Slide 1: First Quarter 2012 Earnings Presentation
First Quarter 2012 Earnings Presentation May 2, 2012
Slide 2: Forward-Looking Statements – Safe Harbor Statement
Forward-Looking Statements – Safe Harbor Statement This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, unce
Slide 3: Summary of First Quarter 2012 Financial Results
Summary of First Quarter 2012 Financial Results Operating revenues increased 3% to $229.1 million versus Q1’11 Net income increased by 31% to $44.0 millionAdjusted EBITDA1 declined by 2% to $101.9 million. Adjusted EBITDA margin was 44.5% Diluted EPS for first quarter 2012 rose 30% to $0.35Adjusted
Slide 4: Summary of First Quarter 2012 Operating Results
Summary of First Quarter 2012 Operating Results Total YoY Run Rate Growth of 6% Total Sales1 and Retention Q1’12 run rate (RR) grew YoY by 6% to $919 million Subscription run rate grew by 7% Asset-based fee (ABF) run rate grew by 2% Total sales1 of $43 million in Q1’12 -down 11% from Q1’11 Q1’12 tot
Slide 5: MSCI Index and ESG Products
MSCI Index and ESG Products Other Placeholder: 5 Index and ESG Run Rate and Revenue Highlights: Q1’12 Index and ESG products run rate grew by 9% YoY to $416 million Subscription run rate grew by 12% Asset-based fee run rate grew by 2% YoY and 14% sequentially Total sales of $16 million in Q1’12 ($ i
Slide 6: Index and ESG Subscription
Index and ESG Subscription Index and ESG Subscription Run Rate and Subscription Revenue Highlights: Q1’12 run rate grew by 12% YoY to $279 million Total sales were $16 million in Q1’12 Core Emerging Market and Developed Market modules continue to drive sales Sales of small cap modules a point of str
Slide 7: MSCI-Linked ETFs
MSCI-Linked ETFs Total AUM Linked to MSCI Indices of $355bn Source: Bloomberg MSCI-Linked ETF AUM by Market Exposure Highlights: Total ABF Run Rate grew by 2% YoY and 14% sequentially to $137 million Total AUM rose 18% sequentially to $355 billion at the end of Q1’12 MSCI-linked ETFs benefited from
Slide 8: Risk Management Analytics
Risk Management Analytics Risk Management Analytics Run Rate and Revenue Highlights:Q1’12 run rate grew by 6% YoY to $258 millionTotal sales of $11 million in Q1’12Sales to asset owners a key driver in Q1’12 - added two new large state pension funds to BarraOne platformNew wealth management client e
Slide 9: Portfolio Management Analytics
Portfolio Management Analytics Portfolio Management Analytics Run Rate and Revenue Highlights: Q1’12 run rate grew by 1% YoY to $118 million New product enhancements released in Q1 Total sales of $3 million in Q1’12 Selling environment remains competitive New products driving increasing percentage o
Slide 10: Governance
Governance Governance Run Rate and Revenue Highlights: Q1’12 run rate grew by 7% YoY to $113 million Total sales for Q1’12 rose to $12 million, up 17% from $11 million in Q1’11 Sales of executive compensation data and analytics tool remain strong Institutional proxy research and voting market still
Slide 11: Breakdown of Q1'11 vs Q1'12 Revenue Growth
Breakdown of Q1’11 vs Q1’12 Revenue Growth ($ in millions) Q1’11 included $4.3M non recurring ABF revenues
Slide 12: Compensation and Non-Compensation Expense
Compensation and Non-Compensation Expense Comp and Non-Comp Expenses1,2 +7% ($ in millions) Compensation expense excludes non-recurring stock-based compensation. Please see pages 16-18 for reconciliation to operating expenses. (2) Non-compensation excludes depreciation, amortization and restructurin
Slide 13: Summary of Profitability Metrics: Net Income, EPS and Adjusted EBITDA
Summary of Profitability Metrics: Net Income, EPS and Adjusted EBITDA1 Other Placeholder: 13 $ per share +2% +30% Adjusted 2 and Diluted EPS Other Placeholder: Net Income rose 30% Effective tax rate was 35.6% in Q1’12 down from 37.2% in Q1’11 Adjusted EBITDA1 was $102 million Diluted EPS rose 30% Ad
Slide 14: Summary Balance Sheet and Update on Announced Refinancing
Other Placeholder: 14 $1,074M Summary Balance Sheet $460M Other Placeholder: Update on Announced Refinancing MSCI expects to close $880 million Term Loan A Facility shortly (subject to customary closing conditions) Proceeds plus cash on hand will be used to repay 100% of the current debt outstanding
Slide 15: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Other Placeholder: MSCI has presented supplemental non-GAAP financial measures as part of this presentation. A reconciliation is provided that reconciles each non-GAAP financial measure with the most comparable GAAP measure. The presentation of non-GAAP financial m
Slide 16: Reconciliation of Adjusted Net Income and Adjusted EPS
Reconciliation of Adjusted Net Income and Adjusted EPS (Dollars in thousands, except per share figures)
Slide 17: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income (Dollars in thousands, except per share figures)
Slide 18: Reconciliation of Operating Expenses
Reconciliation of Operating Expenses (Dollars in thousands, except per share figures)