S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Barclays Global Financial Services Conference 2013
16 slides from S&p Global's conference presentation, Sep 9, 2013
Slide 1: Barclays Global Financial Services Conference
BARCLAYS GLOBAL FINANCIAL SERVICES CONFERENCE Jack Callahan, Chief Financial Officer September 9, 2013 Comparison of Adjusted Information to U.S. GAAP Information This presentation includes adjusted financial information. This information is provided to enable investors to make meaningful comparison
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, including without limitation statements relating to our businesses and our prospects, new products, sales, expenses, tax rates, cash flows, and operating and capi
Slide 3: MHFI: A Significantly Reshaped Portfolio
MHFI: A Significantly Reshaped Portfolio 2010 Revenue Total: $6.2 Billion Sold (2013) (2013) 42% MHFI 58% (2011) 4 MHFI: A New Company With a 125‐Year Heritage • New name • New vision • New look • New ticker... MHFI 5 3
Slide 4: MHFI: New Leadership
MHFI: New Leadership • +25 years of financial services experience • Joined MHFI in August 2011 • Elected to Board of Directors in July 2013 • Assumes CEO role on November 1 • Transition well underway “After serving as President for 20 years and CEO for 15 years, it’s great to have a successor the ca
Slide 5: MHFI: Well Positioned For Sustained Growth
MHFI: Well Positioned For Sustained Growth • Demonstrating growth potential of a focused, inter‐related portfolio • Leveraging exceptional brands and benchmarks with leading global positions • Benefiting from key secular trends supporting continued growth • Shifting productivity focus to enterprise‐
Slide 6: MHFI: Strong Earnings Growth and Cash Flow
MHFI: Strong Earnings Growth and Cash Flow Annual Adjusted Diluted EPS Free Cash Flow ($ in millions) 19% CAGR $3.15 ‐ $3.25 $2.75 $809 $650‐ $1.91 $2.09 $700 $626 2010 2011 2012 2013 2011 2012 2013 Guidance Guidance 2012 – 2013 impacted by one‐time Growth and Value Plan costs 2011 adjusted EPS excl
Slide 7: ...With Leading Global Positions
...With Leading Global Positions Americas Europe/ Asia‐Pacific Middle East 2012 Geographic Revenue Mix 66% 24% 10% 12 Significant Secular Drivers of Market Growth • Significant debt maturities and new money requirements over the next five years • Deleveraging of banks shifts financing to the capital
Slide 8: MHFI: Shifting Productivity Focus to Enterprise-Wide Capabilities
MHFI: Shifting Productivity Focus to Enterprise‐Wide Capabilities 2012-13 2014 + Growth and Value Enterprise-Wide Plan Capabilities Enable separation and Increase integration to GOAL reduce cost footprint better leverage key MHFI Adjusted capabilities Operating Margin Extensive outsourcing of Inform
Slide 9: Returning Substantial Cash to Shareowners
Returning Substantial Cash to Shareowners Anticipate ($ in millions) completion of $1,796 existing share repurchase $1,279 authorization by year‐end $548 $656 Share Repurchase Dividend 2010 2011 2012 1H 2013 2H 2013 16 The MHFI Virtuous Cycle: Sustaining Growth Great brands and benchmarks with leadi
Slide 10: MHFI: Strong First Half of 2013
Agenda • A “new” company: MHFI • Well positioned for sustained growth • A terrific portfolio: strong first‐half 2013 performance 18 MHFI: Strong First Half of 2013 ($ in millions) 1H 2013 1H 2012 Change Revenue $2,431 $2,108 +15% Adj. Operating Profit $845 $658 +28% Adj. Operating Margin 34.8% 31.2%
Slide 11: 1H 2013 Results by Line of Business
1H 2013 Results by Line of Business Revenue: $2,431 million Operating Profit: $939 million ($ in millions) ($ in millions) Commodities Commodities & Commercial & Commercial $496 $145 S&P Dow Jones S&P Dow Jones $238 $1,161 Indices $147* Indices $536 $575 S&P Capital IQ $111 S&P Capital IQ S&P Rating
Slide 12: Standard & Poor's Ratings Services – Financial Snapshot
Standard & Poor’s Ratings Services – Financial Snapshot Revenue Adjusted Operating Margin ($ in millions) 10% CAGR $2,034 $1,695 $1,767 46% +22% 45% $1,161 43% 41% 2010 2011 2012 1H 2013 2010 2011 2012 1H 2013 22 Estimated $8.3 Trillion in Corporate Debt Maturing Corporate Debt Maturing from April 1
Slide 13: S&P Dow Jones Indices – Financial Snapshot
S&P Dow Jones Indices • First year of joint venture now complete • Revenue generated from: ‐ ETF and mutual fund contracts ‐ Licensing of indices for derivative trading ‐ Profit share with exchange partner ‐ Data subscriptions • 2013 first‐half results driven by assets under management in ETFs which
Slide 14: S&P Capital IQ – Financial Snapshot
S&P Capital IQ • Leading provider of data and tools for company, security and portfolio valuation and risk analysis • Revenue generated from a broad portfolio of capabilities: • Recent investments enabled Portfolio Management & Risk suite of analytics and enhanced real‐time market monitoring and ana
Slide 15: Commodities & Commercial Markets – Financial Snapshot
Commodities & Commercial Markets Premier source of benchmarks, high‐value information, data, and analytic services Platts • Over 12,000 price assessments daily • Oil, gas, petrochemicals, steel, etc. • Critical to customer decision making • Revenue generated from • Revenue generated from subscriptio
Slide 16: McGraw Hill Financial
McGraw Hill Financial •A new company with a 125‐year‐old heritage •Leadership transition well on track •Excellent first‐half results •2013 guidance indicates strong performance: – High single‐digit, top‐line growth – Adjusted diluted EPS guidance of $3.15 − $3.25 •Strong balance sheet and cash flow
McGraw Hill Financial — Barclays Global Financial Services Conference 2013 on 6ix