S&p Global Inc. · NYSE:SPGI
S&p Global — Q1 2024 Earnings Presentation
29 slides from S&p Global's earnings presentation, Apr 25, 2024
Slide 1: S&P Global Quarterly Update 1Q 2024
1Q 2024 S&P Global Quarterly Update April 25, 2024 1
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 Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in for
Slide 3: Comparison of adjusted information to U.S. GAAP information
Comparison of adjusted information to U.S. GAAP information This presentation includes Company financials on an as-reported basis. The Company also refers The Company’s non-GAAP measures include adjustments that reflect how management views to and presents certain additional non-GAAP financial measu
Slide 4: European regulations affecting investors in credit rating agencies
European regulations affecting investors in credit rating agencies European Union Regulation 1060/2009 (as amended) applies to credit rating agencies Any person obtaining direct or indirect ownership or control of 5% or more or 10% (CRAs) registered in the European Union (“EU”) and therefore to the
Slide 5: Quarterly Update Call Presenters
Quarterly Update Call Presenters Doug Chris Mark Peterson Craig Grant President and CEO Interim Chief Financial Senior Vice President, Officer Investor Relations 5
Slide 6: Strategy, Vision, and Execution
Strategy, Vision, and Execution Doug Peterson President and CEO 6
Slide 7: First quarter highlights
First quarter highlights Financial highlights 1 Additional highlights Revenue increased 14% y/y, excluding the impact of Customers turned to S&P Global during a period of very Engineering Solutions, with revenue from subscription strong capital markets activity in both equity and fixed products grow
Slide 8: Customer at the Core, Grow & Innovate, Lead & Inspire, Execute & Deliver
Customer at the Core Grow & Innovate Data & Technology Lead & Inspire Execute & Deliver 8
Slide 9: Powering Global Markets in the first quarter
Customer at the Core Powering Global Markets in the first quarter Powering global debt markets Continued thought leadership Nearly $1 trillion in billed issuance Record attendance at CERAWeek – a demonstrates S&P Global’s critical preeminent global energy conference role in powering a highly functio
Slide 10: Issuance growth led by Bank Loans & High-Yield
Customer at the Core Issuance growth led by Bank Loans & High-Yield Billed issuance up 45% Updates on market conditions ($ in billions) Favorable conditions drove strength in $993 Bank Loans and High-Yield through refinancing and amend-and-extend $684 $456 activity $349 $120 Investment Grade issuanc
Slide 11: First quarter Vitality Index performance
Grow & Innovate First quarter Vitality Index performance Vitality Index1 Key contributors of Vitality revenue Vitality revenue of CARFAX Car Listings (Mobility) $335 million, which is Energy Transition and Climate Products (CI) revenue from new or enhanced products, CARFAX BIG (Mobility) accounted f
Slide 12: Investments in products and technology poised to drive future growth
Grow & Innovate Investments in products and technology poised to drive future growth in revenue and profitability Expanding leadership in Innovative go-to-market with AI Enablement Commodities 1 packaged solutions in MI 2 New reports and research in Launched S&P Global Blueprints S&P AI Benchmarks b
Slide 13: Record quarterly revenue driven by growth across the board
Execute & Deliver Record quarterly revenue driven by growth across the board 1Q ’24 Revenue TTM Adjusted TTM Adjusted Financial Performance Growth1 Operating Margin Operating Margin Y/Y2 2 7% 33.1% 50 bps 29% 58.5% 290 bps 10% 46.4% 120 bps 8% 38.6% -70 bps 14% 69.3% 30 bps Total S&P Global 10%3 46.
Slide 14: First Quarter Financial Results
First Quarter Financial Results Chris Craig Interim Chief Financial Officer 14
Slide 15: First quarter enterprise financial results
First quarter enterprise financial results Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +10% $3,491 $3,491 $3,160 $387 +14% $3,160 $341 $386 +8% $358 $1,738 +19% $559 +10% $1,460 Indices $508 Mobility 49.8% $1,062 +29% Commodity Insights $824 Adjusted Operating Profit
Slide 16: Continued growth in strategic investment areas
Continued growth in strategic investment areas Sustainability & Private Market Revenue Energy Transition 1 Solutions 2 Synergies ($ in millions) ($ in millions) ($ in millions) +15% +16% $78 $116 $350 $68 $100 $184 1Q ’23 1Q ’24 1Q ’23 1Q ’24 Run-rate 2026 Target Note: Categories presented on this s
Slide 17: S&P Global Market Intelligence
S&P Global Market Intelligence Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +7% $1,142 $1,142 $1,071 $1,071 $276 +5% $264 $373 +9% $343 32.7% Desktop $342 $366 +7% 32.0% Data & Advisory Solutions Adjusted Operating Profit Enterprise Solutions Adjusted Expense $769 +6%
Slide 18: S&P Global Ratings
S&P Global Ratings Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +29% $1,062 $1,062 $122 +3% $824 $62 +15% $824 $107 +23% CRISIL, Other 1 $118 $687 +43% $54 $177 +30% Governments $86 $480 Structured Finance $137 Adjusted Operating Profit Financials Adjusted Expense 58.3
Slide 19: S&P Global Commodity Insights
S&P Global Commodity Insights Revenue 1 Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +10% $559 $559 $508 $508 $106 +10% $96 Advisory & Transactional $264 +13% $105 +2% Services $103 $234 Upstream Data & Insights 47.2% $175 +14% Adjusted Operating Profit 46.1% $154 Price Assess
Slide 20: S&P Global Mobility
S&P Global Mobility Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +8% $386 $386 $358 $358 $69 +12% $62 $147 +5% $140 $84 -3% $87 39.1% 38.1% Financials & Other Adjusted Operating Profit Manufacturing $233 +12% Adjusted Expense $239 +10% $209 $218 Dealer Adjusted Operati
Slide 21: S&P Dow Jones Indices
S&P Dow Jones Indices Revenue Adjusted Operating Profit & Expense ($ in millions) ($ in millions) +14% $387 $387 $341 $70 +6% $341 $66 Data & Custom $73 +12% Subscriptions $65 $282 +15% $245 Exchange-Traded Adjusted Operating Profit Derivatives $244 +16% Adjusted Expense $210 71.8% 72.9% Asset-Linke
Slide 22: 2024 Outlook and Guidance
2024 Outlook and Guidance Doug Peterson President and CEO 22
Slide 23: 2024 macroeconomic assumptions underlying guidance
2024 macroeconomic assumptions underlying guidance Real GDP United States Platts Dated Billed Issuance 4 Growth 1 CPI 2 Brent 3 3.2% 2.8% $85 +6% to +10% Global Average Per Barrel United States 2.5% Eurozone 0.7% China 4.6% India 6.8% Note: S&P Global Ratings billed issuance includes the impact of l
Slide 24: Updated 2024 GAAP guidance
Updated 2024 GAAP guidance Previous Current Revenue Growth 5.5% - 7.5% 6.0% - 8.0% Operating Profit ~500 bps 500 - 550 bps Margin Expansion Diluted EPS $10.70 - $10.95 $10.80 - $11.05 Indicates a change from prior guidance 24
Slide 25: Updated 2024 adjusted guidance
Updated 2024 adjusted guidance Previous Current Revenue Growth 5.5% - 7.5% 6.0% - 8.0% Operating Profit ~100 bps 100 - 150 bps Margin Expansion $13.75 - $14.00 $13.85 - $14.10 Diluted EPS +9% to +11% y/y +10% to +12% y/y Indicates a change from prior guidance 25
Slide 26: Updated 2024 division revenue outlook
Updated 2024 division revenue outlook Previous Current 6.0% - 7.5% 6.0% - 7.5% 6.0% - 8.0% 7.0% - 9.0% 8.0% - 9.5% 8.0% - 9.5% 8.5% - 10.0% 8.5% - 10.0% 7.0% - 9.0% 9.0% - 11.0% Indicates a change from prior guidance 26
Slide 27: Updated 2024 division adjusted margin outlook
Updated 2024 division adjusted margin outlook Previous Current 33.5% - 34.5% 33.5% - 34.5% 57.5% - 58.5% 57.5% - 58.5% 46.5% - 47.5% 46.5% - 47.5% 39.0% - 40.0% 39.0% - 40.0% 68.5% - 69.5% 69.0% - 70.0% Indicates a change from prior guidance 27
Slide 28: 1Q 2024 Earnings Call
1Q 2024 Earnings Call Doug Peterson Adam Kansler President and CEO President, S&P Global Market Intelligence Chris Craig Martina Cheung Interim Chief Financial Officer President, S&P Global Ratings and Executive Lead, Sustainable1 Mark Grant Senior Vice President, Investor Relations April 25, 2024 2
Slide 29: 1Q 2024 Earnings Call
1Q 2024 Earnings Call Doug Peterson REPLAY OPTIONS President and CEO Internet: Replay available for one year Chris Craig Go to http://investor.spglobal.com Interim Chief Financial Officer Mark Grant Telephone: Replay available through May 25, 2024 Senior Vice President, Investor Relations Domestic: