S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — investMNt Conference 2015
16 slides from S&p Global's conference presentation, Aug 5, 2015
Slide 1: investMNt Conference
investMNt Conference Chip Merritt – Vice President, Investor Relations August 5, 2015 McGraw Hill Financial 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 info
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: A Leading Provider of Ratings, Benchmarks, Analytics & Research
A Leading Provider of Ratings, Benchmarks, Analytics & Research Leading rating agency Premier provider of high quality data, analytical tools and ratings information The leading index provider Principal provider of commodity price assessments and information Primary customer satisfaction benchmark p
Slide 4: A Proven Track Record of Growth
A Proven Track Record of Growth Annual Revenue Growth Adjusted Operating Margin ($ in millions) Mid +680 bps >125 bps +10% CAGR single‐digit 35.9% $5,051 33.1% $4,702 31.4% 29.1% $4,270 $3,762 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Guidance Guidance McGraw‐Hill Education and McGraw Hill C
Slide 5: Secular Market Trends Position MHFI for Sustained Growth
Secular Market Trends Position MHFI for Sustained Growth Significant debt maturities and continued bank deleveraging Increased investor sophistication requires real‐time data and analytics Capital markets in emerging countries continue to develop Major financing and data required for infrastructure
Slide 6: MHFI Customer Engagement: Diverse Customer Set
MHFI Customer Engagement: Diverse Customer Set Revenue by Customer Segment 16% Corporates Investment Management Commercial Banks, Insurance, Specialty 17% 2014 48% Investment Banks 19% McGraw Hill Financial 10 Majority of Revenue is Subscription / Recurring 2014 Revenue Subscription/Recurring Revenu
Slide 7: 1H 2015 Results: Solid Start
1H 2015 Results: Solid Start ($ in millions) 1H 2015 1H 2014 Change Revenue $2,615 $2,498 +5% Adj. Operating Profit $1,047 $896 +17% Adj. Operating Margin 40.0% 35.9% +410 bps Adj. Diluted EPS $2.30 $1.91 +21% Revenue Increased $117 million Adjusted Operating Profit Increased $151 million McGraw Hil
Slide 8: Standard & Poor's Ratings Services: Financial Snapshot
Standard & Poor’s Ratings Services: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +420 bps +12% CAGR $2,455 49%* $2,274 44%* 41% 41%* 42%* $2,034 $1,767 +3% $1,264 2011 2012 2013 2014 1H 2015 2011 2012 2013 2014 1H 2015 * Shared operating services allocated to the segments McG
Slide 9: S&P Dow Jones Indices: Financial Snapshot
S&P Dow Jones Indices: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +100 bps +20% CAGR* $552 64%* 66%* $493 59% 58%* 54%* $388 +8% $323 $291 2011 2012 2013 2014 1H 2015 2011 2012 2013** 2014*** 1H 2015 Joint Venture Formed with CME mid‐2012 * Shared operating services allocat
Slide 10: S&P Capital IQ: Financial Snapshot
S&P Capital IQ: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +360 bps +6% CAGR $1,237 21% 21%* $1,170 $1,124 19%* $1,031 18%* 17%* +6% $644 2011 2012 2013 2014 1H 2015 2011 2012 2013 2014 1H 2015 * Shared operating services allocated to the segments McGraw Hill Financial 18 S
Slide 11: Commodities & Commercial Markets: Financial Snapshot
Commodities & Commercial Markets: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +8% +390 bps $893 38%* $841 34%* $793 33%* $704 29%* +7% $459 21% 2011 2012 2013 2014 1H 2015 2011 2012 2013 2014 1H 2015 Comparisons Impacted by the Sale of Aviation Week in August 2013 and the Re
Slide 12: SNL Acquisition – Compelling Combination of Highly Complementary Businesses
SNL Acquisition – Compelling Combination of Highly Complementary Businesses Unique Fit Adds • Clear synergy with S&P Capital IQ & Platts with deep sector coverage Depth and Scale • Adds scale to data, technology and commercial capabilities Common • Deepens expertise in banking and insurance with new
Slide 13: Recent Investments in Developing Businesses Accelerate Global Growth
Recent Investments in Developing Businesses Accelerate Global Growth Established Businesses Developing Businesses • Track record of low‐to‐mid teens organic • Completing investment phase in 2015 growth • Ramping quickly with additional large, untapped • Strong and expanding margin performance market
Slide 14: Strong Balance Sheet
Financial Summary • Sustained mid‐teens revenue growth for over a decade; organic growth low‐to‐mid teens • Subscription‐based business 96% recurring revenue with 94% renewal rates • Strong growth trajectory with estimated 2015 GAAP revenue of ~$255 million and EBITDA margin in excess of 20% • Curre
Slide 15: Returning Substantial Cash to Shareholders
Returning Substantial Cash to Shareholders ($ in millions) Returned $1,796 $6.1 Billion since start of 2010 $1,279 $1,286 Special $688 $548 Dividend $459 2010 2011 2012 2013 2014 1H 2015 Share Repurchase Dividend McGraw Hill Financial 28 McGraw Hill Financial • A great portfolio of iconic global bra
Slide 16: Intelligence
Intelligence 16