S&p Global Inc. · NYSE:SPGI

S&p Global — McGraw Hill Financial — Barclays Global Technology Conference 2014

15 slides from S&p Global's conference presentation, Dec 10, 2014

  1. Slide 1: Barclays Global Technology Conference

    BARCLAYS GLOBAL TECHNOLOGY CONFERENCE Chip Merritt – Vice President Investor Relations December 10, 2014 McGraw Hill Financial Comparison of Adjusted Information to U.S. GAAP Information This presentation includes adjusted financial measures that are derived from the Company’s continuing operations.

  2. 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 or resul

  3. Slide 3: Growth and Value Plan Delivered Great Returns

    Growth and Value Plan Delivered Great Returns 2011* 2013 Change Businesses Divested Revenue ($M) $6,246 $4,875 ‐22% Adjusted Operating Profit $1,498 $1,602 +7% ($M) (2009) (2011) Adjusted Operating 24% 33% +9 pts Margin (2013) (2013) Adjusted Diluted $2.91 $3.33 +14% EPS (2014) Capex ($M) $277** $11

  4. Slide 4: MHFI: A Proven Track Record of Growth

    Essential Intelligence McGraw Hill Financial 6 MHFI: A Proven Track Record of Growth Annual Revenue Growth Adjusted Operating Margin ($ in millions) Mid to high ~ 200 bps +9% CAGR 33%* single‐digit 31% $4,702* $4,450 28% $3,954 2011 2012 2013 2014 2011 2012 2013 2014 Guidance Guidance * McGraw Hill

  5. Slide 5: MHFI: Double-Digit Earnings Growth; Secular Market Trends Position MHFI for Sustained Growth

    MHFI: Double‐Digit Earnings Growth Annual Adjusted Diluted EPS $3.78 ‐ $3.83* +24% CAGR $3.22* * McGraw Hill $2.75 Construction $2.09 reclassified as a discontinued operation 2011(1) 2012 2013 2014 Guidance Anticipate free cash flow of approximately $1 billion in 2014 (1) 2011 adjusted EPS excludes

  6. Slide 6: A Truly Global Company

    A Truly Global Company North America Headcount 5,000 Revenue $ 3.1B EMEA Headcount 2,000 Revenue $ 1.2B Asia Pacific Headcount 9,500 Revenue $ 0.5B Latin America Headcount 500 Revenue $ 0.1B ~17,000 Employees 31 Countries 96 Global Offices Revenue by Region as of 12/31/2013; Other totals as of Nov.

  7. Slide 7: MHFI: 3Q YTD Results

    MHFI: 3Q YTD Results ($ in millions) 2014* 2013* Change Revenue $3,761 $3,496 +8%** Adj. Operating Profit $1,371 $1,207 +14% Adj. Operating +200 36.5% 34.5% Margin bps Adj. Diluted EPS $2.93 $2.45 +20% * McGraw Hill Construction reclassified as a discontinued operation ** Organic growth was 9% exclu

  8. Slide 8: S&P Ratings – Financial Snapshot

    S&P Ratings – Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +13% CAGR $2,274 43% 44%* 41% 42%* $2,034 $1,767 $1,837 2011 2012 2013 3Q YTD 2011 2012 2013 3Q YTD 2014 2014 * Shared operating services allocated to the segments McGraw Hill Financial 14 Broad and Deep Analytic Cove

  9. Slide 9: Standard & Poor's Ratings Services; S&P DJ Indices – Financial Snapshot

    Standard & Poor’s Ratings Services • Well positioned to capitalize on opportunities provided by structural changes in capital markets: – Developing capital markets – Bank deleveraging in developed markets – Recovery in structured finance • YTD 2014 results driven primarily by – Strength in frequent

  10. Slide 10: S&P Dow Jones Indices

    S&P Dow Jones Indices • Revenue generated from: – ETF and mutual fund contracts – Licensing of indices for derivative trading – Profit sharing with exchange partner – Data subscriptions • YTD 2014 results driven by: – Assets under management in ETFs which increased 25% to a record $733 billion at en

  11. Slide 11: S&P Capital IQ – Financial Snapshot

    S&P Capital IQ – Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin +7% CAGR $1,170 21% $1,124 20% $1,031 19%* $919 17%* 2011 2012 2013 3Q YTD 2011 2012 2013 3Q YTD 2014 2014 * Shared operating services allocated to the segments McGraw Hill Financial 20 S&P Capital IQ • Revenue gen

  12. Slide 12: C&C Markets – Financial Snapshot

    C&C Markets – Financial Snapshot Revenue ($ in millions) Adjusted Operating Margin $973 35%* $896 33%* $841 27% $657 21% 2011 2012 2013 3Q YTD 2011 2012 2013 3Q YTD 2014 2014 Comparisons impacted by the sale of Aviation Week in August 2013 and the reclassification of McGraw Hill Construction to disc

  13. Slide 13: Platts Extends Price Discovery; Enhanced Balance Sheet Strength

    Platts Extends Price Discovery Across Additional Commodities Platts Assesses Prices Across the Commodity Supply Chain Produce Refine Distribute • Commodity buyers / sellers use price assessments as a reference point to PETROLEUM negotiate deals • Market participants use established price assessments

  14. Slide 14: Returning Substantial Cash to Shareowners

    Returning Substantial Cash to Shareowners Announced 50 million share ($ in millions) repurchase authorization in $1,796 December 2013 $1,279 $1,297 $548 $607 2010 2011 2012 2013 3Q YTD 2014 Share Repurchase Dividend McGraw Hill Financial 26 McGraw Hill Financial • A great portfolio of increasingly i

  15. Slide 15: Intelligence

    Intelligence 15

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