S&P Global Inc. · NYSE:SPGI
S&P Global — Merger or Acquisition (March 2022)
41 slides from S&P Global's merger presentation, Mar 1, 2022
Slide 1: Investor Call: Completion of S&P Global and IHS Markit Merger
Investor Call Completion of S&P Global and IHS Markit Merger Doug Peterson President and CEO Ewout Steenbergen Executive Vice President and CFO Mark Grant Senior Vice President, Investor Relations March 1, 2022
Slide 2: Comparison of adjusted information to U.S. GAAP information
Comparison of adjusted information to U.S. GAAP information This presentation includes adjusted financial measures that are derived from The Company’s Current Report on Form 8-K filed on February 28, 2022 the Company’s continuing operations. These non-GAAP financial measures contains exhibits that r
Slide 3: 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- Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause the Company’s exposure to potential criminal sanctions or civil penalties for n
Slide 4: EU regulation affecting investors in credit rating agencies
EU regulation affecting investors in credit rating agencies European Union Regulation 1060/2009 (as amended) Any person obtaining direct or indirect ownership or applies to credit rating agencies (CRAs) registered in the control of 5% or more or 10% or more of the shares in European Union (“EU”) and
Slide 5: Agenda
Agenda • Our profile and strategy • Customer value proposition and growth • Strategic investments and capital allocation • Financials and guidance 5
Slide 6: Agenda
Agenda • Our profile and strategy • Customer value proposition and growth • Strategic investments and capital allocation • Financials and guidance 6
Slide 7: Transaction strengthens & accelerates our strategy
S&P Global - Internal Use Only Transaction strengthens & accelerates our strategy Trusted industry leader with Accelerating revenue prospects in high-growth differentiated benchmarks, iconic markets by combining and developing capabilities brands, and improved scale and to serve and innovate in mark
Slide 8: The S&P Global Advantage
S&P Global - Internal Use Only The S&P Global Advantage Unparalleled data assets Leading global supply chain intelligence Delivering product innovation across Managing complex financial and multiple industry sectors operational risk Multi-asset class benchmarks Public and private markets solutions S
Slide 9: We Accelerate Progress
S&P Global - Internal Use Only We Accelerate Progress Today, the right decisions lead to progress, for organizations and for the world. Our essential intelligence is a catalyst to accelerate progress. Private & Confidential 9 9
Slide 10: Accelerating Our Growth to Power the Markets of the Future
S&P Global - Internal Use Only Accelerating Our Growth to Power the Markets of the Future Evolve and Grow the Core Business Pursue Transformational Adjacencies Benchmarks Data & Workflow & ESG, Climate & Private Credit & Risk Analytics Solutions Energy Transition Markets Management Foundational Capa
Slide 11: Executive committee with deep breadth, depth and diversity of industry experiences
S&P Global - Internal Use Only Executive committee with deep breadth, depth and diversity of industry experiences Douglas L. Peterson Ewout Steenbergen Adam Kansler Martina L. Cheung Saugata Saha Edouard Tavernier Dan Draper President & Chief Executive Officer Executive Vice President President Pres
Slide 12: Agenda
Agenda • Our profile and strategy • Customer value proposition and growth • Strategic investments and capital allocation • Financials and guidance 12
Slide 13: Portfolio of Iconic Brands Under the S&P Global Brand Name
S&P Global - Internal Use Only Icons Portfolio of Iconic Brands The Dow Jones Industrial Average® Under the S&P Global Brand Name Platforms & Distribution The merged company will operate under the S&P Global brand name, supporting our high-profile product brands with clear linkage to S&P Global Inno
Slide 14: Customer value proposition enhanced with increased reach, expertise and data
S&P Global - Internal Use Only Customer value proposition enhanced with increased reach, expertise and data Global Scale and Service Deeper Insights and Expertise Extensive Data & Content ~100k+ >35k $18t Customers in 150+ countries Employees include >10k Assets indexed or data scientists & benchmar
Slide 15: Accelerating revenue growth prospects for a more diversified company
S&P Global - Internal Use Only Accelerating revenue growth prospects for a more diversified company Division Leading Franchises Leading data and analytics integrated with purpose-built workflow solutions accelerating client decision making. Market Intelligence Deep data science capabilities and tech
Slide 16: Higher proportion of recurring revenue than SPGI standalone
S&P Global - Internal Use Only Higher proportion of recurring revenue than SPGI standalone SPGI (as reported) 1 INFO (as reported) 1 Company (pro forma) 2 $8.3B 30.7% $4.7B 24.3% 13.0% $12.4B 2021 Actual 69.3% 87.0% 75.7% FY 2021 FY 2021 1 S&P recurring revenues include subscription, non-transaction
Slide 17: Combined capabilities enhance ability to serve customers in high growth adjacencies
S&P Global - Internal Use Only Combined capabilities enhance company’s ability to better serve customers in high growth adjacencies SPGI + INFO can together best serve emerging segments with… ESG Climate & Energy Transition Private Markets + SME 1 ~$20B and >10% Incremental Average market total addr
Slide 18: Significant revenue synergies to power further innovation
S&P Global - Internal Use Only Significant revenue synergies to power further innovation Examples of synergy opportunities 200+ synergy ideas and scenarios ESG & Climate Portfolio Analytics: Develop enhanced products around assessed across all divisions portfolio analytics by leveraging INFO fund ho
Slide 19: Extensive analysis and validation of key revenue synergy ideas
S&P Global - Internal Use Only Extensive analysis and validation ensures feasibility and prioritization of key revenue synergy ideas Process involved ~2,000 employees engaging with third parties over a ~60 week period Clean Room Review & Analysis Commercial & Leadership Validation Recycled SME Analy
Slide 20: Agenda
Agenda • Our profile and strategy • Customer value proposition and growth • Strategic investments and capital allocation • Financials and guidance 20
Slide 21: 2022 Strategic Initiatives Programs
S&P Global - Internal Use Only 2022 Strategic Initiatives Programs Strategic Organic Investment Select Areas of Investment >$130M Sustainable1 Energy Transition 2022; Recurring Thematic and Factor Indices R&D Capabilities Strategic investments that solidify the foundational China capabilities and dr
Slide 22: Synergy example 1: End-to-end Energy Transition solutions
S&P Global - Internal Use Only Synergy example 1: Combined offerings deliver enhanced value to customers in end-to-end Energy Transition solutions + = • Leading price assessments, news, • Comprehensive data, insights and Market prices, supply and demand data, analysis, forecasts and data covering: a
Slide 23: Synergy example 2: ESG & climate products positioned for growing market
S&P Global - Internal Use Only Synergy example 2: ESG & climate products well positioned to capture the growing market opportunity Key Growth Drivers ESG & Climate Revenue Forecast ($ in millions) Organic Investment ~$600 1 +46% CAGR ~$450 Commercial Scale ~$320 Platforms & Workflow Tools ~$210 $140
Slide 24: Capital Allocation Targets
S&P Global - Internal Use Only Capital Allocation Targets Organic Investments & M&A Dividends Total Capital Return Balance Sheet Fund initiatives to Continue to grow Balanced return-of-capital Maintain prudent and accelerate growth and predictable return program includes share flexible capital struc
Slide 25: Agenda
Agenda • Our profile and strategy • Customer value proposition and growth • Strategic investments and capital allocation • Financials and guidance 25
Slide 26: Corporate actions support meaningful per share accretion
S&P Global - Internal Use Only Corporate actions support meaningful per share accretion Enhanced Shareholder Returns Optimized Capital & Liquidity Liability Management Structure SPGI commits to ‘catch-up’ Modified merger acquisition and Plan to extend average shareholder return after pause capital s
Slide 27: Identified new opportunities to increase synergies
S&P Global - Internal Use Only Identified new opportunities to increase synergies Merger Announcement Updated Guidance 1 Outlook (November 2020) ~80% Cost Synergies ~$480M ~$600M of Cost Synergies in 2023 ~50% Revenue Synergies ~$350M ~$350M Revenue Synergies in 2024 Anticipate a combination of Cost
Slide 28: 2022 GAAP Guidance
S&P Global - Internal Use Only 2022 GAAP Guidance 2022 GAAP Guidance Revenue Over 40% increase Corporate Unallocated expense $675 – $685 million Operating profit margin 53.5% – 54.5% Interest expense, net $465 – $475 million Tax rate 26.0% – 27.0% Diluted EPS $13.40 – $13.60 Capital expenditures ~$1
Slide 29: 2022 Adjusted Guidance
S&P Global - Internal Use Only 2022 Adjusted Guidance 2021 Pro Forma Adjusted 2 2022 Adjusted Guidance 3 Revenue $12,382 million Mid-single-digit increase Corporate Unallocated expense $169 million $115 – $125 million Deal-related amortization $1.01 – $1.02 billion Approximately Operating profit mar
Slide 30: 2022 Division Outlook
S&P Global - Internal Use Only 2022 Division Outlook 2021 Pro Forma 2022 2022 Division Revenue Growth Revenue Growth Margin Outlook Market Intelligence 9.0% Mid- to high single-digit Low to mid-30s Ratings 13.6% Low single-digit Mid-60s Commodity Insights 3.5% Mid-single-digit Mid- to high 40s Mobil
Slide 31: Affirming outlook through 2023
S&P Global - Internal Use Only Affirming outlook through 2023 Merger Announcement Outlook Through 2023 (November 2020) 6.5-8.0% 6.5-8.0% on average Annual Revenue Growth (2021-2023) ~200 basis points on Annual Margin Expansion ~200 basis points per year average (2022, 2023) Free Cash Flow In excess
Slide 32: Appendix
S&P Global - Internal Use Only Appendix 32
Slide 33: Introduction to S&P Global Market Intelligence
S&P Global - Internal Use Only Introduction to S&P Global Market Intelligence Business Revenue 1 Product Type(s) Customer Personas Notable Products Categories Fundamental / CIQ & CIQ Pro Mobile / Office • CIQ and CIQ Pro Desktop Desktop Differentiated Data, Analytics Desktop Tools • • Compustat, SNL
Slide 34: Introduction to S&P Global Ratings
S&P Global - Internal Use Only Introduction to S&P Global Ratings Business Revenue1 Product Type(s) Customer Personas Notable Products Categories Corporates 2,356M (100%) Debt/Bank Sustainable Issue/Issuer Financials Loan Ratings Financing Credit • Credit Ratings (incl. Surveillance) Opinions • Issu
Slide 35: Introduction to S&P Global Commodity Insights
S&P Global - Internal Use Only Introduction to S&P Global Commodity Insights Business Revenue 1 Product Type(s) Customer Personas Notable Products Categories • Traders • Dated Brent $4M • Analysts • Dubai Crude Price (1%) Price Assessments & Forward Curves Market • • Risk Managers Compliance • • JKM
Slide 36: Introduction to S&P Global Mobility
S&P Global - Internal Use Only Introduction to S&P Global Mobility Business Revenue 1 Product Type(s) Customer Personas Notable Products Categories STRATEGY, NEW VEHICLE SALES USED VEHICLE SALES PLANNING & & MARKETING & SERVICE PRODUCTS • Vehicle History Reports • Multi-brand dealer groups • Carfax4
Slide 37: Introduction to S&P Dow Jones Indices
S&P Global - Internal Use Only Introduction to S&P Dow Jones Indices Business Revenue 1 Product Type(s) Customer Personas Notable Products Categories 55M • S&P 500 • S&P Select Sector Asset-Linked (7%) Exchange Mutual Over the Counter • Dow Jones Averages Traded Funds Funds • S&P 400 Fees 790M Deriv
Slide 38: Introduction to S&P Global Engineering Solutions
S&P Global - Internal Use Only Introduction to S&P Global Engineering Solutions Business Revenue 1 Product Type(s) Customer Personas Notable Products Categories • Standards, Codes & Specifications • Engineering Leadership • Electronic Parts • Engineers • Haystack Consulting Product Design Content Pl
Slide 39: Introduction to ESG & Climate
S&P Global - Internal Use Only Introduction to ESG & Climate Your Single Source of Essential Sustainability Intelligence Business Revenue 1 Product Type(s) Customer Personas Notable Products Categories • Energy Transition & Climate Scenarios • Commodity Majors Commodity 27M Data, Research & Advisory
Slide 40: Investor Call | Q&A
Investor Call | Q&A Completion of S&P Global and IHS Markit Merger Doug Peterson President and CEO Ewout Steenbergen Executive Vice President and CFO Mark Grant Senior Vice President, Investor Relations March 1, 2022 40
Slide 41: Investor Call: Replay Options
Investor Call Completion of S&P Global and IHS Markit Merger Doug Peterson REPLAY OPTIONS President and CEO Ewout Steenbergen Internet: Replay available for one year Executive Vice President and CFO Go to http://investor.spglobal.com Mark Grant Senior Vice President, Investor Relations Telephone: Re