S&p Global Inc. · NYSE:SPGI
S&p Global — Raymond James 40th Annual Institutional Investors Conference 2019
16 slides from S&p Global's conference presentation, Mar 4, 2019
Slide 1: Raymond James 40th Annual Institutional Investors Conference
Raymond James Doug Peterson President & CEO 40th Annual Chip Merritt Senior Vice President Investor Relations Institutional March 4-5, 2019 Investors Conference Copyright © 2017 by S&P Global. All rights reserved. Comparison of adjusted information to U.S. GAAP information This presentation includes
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: 2018 results by segment
2018 results by segment Adjusted segment operating Revenue: $6,258 million profit: $3,208 million $815 $401 Market Intelligence $1,833 $625 $568 $837 Ratings1 S&P Dow Jones Indices2 $2,883 $1,614 Platts ($ in millions) ($ in millions) Notes: Revenue chart excludes corporate revenue and consolidating
Slide 4: Adjusted operating profit margin improvement continues
Adjusting operating profit margin improvement continues Adjusted Operating Profit Margin 60% 50% 48.8% 46.5% 42.4% 39.7% 40% 36.4% 30% 20% 10% 0% 2014 2015 2016 2017 2018 Notes: McGraw Hill Construction was sold in 2014 and was reclassified to discontinued operations. Beginning in 2016, the Company
Slide 5: Revenue growth and productivity initiatives feed investments and shareholder returns
Revenue growth and productivity initiatives feed investments and shareholder returns Investments in new revenue Revenue growth opportunities and Expanding margins productivity and FCF Return ≥75% Productivity initiatives of FCF to shareholders 9 Secular market trends position S&P Global for sustaine
Slide 6: Progress on new ~$100 million, 3-year cost reduction program
Progress on new ~$100 million, 3-year cost reduction program Target annual run‐rate savings 2018 to 2020 Run‐rate savings achieved in first year Productivity improvements across support functions $45‐55M and real estate Productivity improvements in technology & digital $55‐60M $45m across support in
Slide 7: Consistent track record of returning cash to shareholders
Consistent track record of RETURNED OVER returning cash to shareholders $7 Billion SINCE START OF 2014 $2,163 $1,503 $1,422 $1,337 $688 Share Repurchases Dividend 2014 2015 2016 2017 2018 ($ in millions) Note: Shares repurchased are reported on a settlement-date basis 13 2019 areas of focus • Bring
Slide 8: 2019 areas of focus
2019 areas of focus • Enable cloud-first strategy • Implement numerous Kensho projects Technology • Optimize management of data ingestion and data operations Operational • Leverage AI and machine-learning capabilities Excellence • Continue to improve cyber security • Raise technological acumen of al
Slide 9: Utilized balance sheet strength in 2018 for investments and return of capital
Utilized balance sheet strength in 2018 for investments and return of capital Period-end debt and cash position $3,611 $3,564 $3,569 $3,662 $2,791 $2,500 $2,400 $1,976 $1,487 $795 2014 2015 2016 2017 2018 ($ in millions) Debt Cash, cash equivalents, restricted cash, and short-term investments 17 Res
Slide 10: Ratings financial snapshot
Ratings financial snapshot Revenue Adjusted Operating 4-year CAGR: 4% Profit Margin $2,988 56.0% $2,883 53.6% 49.6% $2,455 $2,428 $2,535 47.2% 43.8% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 ($ in millions) 19 S&P Global Ratings: revenue 2000–2018 Financial crisis had modest impact on Corpor
Slide 11: U.S. corporate debt as a share of U.S. GDP
U.S. corporate debt as a share of U.S. GDP (nominal) Financial Corporate Debt (Ex GSE) / U.S. GDP Non-Financial Corporate Debt (Ex GSE) / U.S. GDP 120% 100% 80% 60% 40% 20% 0% Credit market instruments including bonds, commercial paper, and loans, excluding agency and GSE-backed securities from fina
Slide 12: S&P Dow Jones Indices revenue mix
S&P Dow Jones Indices revenue mix At the forefront of AREAS OF FOCUS: passive investing Continue index innovation (e.g. factors, smart beta, ESG) Data & Custom Expand local presence Subscriptions in emerging markets Asset-Linked Increase global indices Exchange- Fees 2018 awareness Traded Derivative
Slide 13: S&P Global Market Intelligence
S&P Global Market Intelligence AREAS OF FOCUS: Desktop Release production version of new Market Intelligence platform Transition Capital IQ users to the Data Management Solutions new platform Continue to add unique content and Risk Services analytical tools RECENTLY ACQUIRED: Panjiva - Global trade
Slide 14: S&P Global Platts ESG performance highlights
S&P Global Platts Revenue generated from AREAS OF FOCUS: subscriptions and licensing for derivative trading Create world-class capability in trade flow analytics Thousands of daily price assessments Pursue unique benchmarks in new regions and markets Comprehensive coverage Develop exchange relations
Slide 15: Key governance highlights
Key governance highlights Accountability Board Independence & Compensation & Risk Refreshment Management Annual elections for directors Independent Chairman of the Equity Ownership Board Requirements for directors and executive officers Majority voting in uncontested All directors except our CEO are
Slide 16: ESG awards & recognition
ESG awards & recognition 31 Raymond James Doug Peterson President & CEO 40th Annual Chip Merritt Senior Vice President Investor Relations Institutional March 4-5, 2019 Investors Conference Copyright © 2017 by S&P Global. All rights reserved. 16
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