S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Raymond James Institutional Investors Conference 2016
13 slides from S&p Global's conference presentation, Mar 7, 2016
Slide 1: Raymond James Institutional Investors Conference
Raymond James Institutional Investors Conference March 7, 2016 Doug Peterson President and CEO Chip Merritt Vice President, Investor Relations Comparison of Adjusted Information to U.S. GAAP Information This presentation includes adjusted financial measures that are derived from the Company’s contin
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: Sweeping Changes to the Company
Sweeping Changes to the Company Divestitures from 2009–2014: Pending Sale: Standard & Poor's Securities Evaluations (SPSE) Credit Market Analysis McGraw Hill Financial | Raymond James Institutional Investors Conference – March 7, 2016 5 Great Assets Distinguish McGraw Hill Financial Scalable | Globa
Slide 4: A Proven Track Record of Growth
A Proven Track Record of Growth Annual Revenue Growth ($ in millions) +9% CAGR $5,051 $5,313 $4,702 $4,270 $3,762 2011 2012 2013 2014 2015 McGraw‐Hill Education and McGraw Hill Construction reclassified to discontinued operations McGraw Hill Financial | Raymond James Institutional Investors Conferen
Slide 5: Sustained Margin Expansion and Double-Digit Earnings Growth
Sustained Margin Expansion and Double-Digit Earnings Growth Adjusted Operating Margin +960 bps 38.7% 35.9% 31.4% 33.1% 29.1% 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 Adjusted $2.03 $2.65 $3.22 $3.88 $4.53 Diluted EPS Note: McGraw‐Hill Education and McGraw Hill Construction reclassified to d
Slide 6: MHFI: Strong Balance Sheet
MHFI: Strong Balance Sheet Period-End Debt & Cash Positions ($ in millions) Key 2015 changes: $3,611 • Payments related to legal and regulatory settlements were largely made in 1Q 2015 $2,500 • Issued $700 million of 10-year $1,560 $1,487 debt in May 2015 $1,251 $761 $794 $795 • Issued $2 billion of
Slide 7: Meaningful Progress in Every Business Unit
Meaningful Progress in Every Business Unit 2015 versus 2014 Business Unit Results Standard & S&P Global S&P Dow Poor’s Commodities ($ in millions) Market Jones Ratings & Commercial Intelligence Indices Services Revenue (1%) +14%* +8% +9%** Adj. Operating +7% +25% +12% +17% Profit Adj. Operating +340
Slide 8: Standard & Poor's Ratings Services: Change in Revenue Mix
Standard & Poor’s Ratings Services: Change in Revenue Mix (2007 ‒ 2015) Corporate Ratings are Now a Much Larger Portion of the Business $2,428 $2,138 ($ in millions) 27% 51% Corporates 42% 68% Financials 15% Governments 9% 17% Structured 44% 9% 11% CRISIL, Other* 6% 11% 2007 2015 Corporates Financia
Slide 9: S&P Dow Jones Indices: Financial Snapshot
S&P Dow Jones Indices: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +700bps +17% CAGR* $597 66%* $552 64%* $493 59% 58%* $388 54%* $323 2011 2012 2013 2014 2015 2011 2012 2013** 2014*** 2015 Joint Venture Formed with CME mid‐2012 * Shared operating services allocated to the s
Slide 10: S&P Global Market Intelligence: Financial Snapshot
S&P Global Market Intelligence: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +8% CAGR $1,405** 21% 21%* $1,237 19%* $1,170 18%* $1,124 17%* $1,031 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 ** Includes four months of SNL revenue * Shared operating services allocated to
Slide 11: S&P Global Markets Intelligence: Increase in Anticipated Synergies
S&P Global Markets Intelligence: Increase in Anticipated Synergies Previous “Outside In” Target Refined “Inside” Target ~$100 ~$70 Revenue Cost Synergy Cost Synergy Revenue Total by 2019 by 2018 Synergy by 2019 by 2019 More than one-third anticipated in 2016 21 McGraw Hill Financial | 4Q 2015 Earnin
Slide 12: Commodities & Commercial Markets: Financial Snapshot
Commodities & Commercial Markets: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +1,600 bps +8% 37%* $971 $893 33%* 34%* $841 $793 29%* $704 21% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Comparisons impacted by the sale of Aviation Week in August 2013. Reflects the recl
Slide 13: 2016 – Important Areas of Focus
2016 – Important Areas of Focus • Delivering Financial Performance: ‒ Revenue guidance of mid-to-high single-digit growth ‒ Newly defined adjusted diluted EPS guidance of $5.00 to $5.15 (excluding deal-related amortization) ‒ Free cash flow guidance of approximately $1.3 billion ‒ Complete sale of J
McGraw Hill Financial — Raymond James Institutional Investors Conference 2016 on 6ix