S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Goldman Sachs U.S. Financial Services Conference 2015
20 slides from S&p Global's conference presentation, Dec 9, 2015
Slide 1: Goldman Sachs U.S. Financial Services Conference
Goldman Sachs U.S. Financial Services Conference Doug Peterson – President and CEO December 9, 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
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: Who We Are
Who We Are Vision Mission Core Values To be the leading provider Promote sustainable Fairness of transparent and growth in the global Integrity independent benchmarks & capital, commodity and Transparency ratings, analytics, data and corporate markets by research in the global providing customers wi
Slide 4: 3Q YTD 2015: Results by Line of Business
3Q YTD 2015: Results by Line of Business Revenue: $3.9B Adj. Segment Op. Profit: $1.7B ($ in millions) ($ in millions) Commodities S&P Commodities S&P & Commercial Ratings* & Commercial Ratings* $707 $266 S&P DJ Indices $446 $1,851 S&P DJ $297** Indices $894 $1,000 $222 S&P Capital IQ and SNL *** S&
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 transform Major financing and data required for infrastructur
Slide 6: Sustained Margin Expansion and Double-Digit Earnings Growth
Sustained Margin Expansion and Double‐Digit Earnings Growth Adjusted Operating Margin Guidance +680 bps >200 bps 35.9% 33.1% 31.4% 29.1% 2011 2012 2013 2014 2015 2015 2011 2012 2013 2014 Guidance Adjusted $2.03 $2.65 $3.22 $3.88 $4.45‐4.50 Diluted EPS Note: McGraw‐Hill Education and McGraw Hill Cons
Slide 7: MHFI: Returning Substantial Cash to Shareholders
MHFI: Returning Substantial Cash to Shareholders ($ in millions) Returning $1,796 $6+ Billion since start of 2011 $1,279 $1,286 $1,023 Special $688 Dividend 2011 2012 2013 2014 As of 11/30/2015 Share Repurchase Dividend McGraw Hill Financial 12 MHFI: Strong Balance Sheet Period‐End Debt & Cash Posit
Slide 8: Several Recent Leadership Changes
Several Recent Leadership Changes Doug Peterson Jack Callahan President and Executive Vice President and Chief Executive Officer Chief Financial Officer John Berisford Ashu Suyash Mike Chinn Martina Cheung Alex Matturri Imogen Dillon Hatcher President Managing Director President Executive Managing D
Slide 9: Appendix
APPENDIX McGraw Hill Financial 17 9
Slide 10: A Leading Provider of Ratings, Benchmarks, Analytics & Research
A Leading Provider of Ratings, Benchmarks, Analytics & Research Leading rating agency Premier provider of high‐quality data, analytical tools, and ratings information. SNL adds deep sector‐specific capabilities The leading index provider Principal provider of commodity price assessments analysis and
Slide 11: MHFI Customer Engagement: Diverse Customer Set
MHFI Customer Engagement: Diverse Customer Set Revenue by Customer Segment 16% Corporates Investment Management Commercial Banks, Insurance, Specialty 17% 2014 48% Investment Banks 19% McGraw Hill Financial 20 Majority of Revenue is Subscription / Recurring 3Q YTD 2015 Revenue Subscription/Recurring
Slide 12: Meaningful Progress in Every Business Unit
Meaningful Progress in Every Business Unit 3Q YTD 2015 Versus 3Q YTD 2014 Business Unit Results Standard & Poor’s S&P Capital IQ S&P Dow Commodities Ratings and SNL * Jones Indices & Commercial Services Revenue +1% +9% +8% +8% Adj. Operating +10% +26% +12% +16% Profit Adj. Operating +400 +310 +240 +
Slide 13: Standard & Poor's Ratings Services: Change in Revenue Mix
Standard & Poor’s Ratings Services: Change in Revenue Mix (2007 ‒ 2014) Corporate Ratings are Now a Much Larger Portion of the Business ($ in millions) $2,455 $2,138 Corporates 27% 51% Financials 15% Governments 9% 17% 9% Structured 44% 12% CRISIL, Other 6% 11% 2007 2014 Corporates Financial Institu
Slide 14: S&P Dow Jones Indices: Revenue Mix
S&P Dow Jones Indices: Revenue Mix September 2015 YTD At the forefront of trend toward passive investing Data & Custom Indices ETFs & Mutual Funds Exchange Traded Derivatives OTC Derivatives & Structured Products McGraw Hill Financial 26 S&P Capital IQ and SNL: Financial Snapshot Revenue ($ in milli
Slide 15: SNL Acquisition: Compelling Combination of Complementary Businesses
SNL Acquisition: Compelling Combination of Highly Complementary Businesses Exceptional • Premier provider of breaking news, financial data and expert analysis in the banking, insurance, financial services, real estate, energy, media & communications and Business metals & mining industries. Unique Fi
Slide 16: SNL's Premium Industry Coverage Deepens Product Offering
SNL’s Premium Industry Coverage Deepens Product Offering Broad, cross‐industry Desktop and Enterprise Solutions coverage Deep industry Seeds for Real Media & Metals & Energy & future coverage for Banks Insurance Estate Comms. Mining Utilities industries specific markets Risk analytics Credit Solutio
Slide 17: SNL: Recent Investments in Developing Businesses
SNL: 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 m
Slide 18: Commodities & Commercial Markets: Financial Snapshot
Commodities & Commercial Markets: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +270 bps +8% $893 +8% 38%* $841 34%* $793 33%* $704 $707 29%* 21% 2011 2012 2013 2014 3Q YTD 2011 2012 2013 2014 3Q YTD 2015 2015 Comparisons Impacted by the Sale of Aviation Week in August 2013 an
Slide 19: SNL Extends Platts Presence Across Commodity Information Value Chain
Commodities & Commercial Markets • Revenue generated from subscriptions and licensing for derivative trading • Thousands of daily price assessments • Comprehensive coverage across commodity markets McGraw Hill Financial 36 SNL Extends Platts Presence Across Commodity Information Value Chain Commodit
Slide 20: Intelligence
Intelligence 20
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