S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Q4 2013 Earnings Presentation
17 slides from S&p Global's earnings presentation, Feb 4, 2014
Slide 1: 4Q 2013 Earnings Call
4Q 2013 Earnings Call Douglas L. Peterson President and CEO February 4, 2014 Jack Callahan Executive Vice President and CFO Chip Merritt Vice President, Investor Relations Comparison of Adjusted Information to U.S. GAAP Information This presentation includes adjusted financial measures that are deri
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, including without limitation statements relating to our businesses and our prospects, new products, sales, expenses, tax rates, cash flows, and operating and capi
Slide 3: 2013 - Highlights of a Momentous Year
DOUG PETERSON PRESIDENT AND CHIEF EXECUTIVE OFFICER 2013 ‐ Highlights of a Momentous Year Focused portfolio improvements • Completed sale McGraw‐Hill Education and Aviation Week • Launched McGraw Hill Financial with new ticker ‐ MHFI • Increased investment in CRISIL to 67.8% Delivered outstanding pe
Slide 4: Clear Success of Growth and Value Plan
Clear Success of Growth and Value Plan MHFI Share Price and Total Shareholder Return 2011* 2013 01/01/2011 to 12/31/2013 Total Shareholder Revenue $6,246 $4,875 ↓ Return 1 (million) 220% (+140%) Share Price 2 Adjusted (+114%) Operating $1,498 $1,602 ↑ 190% Profit (million) 160% Adjusted Operating 24
Slide 5: MHFI: Challenging Ratings Comparison Explains Modest Growth
MHFI: Challenging Ratings Comparison Explains Modest Growth ($ in millions) 4Q 2013 4Q 2012 Change Revenue $1,250 $1,226 +2% Adj. Operating Profit $361 $371 (3%) Adj. Operating Margin 28.8% 30.3% (150 bps) Diluted Adjusted EPS $0.81 $0.72 +12% 4Q 2013 highlights: • 3% organic revenue growth • Revenu
Slide 6: Standard & Poor's Ratings Services: Excellent 2013 Growth
Standard & Poor’s Ratings Services: Excellent 2013 Growth ($ in millions) 4Q 2013 4Q 2012 Change Non‐transaction $317 $292 +8% Transaction $257 $292 (12%) ($ in millions) 2013 2012 Change Non‐transaction $1,239 $1,131 +10% Transaction $1,035 $903 +15% • Non‐transaction growth both in 4Q and for the
Slide 7: Issuance Trends: Europe Relatively Stronger Than U.S.
Issuance Trends: Europe Relatively Stronger Than U.S. United States Europe 14% decrease year‐over‐year in 4Q 4% increase year‐over‐year in 4Q (issuance, $ in billions) (issuance, $ in billions) $482 $484 $455 $442 $412 $436 $359 $357 $375 Public Finance $303 Structured Finance Corporates 4Q12 1Q13 2
Slide 8: S&P Dow Jones Indices: Non-Cash Impairment Impacts
S&P Dow Jones Indices: Non‐Cash Impairment Impacts 4Q ($ in millions) 4Q 2013 4Q 2012 Change Revenue $130 $110 +18% Adj. Segment Op. Profit $50 $67 (24%) MHFI Share of Op. Profit* $37 $50 (26%) Adj. Segment Op. Margin 39.0% 60.7% (2,170 bps) Adjusted op. profit decreased due to a $26 million non‐cas
Slide 9: S&P Capital IQ: Record Quarterly Revenue
S&P Capital IQ: Record Quarterly Revenue ($ in millions) 4Q 2013 4Q 2012 Change Revenue $301 $290 +4%* Adj. Segment Op. Profit $54 $53 +1% Adj. Segment Op. Margin 17.8% 18.3% (50 bps) * Organic growth was approximately 5% excluding lost revenue from ongoing portfolio rationalization of several small
Slide 10: Commodities & Commercial Markets: Record Year
Commodities & Commercial Markets: Record Year ($ in millions) 4Q 2013 4Q 2012 Change Revenue $264 $260 +2%* Adj. Segment Op. Profit $84 $59 +41% Adj. Segment Op. Margin 31.7% 22.9% 880 bps * Excluding the sale of Aviation Week, revenue increased 7% ($ in millions) 2013 2012 Change Revenue $1,014 $97
Slide 11: Commercial: Revenue Increased, Excluding Aviation Week
Commercial: Revenue Increased, Excluding Aviation Week Commercial ($ in millions) 4Q 4Q YoY 2013 2012 Change 2013 2012 Change Revenue $123 $131 (6%)* $464 $484 (4%)* * Excluding the sale of Aviation Week, organic growth in 4Q 2013 and full year 2013 was 4% and flat respectively Highlights: • J.D. Po
Slide 12: First 100 Days Progress
First 100 Days Progress • Neeraj Sahai appointed President, Standard & Poor’s Ratings Services • Elevated the heads of Platts and S&P Dow Jones Indices to streamline management structure • Relocated the President of Platts to London • Elevated the Chief Risk & Compliance Officer and Chief Economist
Slide 13: Financial Highlights – Key Areas
Financial Highlights – 4 Key Areas • Consolidated results • Impact of productivity initiatives (adjustments to earnings) • Free cash flow and return of capital • 2014 guidance 24 McGraw Hill Financial: 21% Adjusted EPS Growth in 2013 ($ in millions, except earnings per share) 2013 2012 % Change Reve
Slide 14: McGraw Hill Financial: 12% Adjusted EPS Growth in 4Q
McGraw Hill Financial: 12% Adjusted EPS Growth in 4Q 2013 4Q 4Q ($ in millions, except earnings per share) 2013 2012 % Change Revenue $1,250 $1,226 +2% Segment Operating Profit $419 $433 (3%) Less: Unallocated Expense (58) (62) (7%) Operating Profit $361 $371 (3%) Tax Rate 30.5% 35.7% (520 bps) Nonc
Slide 15: Free Cash Flow from Continuing Operations
Free Cash Flow from Continuing Operations ($ in millions) 2013 Cash and short‐term investments $1,560 Total debt $799 ($ in millions) 2013 2012 Cash provided by $816 $747 operating activities Capital expenditures (117) (97) Dividends and other payments (75) (24) to noncontrolling interests Free Cash
Slide 16: 2014 Guidance
2014 Guidance ($ in millions) 2014 Guidance Income Statement Revenue Mid single-digit Adj. Unallocated Expense Flat Adj. Operating Profit Margin > 100 bps Adjusted Tax Rate ~ 34.0% Diluted EPS $3.75-$3.85 Investment/Free Cash Flow Capital Expenditures ~ $125 Free Cash Flow ~ $1 billion Regular Divid
Slide 17: 4Q 2013 Earnings Call
4Q 2013 Earnings Call Douglas L. Peterson President and CEO February 4, 2014 Jack Callahan Executive Vice President and CFO Chip Merritt NOTE: A replay of this webcast will Vice President, Investor Relations be available approximately two hours after the end of the call from www.mcgraw‐hill.com/inve
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