Crisil Limited · NSE:CRISIL
Crisil — FY2018 Earnings Presentation
34 slides from Crisil's earnings presentation, Feb 13, 2019
Slide 1: CRISIL Corporate Presentation FY 2018 filing letter
CRISIL An S&P Global Company February 13, 2019 Listing Department Listing Department National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, 5 th floor P J Towers Plot No. C/1, G Block Dalal Street Bandra-Kurla Complex Mumbai 400 001 Bandra (East) Mumbai 400 051 Dear Sirs, Sub.: Corporate
Slide 2: 2018 Analyst presentation
Feb 2019 2018 Analyst presentation 1 © 2018 CRISIL Ltd. All rights reserved.
Slide 3: Disclaimer / Safe Harbor
Disclaimer / Safe Harbor This presentation has been prepared solely as a concise update of Company’s quarterly results. By reading the presentation slides, you agree to be bound by the following limitations: (a) CRISIL Ltd. (“CRISIL” or “Company”) cannot give assurance to the correctness of forward
Slide 4: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership Corporate Social Responsibility Key Risks 3
Slide 5: Executive summary
Executive summary Consolidated total income up 11.5% year-on-year in the fourth quarter; profit after tax up 19.0% year-on-year. For fiscal 2018, consolidated total income up 8.8% year-on-year; profit after tax up 19.3% year-on-year – Ratings delivered a strong growth with improved market share du
Slide 6: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership Corporate Social Responsibility Key Risks 5
Slide 7: CRISIL, a leading global analytics company
CRISIL, a leading global analytics company #Agile to market needs 1,00,000+ 27,000+ 3750+ Customers ratings employees Unleashing © 2019 CRISIL Ltd. All rights reserved. #Innovation Rated over 90% of Defining 9 countries 144,000 India’s banking ₹ micro, small and industry by #Global best direct prese
Slide 8: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership Corporate Social Responsibility Key Risks 7
Slide 9: Staying on the curve amid rising global risks
Staying on the curve amid rising global risks Indicator FY2018 FY2019E FY2020F India Real GDP (y-o-y %) 7.2 7.2 7.3 Investments (y-o-y %) 7.6 12.2 13.0 10 year G-sec yield (%, March) 7.6 7.7 7.5 Fiscal deficit (% of GDP) 3.5 3.4 3.4 © 2018 CRISIL Ltd. All rights reserved. Exchange rate (Re per $, Ma
Slide 10: Adapting swiftly to fast changing trends
Adapting swiftly to fast changing trends AI / Machine Cyber Data ESG © 2018 CRISIL Ltd. All rights reserved. Decisioning risk Fintechs Geopolitical Millennials Passive Regulation risks Investing 9
Slide 11: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership Corporate Social Responsibility Key Risks 10
Slide 12: 2018 Total income grew by 8.8%; PAT by 19.3%
2018 Total income grew by 8.8%; PAT by 19.3% Total Income Total Income from Operations ₹ crore ₹ crore +8.8% +5.4% 1,832 1,658 1,748 1,684 © 2019 CRISIL Ltd. All rights reserved. 2017 2018 2017 2018 Profit After Tax PAT Margin ₹ crore +19.3% +170bps 363 19.8% 304 18.1% 2017 2018 2017 2018 11 Note: N
Slide 13: 4Q 2018 Total income grew by 11.5%; PAT by 19.0%
4Q 2018 Total income grew by 11.5%; PAT by 19.0% Total Income Total Income from Operations ₹ crore ₹ crore +11.5% +5.9% 496 441 467 445 © 2019 CRISIL Ltd. All rights reserved. 4Q 2017 4Q 2018 4Q 2017 4Q 2018 Profit After Tax PAT Margin ₹ crore +19.0% +140bps 114 21.5% 22.9% 96 4Q 2017 4Q 2018 4Q 201
Slide 14: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance - Ratings Thought Leadership Corporate Social Responsibility Key Risks 13
Slide 15: Decline in corporate bond issuances following firming up of interest rates
Decline in corporate bond issuances following firming up of interest rates ₹ crore 9.5% 9.0% 695,391 -24% © 2019 CRISIL Ltd. All rights reserved. 8.5% 8.2% 604,129 526,281 8.0% 7.5% 7.0% 6.5% India 10 Bond market 6.0% 6.4% year G-Sec (issued 5.5% quantum) Yield 5.0% CY2016 CY2017 CY2018 Number of Is
Slide 16: Pickup in overall credit growth
Pickup in overall credit growth 24.0% 17.0% 19.0% 12.8% © 2019 CRISIL Ltd. All rights reserved. 14.0% 9.0% 12.1% Credit growth 4.0% trend -1.0% Credit Growth Wholesale Credit Growth Retail Credit Growth Source: RBI, CRISIL 15
Slide 17: Our differentiated analytical rigor
Our differentiated analytical rigor One-year investment grade default rates FY14-18 AAA^ category AA category A category BBB category CRISIL 0.00% 0.07% 0.11% 0.61% OCRA1 0.00% 0.00% 0.19% 1.17% © 2019 CRISIL Ltd. All rights reserved. OCRA2 0.00% 0.10% 0.31% 1.57% OCRA3 0.00% 0.00% 1.11% 2.40% OCRA4
Slide 18: Ratings: 4Q and 2018 highlights
Ratings: 4Q and 2018 highlights Financials Business update Particulars (₹ cr) 4Q 2017 4Q 2018 Growth (%) • Despite the decline in bond issuances, Ratings grew on back acquiring new large and mid-corporate clients, uptick in Income from securitization transactions and robust traction in the stressed
Slide 19: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance - Research Thought Leadership Corporate Social Responsibility Key Risks 18
Slide 20: Bottoming of global CIB revenue pools, increasing demand from investor segments
Bottoming of global CIB revenue pools, increasing demand from existing and new investor segments $ billion $ trillion 546 530 522 525 530 145 111 Global CIB 85 87 64 73 revenue Global 60 © 2019 CRISIL Ltd. All rights reserved. 50 36 pools AUM 14 23 22 6 7 10 14 2014 2015 2016 2017 2018E 2012 2016 20
Slide 21: Evolving regulatory paradigm globally
Evolving regulatory paradigm globally USA Europe Asia • CCAR • EBA/PRA • BASEL III • DFAST • Stress Testing • IFRS Key © 2019 CRISIL Ltd. All rights reserved. Regulations • MiFID II • BASEL III, IV Maturing Tightening Nascent CCAR: Comprehensive Capital Analysis and Review PRA: Prudential Regulation
Slide 22: Research: 4Q and 2018 highlights
Research: 4Q and 2018 highlights Financials Business update Particulars (₹) 4Q 2017 4Q 2018 Growth (%) • CRISIL Coalition delivered strong growth with high demand for new analytics and increasing contribution from regional banks Income from • India Research witnessed good traction for data, research
Slide 23: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance - Advisory Thought Leadership Corporate Social Responsibility Key Risks 22
Slide 24: Emerging needs for data analytics, risk and infrastructure offerings
Emerging needs for data analytics, risk and infrastructure offerings Risk Solutions, Pragmatix Infrastructure Advisory • Increasing demand for integrated solutions that embed into • Focus on Infra development customers’ workflow • Increasing spend across key sectors © 2019 CRISIL Ltd. All rights res
Slide 25: Advisory: 4Q and 2018 highlights
Advisory: 4Q and 2018 highlights Financials Business update Particulars (₹) 4Q 2017 4Q 2018 Growth (%) • Strong growth led by Pragmatix, a data analytics company acquired in early 2018 that delivers cutting edge solutions in the Income from ‘data to intelligence’ life cycle to BFSI; it broadened our
Slide 26: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership Corporate Social Responsibility Key Risks 25
Slide 27: Leading provider of independent opinion
Leading provider of independent opinion Events © 2019 CRISIL Ltd. All rights reserved. Launch of CriSidEx, - India's first CRISIL Infrastructure Advisory CRISIL Research participated as CRISIL GR&A discussion forum MSE sentiment index hosted its 2nd edition of CRISIL India knowledge partner in ‘AMFI
Slide 28: Publications
Publications 27 © 2019 CRISIL Ltd. All rights reserved.
Slide 29: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership Corporate Social Responsibility Key Risks 28
Slide 30: Corporate Social Responsibility: Core to CRISIL
Corporate Social Responsibility: Core to CRISIL Moneywise Centres for Financial Mein Pragati CRISIL RE Literacy © 2019 CRISIL Ltd. All rights reserved. Empowering socially and economically Collaborating with the RBI and nationalized Enabling environment conservation, financial disadvantaged sections
Slide 31: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership Corporate Social Responsibility Key Risks 30
Slide 32: Key risks
Key risks • Cyber risk • Uncertain regulatory environment • Reputation risk © 2019 CRISIL Ltd. All rights reserved. • Disruptive technology • Adverse currency movement • Intense price competition 31
Slide 33: Q&A
32 Q&A © 2019 CRISIL Ltd. All rights reserved.
Slide 34: About CRISIL
About CRISIL CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footpri