Morningstar, Inc. · NASDAQ:MORN
Morningstar — Merger or Acquisition (April 2020)
15 slides from Morningstar's merger presentation, Apr 21, 2020
Slide 1: Morningstar Announces Agreement to Acquire Sustainalytics
Morningstar Announces Agreement to Sustainalytics Acquire April 21, 2020 ©2020 Morningstar. All Rights Reserved.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements regarding our goals, plans, projections a
Slide 3: Empowering Investor Success
Empowering Investor Success Morningstar agreed to purchase the remaining 60% stake in Sustainalytics. The combination will expand access to ESG research, data and analytics for investors worldwide. ▪ In 2017, Morningstar first took a 40% ownership stake in Sustainalytics, signaling its commitment to
Slide 4: Value Proposition Aligns with Morningstar Mission and Strategy
Value Proposition Aligns with Morningstar Mission and Strategy Like Morningstar, Sustainalytics’ value proposition embodies independence, transparency, and long-term investment thinking. Quality & Transparency Partnership Approach Independent & Exclusive Focus ▪ Consistent and comparable ratings and
Slide 5: Strong Partnership Led to Innovative ESG Analytics With Even Greater Opportunity Ahead
Strong Partnership Led to Innovative ESG Analytics With Even Greater Opportunity Ahead… ESG investing is expected to maintain its momentum driven by factors like global sustainability challenges, regulatory requirements, and increased demand from a new generation of investors. Together, Morningstar
Slide 6: About Sustainalytics
About Sustainalytics SUSTAINALYTICS
Slide 7: Trusted and Recognized Global Leader in ESG
Trusted and Recognized Global Leader in ESG Largest pure-play ESG research and ratings firm dedicated to responsible investment services Over 25 years experience in the fields of ESG & corporate governance research » » Servingmorethan700 asset managers, » pension funds, banks, advisory firms and oth
Slide 8: Broad Capabilities To Serve Investors
Broad Capabilities To Serve Investors Strategy Development ESG Integration Positive Impact Compliance & Screening ESG Data » » ESG Risk Ratings Corporate Governance Research & Ratings Carbon Risk Ratings » Sustainable Products Research » » » » Global Standards Screening Product Involvement Controver
Slide 9: Key Products and Solutions
Key Products and Solutions Sustainalytics helps investors integrate ESG factors into their investment processes by providing data, ratings and research to enable more informed investment decisions (Controversial Weapons (Controversy Alerts, Ratings » Sustainable Development Research) Sanctions Resea
Slide 10: Extensive Research Coverage
Extensive Research Coverage investor communications, marketing 10 © 2020 SUSTAINALYTICS – CONFIDENTIAL & PROPRIETARY Research Type Company Coverage Primary Investor Use Cases Primary Corporate Use Cases ESG Risk Research/Ratings 13,000 Stock selection, Portfolio risk management, Proxy voting, Client
Slide 11: Sustainalytics' ESG Risk Rating
Sustainalytics’ ESG Risk Rating Measuring unmanaged ESG risks » Based on two-dimensional materiality framework measuring company exposure to and management of material risks. » Absolute ratings enable comparability across industries and companies » Nearly 40 industry-specific indicators give strong
Slide 12: Sustainalytics' ESG Risk Rating
Sustainalytics’ ESG Risk Rating Measuring unmanaged ESG risks » Based on two-dimensional materiality framework measuring company exposure to and management of material risks. » Absolute ratings enable comparability across industries and companies » Nearly 40 industry-specific indicators give strong
Slide 13: How the ESG Risk Rating Works
How the ESG Risk Rating Works Management gaps and unmanageable risks are added up across all material ESG issues Starting point is a company’s exposure to material ESG issues. Manageable Risk Some companies have unmanageable risks, e.g. an oil company will always face risks related to carbon until i
Slide 14: ESG Risk Ratings underpin Morningstar's Enhanced Sustainability Fund Ratings
ESG Risk Ratings underpin Morningstar’s Enhanced Sustainability Fund Ratings Ratings for 40,000 mutual funds and ETFs globally » Helped Morningstar transition to sustainability fund ratings 2.0 Have worked jointly to: » » educate advisors and their clients about sustainability and responsible invest
Slide 15: Second Opinions Growth Provides Further Opportunities
Second Opinions Growth (Green, Social and Sustainability Opinions) Provides Further Opportunities Approximately 200 projects from diverse issuers from 30 countries in 2019 Europe • • Kutxabank Social Bond Kommunalkredit Social Bond Lloyds Helping Britain Prosper Bond Obvion N.V. Green Storm NWB Bank