S&P Global (SPGI) 3 May 222022 Q1 Earnings call transcript

Good morning and welcome to S&P Global’s First Quarter 2022 Earnings Conference Call. I’d like to inform you that this call is being recorded for broadcast. [Operator Instructions] I would now like to introduce Mr. Mark Grant, Senior Vice President of Investor Relations for S&P Global. Sir, you may begin.

today’s first joining call. XXXX for you S&P quarter Global earnings Thank Officer. on Peterson, Vice Steenbergen, Financial Doug call President and Chief Presenting are Ewout President today’s CEO; and and Executive results We earlier issued release a with today. news our

better and on X% and estimates this risks potential in today's Investor results of If accordance XXXX, during expects provided and you release investor to your the Global reconcile schedules, or conference the enable current descriptions matters conference difference release measures or statements with periods between meaningful adjusted that of the U.S. who and are view to and operating Exchange can Private found in Company. calculated and call perspective they corporation’s uncertainties Any and to of A measures XX-K, the meaning call attention same make in The Litigation impact legislation of management. including may subject between actual Relations corporation’s contact from downloaded uncertainties Act investor.spglobal.com. statements and also in Securities of Commission. and Investor materially performance S&P to comparisons obtain comparable the of current investors release In events. the as exhibits and within statements. Regulation. at risks information contains anticipated the This can to financial call and financial information. to filed future be results be and from the ownership discussed earnings more economic providing to the reports Any conditions a the Forms based need to other are copy the is should periodic differ I projections, these we European the expectations our business understand non-GAAP financial the The with cause GAAP. today's these of would to that XX-Q contain like has Reform Securities of of may forward-looking U.S. earnings forward-looking the are discussion such on

that We the have representatives on with call. us aware are media we some

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first company. event culture Welcome for increasing financial The with forma first like you adjusted manifest call. in occurred you, Though moment. later Beginning like share the the I'd landscape. pro increased guidance to financial geopolitical on. adjusted a caused IHS in discuss updating of also continue to growth a our these one X% EPS from promise XXXX. pro Adjusted to environments of of walk will we'll expenses the And excited year-over-year We We Markit. few start highlights. $X.XX and has completed merger our begun that with a today’s and earnings in pro quarter quarter I'd the already revenue to highlighting by forma the the this positive combined our saw despite issuance technology. six X% reflect as of forma non-recurring our and strong itself recent macroeconomic merger diluted of reported performance. to challenging increased financial including results much quarterly three earnings increasing joining them. to call growth through I'm as Thank revenue be We're details of historic uncertainty Mark. by few first events, incredibly And our in most quarter. as We in history. invest double-digit in divisions, we is highlights the a growth and in people expense our five first to with Ewout

with $XX $X by share tranche this As achievements. remainder the we of to average Markit, low a number the be the the year. of TPMXX. and interest and We in March conferences, launched of end announced We we Petrochemical executed Conference structure CERAWeek, our the And billion important attendance had debt. to accelerated took dollars at the most strong exciting optimize first merger advantage repurchase billion of IHS environment or lower still some with I of historically completed capital our a World mentioned, including rate cost ASR had of industry's and

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of refinance in February went issuing immediately jurisdictions. regulatory energized regulatory approval to number secure take among our and unified debt days a commitment to In received organization we'll closed I growth. to in November company, most at multiple $X.X order divestitures. the to I'm February create noted work announced businesses. We The to in merger, billion have drive the optimizing completed we exceptional inclusion. S&P on work and sustainable, XXXX, never of by approval for from more a only absolute We that ever something needed them best of our was slide the in regulatory the we and refinancing initiatives later Global. profitable from XXXX. been inspired voice leadership heard of our to X new capital rates. also we each not We full in existing officially require with April divest XX. structure the final more and with merger which able came each details the person than XX, We When that lower and excited XXXX, debt, and support people, first this diversity, of merger approval the to equity confidence people our in but used we be will that We away those on table lays out to on

of well approximately $X.XX were our X.Xx of multiple confident than from for revenue $XXX we of aggregate. that As shareholders revenue with these you of in. billion. the the we are the is million. We're businesses have transactions, proceeds each paid on divisions margins for the businesses in acquirers approximately the evidenced negotiated behalf the divested being before, they by margins Net these businesses shared by higher will each And aggregate all total tax of in these after

increased X% Now results the quarter. to $X.X first financial recap, billion. the to Revenue for

Our profit to adjusted $X.X billion. X% operating decreased

and impacted operating XXX mentioned decreased ratings forma profits by transaction points both decrease growth revenue profit XX% earlier. in expense pro to were approximately the basis and as margin I adjusted negatively Our margin

track we measure decreased adjusted XX%. As a XX you operating profit XX-month know, basis trailing to segment basis, on and margin points which

investment, our structure. In year-over-year. a billion launched increased forma we addition capital ASR to began related and performance prudent $X EPS our Combined expense and optimizing effects overall merger tax continued revenue strong of pro management, diluted and adjusted we synergies with

in across strong year-over-year in environment, Commodity revenue our six were divisions, March, laid even in divisions, across Indices. that with line to did double-digit in a deliver I'm Looking issuance Insights, fact exceptionally the the five encouraged on of an six challenging Mobility ratings and able including soft the growth out expectations we a macroeconomic we we by our by decrease driven see environment. In call

high offset mortgage-backed X% grade decreased high yield to The in next impact more issuance business, grade CMBS quarter, decreased partially This XX%, decreased XX% the to two issuance was yield dramatically. we aggregate credit. increases During finance yield in ABS, global the issuance loan offset credit. shows slide difference combination decreased XX% decreasing increased quarter ratings other yield the In leveraged large investment and and decreased far flat. in slides yield decreased declined year-over-year. XX%, In U.S., the leveraged issuance year-over-year. first Its the to and understates issuance our declined grade increases however, and and in XX% bond issuance by issuance, bonds, to X% of volume. as structured issuances by look high RMBS increased XX%, at relative structured declines saw high investment finance XX%. XX%. Bank loans. European securities an Asia, in covered finance grade declines between due structured in depicts slide public decreased investment XX%, issuance investment resilient only decreased due loan This This structured of as the the in high categories, XX%

the over quarter period. was the year-over-year. of with decreasing the in High year This particularly by XX% we yield incredible saw ago impacted market, levels uncertainty decrease the issuance XX% in a from

from well the witnessed in both to was intentional first we re-entering before While pull-forward issuance exact we're market. year last issuers stability hearing difficult the quarter clear for customers, as as wait signs many as impacted delay the the causes, pinpoint by discussed and of

and It's to us. portfolio insights, tools that uncertainty. content turn some macroeconomic data of that this to and We periods our market business uncertainty, of of in geopolitical and clear engagement evidence saw business make important for and increased in made that products us the they the this product are S&P of usage tensions, our well or customers stronger investment areas to significant that's quarter. Global's to more The Now the elevated volatility also in for successful times in need whether factors diverse of our metrics increases turn decisions. allows turning that on Global. and volatility They picture, S&P informed the thrive slide this to quarter remember to

the year-over-year. indices the Commodity trading our revenue XX% directly services derivatives, Dow volatility. business global XX% exchange-traded more our are within In Within in saw business, with Jones markets, commodities grew whose correlated from we S&P Insights than market growth volumes

attracting conferences Several X a industries. During Premier thousands held these in-person being of of first number time the years. quarter, to for of the multiple from first conferences events leaders returned in we

these was of One CERAWeek.

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our Now outlook. turning to

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our business acknowledged and not the volatility. on is While market we the direct the indirect financial issuance material, impact on impact environment

our some of outlook wanted and also in company. macroeconomic environment inform for illustrate financial the changes We to the the

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pleased I'd we over challenging the with handing how Before Ewout. to like success in reiterate a execution are to seen we've quarter. it

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expenses a have We a four made filed today. be the corporate of combination financials accruals. in caused of reduced and certain costs, to recast well amended allocated minor refinements pro the declined for incentive and as Adjusted the release can quarters ago, also benefits year XXXX, found X-K forma which as all fringe by from of

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type quarter we'll As related Transaction $XX million merger. completing are we These in we amounted the introduced quarter. costs to adjustments in operationalize year, filing are and synergies They exit and lease to include disclose costs These marketing to expenses last fees of enable have contract Costs quarter related the fees, fees. Integration categories severance, we million. development, related These costs investments cost. are in They achieve revenue merger million. to include continue They and expense non-GAAP to the the the to costs discussed. provide to needed to and investment consulting, fees, these three banking the that $XXX enhancements. are into the legal insights integration. cost incurring synergies were retention infrastructure, the termination, $XX include were synergies. distribution to and and product of

on million totaled businesses S&P mentioned. non-GAAP items gain During the I of $XXX Foundation quarter, the $XXX to sale including million, a the Global to to and billion the adjustments merger collectively the addition first in $X.X operating contribution related a

in growth expenses the which drivers, the quarter, Given are of transitional. some many wanted to insight into provide this we

travel $XX Importantly, as of our also the the saw expense expense to of Investments X a $X impact through with growth moderate synergies. increase the of years. division. associated as T&E we last million Mobility cost the first year, to to relative in initiatives increase. contributed we a advertising resumption recognized expenses saw In limited in expect we $XX growth We've the additional quarter, million we in progress even million excluding

base. the Doug calling Step-up when that $XX several we're included in-person cost. relative a were quarter. incorporate the a mentioned. more million practices comprehensive of relates to The of we virtual. live events in the year Together, to a employee from as process still align specifically than incremental re-establishment what expenses also increase step-up these conferences quarter across expense costs these events added first events impact our last of compensation to This are view We increases major return disclosing baseline as in in

March merit The of not to increase in increases periods. these to April. occur that changes costs the of did that year one pull-forward of impact first from is the harmonize month of One merit annual quarter the timing ago in

expense to excluding is flow the $XX company January additional X, million cash XXXX. the meant certain the in recognized the were the as in Free that ongoing free closed Note also related first merger million of combined of to We this flow months XXXX. X items estimated cash was if cloud transition. $XXX reflect on

some of our will in color debt drivers few additional balance on gross and the We our the next provide slides. cash

the Now sheet. balance turning to

with ample be Our strong balance sheet continues to liquidity. very

first of of equivalents As of the and the end and $X.X billion. $XX.X we cash billion debt cash of quarter, had

gross adjusted end X.XXx. at to was debt first adjusted the Our the EBITA of quarter

As see, largest you cash single declined the program. first share reduction cash $XX balance tranche our to accelerated billion. drive The a can paid the to in sequentially $X billion XXXX $X.X of our was fund repurchase billion in

received of debt. issuance $X.X $X.X the from net billion of from also proceeds net divestitures We proceeds of and billion

has gross debt. been We to down new of our billion closed, quarter, Now gross to issued adjusted the brought the $X.X also made we redemption refinancing to allocated debt. first in payment which debt quarter million, which $XXX of final a of billion debt leverage $X.X X.XXx. existing After debt

update to Now, current run million. our $XXX an synergies, quarter, rate annualized first we progress. cost $XX In the on million I'd synergy our provide like and in achieved have is

a million. synergies the seeing first negligible. end of $XXX month with cost integration we and significant through the progress are only pipeline revenue in quarter customer is and as to are conversations, cumulative While already The combined synergies achieve company, X

with growth cost and On division basis, cloud turn X% XX X% results of operating product investment due decreased Segment like Investments mentioned margin across Market transition to lines. profit delivered segment Intelligence to in let's growth all I operating and trailing a the increased XX-month and earlier. ESG. Now Expenses Market begin X% XX%. increased segment revenue profit with especially XX primarily technology, basis factors the to adjusted profit strategic basis continued points to XX%. decreased points margin operating in Intelligence. initiatives

of Intelligence the from $XX the operating The in You the the in XX% the division. owned because OSTTRA do of can that we is independent financial JV company, of the contributed profit division. adjusted JV to company Market operating see a on complements million profit our the venture joint Intelligence venture, slide operating operations results joint include Market the our not OSTTRA

Intelligence, Data Market Advisory revenue and forma each grew & Credit grew in growth solutions across X%, revenue grew basis, Looking Enterprise was revenue grew and there solid Risk XX%, & X%, Solutions Desktop a category, Solutions X%. pro on revenue

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X%, of year-over-year revenue. Commodity Conference Insights. other CERAWeek XX%. growth addition, Services now XX%. Return and to & turning World in Transactional the increased decreased XX% and services and In And in-person category Revenue financial Advisory XX% drove most notably increased decreased governments CRISIL Petrochemical conferences,

great the ore XX%, increasing of and fuel due Trading CERAWeek, Global a year-over-year. strong iron had volumes. been revenue Excluding quarter, growth to impact Services would have mainly X% oil

of conferences picks witnessed As compensation in-person expense. commodity headcount volatile, prices Doug to and the in the XX% often cost and quarter. associated Expenses increased certainly first with when noted earlier, up we GTS primarily which become return due more revenue

of segment basis basis profit to approximately margin trailing expenses the profit XXX segment XX% adjusted points points XXX decreased year-over-year. and have XX%. decreased impact operating the to would increased operating Segment X% XX-month CERAWeek, XX%. profit Excluding operating increased The margin

driving modest signs Though and but we & to indicator insights. by offset leading commercial strong the growth Upstream and operations assessments was and demand quarter Transactional revenue. insights. resources, Russia, the price growth, for quarter its a positive would energy which had we positive Services, in in suspension a saw in have Upstream business, Upstream of partially note decrease of second ACV addition inflection Growth consecutive Advisory data is exceptional of for the in and data in In

promotions linked and increased We also improvement by dramatic supply to insurance XX%, primarily well-publicized faced in to XX% XX XX%. AUM saw approximately by Dow year-over-year. increased related resulted revenue basis delivered in retention increased contraction from improved a as better adjusted from benefiting year-over-year and points On on rates to months. Growth profit remain to X% pre-COVID of points This growth our in XX% last Dealer primarily operating Upstream the prior the adjusted over capacity due advertising increased indices. Used XX-month. chain products. to and above year-over-year, basis the in division, our period XX% primarily S&P XX the to a by Jones strong retention year-over-year, strong our levels. in underwriting XX% driven quarter business in in business segment as Car than percentage In growth strength Solutions margin an full was manufacturing driven XXXX, expense profit OEMs. with revenue of more gains by operating and the margin Expenses X% the past growth headcount growth trailing XX-month Mobility increased XX the grew XXX revenue challenges points automotive rates retention and in in Financials year-over-year strength successful restores in Planning Indices offerings. align other over basis, that

XX% due costs. the expenses investments, margin largely X%, points to and Every the increased operating increased this XX-month XX.X%. IT XXX operating profit margin segment On quarter. to increased Segment XX segment trailing profit increased XX%. basis revenue profit operating increased to compensation During category adjusted basis approximately the points strategic quarter, increased and a basis,

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and depicts guidance. our GAAP forma pro updated new our to this guidance, adjusted guidance. slide XXXX our slide moving depicts Now This

$XX is million lower previous to expense Interest down a This $XX compensation now $XXX partially a offset unallocated guidance. environment, between our reflecting slightly prior guidance the we million due professional and of single-digit million $XXX than on by cost For the lower approximately are and is businesses. We expected low million the expect million, revenue, in we year-over-year, issuance expect million, seeing corporate than strength expense $XX now forecast of debt lower increase range non-Ratings $XX in we our average to from fees. incentive expected. initially

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and For margins low calling to compares This to previous the in mid-XXs. Ratings, revenue and low mid-XXs. margins the digits we now in expect to be for growth single-digit to decline to guidance revenue mid-single low for

guidance. Our so by for to is the we well incredibly the environment. unchanged current are previous other encouraged execute from team's even ability in segments outlook Overall, macro

long-term as we more that a our We ahead execute confident enormous company, are on are focused and opportunity. combined of ability against the opportunity us to ever than in

our insights, with call accelerate Our turn questions. that, differentiated to progress. And me services and your over back help to Mark analytics the and customers thrive let for data,

Thank you, Ewout.

on question, one cancel order Please To session. "*", our today's yourself a "X" would during limit your time name. will and we Operator, to in other question, the or simply one those ask follow-up callers take question you to please record question. like line, Q&A withdraw For first "X". if and now allow press to press for your "*",

[Operator with Goldman Instructions] comes from Tong first question Our Sachs. George

open. line Your is

morning. Hi. Thanks. Good

You've performance how outlook Can on for for year or issuance. updated debt your performance the in expectations your are compared quarterly guidance update over discuss of increase what directionally? reflects issuance your much And basis a you year? to full the quarter of guidance rest the

Doug. Thanks This for that question. is

expectations of the Let what key quarter about, we're little and the one of Well, going issuance me just questions bit we saw talking the me be with rest during year. going to to let that some that. a of knowing the that for start the is then be review

down saw you ratings X% example, was XX%; weak high XX%; globally down ratings. XX%. down saw, almost As yield We issuance. and was total were including corporates bonds global was bank and bank loan a an very down We and was U.S. quarter down XX%, U.S. loan XX% U.S. for it as know, were the that issuance the excluding

that with the looked year. you towards see, we've rest of backdrop, So, as the

they be the hand as comparables to were there believe during quite it extent the year, second been as in compared recovering, earlier we last the not let color. will year, in issuance the of that and current the rebound to have to that and positioning half the given do who expect We are situation some but necessarily the issuance it that would year. not And will the But Ewout, quarter market. over be provide more will full second in a difficult me

our course, to impact of particularly because also at to quarter this some then some the I because quarterly second second broader we we George. better benefits in easier morning, the year. expecting respect also the are get or performing year divisions our the company Doug five in Good during of the of to in point would as of -- half point but to and Indeed, out, this will expectations. expectations, see we improvement the said, half of still are six have see time comps than the are second with like line this

buyback program so during from the on. see our of the from coming will benefits in year the cost and our We course synergies, benefits this

the during should that EPS earnings year. of growth growth per the for guiding very strong a So drive share rest in year. still that double-digit full to help way the Hence, we're the

XXXX. help So company elements those will the of during the definitely, to strengthen course of the performance

Got helpful. on just that it. follow-up That's And a point.

what were into You the quarter? initial the mentioned than elaborate of the performance? that of segments outperformed key six which performing heading your you divisions Can driving line expectations. And the upside expectations are five in on better factors or the actually

me some But for next opportunity. excited example, a incredibly to the give in of and are about quick overview happy the of Yes, questions. Market Intelligence, the for divisions go each let deeper we you

well basis. also customers. activity the our on clearly can way course, combined The a offer a and based Mobility, quarter. The growing at are AUM you in offset what significant be growth. part some we main a The more actually to Commodity double-digit are we very on Solutions a business, the the much with of having commercial Russian a mind, as Insights, Engineering the trends growing to are derivative out, and looking during beginning we first to benefit positive volumes of are because revenue this customers year-over-year. healthy then saw in in saw Commodity And commercial strong we but strong strong customers the the space. very showing pointed And excited with of momentum we of revenue Keep Insights, our we levels also of started conversations in And also as and expect see we the actually issue going higher subscription retention that impact up strong the we then at about very really seeing lower higher. very be we have momentum. company. respect combined Index much are XXXX, AUM in will way, at the particularly able

businesses non-transaction with So that respect the also to and mind the in overall, six isolated in issues are we to component debt the a of we significant Ratings with very respect think And itself. that revenue. very our five well-positioned, are that environment keep Ratings issuance within have division the

of that for an and clearly offset overall revenue. element So transactional also the is stability

George. Thanks,

Very helpful. Thank you.

Thank you.

comes question with Manav next Our Barclays. from Patnaik

Your is line open.

Thank you.

obviously Moody's about things reported terms provide different that the does account in X% Or that negative worse, us was you to much how I flat impact your range earlier? And for is hoping XX% there issuance forecast just that some you yesterday. if get guidance? down sensitivity of the would can is perhaps -- EPS than So, talked what for

are our of more full what of first share with sensitivities about the you all, is Well, let me outlook year a the Yes. that what some and in bit little forecast. for

you As of quarter. we But very the issuance that be are in the you in what X% are will down bonds the XXXX. corporates, look for overall components the know, first saw already expecting weak we issuance if at

financial do They a down XX% And of in to XX%. have -- so issuance services. full a downside with X% last we've X% year. And year. to full forecasted decline recover up for the could be to it outpace see strength and the We continue year a

finance then up downside the other X%. see happening. X% that forecast at be That's such X%. and down be expect public watch would down also current for could again, with But could We international environment, as could We year what's to drop very factors be down. they to what up Structured up markets. X% to are and close the you U.S. public finance full it XX%. our as is, finance that we this well And to year. current there's will But know, the as

many, people's of different on maturing factors. it's is Our at We in balance bonds look based the market many on sheets. forecast situation what whether is the current

very little wants to there the to quarter. know, all you that go loans hardly loans, -- high-yield markets. during As issuance high-yield there any first still pipeline the of There's a bonds either or at out was

been that We of equity still capital set of is transactions have that on sideline not completed. there There's has a the also know private $X not M&A trillion which been deployed.

them So, we come estimate of our and factors down. for at X% all weigh look of together with up the to year these

So, it. factor one into goes just single this that isn't

also different said, the expect there Ewout through We the going as factors. And many will keep be recovery that deeper across just are year. looking as year, we issuance many, in we into

the business, of the it. somewhat Indices in asset-linked Got fees of what's assumption the least at similarly the then the of in And embedded maybe just terms business? on side portion

looking, way trading seen Index and growth Yes, other mind appreciation, natural we But around. performed those assuming offset, the Manav, are actually, asset will has are of for And if a and derivative market always the very dynamics. the the of with the remainder a And levels. based where on down, the going hedge actual this come kind the we up then you to we levels have see asset the is this in that as quarter, the very modest activity at keep business well respect because partial we year. the development have business

in in circumstances very of historically, we business circumstances, has And So, volatile different market have revenues business the it the due growing you and been for many, that business. over that Index dynamics is exactly row model Index the at look the if streams years. actually in the revenue business different to the a many years the very

it. Got you. Thank

Thanks, Manav.

Thank you.

comes Kaplan Stanley. Morgan with question from Our next Toni

Your line open. is

I ask wanted the about much. so margins. to Thanks

side, cost maybe to Ratings sort operating margin segments. that guide? Ratings some You of weakness. just Just stay the how risks Obviously, kept other offset talk the sort adjusted the Thanks. gives by what to of labor And maybe But anything weakness? there'll the pro you some of be forma the at trending? on flat. what about the the that’s inflation, that's margin are level I'm confidence despite imagining

Good morning, Ton.

There our respect are right. let that me reemphasize expectation. elements our margin mix go with to many margin expectations. the different You're in first But

overall basis XXXX. points the natural We, to still are our have on business. XXX And course, growth guiding businesses. based So, margin compensation some have activities of the during business the will expansion in the growth is see usual environment. as we of of course, some We, of expense is reason what we our impact

job increases have We targeted done some in certain groups.

are at a expense we're, higher jurisdictions, environment, than We have have the have careful then Definitely, in raised course, in perspective. the that of management taking. very time, previous done we several the current an But we certain same we also merit bit actions in years. from

benefits see So, management will actions. from those we of some

this of synergies that have also And then you the some will if our that of during of We variable course will top benefit come expenses cost the layer of down very that year. the on be very we where can we, significant a margins, margins today, macro in meaningful actually that in improve -- are pleased and company, we our significant, environment a as environment are still increase an very that way. our

how years? cetera? it. just sort sure organic That's then update the maybe for overall are same expectation X% you to growth? the X.X% I'm any the -- of just year, miss great. mentioned year the growth And easier organic you pricing I because Just on the The it. side, the Thanks. revenue on is rising levers just to this happened still for of next et And X cost different environment, expecting

growth five to six better that, very and closely. X.X% in time. Yes. we our will respect reason we monitor revenue reason divisions have that we combined, expected. to are the continue X% Toni, in as mentioned, from But with line is this than no our 'XX effort, back performing And obviously, of own at for that away to 'XX to or point

been So, we that movie the environment main back. coming question in And have when the is issuance times before. many is

last after impacts on But decade, there the very were that seen for three situations was and what one negative, maybe in the revenue. there's we back or then Ratings you a If the usually where look is came issuance have a quarters, back few strong environment way.

coming matter about timing is the really of the back. uncertainty when is it that the So,

to expectations moment combined. back and 'XX at reason that this we for have 'XX from reason, our away for no So, revenue

Thanks very much.

Thanks, Toni.

Our next Ashish comes Capital with question Markets. RBC from Sabadra

is line Your open.

Thanks for taking question. my

pretty synergies, cost progress itself. the good on the quarter first So in

seeing was feedback How the that if on further you what any year? -- should front? from cost drill kind you're on traction quarterly think this initial And So, could we of wondering how the I takeout? down about cadence

you, Thank Yes. Ashish.

we think important out I X-month to results company. combined first are in that a it's only point as in these

of report already that in annualized cost number respect that to X million we provided on context think information very on the So, our to already $XXX a that’s absolute But call. to out basis, and important synergies that is actually our strong we good what the being cost synergies, made point compared during we nothing March able merger phasing that is changed are we With the of has progress. an indicator. to

realized as total on We And we so expect numbers. comfortable very said, in year. that recall we XX% in million And numbers. we to of like that will we we you that something are hit and those to I are XX% XXXX, very are track this can we said confident those $XXX that to hit in that about be cost and synergies confident achieve able

subscription And follow-up on synergies. on a was Kensho there question the in being broader to strength the That’s then Again, used a front. reference maybe organization also across color. MI processes then to automate the great revenue and the

started there question SMB to way into IHS you integrating ability some your INFO other traction of feedback customers products marketplaces data as cross-sell, the was and Thanks. those global and any customer Markit into the or from base So, the around? initial upsell

of from We’ve merged together. within our working the start teams response we've to been commercial and We’ve all able team. thrilled that. we the our Let divisions getting started with get merger as been me with customers been the

about out where the key transition, thesis what they they're out listening of ESG, talk been of to customers about. with. deal a to lot I listening have and about hearing So, energy some and talking began this They're Ewout we customers. about

data that our interested addition, out their we've have already and machine In seen market. in AI organizations can the in link And with how ours. they data commercial they're and been learning,

cross-sell within strong have pipelines all divisions. We of the

that products have also a at looking be of set we'll We over time.

end. As built side with very the very customers, you but very deal from good areas us, strong different be of and relationships the already the the were will that all revenue merger are the itself. the for the synergies thesis very, But we powerful towards with coming main seeing core back are know, of dialogue

That’s color, solid Congrats great results. Doug. Thank on you.

Thanks, Ashish.

Thank you.

Our next with UBS. question Kramm Alex from comes

open. Your line is

as speaking, little morning, very Can good has I bit everyone. a S&P you to Hey, you've commercial sales to moved Market think what about over Maybe last the Yes. a follow-up opportunities. years a just force? integrated maybe talked detail license you give Intelligence on the approach. historically how just the enterprise more exactly few

I very Markit product was think specialist-focused. IHS

made So revenue things you've just wondering little pick up quickly? commercially what maybe align opportunity And changes to a incremental exactly as on already? if synergies you there's to

Yes.

for you that. thank So,

us is on well. a to provided that are installed new going Intelligence, their of Global, services, volume at enterprise had differently or As of access you more for generally we some where for two comes approach basis different of services an the It be Market to the they're of customers also priced all of exciting in S&P and the services where gave enterprise per pointed Intelligence an opportunity as with user was within from basis. users a the that an priced us approach the products some having Market are are software, some have products area, There to came At approaches. are Markit IHS model. products that which an financial new because really had which we an more out,

that going there IHS necessarily that reference merger. some like opportunities seen product fit of Markit, of is are lot pricing, the moving not are pricing, bond we've But things Desktop. of into the within data, So, those moving within to a the which

that as products moved data as services are In of where that Compustat, addition, software can some into the have for solutions. we long that had be data and even something we've there's that

cross-sell one servicing. There's person together. or brought other. we other the cross-training understand been products some companies have every the I And of been themes traditional opportunities on for two We’ve of customers the have that ESG. teams commercial seen from the the immediate mentioned, of both side as single started don't each So, so also the that in that products biggest

We those them Desktop. into new which have taken scores, the put can areas. have we We XX,XXX other which many scores, the into put and we've

see There's is ESG of a interest data we a theme. as theme, Private markets So, another credit in lot area. as risk. a

It's since we is month been closed. X closed, we momentum only since enthusiasm, for this the So, but been months X excellent. the it's quarter

combined you, but seems it a And release, direct maybe be Thank portion Intelligence. you of a Market Thanks on wondering color. keeping very follow-up standing to the for recurring talk little bit large or guess revenue Still the true business just hit if there. subscription-based, were business year-over-year. look cyclicality up variable the a press could fees down only this When that in Solutions And about I I XX% at the more. X%. Enterprise your

seems just capital flush maybe with that markets of choppy, what this the maybe side impacts a a the could thinking out previously? bit components on than Intelligence we are impacting little Market cyclical you about So a on be the business were as core Market remainder the Intelligence year-over-year year basis. little should what about think exactly bit as those more variable be that here And the you

explanation bit of variable. in exactly breakdown give happening is me let what yes, a you the Alex, and recurring

You're right.

some of of that platforms, is fixed you yes, you X% we approximately markets. and again. that seeing, in that's in that as market impact. where equity bit subscription-based, in markets bit both that that you XX%. a a environment by business was impacted And market and MI the Intelligence, see M&A Market a the back, market the M&A equity more at see non-subscription. the activity that fluctuations, those has at of subscription we also would is stability origination that because subscription way. very is platforms. that There see to category capital in are And and some fluctuations a some more strong look general we XX% growing when between growing impact But income expect And coming you markets some and issuance variable you approximately time, faster And of component see when capital see the the see market in whole, overall, of variable being nevertheless, business the environment over is platforms, the If have the a is capital we from a then

underlying the in happening the MI that’s So business. that dynamic is

again. Very right. All Thanks helpful.

Alex. Thanks,

Thank you.

next Blair. Andrew comes with from Our William Nicholas question

Your line is open.

more quarter Hi, good or I into bit wanted you issuance questions. start tough the with that merger you guidance have the when had I months? time my curious, changed yield. it quickly That Could of subsegments high was expectations to April? with on or for least spend you at maybe the over some I your X morning. March in Thanks about Or drill Has deteriorated it taking -- think call, outlook than further. X a certain would really there you realized what some front. past I’m on gave asset classes drill that a February first weaker-than-expected be specifically sense expected? But weakness talking the a that been are issuance helpful. in

a all, you of really drilling key little the two factors. more, bit there's and thank first question down Well, for

longer and the at looked you without coming gone times high-yield if market. been even when There's into quite all, of and an in issuance to weak. one it then April, March First even February issuer we've into week entire has

had the a change. Given environment, external that's also

there the invasion If and And seen the going hadn't last spoke, Ukraine markets. rates. were commodity didn't markets the guidance back of markets on yet doing what time, they time Fed we March, had any you the volatility had of just the also, of the We have beginning at to energy interest yet go to on from the be of clear -- the started. major impact we

So, is the and the be try coming when be of our we to specifically window if inflation macroeconomic I Fed will just timing increases. take programs that some that combat environment And a to are a specific itself, overall second, and step back the U.S., back dynamics interest in the the then what high-yield in more are expectations. very to what and and institute of to rate at starting market look then their will going get into the geopolitical

a your a growth you Thank little sticking about year headwinds sense. transaction my that expectations And with miss the Ratings for that? on color. year Obviously, then didn't we've you Obviously, for revenue follow-up. revenue if for bit last talk strong non-transaction talked Can Makes the has I about. really front.

about segment, items were that think non-transaction in if XXXX. there be I Thanks revenue expectations talk one-time you would your that But some could for again. helpful. in

look non-transaction, mix bucket. that a bit at a go is particularly see you annual So, fees. if into of strength What there elements in of that is we

for frequent So, the and from strong surveillance, with in that example, fees benefit is of course, category. last and Also, after issuance issuer that we some very loans X that. years, going bonds more environment over the outstanding are see

performance also goes also And So stable. we in same time, the very CRISIL very at the that is non-transaction strong. that see being

we M&A Evaluation are less the business on growing CRISIL benchmarking it's Where risk activity. in as is moving in up, domestic non-transaction the Ratings see and rapidly, revenue well not bucket as Services, global research, the both business. very mostly So Indian Rating the

issuer So Rating Evaluation impacting and is Service also new that credit ratings.

X% see Given of the year, would activity in that we positive is nice non-transaction. of see slowing that bit We expect but there. also the environment, down the course, little a growth a to Nevertheless, would it remainder territory. less for growth still for a I probably current be

you. Thank

question comes next Steinerman with Andrew from JPMorgan. Our

open. is line Your

kind question issuance? included rated case, issuance China that or also large And wanted weighted about I get just I know for issuances, between that just Slide in the forecast X% is, or is ask But minus credit just issuance issuance. the minus to at like Hi. in of minus forecast, difference for my to X%? I don't footnote, is similar. usually I for looking you credit and is a not? if if they're X% quite there When this XX, know wanted ask I the all

our all same we what as is the use for at. Yes. we talk global been markets team all when issuance. and an This of overall It's issuance issuance. exact looks about Take what this estimate types It quarter-by-quarter. the base has that includes

be issuance rated would different much minus than And X%?

could guidance basis there's use for issuance quite where China a adjust use. we if Asia, for bit still the rated you same forecast are -- issuance we a look -- that different that you in be the little we kind a and fees the It's if Yes, market, would but provided. the the at not that's of

you. Thank Okay.

you. Thank

comes Jefferies. Mazari question next Our with from Hamzah

Your line is open.

for Hi. just European Hans revenue to And that seeing This Could how or overall? relative a your base? bit is Hamzah. Hoffman region expectations, filling your you either segment across by you're comment on in what did

a Yes. look of When couple we at different factors. there's Europe,

almost as the seen We've have of growth for inflation all, the levels We continues increasing issuance we've that really in in the First Indices were are the And in that also different services sectors a pace addition, for that have been market. quarter, as Jones now, it the U.S. of pace the S&P looking the quite Sustainable capital is the world. side, XXX ESG. fastest less one fastest lot XX%. also of the in one setter transformation about is we see of The a and of the ECB Dow slower itself and of inflation. That in ESG the to was on it there some interest Right issuance But in a saw world finance we're setting from know market the there. the down down ESG. is launched. the a in that banking Europe in corporate did is U.S., at Europe. not down. rates. was The when We similar rest to But compares be were down the on that there's the U.S., fast of Financial XX%. ESG corporates in we Rating because XX% has overall, Europe, regions is are issuance. Europe uptake down market for launched. the high not strong they Europe moved been growth services funds that's as see core Europe X% versus structured Financial quite Europe a interested There's to to strong XX%. very

as invasion going as And we've well side capital on we role. has much as Europe is negative of market will we the there. horrific opportunities for also pace energy the the of So same there is the net-net, same right the downsides, But businesses now, to have and the few the that inflation a lot the of see on got are that the But our impacted clearly rest in potentially play but a larger have to a that also markets. impacts that's Ukraine have European kind that upside on war been what you've the impact Europe. as Europe seen by U.S. doesn't see markets

to of you're should Okay. on Thank for that you. portfolio? comment behind noncore any could view any is given And about whether follow-up, of you that your you're leverage And how you. be my post Or That further where there Thank helpful. update -- prune? you the just most sort assets your thinking just the can and are now? on long-term you then combined the looking deal, portfolio was just of in terms

determine very time. each across opportunities, it's growth creation think we on see of what synergies. remarks, to committed our enterprise. exciting point of in And the at Yes, portfolio, mentioned very businesses seeing have are We are to said this with can if and businesses prepared management as at portfolio we the on will driving during over of Global. will generation owners we we know time be S&P philosophy moment, driving you portfolio really always and our of style always But best the altogether. value economic at do lot really the this the we first revenue we a our managers. ultimately of and Having certain disciplined I are multiple on that, us see we And of assets. respect the of cross There's value success links focus

much. Okay. so Thanks

Tom (sic) Thanks, [Hans].

Thank you.

Lau Owen next with Oppenheimer. comes question from Our

Your is open. line

thank my questions. taking and for morning, Good you

well Commodity competitive companies of up year-over-year? offerings remind please during can this revenue better the understand how the XX% and been Insight advantage Could your us that demand you doing Thank given mean, business? you. this the I business have energy investors this year. of volatile very is period So,

Thanks, and this. both business a Owen the and look in markets, resources like knowledge the energy natural is oil. of environment, IHS, combination a Well, of all, resources there's that of Clearly, first with in combination volatility the providing to the and this volatile Lau. in energy the markets Platts gas in the environment

lot volatility. see embedded also the research are of the the in have -- which agriculture commodities in of people's the combination we benchmarks, to going a a And You undergoing related and analytics. contracts,

We advisory have services.

that energy the looking have people also are We transition to.

have coming carbon in We new of with energy things are a the services products and markets, in economy. IHS transition together combination that we're battery that metals, Markit in

think on we related a So, -- the And we is premier end that for the energy year, two about with the the really to. it something talked of looking just the us very over earnings the on things talking of conference for together bring which to me that dialogue CERAWeek. was dialogue, people it's voice are powerful this transcript, center about let And the there prepared CERAWeek really commodities. And the at what's times And think and exciting officials one one future are of a including the that we about X,XXX of are most the best government that combination. lively participants. very, and was industry.

I And follow-up. have cloud. it. Got One two quick is

not would or perspective, tranche Could third of $X that? some one right expect please modeling of should a another mentioned billion of quarter on and way and quick think the second you about from is the You buyback. about the in talk we start remaining your of you cloud expect we And initiative? -- goal some Thanks. Should investments. long-term this initiatives near-term the the to

S&P scale with cloud digital and in Global our and advanced our about things one start are when cloud is question of discussions all the IHS the have we exciting to the -- cloud. Markit, it Both with negotiations with about of we one comes opportunity transformation. of on another transformation merger an far to the have and transformation. the me that Let our And providers

scale. We those programs together to get are bring able two and

data we sciences But In I in of hearing your interesting question. and be part have in about Ewout more much addition, the data that answer really other opportunities future. you'll the will let

There And in the on-prem to in we particular a Intelligence quick bubble on segment that the addition maybe mostly of because Market in there cost, [ph] cloud. from cloud. a bit are is still one transition

away. to expect to that we time expense So, growth would over go see

current the Market So, billion of Intelligence it's expect to impact will the into then segment. we $X complete And be $XX full to Owen, billion in transitional XXXX. more are that ASR program With buyback respect terms the end expense the question, August. to the buyback enter the next the beginning program at ready completed the of of we on phase at our of

very much. it. Got you Thank

Owen. Thanks,

Thank you.

Our Partners. Craig next Huber Research question from with comes Huber

line open. Your is

thinking historically, to generally X%. the would assets? you pricing be Great. Thank year, year? your you. call of How part portfolio guys that X% up in prices IHS My this the portfolio, are legacy the new raised pricing question, Or about have it, first with this in particularly is similar you

in how and and we is in enterprise starting are look the terms generate look That for our data is about appropriate of of value of deliver Craig, at workflows going data you contract sets, sets, overall then are what kind a such we the is processes? contribute What what what -- we think the in added will usage, forward. pricing price what data we increases we with hard-to-achieve always start if proprietary point. these, is at and that, for the embedded customers. think I value terms And sets for

So, back in the customer. a simply what look of will we we the of always to the customers at then that to deliver don't level by appropriate just We the first, what to reason at fee and we that economic look do charge percentage. is terms

it also longer guys what think side, the to cost there's going term, synergy cost synergy segment in? your to target, And be then upside likely do most you would on segments you if think here or as out come any

is Yes, understand. Craig, that you a bit as speculative,

raise looking management to stone find bar have be new you and know no So, a in the careful that to our approach. opportunities, unturned. We leave But too be to answer I way. specific question philosophy to will always

across use do we where better, we the have opportunities will can to more We company where be integrate, across we Kensho whole we board. and efficient, can looking automate, where what about can AI the

that do. planning is we are So what to

in know areas integration Commodity be Insights you biggest the that I will of think in Corporate. and Market Intelligence,

So, we upside synergies, will ultimately for it's those in will find But again, in be likely to board. opportunities continuing if look the across we most areas.

Thank you.

Thanks, Craig.

Thank you.

BMO comes Capital Silber Jeff with from next Our question Markets.

open. Your line is

that about ask and the Thanks. the expecting Thanks merger. I won't cost late, forgive that focus when if How the of covered I already. of Ratings see to the so cost saw but drop where a it's division talked there that first I something in know want adjust probably kind expenses we specifically quarter quickly much. you're this me on just in just we synergies and a of in I one, you will quarter? lot second you’ve some given Ratings, know can you synergies, your be

investments. We’ve there's where pull. the big you've slow to, environment very are issuance a it could Well, we always down variability to first in drops. levers where could issuance. different at we has need When comes costs. two down could you If can Ewout as But Ratings of times mentioned slow move with they mentioned time, all, clearly, same we earlier, compensation, that we quarter there could seen the see or quarters weak hiring,

fast. a We're too the see also is we ESG team. quickly, complex. sure cut want Ratings in People we We So too that of across think There want growing. investing to to are also variety the don't make opinions. that markets

markets. business support to type want analytics. doing the We of are Ratings those for provide We're our within to analysts sustainability all have specialized a We seeing that unit sure ready is that growth of there. any make high

levers some investing make of in franchise. keep a overall and want already to to same do lot pull, there's time, it's critical sure So because can we clearly, will business we so we that the we of our that But at those.

quick addition to Doug's And answer. one

that end, from all you're on Although synergies in the Corporate cost Ratings because employees segment Ratings right, those and is cost will Ratings that the we will in has that be divisions. will a base the relatively allocated cost of allocation small, significant Jeff, based accomplish. in large Ratings beneficiary the synergies keys, revenues synergies also being beneficiary direct be be, in will corporate to And very a

much. That’s Okay. really Thanks helpful. so

Jeff. Thanks,

you. Thank

Jeff Our Baird. from Meuler next question with comes

line open. Your is

to relative Yes. stressed Thank the retention up you you. that is pre-pandemic. rate On Mobility,

concern I the Just know cause thesis root curious Life would as car are for initiative, the if the why? CARFAX used But other whatnot. so I you my have Automotive have cyclically to things great, Mastermind, analysis guess, unsustainably right or now. be sales maybe in there, there's

up and So curious to why as if it's think you it's sustainable?

couple there. Yes. opportunities of There's a

for about the about mobility to supply OEMs as is as want information cars, This into them who's chain, change. looking time are dealers, understand more who's at going the in lot the happening the to level, the the One that itself, walking what's dealership. more walking dealer is automotive chain They supply is suppliers about overall and disruption. when more through well industry industry a a OEMs of of the the

there's financing environment. been the addition, changes a of In lot in

using you the OEMs few interest loans, types with well last rate of different been rebates a with As low have years leases. information low dealers of know, the as as in the rate lot interest

vehicles value And all there vehicles. autonomous a data electric And so, from and come now addition division workflow. of really is is right disruptive people's and it Mobility through changes with in the a in to there's in the and lot analytics going lot need a market a this having of that embedded on. we change of see in environment just going this for high that And that,

kind So, an this that this is an area that environment. we're especially this in of kind see pleased to of stickiness,

if apologies estimate? it. the the embed this issuance Got And you the X% use gave it. range? do to point you EPS But ranges, do revenue in and I forecast then response Manav's Or minus missed question. guidance they

forecasting put models, of It's internal that Research terms in outlook. is based best estimates, own the point the Group the has Ratings issuance estimate our best the which midpoint, on management's out

level. that So minus that is X%

Thank Got you. it.

Thanks, Jeff.

Thank you. Thank you.

with Alwy Bank. Deutsche Faiza from comes question next Our

is open. line Your

Good Yes, hi. morning.

of couple clarifying a I Just questions, guess.

underlying understand rest the was deceleration does The the Transactional the or growth first like the some back But Services. for in in seem business. quarter on one calling just the strong business. in I in -- of Advisory this you're year & it the because particularly half, that Commodity of the

just in drivers being just commodities? some So, are I'm that other Or Like of on that curious if how is or you business? the prices it correlated talk conservative oil could you business? about to

you're of Yes. to us all, happy as that we company. and Faiza, are the now the call, analyst of a first welcome group part very covering

year, at see largest company suspended activities the in digits. as compared this part what So to terms Overall, first, single customers. terms of for are what the with should about on Insights fact see whole, in that they the a the changed commercial make is the very material expect commercial of the the answer have maybe and a that And previous year. up the but Commodity that you Russian of expectation a able is situation Russian momentum mid we Commodity in question, But said of And we ago. there Commodity a to course impact are to Insights. said during the of our first, said business, not we And we to as Insights and I of pleased the terms in few mid significant to margins, in you growth for has nothing have revenue speak of I we impact the XXs. high months then

a clearly that's So positive.

You're we bit account XX%. But a take the quarter during the had looked revenues that event had right that quarter. significant first on high a during that into CERAWeek that impact revenues

X% increase was If the you during revenue CERAWeek approximately take out, quarter.

commentary at fact, same but because different we doing two is could is, you strong, excited in the there trends still Traditional are in is that a definitely So to really well. level. of what business time. a energy say at see happening Final really benefit

our current Of energy that at focus healthy there so will much helping benefit same underlying customers in prices, positive that’s have for very, transition commodity on therefore, angles, time optimistic of of and the growth course, we are are in a situation. with then that see on the And a division. And producers about and some Insights. Commodity driving overall is you this very both we the outlook clearly the

the line think like the in end on I if what was you to Great. to Thank you. it low scenario And about, XX%? way believe talked downside the then margins a just issuance you’ve XX%. think fair of Ratings we about did assume Like that about around Ratings like quarter, margins maybe of at specifically, down where margins? is are with which is sort this what it those Is right volumes

not guidance way. particular quantitative any are we a in scenario Well, on giving downside a

So, too to answer question specifics. to your in be I like would careful much

see the think have we will back. that at environment business issuance overall is some on I perspective coming that the Ratings the we point,

improve. some there we a level think trends timing. perspective be a times will correlations ultimately, has there of and We of in will that has one At uncertainty really respect lower the point, other with because company, And changed of But around overall we having past. the anxiety in nothing is or have mid- to always respect Ratings Nothing have this where many the if seen all quarters to be revenue we said this But GDP under with pressure. few and around you long-term should changed this could are to drivers. outstanding growth debt. with

business economics still and Maybe overall could there. the the of So, markets different the the expectations is secular also both for margin if with growth trends line fluctuations. long-term, business, is I respect short-term, there top the But the to mid of business. Ratings and perspective think to this more in nothing the the be are activity some the

Thank so much. you Understood.

Faiza.

Thank you.

Equities. Simon next Atlantic with question comes from Our Clinch

Your is line open.

Hi. for Thanks my taking question.

the transactional side. quarter, you help Because assumptions could the wondering need to the Just comes clearly, I outpace to back, we in global transaction what how consider? -- quickly anticipate do mix, upside, streams relative the are around that on think presume. far to I due should we as own just about reconcile was I’m wondering if issuance the than the we our growth on to growth more growth? lot a to issuance the revenue Rating first the the revenues me issuance nuances just and

a different of last that were quarter, pricing transactional. that revenue different have sort Yes. Well, of different This the which first out which of we those and profile. you're many there's profile more issuers market, kind all, frequent than that right were mix issuers did in the of the have are a

The mix. some to volumes, there's yield, do more sometimes there frequent opposed the as So, carefully at higher of pricing high look we higher the issuers.

but no something guideline, when at mix there's it's no important but necessary So, revenues. look is you -- to specific the transaction watch,

Commodity of the as growth the coming kind That’s we conference growth growth, the have had get you quarter, to great. was strip when better typically lead better And quarter. as organic about environments benefit business? the the that don't versus that back does away as lead to just curious, Okay. you just to where first Insights. first I you that generally future quarters in conference business in a Does in follow-up conference the question

The clearly Yes. critical conferences building. are part relationship a brand and building of our

leaders our a we allow thought professional as our long-term a relationships across that services. to always the bring And across our we to As access ACV, serve industries. And want conferences clients. that convene manage to relationships, know, products to way relationships leadership. to way as improve businesses, us our convene all we in best They improve that us about best you improve think opportunities always and of gives our the our

find revenues our it's relationship. indirect and ensure can't customer So, there's really -- time a are we markets. definitely relationship the to over us you allows to But necessarily direct not build that an that relevant

very That’s much. really helpful. Thanks

Simon. Thanks,

Thank you.

Our Stifel. last Rosenbaum question with comes from Shlomo

Your open. line is

used fact of good markets, some was the accelerated of whenever things to getting do I the right the the better. were it things turn making of an not precursor the a things a could a indications if to same bit to INFO wondering demand on much now. to you time and And of in a energy bit me talk same maybe business with to want of business prices upturn other that quick a some normally then have would around start that just consulting kind we war the in little was have Is get the seeing you're The Thank bit. lot in. I spiking in Just it's just that. you but legacy we energy side. squeezing I for seen? follow-up. Hi. that of Doug, took have there little terms very a that the context energy little assets kind

Yes.

I would think there's like I factors mention. to three

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then great. you. question. Thank And quick Okay, a

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Great. Thank you.

which call. Thanks, elaborate Shlomo. Well, let me that how finish and thank to asked, things on Shlomo the are going. everyone for joining is the just And about want question I

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thank again, call today. very for the So much you

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