S&p Global Inc. · NYSE:SPGI
S&p Global — Q4 2016 Earnings Presentation
21 slides from S&p Global's earnings presentation, Feb 7, 2017
Slide 1: 4Q and Full-Year 2016 Earnings Call
2/7/2017 4Q and Full-Year 2016 Earnings Call Doug Peterson President and CEO Ewout Steenbergen Executive Vice President and CFO Chip Merritt Vice President, Investor Relations February 7, 2017 Comparison of adjusted information to U.S. GAAP information This presentation includes adjusted financial m
Slide 2: Safe Harbor statement under the Private Securities Litigation Reform Act of 1995
2/7/2017 “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
Slide 3: 2016 Overview
2/7/2017 Doug Peterson President and Chief Executive Officer 2016 Overview 3
Slide 4: 2016 Highlights
2/7/2017 2016 Highlights • Finished the year with strong fourth quarter results • Delivered another year of impressive financial performance with mid single-digit revenue growth and mid-teens adjusted EPS growth • Rebranded the Company as S&P Global with new ticker: SPGI • Reshaped the portfolio wit
Slide 5: S&P Global continues to deliver growth and performance
2/7/2017 S&P Global continues to deliver growth and performance Revenue Adjusted Operating 7% CAGR Margin $7,000 50% 42.9% $6,000 $5,661 39.9% $5,313 40% 36.9% $5,051 $5,000 $4,702 32.5% 34.2% $4,270 $4,000 30% $3,000 20% $2,000 10% $1,000 $0 0% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 ($ i
Slide 6: 2017 Outlook
2/7/2017 Continued adding capabilities and reshaping the portfolio • Platts continued building a world-class supply/demand analytics platform with the additions of: PIRA Energy Group RigData Commodity Flow • Indices added a leader in carbon and environmental data and risk analysis: • Ratings expande
Slide 7: An unprecedented time of turbulence, technological innovation, and change
2/7/2017 An unprecedented time of turbulence, technological innovation, and change Mixed macro- Shifting Changing Technology: Rising importance economic and landscape expectations Disruption and of sustainability / geopolitical of regulation and behaviors opportunity ESG environment of customers con
Slide 8: 2017 global refinancing study points to increase in global corporate debt maturities
2/7/2017 2017 global refinancing study points to increase in global corporate debt maturities 2016 study totaled $9.5 trillion 2017 study totaled $9.6 trillion Global Corporate Global Corporate High- Debt Maturities Yield Debt Maturities $2.1 $700 ($, trillions) ($, billions) $600 $500 $1.9 $400 $30
Slide 9: Issuance and GDP relationship
2/7/2017 We find a statistically significant relationship between U.S. corporate issuance and GDP… $1,400 $20,000 $18,000 Issuance ($ in billions) $1,200 $16,000 GDP ($ in billions) $1,000 $14,000 $800 $12,000 $10,000 $600 $8,000 $400 $6,000 $4,000 $200 $2,000 $0 $0 Issuance Nominal GDP ($ in billio
Slide 10: Potential impact of tax changes on the Company
2/7/2017 Potential impact of tax changes on the Company Lower corporate Very positive for the Company tax rate One-time event would reduce issuance somewhat; Repatriation the Company would likely participate in repatriation Removal of interest Would reduce attractiveness of debt, but lower tax expen
Slide 11: 4Q 2016 Overview
2/7/2017 Ewout Steenbergen Executive Vice President, Chief Financial Officer 21 4Q 2016 Overview 11
Slide 12: 4Q 2016: Revenue growth, margin gains, and share repurchases drive EPS increase
2/7/2017 4Q 2016: Revenue growth, margin gains, and share repurchases drive EPS increase Organic revenue increased 11% 4Q 2016 4Q 2015 Change Revenue $1,399 $1,374 +2% Adjusted total expense $810 $869 (7%) Adjusted operating profit $589 $505 +17% Adjusted operating profit margin 42.1% 36.8% +530 bps
Slide 13: 4Q 2016: Non-GAAP adjustments to operating profit
2/7/2017 4Q 2016: Non-GAAP adjustments to operating profit 4Q 2016 Net gain on recent divestitures +$347 Increased legal reserves ($54) Expenses related to early retirement of 2017 debt ($21) Total pre-tax gain excluded from adjusted results +$272 ($ in millions) 4Q 2016 Deal-related amortization ($
Slide 14: Ratings led the Company in both revenue and operating profit growth
2/7/2017 Ratings led the Company in both revenue and operating profit growth 4Q 2016 4Q 2015 Change Revenue $658 $578 +14% Adjusted segment operating profit $313 $254 +23% Adjusted segment operating margin 47.5% 43.9% +360 bps ($ in millions) 4Q 2016 HIGHLIGHTS: • Revenue increased 14% including a 1
Slide 15: Ratings: Revenue mix shows broad gains
2/7/2017 Ratings: Revenue mix shows broad gains $700 $658 $600 $578 +21% $80 $66 $63 $500 +28% $49 $72 $64 +12% CRISIL, Other* $400 $104 Governments $115 (9%) Structured $300 Financials $200 Corporates +20% $340 $283 $100 $0 4Q 15 4Q 16 Details may not sum to total due to rounding *Other includes in
Slide 16: Market and Commodities Intelligence: Despite asset sales, adjusted operating profit improved
2/7/2017 Market and Commodities Intelligence: Despite asset sales, adjusted operating profit improved 4Q 2016 4Q 2015 Change Revenue $595 $669 (11%) Adjusted segment operating profit $206 $190 +8% Adjusted segment operating margin 34.5% 28.5% +600 bps ($ in millions) 4Q 2016 HIGHLIGHTS: • Revenue de
Slide 17: Market Intelligence makes significant progress on synergies
2/7/2017 Market Intelligence makes significant progress on synergies Synergy Target ~$100 • Two thirds of synergy target achieved at year-end 2016, on a run-rate basis • Approximately one-half of the $100 million is reflected in our 2016 results • Progress includes $10 million of revenue synergies,
Slide 18: Platts: Solid organic revenue growth in improving commodity environment
2/7/2017 Platts: Solid organic revenue growth in improving commodity environment 4Q 2016 4Q 2015 Change Revenue $188 $168 +12% 4Q 2016 HIGHLIGHTS: • Oil prices rallied with OPEC agreement to cut production • Organic* revenue increased 5% due to growth in subscriptions and double-digit growth in Glob
Slide 19: S&P Dow Jones Indices: ETF AUM tied to our indices top $1 trillion
2/7/2017 S&P Dow Jones Indices: ETF AUM tied to our indices top $1 trillion in December Asset-Linked Fees (Primarily Exchange-Traded Funds): • Exchange-traded products industry reached yearly inflows of $380 billion, a new record • 4Q average AUM associated with our indices increased 19% year-over-y
Slide 20: Excellent free cash flow growth in 2016
2/7/2017 Excellent free cash flow growth in 2016 2016 2015 Cash provided by (used for) operating activities $1,464 195 Capital expenditures (115) (139) Dividends and other payments to noncontrolling (116) (104) interests Free cash flow $1,233 ($48) Tax on gain from divestiture and after-tax legal an
Slide 21: 4Q and Full-Year 2016 Earnings Call
2/7/2017 4Q and Full-Year 2016 Earnings Call Doug Peterson President and CEO Ewout Steenbergen Executive Vice President and CFO Chip Merritt Vice President, Investor Relations February 7, 2017 4Q and Full-Year 2016 Earnings Call REPLAY OPTIONS Internet: Replay available for one year Doug Peterson Go