S&p Global Inc. · NYSE:SPGI

S&p Global — McGraw Hill Financial — UBS Global Financial Services Conference 2014

14 slides from S&p Global's conference presentation, May 20, 2014

  1. Slide 1: UBS Global Financial Services Conference

    UBS GLOBAL FINANCIAL SERVICES CONFERENCE Jack Callahan ‐ CFO May 20, 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. This non‐ GAAP information is

  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, including without limitation statements relating to our businesses and our prospects, new products, sales, expenses, tax rates, cash flows, and operating and capi

  3. Slide 3: Growth & Performance Goals for 2014–2016

    Growth & Performance Goals for 2014–2016 Creating Growth & Driving Performance • Set annual growth goals: • Shifting from a holding company – Mid to high single‐digit revenue growth to an active management model – Sustained margin expansion • Completing portfolio – Mid teens EPS growth rationalizati

  4. Slide 4: A Truly Global Company; Secular Market Trends Position MHFI for Sustained Growth

    A Truly Global Company North America Headcount 5,900 Revenue $ 3.1B EMEA Headcount 1,800 Revenue $ 1.2B Asia Pacific Headcount 8,800 Revenue $ 0.5B Latin America Headcount 500 ~17,000 Employees Revenue $ 0.1B 29 Countries 94 Global Offices McGraw Hill Financial 66 Secular Market Trends Position MHFI

  5. Slide 5: New Productivity Target >$100M; MHFI: A Proven Track Record of Growth

    New Productivity Target 2014–2016 Cost Reduction Initiatives Other Corporate / Stranded Restructuring Data Acquisition Costs >$100M Technology Leverage Real Estate Procurement McGraw Hill Financial 8 MHFI: A Proven Track Record of Growth Annual Revenue Growth Rates Adjusted Operating Margin 13% > 10

  6. Slide 6: MHFI: Double-Digit Earnings Growth; 1Q 2014 Results

    MHFI: Double‐Digit Earnings Growth Annual Adjusted Diluted EPS +22% CAGR $3.75 ‐ $3.85 $3.33 $2.75 $2.09 2011(1) 2012 2013 2014 Guidance Anticipate free cash flow of approximately $1 billion in 2014 (1) 2011 adjusted EPS excludes gain on divestiture of Broadcasting McGraw Hill Financial 10 MHFI: 1Q

  7. Slide 7: Strength of Portfolio Drives Quarterly Results; S&P Ratings Financial Snapshot

    Strength of Portfolio Drives Quarterly Results Segment Operating Profit Commodities & Commercial Markets 14% 17% S&P Dow Jones Indices 15%* 20%* S&P Capital IQ 12% 11% Standard & Poor’s Ratings Services 59% 52% 1Q 2013 1Q 2014 * Operating profit attributable to the noncontrolling interest of the S&P

  8. Slide 8: 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 • 1Q 2014 results driven primarily by – Strength in frequent i

  9. Slide 9: S&P Dow Jones Indices; S&P Capital IQ Financial Snapshot

    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 • 1Q 2014 results driven by: – Assets under management in ETFs which increased 27% to $667B at end of the quarter

  10. Slide 10: S&P Capital IQ; C&C Markets Financial Snapshot

    S&P Capital IQ • Revenue generated from: 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 • Portfolio Risk • RatingsXpress® Intelligence (GMI) • Compustat • Leveraged Commentary • Consoli

  11. Slide 11: Commodities & Commercial Markets; Strong Cash Flow Enables Financial Flexibility

    Commodities & Commercial (C&C) Markets Premier source of benchmarks, high‐value information, data, and analytic services • Revenue generated from • Revenue generated from subscriptions and licensing for subscriptions, proprietary derivative trading research, and brand licensing • 12,000+ price asses

  12. Slide 12: Enhanced Balance Sheet Strength; 2011–2013 MHFI Transactions

    Enhanced Balance Sheet Strength Year‐End Debt & Cash Positions $1,560M $1,265M $1,198M $864M $761M $799M Debt Cash 2011 2012 2013 Debt / EBITDA 1.0x 0.8x 0.5x McGraw Hill Financial 22 Investing to Expand Portfolio: 2011–2013 MHFI Transactions S&P Dow Jones Indices S&P Capital IQ (2012) (2012) (2012)

  13. Slide 13: Returning Substantial Cash to Shareowners

    Returning Substantial Cash to Shareowners ($ in millions) Announced new 50 million share repurchase authorization $1,796 in December $1,279 $1,297 $548 $256 2010 2011 2012 2013 1Q 2014 Dividend Share Repurchase McGraw Hill Financial 24 McGraw Hill Financial • A new company with a 125‐year heritage ‒

  14. Slide 14: Intelligence

    Intelligence 14

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