S&p Global Inc. · NYSE:SPGI
S&p Global — Q3 2024 Earnings Presentation
32 slides from S&p Global's earnings presentation, Oct 24, 2024
Slide 1: S&P Global Quarterly Update 3Q 2024
3Q 2024 S&P Global Quarterly Update October 24, 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 includ e adjustments that reflect how management vi ews to and presents certain additional non-GAAP financial mea
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 Peterson Chris Craig Martina Cheung Mark Grant President and CEO Interim Incoming Senior Vice President, Chief Financial Officer President and CEO; Investor Relations Current President, S&P Global Ratings 5
Slide 6: Strategy, Vision, and Execution
Strategy, Vision, and Execution Doug Peterson President and CEO 6
Slide 7: Third quarter highlights
Third quarter highlights Financial highlights 1 Additional highlights Revenue increased 16% y/y, with revenue from Continued innovation in new products, GenAI subscription products growing 8% functionality across the organization, and strong growth in strategic initiatives Adjusted operating profit
Slide 8: Favorable markets and mixed commercial conditions
Customer at the Core Favorable markets and mixed commercial conditions Persistent strength in debt markets Equity markets improving More than $1 trillion in Billed Capital markets activity, M&A activity, Issuance in 3Q and more than $3 and equity index valuations continue to trillion in Billed Issua
Slide 9: Growth across all products drove billed issuance
Customer at the Core Growth across all products drove billed issuance Billed issuance up 76% Updates on market conditions ($ in billions) High-yield and Bank Loan issuance $1,004 bolstered by increased non-refinance activities, notably dividend $395 recapitalizations and M&A $570 $211 $129 Issuers t
Slide 10: Third quarter Vitality Index performance
Grow & Innovate Third quarter Vitality Index performance Vitality Index1 Key contributors of Vitality revenue Vitality revenue of CARFAX Car Listings (Mobility) $377 million, which is Energy Transition and Climate Products (CI) revenue from new or enhanced products, CARFAX BIG (Mobility) accounted f
Slide 11: GenAI improving our products and our productivity
Grow & Innovate GenAI improving our products and our productivity Our Products & Services Our Productivity Advanced Analytics Solutions and GenAI on S&P Global Capital IQ Pro leverages analytics and AI to build predictive models, automate workflows, and Spark AI Academy uncover hidden patterns in da
Slide 12: Double-digit revenue growth driven by Ratings and Indices
Execute & Deliver Double-digit revenue growth driven by Ratings and Indices 3Q ’24 Revenue TTM Adjusted TTM Adjusted Financial Performance Growth1 Operating Margin Operating Margin Y/Y2 2 6% 32.9% 60 bps 36% 61.9% 650 bps 9% 46.7% 50 bps 9% 38.8% -20 bps 18% 70.0% 200 bps Total S&P Global 16% 48.5%
Slide 13: Third Quarter Financial Results
Third Quarter Financial Results Chris Craig Interim Chief Financial Officer 13
Slide 14: Third quarter enterprise financial results
Third quarter enterprise financial results Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +16% $3,575 $3,575 $3,084 $416 +18% $3,084 $354 $412 +9% $1,744 +20% $379 $522 +9% Indices $1,450 $479 Mobility 48.8% $1,110 +36% Commodity Insights $819 Adjusted Operating Profit 4
Slide 15: Third quarter expense bridge
Third quarter expense bridge Total Adjusted Expenses 1 ($ in millions) $5 ($10) $1,831 $51 $53 $98 $1,634 3 3Q ’23 Incentives & Core & Compensation Acquisitions & FX Impact & 3Q ’24 2 Commissions Investment Growth Divestitures Other 1. Refers to non-GAAP adjusted expenses in the current period and t
Slide 16: Continued growth in strategic investment areas
Continued growth in strategic investment areas Sustainability & Private Market Revenue Energy Transition 1 Solutions 2 Synergies ($ in millions) ($ in millions) ($ in millions) +15% +22% $90 $134 $350 $78 $109 $249 3Q ’23 3Q ’24 3Q ’23 3Q ’24 Run-rate 2026 Target Note: Categories presented on this s
Slide 17: S&P Global Market Intelligence
S&P Global Market Intelligence Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +6% $1,162 $1,162 $1,099 $1,099 $300 +8% +2% $277 $371 $366 Desktop 33.3% $343 $360 +5% 32.0% Data & Advisory Solutions Adjusted Operating Profit Enterprise Solutions Adjusted Expense $791 +8%
Slide 18: S&P Global Ratings
S&P Global Ratings Revenue 1 Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +36% $1,110 $1,110 $131 +8% $75 +37% $819 $134 +29% $819 CRISIL, Other 2 $122 $684 +48% Governments $55 $181 +44% $104 $464 Structured Finance $126 Adjusted Operating Profit 61.7% Financials Adjusted Exp
Slide 19: S&P Global Commodity Insights
S&P Global Commodity Insights Revenue 1 Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +9% $522 $522 $479 $47 +6% $479 $45 Advisory & Transactional $107 +4% $250 +8% $104 Services $232 Upstream Data & Insights $185 +11% $166 Adjusted Operating Profit 48.4% 47.8% Price Assessment
Slide 20: S&P Global Mobility
S&P Global Mobility Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +9% $412 $412 $379 $379 $74 +12% $66 $174 +8% $90 +2% $160 $88 42.2% 42.2% Financials & Other Adjusted Operating Profit Manufacturing $247 +10% Adjusted Expense $238 +9% $225 $219 Dealer Adjusted Operatin
Slide 21: S&P Dow Jones Indices
S&P Dow Jones Indices Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +18% $416 $416 $354 $74 +5% $354 $71 Data & Custom $76 +16% Subscriptions $66 $292 +19% $246 Exchange-Traded Adjusted Operating Profit Derivatives 69.4% 70.2% $266 +22% Adjusted Expense $218 Asset-Linke
Slide 22: Leadership Transition Update
Leadership Transition Update Martina Cheung Incoming President and CEO; Current President, S&P Global Ratings 22
Slide 23: CEO Transition Update: Prepared to take the baton
CEO Transition Update: Prepared to take the baton Our Customers Our Products & Services Our People Active engagement with Deep-dive sessions with Townhalls and roundtable multiple stakeholder product and commercial discussions with S&P groups to ensure we are teams to proactively align people around
Slide 24: Leadership Evolution
Leadership Evolution Eric Aboaf Executive Vice President & Chief Financial Officer Saugata Saha Martina Cheung President, S&P Global Market Intelligence and Chief Enterprise Data Officer President & Chief Executive Officer Yann Le Pallec President, S&P Global Ratings Mark Eramo and Dave Ernsberger C
Slide 25: Strategic Initiatives in Focus
Strategic Initiatives in Focus Energy Transition & Benchmarks Private Markets Sustainability Enterprise Data Generative AI 25
Slide 26: 2024 macroeconomic assumptions underlying guidance
2024 macroeconomic assumptions underlying guidance Real GDP United States Platts Dated 2024 Billed Growth 1 CPI 2 Brent 3 Issuance Growth 4 3.2% 2.9% $81 ~50% Global Average Per Barrel United States 2.7% Eurozone 0.8% China 4.6% India 6.8% Note: S&P Global Ratings billed issuance includes the impact
Slide 27: Updated 2024 GAAP guidance
Updated 2024 GAAP guidance Previous Current Revenue Growth 8.0% - 10.0% 11.5% - 12.5% Operating Profit 500 - 550 bps 600 - 650 bps Margin Expansion Diluted EPS $11.15 - $11.40 $11.95 - $12.15 Indicates a change from prior guidance 27
Slide 28: Updated 2024 adjusted guidance
Updated 2024 adjusted guidance Previous Current Revenue Growth 8.0% - 10.0% 11.5% - 12.5% Operating Profit 125 - 175 bps 200 - 250 bps Margin Expansion $14.35 - $14.60 $15.10 - $15.30 Diluted EPS +14% to +16% y/y +20% to +21% 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% - 6.5% 14.0% - 16.0% 26.0% - 28.0% 8.0% - 9.5% 9.0% - 9.5% 8.0% - 9.0% 8.0% - 8.5% 10.0% - 12.0% 13.0% - 15.0% Indicates a change from prior guidance 29
Slide 30: Updated 2024 division adjusted margin outlook
Updated 2024 division adjusted margin outlook Previous Current 33.0% - 34.0% 32.5% - 33.0% 58.5% - 59.5% 61.0% - 62.0% 46.5% - 47.5% 46.5% - 47.0% 38.5% - 39.5% 38.5% - 39.0% 69.0% - 70.0% 69.5% - 70.5% Indicates a change from prior guidance 30
Slide 31: 3Q 2024 Earnings Call Q&A
3Q 2024 Earnings Call Q&A Doug Peterson President and CEO Chris Craig Interim Chief Financial Officer Martina Cheung Incoming President & CEO Current President, S&P Global Ratings Mark Grant Senior Vice President, Investor Relations October 24, 2024 31
Slide 32: 3Q 2024 Earnings Call
3Q 2024 Earnings Call Doug Peterson President and CEO Chris Craig REPLAY OPTIONS Interim Chief Financial Officer Internet: Replay available for one year Go to http://investor.spglobal.com Martina Cheung Incoming President & CEO Current President, S&P Global Ratings Telephone: Replay available throug