S&p Global Inc. · NYSE:SPGI
S&p Global — Stifel 2019 Cross Sector Insight Conference
16 slides from S&p Global's conference presentation, Jun 11, 2019
Slide 1: Stifel 2019 Cross Sector Insight Conference
Stifel 2019 Chip Merritt SVP Investor Relations Cross Sector June 11, 2019 Insight Conference Copyright © 2017 by S&P Global. All rights reserved. Comparison of adjusted information to U.S. GAAP information This presentation includes adjusted financial measures that are derived from the Company’s co
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: 1Q 2019 results by segment
1Q 2019 results by segment Adjusted segment operating Revenue: $1,571 million profit: $775 million $207 $98 Market Intelligence $482 $163 $217 $151 Ratings1 S&P Dow Jones Indices2 $696 $364 Platts ($ in millions) ($ in millions) Notes: Revenue chart excludes corporate revenue and consolidating adjus
Slide 4: Adjusted operating profit margin improvement continues
Adjusting operating profit margin improvement continues Adjusted Operating Profit Margin 60% 50% 48.8% 47.3% 48.9% 46.5% 46.9% 42.4% 39.7% 40% 30% 20% 10% 0% 2015 2016 2017 2018 1Q 2018 1Q 2019 TTM* Notes: Beginning in 2016, the Company began excluding deal-related amortization from its non-GAAP res
Slide 5: 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 6: Our capital management philosophy
Our capital management philosophy Continued Prudent & Dividend Growth ≥ 75% Flexible Balance Sheet FCF1 Return to Steady Growth Shareholders Financial Health – Continue our 46-year – Return capital to – Committed to track record of steady shareholders via share investment-grade annual dividend repur
Slide 7: 2019 areas of focus
2019 areas of focus • Bring additional transparency and independent analytics to Chinese capital markets with Ratings Global and Market Intelligence programs • Expand Platts capabilities in Asia • Continue S&P Global platform development − Ongoing CIQ client migration Customer Orientation − Begin ad
Slide 8: A growing ecosystem
A growing ecosystem: recent investments in fintech and unique data sets 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) 15 Balance sheet strength available for investments and retur
Slide 9: Resilient business model
Resilient business model Our Revenue Comprises Recurring Components Proportion of revenue, 2017 Note: Continuous re-financing Relatively more needs (i.e., maturing outstanding recurring revenues debt) provide a stable base in Ratings’ Transaction revenues Non-Subscription revenues* Ratings’ Transact
Slide 10: S&P Global Ratings revenue 2000–2018
S&P Global Ratings: revenue 2000–2018 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 11: S&P Dow Jones Indices financial snapshot
S&P Dow Jones Indices financial snapshot Adjusted Operating Revenue Profit Margin 3-year CAGR: 12% $837 $728 66.5% 65.6% 66.4% 68.0% 70.5% 69.5% $638 $597 $212 $217 2015 2016 2017 2018 1Q 1Q 2015 2016 2017 2018 1Q 1Q 2018 2019 2018 2019 ($ in millions) 21 S&P Dow Jones Indices revenue mix At the for
Slide 12: Market Intelligence financial snapshot
Market Intelligence financial snapshot Revenue Adjusted Operating 3-year CAGR: 9% Profit Margin $1,833 $1,661 $1,683 $1,405 32.1% 34.1% 33.8% 29.9% 29.2% 23.9% $439 $482 2015 2016 2017 2018 1Q 2Q 2015 2016 2017 2018 1Q 1Q ($ in millions) 2018 2018 2018 2019 23 S&P Global Market Intelligence AREAS OF
Slide 13: 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 3-year CAGR: 8% Profit Margin $316 $214 47.1% 49.1% 48.0% 47.4% 41.2% $774 $815 38.4% $711 $655 $196 $207 2015 2016 2017 2018 1Q 1Q 2015 2016 2017 2018 1Q 1Q ($ i
Slide 14: ESG at S&P Global
ESG at S&P Global Ratings Indices (Fixed Income) (Equity / Passive) • ESG Evaluations • ESG indices • Green Bond Evaluations ESG Data Factory • Thematics/SDG Indices • Public and private • Green Bond Indices company data • Asset-level data Market Intelligence Platts (Corporates, Equity, Fixed Income
Slide 15: 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 16: ESG awards and recognition
ESG awards & recognition 31 Stifel 2019 Chip Merritt SVP Investor Relations Cross Sector June 11, 2019 Insight Conference Copyright © 2017 by S&P Global. All rights reserved. 16
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