S&p Global Inc. · NYSE:SPGI
S&p Global — McGraw Hill Financial — Barclays Global Financial Services Conference 2015
15 slides from S&p Global's conference presentation, Sep 17, 2015
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference Doug Peterson – President & CEO Chip Merritt – Vice President, Investor Relations September 16‐17, 2015 McGraw Hill Financial Comparison of Adjusted Information to U.S. GAAP Information This presentation includes adjusted financial measures that are deri
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: A Leading Provider of Ratings, Benchmarks, Analytics & Research
A Leading Provider of Ratings, Benchmarks, Analytics & Research Leading rating agency Premier provider of high quality data, analytical tools and ratings information The leading index provider Principal provider of commodity price assessments analysis and news Primary customer satisfaction benchmark
Slide 4: A Proven Track Record of Growth
A Proven Track Record of Growth Annual Revenue Growth Adjusted Operating Margin ($ in millions) Mid +680 bps >125 bps +10% CAGR single‐digit 35.9% $5,051 33.1% $4,702 31.4% 29.1% $4,270 $3,762 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Guidance Guidance McGraw‐Hill Education and McGraw Hill C
Slide 5: Secular Market Trends Position MHFI for Sustained Growth
Secular Market Trends Position MHFI for Sustained Growth Significant debt maturities and continued bank deleveraging Increased investor sophistication requires real‐time data and analytics Capital markets in emerging countries continue to transform Major financing and data required for infrastructur
Slide 6: Majority of Revenue is Subscription / Recurring
Majority of Revenue is Subscription / Recurring 2014 Revenue Subscription/Recurring Revenue by Business Unit 60% S&P Capital IQ 90% 40% Commodities & Commercial Markets 65% Standard & Poor’s Ratings Services 54% S&P Dow Jones Indices 20% Non‐ Subscription/Recurring Subscription/Transaction McGraw Hi
Slide 7: Consistent Progress in Every Business Unit
Consistent Progress in Every Business Unit 1H 2015 Versus 1H 2014 Business Unit Results Standard & Poor’s S&P Dow Commodities S&P Capital IQ Ratings Jones Indices & Commercial Services Revenue +3% +6% +8% +7% Adj. Operating +12% +28% +10% +19% Profit Adj. Operating +420 +360 +100 +390 Margin (bps) M
Slide 8: Standard & Poor's Ratings Services: Change in Revenue Mix
Standard & Poor’s Ratings Services: Change in Revenue Mix (2007 ‒ 2014) Corporate Ratings are Now a Much Larger Portion of the Business ($ in millions) $2,455 $2,138 Corporates 27% 51% Financials 15% Governments 9% 17% 9% Structured 44% 12% CRISIL, Other 6% 11% 2007 2014 Corporates Financial Institu
Slide 9: S&P Dow Jones Indices: Revenue Mix
S&P Dow Jones Indices: Revenue Mix At the forefront of trend toward passive investing Data & Custom Indices Listed 2014 ETFs & Mutual Funds Derivatives OTC Derivatives & Structured Products McGraw Hill Financial 16 S&P Capital IQ: Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin
Slide 10: S&P Capital IQ: Revenue Mix
S&P Capital IQ: Revenue Mix S&P Capital IQ Desktop S&P Credit S&P Capital IQ & Enterprise Solutions Solutions Markets Intelligence • S&P Capital IQ Desktop • RatingsDirect® • Global Markets • Compustat • RatingsXpress® Intelligence (GMI) • Consolidated Feeds • Leveraged Commentary • CUSIP & Data (LC
Slide 11: Commodities & Commercial Markets
Commodities & Commercial Markets • Revenue generated from • Revenue generated from subscriptions and licensing for proprietary research, brand derivative trading licensing, data and analytics • Thousands of daily price • J.D. Power expanding in Asia‐ assessments Pacific which now represents • Oil, g
Slide 12: SNL Acquisition – Compelling Combination of Highly Complementary Businesses
SNL Acquisition – Compelling Combination of Highly Complementary Businesses Exceptional • Premier provider of breaking news, financial data and expert analysis in the banking, insurance, financial services, real estate, energy, media & communications and Business metals & mining industries. Unique F
Slide 13: SNL – A Proven Growth Engine
SNL ‐ A Proven Growth Engine Strong, Consistent Revenue Growth (GAAP Revenue, $ in millions) Developing ‘12 ‐ ‘15 Established +16% ~$255 CAGR $224 70% $188 $163 Margin on 10% established businesses in the low‐to‐mid 30% range 2012 2013 2014 2015F • Subscription‐based model with upfront receipt of ca
Slide 14: MHFI: Strong Balance Sheet
MHFI: Strong Balance Sheet Period‐End Debt & Cash Positions ($ in millions) Key changes: • Payments related to legal and $2,500 regulatory settlements were Debt largely made in 1Q 2015 Cash $1,730 $1,560 $1,494 • Issued $700 million of 10‐year $1,256 debt in May 2015 $761 $799 $799 • Issued $2 billi
Slide 15: McGraw Hill Financial
McGraw Hill Financial • A great portfolio of iconic global brands • Well positioned for sustained growth and performance • Track record of delivering strong revenue growth, margin improvement, and return of capital to shareholders • 2015 guidance indicates sustained performance: – Mid single‐digit r
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