S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Piper Jaffray Technology, Media & Telecommunications Conference 2013
10 slides from S&p Global's conference presentation, Mar 13, 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: McGraw Hill Financial: Strong Full-Year Results
McGraw Hill Financial: Strong Full-Year Results ($ in millions) 2012 2011 Change Revenue $4,450 $3,954 +13% Adj. Operating Profit $1,385 $1,119 +24% Adj. Operating Margin 31.1% 28.3% +280 bps Diluted Adjusted EPS $2.75 $2.09 +32% 2012 highlights: Standard & Poor’s Ratings notched the highest reven
Slide 3: McGraw Hill Financial: Solid Financial Drivers
McGraw Hill Financial: Solid Financial Drivers • Nominal long-term debt (~ $800 million) • Modest capital requirements (~$125 million) • Working capital generally negative • Strong free cash flow yield • Proven record of returning cash to shareholders ($ in millions) Returned approximately $4.6 bill
Slide 4: Key Secular Trends Reinforce the Growth Potential of McGraw Hill Financial
Key Secular Trends Reinforce the Growth Potential of McGraw Hill Financial • A formidable wall of debt maturities and new money requirements over the next five years • Deleveraging of European banks shifts financing to capital markets • Commodities have become the fastest-growing investment class •
Slide 5: Global Debt Issuance is Predominately Corporates
Global Debt Issuance is Predominately Corporates (2012 issuance volume, $ in billions) Public Finance Structured Finance Corporates Note: Excludes sovereign issuance 9 S&P Dow Jones Indices - The world’s foremost provider of benchmarks in the capital and commodities markets with over 800,000 indices
Slide 6: S&P Dow Jones Indices: Growth in ETF Assets Drives Revenue
S&P Dow Jones Indices: Growth in ETF Assets Drives Revenue (AUM, $ in billions) +28% - 5-year CAGR of 18% in assets under management based upon S&P Indices - Industry exchange-traded fund inflows reached a record $191 billion in 2012 11 S&P Capital IQ - Leading provider of data and tools for company
Slide 7: Commodities & Commercial Markets
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 Commercial - Over 12,000 price assessments daily - J.D. Power and Associates - Oil, gas, petroche
Slide 8: McGraw Hill Financial – Key Attributes
McGraw Hill Financial – Key Attributes Important Brands & Attractive Markets Impressive Financial Leverage Core Capabilities Deep Customer Relationships Unique Portfolio of Assets 15 S&P Response to the DOJ Complaint www.standardandpoors.com/response We are trying to do a better job of helping peopl
Slide 9: How Enhancement Can Support Ratings
How Enhancement Can Support Ratings Example Assets Collateralized Debt Obligation AAA Tranche: $350M Subprime Prime CMBS Other RMBS RMBS Junior Tranches: $100M Equity: $50M AAA Tranche is Protected Against Total Collateral Amount: $500M First $150 Million (30%) in losses 17 Performance of Standard &
Slide 10: Piper Jaffray Technology, Media & Telecommunications Conference
McGraw Hill Financial • Anticipate closing the sale of McGraw-Hill Education by the end of March • Share repurchases should resume after proceeds from the sale are received • 2013 guidance indicates solid growth: High single-digit top-line growth ~15% adjusted diluted EPS growth • Will focus on
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