S&p Global Inc. · NYSE:SPGI
S&p Global — Q2 2024 Earnings Presentation
32 slides from S&p Global's earnings presentation, Jul 30, 2024
Slide 1: S&P Global Quarterly Update 2Q 2024
2Q 2024 S&P Global Quarterly Update July 30, 2024 1
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 Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in for
Slide 3: Comparison of adjusted information to U.S. GAAP information
Comparison of adjusted information to U.S. GAAP information This presentation includes Company financials on an as-reported basis. The Company also refers The Company’s non-GAAP measures include adjustments that reflect how management views to and presents certain additional non-GAAP financial measu
Slide 4: European regulations affecting investors in credit rating agencies
European regulations affecting investors in credit rating agencies European Union Regulation 1060/2009 (as amended) applies to credit rating agencies Any person obtaining direct or indirect ownership or control of 5% or more or 10% (CRAs) registered in the European Union (“EU”) and therefore to the
Slide 5: Quarterly Update Call Presenters
Quarterly Update Call Presenters Doug Chris Mark Peterson Craig Grant President and CEO Interim Chief Financial Senior Vice President, Officer Investor Relations 5
Slide 6: Strategy, Vision, and Execution
Strategy, Vision, and Execution Doug Peterson President and CEO 6
Slide 7: Second quarter highlights
Second quarter highlights Financial highlights 1 Additional highlights Revenue increased 16% y/y excluding the impact of Announced CEO succession plan – Doug Peterson to Engineering Solutions, with revenue from subscription retire and Martina Cheung to become President and products growing 8% CEO, e
Slide 8: Customer at the Core, Grow & Innovate, Lead & Inspire
Customer at the Core Grow & Innovate Data & Technology Lead & Inspire Execute & Deliver 8
Slide 9: Powering Global Markets in the second quarter
Customer at the Core Powering Global Markets in the second quarter Record issuance in debt markets Revenue synergies More than $1 trillion in Billed Nearly $200 million in run-rate revenue Issuance and over 70% growth in synergies as broad product portfolio Private Markets revenue in Ratings1 contin
Slide 10: Issuance growth led by Bank Loans & High-Yield
Customer at the Core Issuance growth led by Bank Loans & High-Yield Billed issuance up 54% Updates on market conditions ($ in billions) Issuers across the ratings scale $1,062 reducing near-term maturities ahead of potential volatility in second half of $390 2024 $690 $135 $318 Spread compression co
Slide 11: Second quarter Vitality Index performance
Grow & Innovate Second quarter Vitality Index performance Vitality Index1 Key contributors of Vitality revenue Vitality revenue of CARFAX Car Listings (Mobility) $375 million, which is Energy Transition and Climate Products (CI) revenue from new or enhanced products, CARFAX BIG (Mobility) accounted
Slide 12: Accelerating our platforms through enablement of Artificial Intelligence
Grow & Innovate Accelerating our platforms through enablement of Artificial Intelligence and other capabilities S&P Global Artificial Intelligence S&P Global Commodity Insights 1 Enablement Market Intelligence 2 ChatAI on Platts Connect provides real-time responses to user Integrated more than 19 mi
Slide 13: Visible Alpha acquisition adds best-in-class consensus data to Market Intelligence
Data & Technology Visible Alpha acquisition adds best-in-class consensus data to Market Intelligence Visible Alpha Acquisition Breadth of Coverage Strategic Rationale In May 2024 we completed the Contributing acquisition of Visible Alpha Brokers 200+ Differentiated data sets Visible Alpha is a finan
Slide 14: Chief Executive Officer Succession
Lead & Inspire Chief Executive Officer Succession Martina L. Cheung President, S&P Global Ratings and Executive Lead, Sustainable1 As previously announced, Martina Cheung has been appointed as the next President and CEO of S&P Global, effective November 1, 2024. Additionally, Ms. Cheung has been app
Slide 15: Record quarterly revenue driven by growth across the board
Execute & Deliver Record quarterly revenue driven by growth across the board 2Q ’24 Revenue TTM Adjusted TTM Adjusted Financial Performance Growth1 Operating Margin Operating Margin Y/Y2 2 7% 33.3% 90 bps 33% 60.9% 570 bps 12% 46.8% 130 bps 8% 38.8% -10 bps 12% 69.8% 150 bps Total S&P Global 14%3 48
Slide 16: Second Quarter Financial Results
Second Quarter Financial Results Chris Craig Interim Chief Financial Officer 16
Slide 17: Second quarter enterprise financial results
Second quarter enterprise financial results Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +14% $3,549 $3,549 $3,101 $389 +12% $3,101 $348 $400 +8% $1,800 +26% $369 $516 +12% Indices $462 $1,432 Mobility $1,135 +33% 50.7% Commodity Insights $851 Adjusted Operating Profit
Slide 18: Continued growth in strategic investment areas
Continued growth in strategic investment areas Sustainability & Private Market Revenue Energy Transition 1 Solutions 2 Synergies ($ in millions) ($ in millions) ($ in millions) +23% +26% $87 $134 $350 $70 $106 $199 2Q ’23 2Q ’24 2Q ’23 2Q ’24 Run-rate 2026 Target Note: Categories presented on this s
Slide 19: S&P Global Market Intelligence
S&P Global Market Intelligence Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +7% $1,155 $1,155 $1,079 $1,079 $288 +6% $270 $380 +9% $349 32.9% Desktop $356 +6% 32.3% $336 Data & Advisory Solutions Adjusted Operating Profit Enterprise Solutions $278 $307 +11% Adjusted Ex
Slide 20: S&P Global Ratings
S&P Global Ratings Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +33% $1,135 $1,135 $128 +2% $74 +9% $851 $143 +61% $851 CRISIL, Other 1 $125 $747 +52% $183 +30% Governments $68 $89 $491 Structured Finance $140 Adjusted Operating Profit 65.8% Financials Adjusted Expense
Slide 21: S&P Global Commodity Insights
S&P Global Commodity Insights Revenue 1 Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +12% $516 $516 $462 $53 +32% $462 $40 Advisory & Transactional $106 +5% $244 +16% $102 Services $211 Upstream Data & Insights $177 +11% 47.3% $160 Adjusted Operating Profit 45.6% Price Assessm
Slide 22: S&P Global Mobility
S&P Global Mobility Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +8% $400 $400 $369 $369 $71 +13% $63 $164 +10% $83 -1% $149 $84 40.3% 40.9% Financials & Other Adjusted Operating Profit Manufacturing $245 +11% Adjusted Expense $236 +7% $222 $220 Dealer Adjusted Operati
Slide 23: S&P Dow Jones Indices
S&P Dow Jones Indices Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +12% $389 $389 $348 $74 +6% $348 $70 Data & Custom $70 +4% Subscriptions $67 $275 +15% $238 Exchange-Traded Adjusted Operating Profit Derivatives 68.6% 70.7% $245 +16% Adjusted Expense $211 Asset-Linked
Slide 24: 2024 Outlook and Guidance
2024 Outlook and Guidance Doug Peterson President and CEO 24
Slide 25: 2024 macroeconomic assumptions underlying guidance
2024 macroeconomic assumptions underlying guidance Real GDP United States Platts Dated Billed Issuance Growth 1 CPI 2 Brent 3 Growth 4 3.3% 3.0% $84 ~25% Global Average Per Barrel United States 2.5% Eurozone 0.7% China 4.8% India 7.2% Note: S&P Global Ratings billed issuance includes the impact of l
Slide 26: July 2024 Global Refinancing Study
July 2024 Global Refinancing Study Total debt maturing over the next… ($ in billions) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 6 mos 18 mos 30 mos 42 mos 54 mos 66 mos 78 mos 90 mos As of 7/1/2022 As of 7/1/2023 As of 7/1/2024 Includes bonds, loans, and revolving credit
Slide 27: Updated 2024 GAAP guidance
Updated 2024 GAAP guidance Previous Current Revenue Growth 6.0% - 8.0% 8.0% - 10.0% Operating Profit 500 - 550 bps 500 - 550 bps Margin Expansion Diluted EPS $10.80 - $11.05 $11.15 - $11.40 Indicates a change from prior guidance 27
Slide 28: Updated 2024 adjusted guidance
Updated 2024 adjusted guidance Previous Current Revenue Growth 6.0% - 8.0% 8.0% - 10.0% Operating Profit 100 - 150 bps 125 - 175 bps Margin Expansion $13.85 - $14.10 $14.35 - $14.60 Diluted EPS +10% to +12% y/y +14% to +16% y/y Indicates a change from prior guidance 28
Slide 29: Updated 2024 division revenue outlook
Updated 2024 division revenue outlook Previous Current 6.0% - 7.5% 6.0% - 7.5% 7.0% - 9.0% 14.0% - 16.0% 8.0% - 9.5% 8.0% - 9.5% 8.5% - 10.0% 8.0% - 9.0% 9.0% - 11.0% 10.0% - 12.0% Indicates a change from prior guidance 29
Slide 30: Updated 2024 division adjusted margin outlook
Updated 2024 division adjusted margin outlook Previous Current 33.5% - 34.5% 33.0% - 34.0% 57.5% - 58.5% 58.5% - 59.5% 46.5% - 47.5% 46.5% - 47.5% 39.0% - 40.0% 38.5% - 39.5% 69.0% - 70.0% 69.0% - 70.0% Indicates a change from prior guidance 30
Slide 31: 2Q 2024 Earnings Call Q&A
2Q 2024 Earnings Call Q&A Doug Peterson President and CEO Chris Craig Interim Chief Financial Officer Martina Cheung President, S&P Global Ratings and Executive Lead, Sustainable1 Mark Grant Senior Vice President, Investor Relations July 30, 2024 31
Slide 32: 2Q 2024 Earnings Call
2Q 2024 Earnings Call Doug Peterson REPLAY OPTIONS President and CEO Internet: Replay available for one year Chris Craig Go to http://investor.spglobal.com Interim Chief Financial Officer Mark Grant Telephone: Replay available through August 30, 2024 Senior Vice President, Investor Relations Domesti