S&p Global Inc. · NYSE:SPGI
S&p Global — UBS Financial Services Virtual Conference 2021
33 slides from S&p Global's conference presentation, Aug 11, 2021
Slide 1: UBS Financial Services Virtual Conference
UBS Financial Dan Draper Chief Executive Officer, S&P Dow Jones Indices Services Virtual Chip Merritt SVP Investor Relations Conference August 11, 2021 Copyright © 2021 by S&P Global. All rights reserved.
Slide 2: Disclaimer regarding announcement of S&P Global and IHS Markit's definitive merger agreement
S&P Global Public Disclaimer regarding announcement of S&P Global and IHS Markit's definitive merger agreement S&P Global announced on March 11, 2021 that its shareholders overwhelmingly voted to approve the Company's proposed transaction with IHS Markit at a special meeting of the Company's shareho
Slide 3: "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995
S&P Global Public “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, including statements about COVID-19 and the merger (the
Slide 4: Comparison of adjusted information to U.S. GAAP information
S&P Global Public Comparison of adjusted information to U.S. GAAP information This presentation includes adjusted financial measures that are derived from the Company’s continuing operations. This non-GAAP information is provided in order to allow investors to make meaningful comparisons of the Comp
Slide 5: Data into insights. Essential intelligence for an ever-changing world.
S&P Global Public Data into insights. Essential intelligence for an ever-changing world. We provide data & analytics, research & commentary, benchmarks, credit ratings and ESG solutions through the collective strength of our divisions. 5
Slide 6: Revenue by business for the past 15 years
S&P Global Public Revenue by business for the past 15 years S&P Global Ratings S&P Global Market 3,606 Intelligence (1, 2) 3,106 2,988 2,883 2,455 2,428 2,535 2,274 2,139 (2) 1,952 2,034 1,695 1,767 250 1,583 1,537 224 163 188 137 2,106 86 100 116 1,833 1,959 62 1,661 1,683 50 1,124 1,170 1,237 1,31
Slide 7: 1H 2021 results by segment
S&P Global Public 1H 2021 results by segment Adjusted segment operating Revenue: $4,122 million profit: $2,452 million $461 $268 Market $377 Intelligence $1,094 $390 $548 Ratings1 S&P Dow Jones Indices2 $1,417 $2,090 Platts ($ in millions) ($ in millions) Notes: Revenue chart excludes consolidating
Slide 8: Consistent revenue growth
S&P Global Public Consistent revenue growth Revenue 4-year CAGR: 7% $8,000 $7,442 $7,000 $6,699 $6,063 $6,258 $6,000 $5,661 +11% $5,000 $3,729 $4,122 $4,000 $3,000 $2,000 $1,000 $0 ($ in millions) 2016 2017 2018 2019 2020 1H20 1H21 8
Slide 9: Adjusted operating profit margin improvement continues
S&P Global Public Adjusted operating profit margin improvement continues Adjusted Operating Profit Margin 70% 60% 56.0% 58.0% 54.5% 48.8% 50.2% 53.3% 50% 46.5% 42.4% 40% 30% 20% 10% 0% 2016 2017 2018 2019 2020 1H20 TTM* 1H21 * 2Q 2020 trailing twelve months 9
Slide 10: Adjusted diluted earnings per share growth continues
S&P Global Public Adjusted diluted earnings per share growth continues Adjusted Diluted Earnings Per Share 4-year CAGR: 22% $14.00 $12.00 $11.69 $10.00 $9.53 +14% $8.50 $8.00 $6.89 $7.01 $5.35 $6.13 $6.00 $4.00 $2.00 $0.00 2016 2017 2018 2019 2020 1H20 1H21 10
Slide 11: Secular market trends position S&P Global for sustained long-term growth
S&P Global Public Secular market trends position S&P Global for sustained long-term growth Total corporate debt outstanding continues China capital markets reform to grow over time Investors searching for Assets continue to shift to unique data with ubiquitous index-related investments delivery ESG
Slide 12: Consistent track record of returning cash to shareholders
S&P Global Public Consistent track record of returning cash to shareholders RETURNED $9.1 Billion $2,163 SINCE START OF 2016 $1,800 $1,809 Due to the pending $1,503 $1,422 merger with IHS Markit there were no share repurchases during 1H21 $371 Share Repurchases Dividends 2016 2017 2018 2019 2020 1H2
Slide 13: Cash position temporarily elevated
S&P Global Public Cash position temporarily elevated Period-end debt and cash positions $5,221 $3,948 $4,110 $4,131 $4,112 $3,564 $3,569 $3,662 $2,791 $2,914 $2,400 $1,976 2016 2017 2018 2019 2020 2Q21 ($ in millions) Debt Cash, cash equivalents, restricted cash, and short-term investments 13
Slide 14: IHS Markit merger strengthens and accelerates our Powering the Markets of the Future strategy
S&P Global Public IHS Markit merger strengthens and accelerates our Powering the Markets of the Future strategy Enhances customer value proposition with unique, highly complementary assets Builds scale and joint offerings in high growth markets and leverages innovation and technology capability, inc
Slide 15: 2021 key strategic initiatives
S&P Global Public 2021 key strategic initiatives • Build on recent product launches in China • Expand Platts and Ratings capabilities in Asia Global • Deliver on the S&P Global Platform initiatives • Augment Indices solutions to address evolving market needs • Expand Platts offerings in Ag, shipping
Slide 16: Kensho capabilities embedded throughout the Company with a robust pipeline of projects
S&P Global Public Kensho capabilities embedded throughout the Company with a robust pipeline of projects Automation Reduced Time Enhanced to Market Capabilities ▪ OmniSearch – New search tool added to MI platform uses machine-learning to enable intuitive search capabilities ▪ Kensho Link – Facilitat
Slide 17: 2020 new product launches showcase technology expertise
S&P Global Public 2020 new product launches showcase technology expertise • Marketplace: Offers more than 140 content and solution tiles including Kensho Scribe and Link • Snowflake partnership: Provides clients cloud-agnostic delivery options • RiskGauge: Includes data on over 50 million SMEs • Pro
Slide 18: In 2019, S&P Global officially launched its domestic credit-rating business in China
S&P Global Public In 2019, S&P Global officially launched its domestic credit-rating business in China • First approval for a company wholly owned by an international CRA to rate domestic Chinese bonds • Authorized to rate issuers and issuances from: – Financial institutions – Corporates – Structure
Slide 19: Ratings financial snapshot
S&P Global Public Ratings financial snapshot Revenue Adjusted Operating Profit 3-year CAGR: 6% Margin** $3,606 $2,988 $2,883$3,106 66.4% 67.8% 62.4% 63.4% +14% 56.8% 57.8% $2,090 $1,831 ($ in millions) * 2Q 2020 trailing twelve months ** 2018 and 2019 results reflect the recast for the allocation me
Slide 20: Global ratings by S&P Global Ratings reflect full breadth of ratings spectrum
S&P Global Public Global ratings by S&P Global Ratings reflect full breadth of ratings spectrum Bond Ratings (Global Corporates) 2,500 1,952 2,000 Number of Issuers 1,847 1,500 1,405 1,192 1,000 2Q 454 500 289 1Q 8 0 AAA AA A BBB BB B CCC/C Outstanding Ratings as of 12/31/2020 20
Slide 21: Ratings help investors gauge the risk of default
S&P Global Public Ratings help investors gauge the risk of default Global Corporates Average Cumulative Default Rates, 1981 - 2020 60 50 AAA 40 Percentage AA A 30 BBB 20 BB B 10 2Q CCC/C 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1Q 1Q Time horizon, years Source: S&P Global Ratings Resea
Slide 22: U.S. corporate debt as a share of U.S. GDP (nominal)
S&P Global Public U.S. corporate debt as a share of U.S. GDP (nominal) Financial Corporate Debt (Ex GSE) / U.S. GDP Non-Financial Corporate Debt (Ex GSE) / U.S. GDP 1H 2020 increase 120% receding 100% 80% 60% 40% 20% 0% Credit market instruments including bonds, commercial paper, and loans, excludin
Slide 23: S&P Dow Jones Indices financial snapshot
S&P Global Public S&P Dow Jones Indices financial snapshot Adjusted Operating Revenue Profit Margin** 3-year CAGR: 11 % 68.3% 69.1% 69.2% $989 69.5% 71.2% 71.2% $918 66.4% $837 $728 +10% $548 $499 ($ in millions) * 2Q 2020 trailing twelve months ** 2018 and 2019 results reflect the recast for the al
Slide 24: S&P Dow Jones Indices revenue mix
S&P Global Public S&P Dow Jones Indices revenue mix At the forefront of passive investing AREAS OF FOCUS: Data & Custom Subscriptions Continue index innovation (e.g. factors, Asset-Linked smart beta, ESG) Exchange- Fees Traded 2020 Expand local presence Derivatives in emerging markets Increase globa
Slide 25: Market Intelligence financial snapshot
S&P Global Public Market Intelligence financial snapshot Revenue Adjusted Operating Profit 3-year CAGR: 8% Margin** $2,106 $1,959 $1,833 34.5% $1,683 32.1% 31.7% 32.1% 32.4%32.6% 33.4% +6% $1,034 $1,094 ($ in millions) * 2Q 2020 trailing twelve months ** 2018 and 2019 results reflect the recast for
Slide 26: S&P Global Market Intelligence
S&P Global Public S&P Global Market Intelligence AREAS OF FOCUS: Desktop Deliver on S&P Global platform initiatives Data Management Solutions Transition Capital IQ users to the new platform Credit Risk Solutions Continue to add unique content and analytical tools RECENTLY ACQUIRED: 451 Research – Te
Slide 27: Platts financial snapshot
S&P Global Public S&P Global Platts financial snapshot Revenue Adjusted Operating Platts 3-year CAGR: 4% Profit Margin $844 $878 54.7%55.6% 55.9% 58.0% $774 $815 51.4% 52.4% 47.1% +7% $433 $461 ($ in millions) * 2Q 2020 trailing twelve months ** 2018 and 2019 results reflect the recast for the alloc
Slide 28: S&P Global Platts
S&P Global Public S&P Global Platts Revenue generated from subscriptions and licensing for derivative trading AREAS OF FOCUS: Thousands of daily price Create world-class capability in assessments trade flow analytics Comprehensive coverage Pursue unique benchmarks in new across commodity markets reg
Slide 29: S&P Global has a growing range of ESG solutions linked to centralized production of content
S&P Global Public S&P Global has a growing range of ESG solutions linked to a centralized production of content ESG Solutions Ratings Market Intelligence Indices Platts Fixed Income, Equity, Any Entity Corporates, Equity, Fixed Income Equity & Fixed Income Passive Corporates • ESG Evaluations • ESG
Slide 30: ESG performance highlights
S&P Global Public ESG performance highlights We see ESG as an essential component of sustainable company performance Environmental Social Governance Introduced commitment to Net-Zero Ensuring a diverse & inclusive All directors (other than the CEO) emissions by 2040 culture is set from the top throu
Slide 31: Key governance highlights
S&P Global Public Key governance highlights Accountability Board Independence & Compensation & Risk Refreshment Management Annual elections for directors Independent Chairman of the Equity Ownership Board Requirements for directors and executive officers Majority voting in uncontested All directors
Slide 32: ESG awards & recognition
S&P Global Public ESG awards & recognition 32
Slide 33: UBS Financial Services Virtual Conference
UBS Financial Dan Draper Chief Executive Officer, S&P Dow Jones Indices Services Virtual Chip Merritt SVP Investor Relations Conference August 11, 2021 Copyright © 2021 by S&P Global. All rights reserved.
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