenue Platts revenue ** 2018 and 2019 resu
Slide 27: 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 28: 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 29: 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 30: 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 31: ESG awards & recognition
ESG awards & recognition 3BL Corporate Responsibility Magazine's CEO|ACT!ON| FOR MOTHER tale DIVERSITY & INCLUSION 100 Nee BEST —— ¥ 2 ADOPTION-FRIENDLY 100 BEST b 130% Cub WORKPLACE COMPANIES 2017 Dave Thomas Foundation for Adoption. DISABILITY |rseuir Mam ss quaityscore FTSEAGood Stonewall oo i va
Slide 32: Jefferies Global Business Services Conference
Jefferies Global Doug Peterson President and CEO Business Services Chip Merritt SVP Investor Relations Conference March 25, 2021 Copyright © 2021 by S&P Global. All rights reserved.
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