S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Barclays Americas Select Franchise Conference 2013 - London
14 slides from S&p Global's conference presentation, May 22, 2013
Slide 1: Comparison of Adjusted Information to U.S. GAAP Information
Comparison of Adjusted Information to U.S. GAAP Information This presentation includes adjusted financial information. This information is provided to enable investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the sa
Slide 2: A "New" Company with a 125-Year Heritage
A “New” Company with a 125‐Year Heritage Today I will discuss: • Changes taking place at the Company • Financial improvement of our focused, streamlined portfolio • Key secular trends that support continued growth • How we are investing in growth and returning cash to shareholders • Business overvie
Slide 3: A New Company: McGraw Hill Financial
A New Company: McGraw Hill Financial New name, new vision, new look, and a new ticker — MHFI 5 Broad Portfolio Anchored by Standard & Poor’s Ratings Services Revenue: Adjusted Operating Profit: $4,450 million $1,587 million $260 $973 16% 22% $2,034 $234* 15% 55% $388 9% 45% $865 24% 14% ($ in millio
Slide 4: Key Secular Trends Support Growth
A Global Network 7 Key Secular Trends Support Growth • Significant debt maturities and new money requirements over the next five years • Deleveraging of banks shifts financing to capital markets • Capital markets in emerging countries continue to develop • Commodities have become a high‐growth inves
Slide 5: Streamlining Cost Structure
Streamlining Cost Structure • In September 2011, the Company targeted $100 million in annual cost savings • Delivered $175 million in annual costs savings of which approximately 1/3 will be realized by MHFI MHFI Adjusted Operating Margin 34% 31% 28% 2011 2012 1Q 2013 9 Strong Earnings Growth and Cas
Slide 6: Investing to Enhance Growth: 2011-2012 Transactions
Investing to Enhance Growth: 2011‐2012 Transactions S&P Dow Jones Indices S&P Capital IQ Commodities (Platts) Standard & Poor’s Ratings Services 11 Accelerating Return of Capital Recent Actions ($ in millions) $1,796 • Announced special dividend $1,279 of $2.50 per share in $728 December 2012 $548 $
Slide 7: McGraw Hill Financial: Strong Start to Year
McGraw Hill Financial: Strong Start to Year ($ in millions) 1Q 2013 1Q 2012 Change Revenue $1,181 $1,035 +14% Adj. Operating Profit $399 $311 +28% Adj. Operating Margin 33.8% 30.0% +380 bps Diluted Adjusted EPS $0.80 $0.62 +29% 13 Standard & Poor’s Ratings Services • Leading global credit rating age
Slide 8: Standard & Poor's Ratings Services – Financial Snapshot
Standard & Poor’s Ratings Services – Financial Snapshot Revenue Adjusted Operating ($ in millions) Margin $2,034 10% CAGR 45% $1,767 43% $1,695 41% 2010 2011 2012 2010 2011 2012 1Q 2013 revenue: +20% 1Q 2013 adjusted operating margin: 46% 15 S&P Response to the DOJ Complaint www.standardandpoors.com
Slide 9: Standard & Poor's Ratings Services: Litigation Update
Standard & Poor’s Ratings Services: Litigation Update • State actions: The Company removed all of the State Attorneys General actions (except California) from state to federal court and asked the federal panel on multidistrict litigation (JPML) to transfer them before a single federal court for all
Slide 10: S&P Dow Jones Indices – Financial Snapshot
S&P Dow Jones Indices – Financial Snapshot Revenue Adjusted Operating Margin ($ in millions) $388 6 months revenue of Dow 59% 60% Jones Index $323 $332 $273 53% 10% CAGR 2010 2011 2012 2010 2011 2012 1Q 2013 revenue: +9% 1Q 2013 adjusted operating margin: 58% 19 S&P Dow Jones Indices: Growth in ETF
Slide 11: S&P Capital IQ
S&P Capital IQ •Leading provider of data and tools for company, security and portfolio valuation and risk analysis •Revenue generated from a broad portfolio of capabilities: • Integrated Desktop (data and analytics covering markets, companies, credits and portfolios) • Enterprise Solutions (integrat
Slide 12: Commodities & Commercial Markets – Financial Snapshot
Commodities & Commercial Markets Premier source of benchmarks, high‐value information, data, and analytic services that address high‐value customer needs in key sectors of the global economy Commodities (Platts) Commercial • Over 12,000 price assessments daily • J.D. Power and Associates • Oil, gas,
Slide 13: McGraw Hill Financial: Solid Financial Drivers
McGraw Hill Financial: Solid Financial Drivers • Limited long‐term debt (~ $800 million) • Modest capital requirements (~$125 million) • Working capital generally negative • Strong free cash flow yield • Proven record of returning cash to shareholders • Plus... the added benefit of the proceeds from
Slide 14: Barclays Americas Select Franchise Conference 2013 - London
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE 2013 ‐ LONDON Jack Callahan, Executive Vice President and CFO Chip Merritt, Vice President, Investor Relations 22 May 2013 14
McGraw Hill Financial — Barclays Americas Select Franchise Conference 2013 - London on 6ix