S&p Global Inc. · NYSE:SPGI
S&p Global — Barclays Americas Select Franchise Conference 2018
15 slides from S&p Global's conference presentation, May 15, 2018
Slide 1: Barclays Americas Select Franchise Conference
Barclays Ewout Steenbergen Chief Financial Officer Americas Select Chip Merritt Vice President, Investor Relations Franchise May 15, 2018 Conference Copyright © 2017 by S&P Global. All rights reserved. Comparison of adjusted information to U.S. GAAP information This presentation includes adjusted fi
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: S&P Global distinguished by scalable, global, market leading businesses; secular trends
S&P Global distinguished by scalable, global, market leading businesses with iconic brands 5 Secular market trends position S&P Global for sustained long-term growth Total corporate debt Major financing and data outstanding continues required for infrastructure to grow over time investments Investor
Slide 4: A growing ecosystem: Recent fintech investments; solid revenue growth
A growing ecosystem: Recent fintech investments To scale exposure to emerging technologies, S&P Global is a limited partner in two fintech-focused-funds: Green Visor (San Francisco) and Arbor (Hong Kong and Israel) 7 S&P Global extends succession of solid revenue growth Revenue 3-year CAGR: 6% $7,00
Slide 5: Adjusted operating margin and adjusted earnings per share growth
1Q 2018 figure impacted by $20 million contribution to the S&P Global Foundation Adjusted Operating Margin 50% 47% 47% 47% 47% 42% 40% 40% 37% 30% 20% 10% 0% 2014 2015 2016 2017 1Q 2017 TTM* 1Q 2018 Notes: McGraw Hill Construction was sold in 2014 and was reclassified to discontinued operations. Beg
Slide 6: Our capital management philosophy; returning cash to shareholders
Our capital management philosophy We are continuously analyzing a wide range of internal investments and acquisitions, allocating capital to the highest returning projects and holding our management team accountable. We will continue to return excess capital to shareholders in the form of share buyb
Slide 7: A strong balance sheet; 1Q 2018 results by segment
S&P Global: A strong balance sheet Period-end debt and cash position ($ in millions) $3,611 $3,564 $3,569 $3,570 $2,791 Funded $1 billion $2,500 $2,400 ASR in 1Q 2018 $1,765 $1,487 $795 2014 2015 2016 2017 1Q 2018 Debt Cash and cash equivalents & short-term investments 13 1Q 2018: Results by segment
Slide 8: Revenue gains in every business segment; Ratings financial snapshot
Revenue gains in every business segment led by S&P Dow Jones Indices 1Q 2018 vs. 1Q 2017 S&P Dow Market Ratings Platts Jones Intelligence Indices Reported revenue +5% +9% +3% +25% Organic revenue +5% +9% +3% +25% Adjusted operating +8% +4% (4%) +28% profit 1Q 2018 adjusted 54.7% 29.5% 48.0% 69.5% op
Slide 9: S&P Global Ratings revenue 2000–2017; U.S. corporate debt share of GDP
S&P Global Ratings: Revenue 2000–2017 Financial crisis had modest impact on Corporate & Government revenue $3,000 $2,500 CRISIL, Other* $2,000 $1,500 Structured $1,000 Corporates, 2008 $500 7% decline in Corporates, Financials & Financials & Government revenue Government $0 (Revenue, $ in millions)
Slide 10: Average U.S. bond maturities; S&P Dow Jones Indices financial snapshot
Average U.S. bond maturities little changed this decade Investment Grade Speculative Grade 12 10 8 (Average, years) 6 4 2 0 Source: S&P Global Fixed Income Research 19 S&P Dow Jones Indices financial snapshot Revenue Adjusted Operating 3-year CAGR: 10% Margin $733 $639 70% $597 65% 67% 65% 65% 68% 6
Slide 11: S&P Dow Jones Indices revenue mix; Market Intelligence financial snapshot
S&P Dow Jones Indices revenue mix At the forefront of AREAS OF FOCUS: passive investing Continue index innovation (e.g. factors, smart beta, ESG) Data & Custom Expand local presence Subscriptions in emerging markets Asset-Linked Increase global indices Exchange- Fees 2017 awareness Traded Derivative
Slide 12: S&P Global Market Intelligence; Introducing the Market Intelligence Platform
S&P Global Market Intelligence AREAS OF FOCUS: Desktop Release production version of new Market Intelligence platform Transition Capital IQ users to the Data Management Solutions new platform Continue to develop unique Risk Services analytical tools RECENTLY ACQUIRED: Panjiva Global trade flow data
Slide 13: S&P Global Platts financial snapshot and areas of focus
S&P Global Platts financial snapshot (Comparisons impacted by the sale of J.D. Power in September 2016) Revenue Adjusted Operating 3-year CAGR: 11% Margin 51% $971 $926 47% 46% 48% $893 $774 39% 41% 36% +3% $191 $196 2014 2015 2016 2017 1Q 1Q 2014 2015 2016 2017 1Q TTM* 1Q 2017 2018 2017 2018 ($ in
Slide 14: ESG Awards & Recognition; Index and Ratings pursue ESG opportunities
ESG Awards & Recognition 27 Index and Ratings pursue ESG opportunities Ratings launched new Index Acquired Trucost Green Evaluation product This acquisition added the gold Provides a relative green impact standard carbon and natural score on instruments targeted at capital investment metrics to fina
Slide 15: 2018 areas of focus
2018 areas of focus • Creating shareholder value: ‒ Drive revenue and earnings growth ‒ Received significant benefit from tax reform of over $1.00/share ‒ Return at least 75% of free cash flow in dividends and share repurchases • Serving markets: ‒ Increase investments in new technologies, alternati
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