SPGI - Earnings call transcript Q4 2017

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Operator

Good morning, and welcome to S&P Global's Fourth Quarter and Full Year 2017 Earnings Conference Call. I'd like to inform you that this call is being recorded for broadcast. All participants are in a listen-only mode.

We will open the conference to questions-and-answers after the presentation, and instructions will follow at that time. To access the webcast and slides, go to investor.spglobal.com, that is investor.spglobal.com and click on the link for the quarterly earnings webcast. now introduce would I Instructions] like Mr. to [Operator Investor S&P Global. Merritt, Vice for of President Chip Relations Sir, begin. you may

Chip Merritt

Thank you, are and fourth good Vice we Global's and earnings issued morning. results. and full President Thank you Presenting CEO; release Officer. this year for and on a Chief XXXX morning's This Steenbergen, news quarter call Ewout Doug Financial President call. Peterson, Executive joining morning, S&P our with

at managements. schedules, need In a this they meaningful the This information. between copy financial Exhibits release the and to contains can U.S. business make between The that during corporation's today's investor.spglobal.com. financial reconcile view the as in investors non-GAAP calculated of provided enable and to GAAP. we're downloaded comparable earnings you earnings If providing call, periods the performance release measures and difference release from operating be information of with conference is corporation's accordance comparisons the measures perspective to the and financial the adjusted same

with the from understand company. Act need X% European more better begin, forward-looking S&P uncertainties descriptions Any U.S. information, historical potentially Securities a about attention and to the also remarks projections, statements. forward-looking in we Form in I certain Commission. legislation anticipated investor periodic of that and based meaning should in cautionary on the may current Reform or this of Any to to for actual Securities has Before matters the cautionary ownership forward-looking call including other and of who current within results give to teleconference and of listeners like risks contained impact such on the cause Litigation expects estimates, to may expectations direct subject Exchange are filed the Except economic and discussed events. the future of statements and XX-Qs, statements In of to your statements. these this reports contain materially me XX-Ks, differ call XXXX, to our regard, Global to are we conditions results or obtain the provide this regulation. Private investor would statements I and

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

call call this Jason ask to Feuchtwanger and for is questions the like intended this would over However, media At Peterson. Doug time, investors, XXX-XXX-XXXX. that to Doug? directed turn we the I at to from be would

Douglas Peterson

exceptional quarter performance you, products topline quarter Thank review investing morning. to Welcome an moment. the results results call the strong year and highlights with the going will completed Ewout and every Chip. financial Good division with fourth I’m enhancing S&P productivity. review in for year to full delivering and fourth Global new today. our or growth

strategic division highlights. Let XX% capital continue of approximately new maintain new share productivity. are recognized edge. and delivered but brands the will returned digital share partnerships to in products efficiently should the by performance to in but a with innovation products me performance billion XXX our commitment to XXXX as We the anniversary installing company to Every and none us businesses financial the EPS generated enable impressive growth begin have investing integrated products and This year $X.X to while produced strong access infrastructure, with iconic We as full operating organic and so in We data billion revenue XX% as growth. adjusted new celebrated and financial operations returning a its and to technology. includes many drive transformation. must and of late stimulate work capital which have and flow S&P and widely model designed cash through XXth all a to digital we the We're framework more management invest dividends. free introduced to engineering $X.X and competitive realigned we fortunate together in which year, repurchases our new investors

Green Dow Select the contracts platform investors a bond that to Evaluations investments company in Market investment our network. customers. Indices risk with created which advanced fintech which provide the when release Gulf to a Index. and of Jones S&P the that release launched LNG picture provides users Some first settled beta Platts Green derivative Kensho, a Coast SNL next-generation Bond a information new all aim has We bond. in Ratings provider, machine a Algomi, banking And data insurance in company visualization imagery to a launched satellite an examples banking, and launched acquisition from company industry. Pragmatix, ICE are the financial data and include space data learning analytics more and CRISIL by analytics a Intelligence impact services the for versus attributes against with Marker. analytics, climate we the XXXX comprehensive S&P green to of LNG cash reduced systems,

basis. productivity exceptional a in favorable Looking This $X.XX, year more XXXX margin to strong due will the in was on revenue achieved the Ewout and not EPS stock-based to on profit XX% sale adjusted earnings reported discuss in moment. higher includes impact with growth margin of results, operating event. an The ForEx tax favorable a closely company of company growth lower success a X% an initiatives. adjusted share The growth, than figure which organic XX% benefit XXXX XXXX. reached a basis $X.XX XXX share compensation financial financial from in and related We isolated both full to $X.XX organic businesses of delivered point and revenue improvement diluted

in produced years, compounded revenue. a we the four annual last growth X% Over rate

revenue some organic mind is in by commodities in like markets and do impacted and our the intelligence but operating growth still is addition down on shows nonfinancial color of between sale plenty the believe profit this evident XXXX What financial of adjusted of XXXX particularly The drivers and negatively issuance grown opportunity XX%. now four over points. gains of Ratings The strong operating a timeframe, reported margin year of improved adjusted improve to The has these with profit. of slide this our revenue, same multiyear components our This segment is on and noteworthy EPS over basis all of adjusted there full adjusted global depicting EPS adjusted as we've XXXX strength I’d Keep that split are issuance, the the the several investment-grade are by done. high-yield. results we and not the operating of In were chart in business. breaks margin, consistently achievements, provide company CAGR however to year profit instead every delivered businesses. portfolio of We metrics.

increased a Excluding sovereign to our revenue X%. than is result, issuance not part issuer Because which driver high-yield seldom the XXXX are issuers categories. program, their more frequent global other of issuance of our issuance impactful major is

issuance made contributor. was XX% issuance XXX%, XX%, out dropped also high-yield debt the States up vaulting issuance size revenue in increasing this structured increasing and two data, high-yield increasingly Ratings fourth finance important increasing issuance and tracking When we growth in in while difference place, issuance that XX%. increase excluding to finance in of investment-grade RMBS. key issuance X%. a revenue structured we an local grew in strength however always of quarter debt in XX% the XX% increased based China United a factors. XX% Geographically public majority XXXX, with issuance increased which The was So primarily In to where revenue Leveraged sovereign don't takes XX% volumes that increasing in try realize. rate. factor soaring issuance finance point issuance strong increase XX% ABS In in high-yield structured vast is in fourth XX%, to our regions. due with we quarter deals type a all makes the with loan strength investment-grade Asia, in across Global the XX%, X%, issuance, the increased Asian Europe, the quarter of the on of finance become in

over the percentage both This rated of over in and time. of played XXXX First, issuance the out XXXX depicts XX% have figure chart these U.S. in as in and to the the of increased percentage XX% rated XX% XX% from In In from level increased XXXX. the increased the U.S. second loans in has Europe is to they of XXXX. Europe. increased in time, trends loans

XXXX, of bank earlier growth increased loan all ratings XX% For with exceptional revenue the year. in

bank more information our to revenue During in Ewout of our the our start loan revenue $XX want first fourth and let's results, fourth Ratings. turn outlook provide I the will quarter, global for but a forecasts. quarter contributed XXXX, with In economic growth to on to moment, million

to XXXX our gains in fact XXXX low outlook month. to the ahead unemployment economic In for per current of In forecast XXX,XXX slightly for calls Our is XXXX, our growth. of job global continues contribute growth, U.S., X.X%, expectation X.X%. continued averaged

cuts increased and The years. America interest study on Many shows a period for maturities very left businesses friendly XXXX In chart the are from yearly issuance. right tax Spain. growth, new or XXXX maturity XXXX focusing addition, shows pursuing path a reveals study should of Netherlands illustrates data business trend look anemic This China, from rebound After in years Germany, study. billion the refinancing at and the over authorities the important in is along on macro the In the led in studies. cyclical global a slide. hand experiencing In by chart strong Eurozone the sustainable debt of seen increase in and market-based total credit growth other consumer economies for to issued Two Taking global the so prices upcoming capital is Latin five maturing encouraging. use forecast policies. benefit debt stronger data stable our ago the accelerate the The the long-term of study high-yield five-year XXXX study. flows. weeks expectation side from rates annual We on an this growth, a commodity global this improved Ratings study with data in closer advanced its low $XXX have GDP spending. and

is five high-yield of In the forecast forecast. issuance year coming revenue maturing level This years. estimates years, the for categories. next in of potential XXXX the the source Ratings major increases issuance debt January published each Over significantly which of each it's a provides

tax the U.S. a of may on anticipate negative issuance. impact XXXX to reform we produce modestly impact Importantly, neutral

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global due tax reform a likely services. off-site public Our forecast in XX% decline to in financial U.S. be by of finance and increases structured finance will

U.S. We expect factors the reform. tax non-financial due a X% corporates from decline to among some

Europe While be leverage for will ever likely volume decline loans. leveraged loans to XXXX. refinancings was XXXX. on this loan depicted its not refinancing fewer Europe, flat busiest see XXXX In expected or with leverage year in also the possibly highest after are slide, U.S. at completing since XXXX

U.S. improving take mergers both conditions. experience Europe pickup private Although could funding a advantage equity and in corporate economic looking the of and for with acquisitions and to issuers

$X some As guidance guidance of XXXX, serving of of $X single-digit on The strong we and introducing add and in per additional enterprise of record track than let is benefit shareholder to share of reform. revolves organic core priority purpose like EPS Ewout our begin to expected XXXX. top U.S. revenue value due more highlights customers. fulfilling rate adjusted $X.XX would markets goals. a but the includes effective in our our strategy from moment. we will me needs a share around lower to guidance growth $X.XX. always to per EPS our provide and mid tax a tax diluted our share, Creating detail We're This

a results expanding indices. we to projects processes And product productivity funding ESG include factors, We're and new initiatives our index year. S&P ratings users and to are our solution-based optimize and process and continue our data the countless commercial methodical, and operating toward Green improved Beta, platform innovation new by science our credit to of learning protect Enhancing to the IT to internal We RatingsXXX. data operations. for customer And initiatives quality and lean and platform expansion Intelligence to our ESG. and automation. underway user these transition with leasing commitment to tools the productivity importantly, methodologies machine risk standardize Market offering product while end ESG, roadmap offerings and enhance improvements. compliance and experience Growing using and smart investments and include Capital we and of model facing platform IQ Platts starting multiple and the our in deliver versions beyond management. of simplifying Evaluations Executing thoughtful and drive in and want There of in alternative excellence assets, technologies, key increasing the through core Some embrace maintaining productivity. new data drive additional want deliver data to

leadership committed day. world who and Fortunately a team learn, and the grow around serve every have strive strong dedicated we and employees to

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Now Ewout? provide both let to turn more Ewout me guidance. the specifics over quarter results our during call to XXXX business and our the on

Ewout Steenbergen

order Doug profit the a and you, results everyone our on profit and on operating guidance. expenses The cash IT fourth morning XX% in the the on the with margin XXX This finished points. XX% results, quarter. I Thank XXXX incentive Revenue adjusted exceptional the like our basis to increased company tax Adjusted morning system. and primarily to with call. impact unallocated increased from XX% project our U.S. good and increased discuss to increased to to in specifics results reform fourth would then related replace provide quarter performance cost every due Adjusted compensation companywide segment. growth operating year

employee payments I recent Our overview adjusted updated rate guidance the $X.XX XX% value also tax benefit diluted this in change tax recorded grants expense. per have These stock as Adjusted declined a We A to FASB exercises stock the during EPS benefit which stock are to change fair exceeds reductions employees when call will stock are to this today. in quarter in introduced and market related in to vest and a the share. primarily exercised the third price. the benefit the increased earnings discrete slide tax it due tax tax XX.X% from and grant option moment. in of options whenever results employee to impacts result stock effective

positive fourth reflected restricted that by to During improved of options. a in stock EPS due a the which the EPS in $X.XX adjusted exercise was and year is beneficial the reported fourth of to Ratings and occurs in tax to million hedges, million that estimate This had a rate tax quarter fourth exchange $XX quarter, our the the stock by the each operating impact per the expense XXXX for quarter guidance. $X.XX $X.XX. $X.XX impact was impact reduction profit we of bulk in rates on The be primarily was will revenue $X.XX, the We about under $X.XX operating or the rating share $X segment. profit foreign was effective positive XXXX a on fourth adjusted pound. quarter. Net impacted of and British due of benefit impact adjusted company's Euro there vesting

actions double associated restructuring a to defined in the These U.S. benefit to these net me to try of continue locations. strong our exit Now exits for items in loss U.K. London as in a chose actions organizations. we're $XXX in law to will or million with which savings payment $XXX $XX a and adjustments business. these $XX result with reform, New of lease are the pretax million. in and total Because tax effective Ratings, legal leaner due due let I footprint to underlying and vacating cost pension the earnings associated better turn more minimize approximately totaled Despite included take York expense, increase lump-sum Lease to opportunities moment. charge Market million charges settlement Together from we you related charge an in taking to earnings continuously reserve, assess a of floors change looking of Corporate. transition our Pretax Intelligence quarter plan. review and performance tax in to amortization results, we to the space to high a $XXX a in the retirees annual to million. help in and of will of adjustments restructuring million

contributed and every in benefit margin. profit, tax a every divestitures total million. prior by the These incurred every organic after-tax led fourth we business of in addition, two to operating gratifying progress ratings items see and $XX very operating quarter segment segment In in metric. It's revenue, strength from adjusted $XXX adjusted year gains In profit to million.

Let ForEx. me profit to increased revenue the Adjusted points while XX%, operating XXX increased XX% the now start favorable performance turn excluding Ratings. adjusted XX.X%. segment's operating the with and increased from margin or XX% individual to Ratings basis impact

revenue the the XXX to business continues the marks and surveillance, basis paper very entity business particularly XX.X%. As with Non-transaction we primarily the debt we and year more improved revenue have new primarily strong margin transaction that by bank said on increased the managed to grow in points, identify and Transaction than structured in in points modest basis successfully loans. ratings ratings. due increased margin associated recorded as growth. bonds corporate fees XX% consecutive past, see non-transaction Xth gains has rolling to bonds, including Both the four revenue in high-yield products initiatives. basis on implement quarters commercial and increased revenue productivity a a that and you XXX operating can operating global profit gain XX% basis adjusted growth short-term from This and adjusted U.S.

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increased margin XXX to growth XX% adjusted points profit operating operating full-year improved to Let increased basis XXX X% improved quarter, Intelligence the operating includes and realization, S&P me market to Market revenue commodities organic reported basis segment XX.X% and In to synergies and primarily and segment intelligence. now revenue S&P XX.X%. Global margin fourth increased and divestitures, adjusted Due Platts. This adjusted turn organic Global and points X%.

revenue grew categories. growth divestitures, with across major to Market all organic Intelligence Turning XX% excluding recent

of a from on with that companies and Capital sales the insurance sets benefit XXXX, an At IQ equities This commercial commercial team you Intelligence one-third bolstering users the the beginning process quarter of At commercial IQ SNL that combined former of Capital private customer and contract. has approximately of has At the contributed approximately one XXXX. quarter, RatingsDirect versus as Intelligence into intelligence market of diverse offering the sales to Market model to conferred end third we enterprise priced enterprise-wide continue fourth the the XX% reached told of and commercial and figure to XX%. end that which types transformed been of increased growth. agreements. is the desktop businesses force one desktop We banks, growth Market wide into end

In addition the we former new have migrated SNL market to platform. nearly all users intelligence

release, our any and provided funds resolve on we're of our beta feedback customers the with As important items working to have actively all list.

was of a established have with million $XXX announced the with from back deeply of launched. growth. all of are ratings organic this that Xpress of later end $X Desktop $XXX at growth single-digit and finally in XXXX to synergy Today respectively. high an in and in been synergies SNL quarter there components When million will program. we of of revenue, million all in results. program And management strong significant were By X%, were three announcing completion our reflected that fourth products this deliver delivered and RatingsDirect we XXXX targets cost savings XXXX of synergies this Over successful businesses period, reflected synergies. increased of teen $XX $XX million low Market estimate $XX improvement adjusted that more $XX providing we $XXX risk have total approximately revenue revenue million million XXXX, acquisition XX%, additional grew of was Intelligence annual and the we This savings increased delivered revenue million. our the business. through We XXXX. of operating In in projects that grew results a the million the data X% the services XXXX, solutions divested. million divest $XX note were in Looking synergy margin

with was delivering have our powerful rich S&P built a financial behind that interface synergy data SNL new on platform the leverages platform. platform the integrated predecessor deep any with Market and a SNL of the fully functionality commitment, The on content an business and intuitive The can In IQ Intelligence foundation be combined sector Capital Market trusted platform addition to with to data on created we Intelligence device. technology accessed its analytics. offer new

reported Beginning to revenue help metals. Platts core business in Revenue a that a single-digits pro managed a subscription was mid by increased press Platts and trading Turning weaker derivative XX XXXX be release on separate petroleum the which segment. has with and to Platts. single-digit. To XXXX, with as This growing decreased data offset primarily due somewhat services you forma business as X% mid will trading modeling, separate Exhibit in in basis. global

trading makeup you from petroleum by If of this global the see at you petroleum which primarily offset power markets, weak partially activity. primary came quarter revenue Platts majority benefited can from and four its that the growth by gas solar look subscription and Platts growth business.

In X%. metals XX% agriculture addition, growth petrochemicals increased and contributed and

Let me continued points assets increased XX% adjusted mostly to to Adjusted operating indices. management. XXX XX%, margin Revenue turn increased XX.X%. in operating increased basis due profit growth to under ETF now

acquisition basis operating of Trucost. primarily due to declined the adjusted margin For the full-year, XX points the

ETF quarter futures XX% in derived revenue XXX mutual linked revenue and fixed with growth from the by annual Index AUM of signs driven rose up billion up experienced the in a and establishing the with assets ETFs XX% of over of and The a modest quarter XXXX. growth $XXX activity. in which the by guide new options prior ETF fourth $XXX Asset greatest totaled this Exchange record The timing XX% net XX% of the no inflows traded increase moving are in funds AUM. end gains inflows fourth principally to customer reporting. trend billion with average of shows products OTC XX% with fees indices year primarily the of is reaching about derivative increase X% billion letting exchange record certain inflows yearly into options industry passive offset versus investments derivatives and an ending rising of and $X,XXX in our organic decreased the S&P traded Subscription XXXX.

the shows, over fourth proxy was is billion of XX the indices market this of billion year-over-year. increased billion last inflows new is and a a complex. average chart better of options months. The decline $XXX AUM the and Exchange end quarter which associated As revenue rate record. S&P at in robust contracts $X,XXX $XXX activity for quarter index This CME with derivative net mixed. volume activity than equity changes result appreciation a XXX Key The our increased XX% experienced a figures. include was of the fixed futures and options and

XXXX, to our of capital outside billion of at the cash of cash our debt. billion $X.X and long-term we $X.X Now end of the held At short position. billion was Approximately the had $X.X United turning States and the of end year.

of we flow approximately X.X times dividends Our $X million management capital coverage times in to flow to slightly XXXX. and out total for X.X billion. billion of EBITDA $XXX billion versus The was approximately free nearly our by million during with $X.X Consistent adjusted XX% quarter. was end shareholders to the as XXXX. company returned growth share free $XXX cash paid fourth of adjusted in repurchase X.X the measured at $X.XX cash declined to which a philosophy, leverage debt generated million our XXXX of

reform areas. are tax impacted we U.S. in As principal we three at look

$XXX on our a is fourth we Texas repatriated net $XXX foreign million composed First, the This from in net deemed charge quarter. next cash deferred be to of This of partially expense is of the recorded payments benefit made million The earnings. revaluation liabilities. tax million over tax $XX tax by will offset a tax the have eight years. a

Second, of the that a have XX.X% tax from rate have will adjusted XX.X% will XXXX. on in rate. XXXX tax we We tax XX% impact between an significant tax in effective form effective down and rate effective our considerably estimate

The in will additional impact availability our both cash approximately the an XXXX. tax rate generate $XXX Third, will flow capital million reform U.S. and reduction tax in on effective deployment. have cash

have and will generate rate. consistent the increase reinvest cash our priority with our now direct disciplined first management strategic businesses it substantially a We to capabilities offshore core result to of lower to Our ability capital free our flow cash and effective philosophy. to tax as in priorities strengthen and access is

results. quarter the Also S&P are that yields. marks Foundation first investment year XXth of desire in least $XX large annualized through and quarter This million share We a stepped and a through consecutive to support XX% our contribution a free the will at dividend continue increases. flow increase communities our dividend dividends to we XX% a cash of and our dividend we the making dividend repurchases. increase the announced in income share $X of XXXX. the significant to up of flow in free cash first rate supported will annual Today bringing Global return by net generation to Note this impact per our

shows deal-related past of XXXX contributions million diluted by ForEx Please expense. mid excludes segments. to XX.X% of revenue expense and with million, I This benefit mind in market current single-digit business spot an our keep reflects slide $XX $XXX million lastly rates. Unallocated to in our guidance, of that our increase slide introduce of of guidance of adjusted our $XX amortization of unallocated million to to Now guidance. guidance. benefit which million of $XXX $XXX was depicts profit the and of cost to a range EPS operating pension $X.XX XX.X% will related rate included every GAAP $XX $XXX a tax Due to interest XX.X%, margin in XX% million, $X.XX. million, amortization most expense this or This in

flow approximately excluding guidance very by and be addition company. for our a reform performance cash million approximately and let by In year bolstered capital improvements for tax call the me expect that free $X.X questions. XXXX we reflects items to this that, expectation will billion. U.S. the over expenditures $XXX With Chip of continued your Overall of strong certain back turn

Chip Merritt

Thanks Ewout.

queue your the ask to press ask a X. order time To yourself you today's participants, cancel phone limit to session. allow for withdraw to our you or two Just that Q&A during would instructions Star for that's Star of questions; please simply press enter that other X to I in two question, kindly questions, indicate question. couple a to wish callers

first the now now If but a like handset we better speaker This quality. will Star that would remain question. and question a take your handset you through X we'll ensure until answered. prior pressing you've ask sound our lift been question, listening Operator, has to been your on to ask phone,

Operator

This question comes from Hamzah Macquarie Mazari Research. from

question. now may ask your You

Hamzah Mazari

tax on first reform, on issuance. the mentioned just out slight negative, U.S. forecast global in and question that carry and may negative. reform you a X% of in U.S. you neutral And for being down it Could of you mentioned puts is to expect takes The flush also then your be XXXX you on beyond? as issuance terms you effect it’s tax XXXX terms towards to look investors can slight neutral

Douglas Peterson

tax public of we all, corporate, look finance. as at we First at institutions, different as look reform the financial that when be all could impacting aspects well

which amount to at growth. some to we positives an also There is would of going economic be reform the potential the additional accelerated investment. First tax of leading depreciation all of be additional look or to

actually conditions of lot economic drive which know a general see we you the the what positives are in long So run as issuance. in

terms or slowdown a deemed some a issuance issuing our we in what headwinds of of call a offshore the have been repatriation. actually could synthetic of companies repatriations that repatriation In to past issuance, cash

high-yield a public in some And had market anticipation the very in deductibility robust as on quarter the Our the finance interest then market fourth well. conditions market. different of might rate have impact

saw we you the I and and of of XXXX the maturities down and going types - at as we to we very what’s you issuance. at particular showed look especially impact XX%. growth is issuance pipeline we at that slides saw then would overall addition that expect look in be all there So in already around and forward But high-yield reform, we in from said robust tax in that general on a as starting different maturities look in it also

into of our all taken XXXX. account for we've we've So this built forecast as

XX%, just I interesting at there mix We want going the that you issuance XXXX. to services do give the institutions is financial down change it financial the entire As to fourth up was any is but by which XX% the around actually mix over time, could United shift. one for strong you fourth know factor one is service a always in the be in think quarter year and in up an issuance States in quarter. was for in year financial Europe it’s Last X% issuance

very mix impact know always different for comes go lot how but you as of tax pieces a we reform the through, to in So point economy position. overall. of even to is of have there's we on of back being economy couple strong positive the might see that other it do this a some headwinds from a view factors And the and though a issuance repatriation of

Hamzah Mazari

Just and follow-up it maybe then a Ewout question, for I'll over. turn

given Your a X.XX adjusted adjusted times of to you've gross leverage is - the EBITDA at range X.X us on high-end.

deal considerably you dividend also fair out shareowners, we you. right? we're that cash can at large you're market assets is it You've or XX% sort looking goes tuck-ins flow are of also assuming and expect upping a of back to the M&A of reform. issue said can most for deal the larger flow on valuations Thank of Is guys equity the you to say tax to free do

Ewout Steenbergen

You're right.

leverage range high-end. X.XX and low-end with guidance our of the a to X.XX given have in We on on respect adjusted the growth

cash are in have We after of of largely that XXXX at which you this morning reform. now billion comfortably point by we have unconstrained we very within time and this tax range told year-end as X.X the is

the of sheet We're healthy financial a is good balance very very the company in position. strong. So

core read business that is sheet it capabilities be And reinvest organic, would in cash balance clearly have obviously commenting We we a inorganic. in priority should our with reinvest could to love the balance could this we’re as on strengthen on have of the the announcement what first any our balance today. morning intention our cash that out business. opportunities, We’re to be the according strategic you M&A our not but to priorities,

Operator

Our Kramm UBS. Mr. from next question comes from Alex

open. now Your line is

Alex Kramm

a to overall there. put I but put out forecast obviously come with an the Ratings piece just number. the you you to Wanted January looked that's X% back guys decline, out at

cetera. into like bit in think look at you So when pretty XX% big I the I deeper and so decline et little commentary, it for back a dig you think or high-yields when

I X% assume put So to mix that when and bumps look guess you together of business, maybe pricing this all X% the at I the like take. usually

Now for like in business I XXXX? X% like what Ratings something of is Ratings guess the of you're thinking range it's kind forecast revenue growth, the for that

Douglas Peterson

points in we our entire overall mid-single-digit our XXXX. guidance our a an as you what’s of as at basis range, to company well improvement of going the that’s in guidance Included the on as for said markets. if guidance a the give-and-takes in happen you look total margin, for together XXX put that Well

is in the then is increase impacted finance industrial going overall it U.S. going decrease its out public in year. the will X% what I’ve corporate, mix always of structured comes expecting finance the of and outlook think And of is overall to one we sort finance of high-yield to we’re what's past in an most the about depend reform increase for out. about services, by the tax areas be financial be of X% structured Our XX%. by also X% about down said on

we out that in that saw as do well but come related forecast on year-on-year buyouts globe It make a noninvestment I overall issuance month in from where know you into was but M&A one see think these you specific strong. January that actually our this quarter, have leverage going on quickly but going the the the with was was very Ratings. particular we built do very hand number overall quarter, forecast to we’re XX% for up we a to in growth other issuance rate of did also down in don't spec Just topline market. around doesn't grade depend January some bodes we the know issuance. of make issuance growth but you And in happen it a do we with up see speaking generally But robust the is the think But our does lot to lower U.S. what's on a going the to corporates,

Alex Kramm

looking obviously Fair guess. outlook margin at expansion I'd segment. the on as pretty the if that side, again that And Ratings in out continued said Intelligence I I Market softer like margin pulled was them shifting I XX% I Platts impressive even try. just something maybe margin paraphrase thought it now you But enough, like operating given think just last year for I

players, relative compares margins look some but favorably you guys some plus. I Now other those even XX% like when there, the of pure mean pretty of to desktop have that providers at I data think play out some operating like

you give just to, have about self-help us kind you’re your - - the we'll opportunities segment. So get could can in thinking margin business on what what update an that thinking of that

As proprietary you lot actually is et I on that you pricing cetera? of know a segment I data that think think have good - power

Ewout Steenbergen

right. You're

Platts Now you the the details of we have of split the and provided Intelligence. margins between Market

see is points XX% And approximately and quarter up Intelligence in XXXX. full fourth the basis XXXX. You that for both compared XXX Market year margins for to the

you Global we improvements XXXX. in to We as margin a whole have that indicated S&P for expect

do segments our the more of we for is our And for haven't with we're point aspirational of to less the margins we a what of segments. mid-term. the have We that each targets should margin some for the we at respect realize breakdown given or you provided

new course Investor Day each come do at our this late Most with segments. of during aspirational will back mid-term targets we of May. the we for likely the So will year

specific cannot I here. Market respect we operational performance for what Intelligence to the you give with is drive guidance each will from our of you But expect may margin So going any forward businesses.

at and efficiency and of at growth forth. operating on businesses. opportunities look We topline so positive look so expect We for our each the leverages. We

Doug in better remarks, we believing ultimately also in So make prepared Global that the future. his S&P as can clearly are perform we said

Operator

This from question Kaplan Mrs. Morgan comes from Stanley. Toni

your question. may You ask

Toni Kaplan

I as wanted well. to ask about the margins

Ratings other you've also quarter, the implementing by was simplification growth some the are other very that regard drove quarter last flow like topline over continued there the initiatives quarters? been through from strong Ratings think margins the as with just it in strong and that or this But couple well. of mainly pricing So to driven I factors

Ewout Steenbergen

at performance despite We strong expenses and less that Ratings the slightly flat into pleased down more were consideration very of were the if topline take if or growth, even you especially FX quarter impact. you look this a

to What in quarter the expenses growth fourth restructuring flat are the seen both So of is also ratings. but by topline our the very have the and segments, certainly several margin combination announcements third of points. such disciplined and Those a basis you quarter. up and strong on drove actions applicable XXX actions of

So we effective. are looking continuously to become in transforming organization our more

well. continue the improve we’ll and look of to Ratings all certainly margins those look So future margins at the opportunities in to at the as

Toni Kaplan

declined quarter. then in we there business? commodities, market in little that look I sequentially particular at think Was and this And intelligence just XXXX the bit should drove how on that margins that Thanks. and there margins a anything in

Ewout Steenbergen

that’s driven think I the Yes, Platts mostly margins. by

see compared certain as timing well during you’ll back more look beginning at reason expenses the saw incentives, to certain So half commissions, is XXXX. second of as end Exhibit main if Platts The that of bit We in that details expense XXXX. you loaded XXXX of XX, lower the the at the compensation, were behind margins marketing categories.

to be during expect XXXX. more We equally it divided

more commodities would in at I - of is it margin So slightly of explain end expect those markets that categories I and timing and that drove would expense that more the that Platts intelligence XXXX. lower

Operator

next from line Patnaik comes Barclays. from question of Our the Manav

Your line is now open.

Manav Patnaik

that that is just Market context growth number the particularly XX% for in MiFID around showed said desktop. the is challenges And also so a other on so revenue and the XX% with gone all X% disconnect the in. is of that so growth the forth and you question in part that's what's facing like of industry the first user question around My the growth in just more you Intelligence, driving increase

Douglas Peterson

to organization across use talk access providing. approach and the talked moving the free Well provide future as you given the that enterprise-wide up how has been what when good user towards where that more customers the we've licensing We basically then ability it's now we're value in that and measure always we've to and our value in contracts Market And see to the increases a an users people know our in you customers Intelligence. entire sign for signing all for to about this about up leads of see we us our the product. organization forward-looking an the to

the effect. relationship. pricing important know you to very a see enterprise-wide discussion actually have ways As of at long-term of value it we And how of we this and is for we into can with one coming creation approach the the us the one benefits value a and about think is customers this

Manav Patnaik

seeing And impacts so I if and with on, like any just MiFID question you're forth? the guess

Douglas Peterson

entitlements we our MiFID entitlement ensure seen their any users go of as not a was on products a in during we had generally thing right immediate note, we the you interesting already had dollars. approach to and they to the provider or firm. been and sort of Related where in hard system. data to a MiFID. by at and haven't that our analytics believe MiFID on MiFID entitlement, their there are One research we're saw impact the over services that that Yes, paid know and We've always sell-side for we of way XX,XXX people change look driven December in

to people have are we able sell-side because we side, could I We as risk that for as and be research, the a and monitor track we so impact pay they're under on we've buy from at negative budgets total their seen to any overall that the the side also of ability research have looking a budgets well start that be for but strain the how on going getting help buy it not that though research there know got could find ways many get how far. if squeezed it, that we guess can that monitor downloading and track have usage to and and is deliver paid research. they're

Manav Patnaik

just And here. acquisition may Reuters then know your competitively just Thomson your thoughts that the of approach you see on you changing be

Douglas Peterson

there's tougher how that additional think company the the to see approach. is landscape Thomson getting with markets. Reuters competitor. Thomson our towards number We just of like coming large formal into time a be other market any of but fintech's a to taking change of that of major approach very they're also is think people and don't types going We very going the all do We Reuters competitive not

have and natural also language a apply the company's artificial You others looking ways and to different ways processing like intelligence, serving market. ours at of

business Thomson so Reuters also think transaction competitive is competition we're the that going markets that to transform as but we make our investing and the well. to be So more that welcome competitive we more we can

Operator

Research. comes Craig question the from Huber line Huber of from This

ask question. may You your

Craig Huber

speculative guys strong Two last One for questions guess if for just little bank Europe outlook U.S. rate What here please. seems I your in better bit year, outlook obviously and grade you the can year loans could? loans a environment. was upcoming year you just bank very in give this interest rise thus us given you so the

Douglas Peterson

Our financing, refinancing. to robust. going rates. high-yield driven down general quarter, throughout bit. be Last is both very and flat interest a Europe fourth be saw with depend to strong such little loans lot We quarter the are which to potentially year on It's see the the also high-yield a it's But by issuance. a that were has in what first happens was incredibly been to going robust going year year expectation we do it bank market a

markets, see themselves than is weaker - was last more general But the Over being loan that as the loans going and more the our ratings last bank to we've rated. of be taking it the well few market as expectation year. place is financing bank through years

Craig Huber

for And in us Can yourselves Thank to switch changes to the foreign how we be. net update name if for and your your also, in us China you. own rate income size there? brand interest potentially? then like at government to that if competitors level would underneath maybe China that you agencies it And allow rated jurisdiction on potentially would over you impactful

Ewout Steenbergen

in the opportunity are We very interested that excited come very has about China. and up

bit. on that Let little me a elaborate

market about So domestic the in Chinese is market world. bond bond today the the third largest

bond market are We issuance that in by active but international companies. rate today do Chinese we not

international bond being rated Chinese in foreign the had office of in Hong want bond Chinese markets companies those markets to out The restrictions. So as some Kong. accept ownership domestic are past our mostly the

since of best restrictions There never enter than out Ratings but ratings way lifted entity an ownership domestic opportunities have the up at the we lot year, mid last still uncertainty is why market that will of enter so looking has market those by more was time. domestic the at issued actively year, point enter last agency to reason could that that decided So foreign still and following been not are mid of own how to very this to market the XX% Global we so time. actively at lot to this S&P there's a looking we play Chinese be of at point the that to but are actively in some a regulation bond ultimately and some in had

Operator

question next from Autonomous. Vincent of comes Our from line Hung the

may You your ask question.

Vincent Hung

last talk about on you be So million to including figure what's the year. to guidance actual XXX that? just looks million Can that driving XXX while higher? just to XX million benefits adjusted from million the XX up expense, the increase Are is X.X also pension you unallocated on

Ewout Steenbergen

down if pieces I expenses coming a year-over-year. the take are are So unallocated a consideration that's into fact so let you you question because great that Vincent me - bit all explain

is Foundation, at new loss income now to in methods and the is unallocated have contribution number the the so a it then benefit, S&P pension in broken the the that look what included And due expenses to rule. past So then in XXX XX XXX, Global pension you a corporate out. accounting out to million is

million of we in was what on $XX is negative line. that indicated now that to $XX the past is but million have broken out So benefit

if two into are unallocated those elements and down. take year-over-year in at So consideration, those expenses fact you look corporates

Vincent Hung

and been few acceleration an value non-transaction in quarters. growth And on there in the ratings, last there’s revenues the

continue give insurer color relates to XXXX? some to and just you us programs much of can pricing here how the whether win So changes, in rate the terms frequent

Douglas Peterson

from the commercial is are components And look driving that non-transaction growth. there, services paper. the under that also issuer they what combination of CRISIL of frequent that factors year issuance fees, include some are revenues, revenue it's all our really combination rating includes instance short-term of at it's you the of one if for those evaluation On and

a there's activity that's been As been mergers you the lot increasing valuation know and Ratings acquisitions in of services.

With there the net, of market number year shorter-term increase very And the in financial part been lot to of that's has been new the issuers paper also markets it. the a last attractive helped come issuance increased number then and also of to very, commercial issuers net in of that. market, new we've the

it’s not all of combination together. factor, there's any one a those of So specific

Operator

This Raymond question James. O'Shaughnessy comes Patrick from from

question. You your may ask

Patrick O'Shaughnessy

forward. have schedule Just complained to views I thoughts a from out, - fee maybe kind might going the EMSA's of one potential report business. from about in of implications you competition bit me, as and lack mid-January and guess early of on on must your a adjustment any put Any clarity you Ratings

Douglas Peterson

We to ago. report were that's ESMA with which or Brussels have where the about looked in place closely been six X at five as rules that implementation put the the we've CRA in Parliament very with understand well as of working years for

do fees at ESMA price very, One be a agencies of basically them review to We stages and with tell see the them we pricing the is overall many, how that rating factors, ESMA to different to and with many going cost - instructed think had prices. just this provision is what disagree would early the closely to the We're the alone. to structure very cost related not working markets relates what of look their in think of be fees working that We on. it's to analysis. structure

viewpoints we give our long very we a the this are of in market how on we with be Europe. working see work ESMA closely so is them going as now gain right ESMA and and And the don't to and Ratings in probably markets Brussels to with impact any to

Operator

from next Cantor line Joe the from comes question of Foresi Fitzgerald. This

your You question. may ask

Unidentified Analyst

the on for you Cumin] [Drew index some of outside Joe. was equities? if could wondering business This from discuss progression of the I is

Douglas Peterson

what What progression? exact by do the question, you is mean

Unidentified Analyst

the What's or with fixed any ESG, opportunities? on other of going income

Douglas Peterson

ETD our you ETM all as in our have different then of to of we First and fees, we a business data index combination services, AUM have and revenues fees we have know we the approaches and fees. have other

new ESG, ESG plus different ESG. of have we carbon see the The types of far of as - So new fixed We're in diversify a on which we a What our these of lot indices of low or that we carbon, the some can to relationships impact any we the see of at build we've environmental impact also sort types going of revenue so impact invest revenues. have particular streams issuers a can upfront, out of products like using to to None have either how those evolution material approach. major continue we're partners. looking of made indices how way our grow with progress channel lot of and we our is economic fixed indices. in diversify you seeing take-up ETFs of opportunities the use

with are up them that's needs revenues. and take-up then start build and we that start are we to new indices out, set as to new to those asset have We demands the owners and getting what asset be responsive you seeing from come as the managers coming when they the and products responsive and

in are more business, asset important demands major in revenues owners. that creating and this do it’s index to overtime growth, are total all we our what of from going but the going of us this these lift the volumes any of have material to for are terms in of more believe relevance far to have also terms So coming we none be the and these innovation in and market so impact

Ewout Steenbergen

believe annual earnings based point the from percentage I that that the out in were year-over-year total and ESG in second in we’ll our from likely quarter call, business. probably was it they And we those out fixed a standpoint will And year standpoint our broke remove and income that next significantly second Doug's a put gains in it quarter on needle survey out. again goes the

Operator

Silber from Markets. Capital BMO comes Jeffrey question This from

ask may your You question.

Henry Chien

the in calling wanted Chien just go for back for thanks. Henry for Jeff, organic XXXX. to Its guidance to I growth

I'd for say ratings special and of Just there number - growth sort both the drove of in that XXXX Market pretty high thinking is items a Intelligence. rates

And early it issuance, mid-single-digit down we market the by and in new how understand presentation. to trying that just is outlined about of you think be in should like So the the well? light that just growth this Thanks. a initiatives rate, just bit of looks going sort year new driven as to

Douglas Peterson

Ratings the for just items to are what me alluding revenue when MI you you clarify Let say this in special and question, there? year growth

Henry Chien

Yes, a in whether I the it’s you headwinds I know record meant year know year in not the side wrong, shifting which the of a Intelligence the seem special pickup over just there number was to strong and item is be thing. to growth in issuance Market enterprise

like year. Just they thinking of would don't recur sound those which this

year? be this So to understand driving trying growth what I'm would just

Ewout Steenbergen

in point issuance our positive and business. positive at user can can we finance, investment-grades, a structured see I business. at at the at up I right, the at our investments commodity going pricing Ratings, point point momentum Market can loans, move drivers point I indices lot around of You're from I corporate in business. can to can Intelligence. I for below point growth Platts active passive bank in

to very positioned XXXX. for a be organic therefore company all helped saw And company revenue as the XX% growth drivers I whole the for are the future. of and a So you favorable really have those during well

take be the will continue will drivers, market we going are drivers for we those growth at are from that ago higher then continued company to look also account. confident to positive management were largely some much year for we think going forward in related influence where have can mid-single all that are of because if so we starting digit some revenue mostly we related, you We those But have and guided are XXXX, have now those into methods base to because a not forward. that's those

during So is therefore growth for expectation revenue XXXX. we think growth mid-single a reasonable digit

Douglas Peterson

last to I this for it bit And organizations the that that's a XXXX services made about philosophical is building our we're responsive which And embedded very want heard years focused, add providing driving maybe me was out towards end think little thing this having that in is at talk customer’s the much higher needs. relevant quality just I products commercial few experience, goals. you’ve a competitive and customer to comments one about the are customer much world. there in our we enterprise critical

the needs important be to we We and customers have in is out to to that way that actually and needs believe be a growth we’re very markets. our in competitive of this most necessary our not is to that in one customer that approach very, and serving the component anticipating future there topline complacent have and their

Operator

question Piper Jaffray. comes Peter from from Appert This

ask You question. may your

Peter Appert

related Buybacks the timing XXXX? shift the do you versus big that how we of to about how two. talk doesn't about dividends, increase also And assume think any buybacks should in you dividend suggest think can the and about between I allocation the

Ewout Steenbergen

factors. underlying look if at growth and such look as is very the free at those in growth income in cash supported you by flow, dividends net If much this you the

X.XX free billion the in cash at X.X to look in XXXX. going flow Just billion XXXX,

in dividend shareholders, at our those percentages. underlying you XX% of return billion is and X.X XX% increase to a our If take commitment growth into to consideration the that you then look line billion X.X with really

of also it you this net cash What to in free really out the XXXX. is think that shift a terms we strong that that and you is don't in continue income I should of during So mix. are the very expect read out anything fundamentals it and read of underlying should flow

Peter Appert

how timing? on And about

Ewout Steenbergen

the year. average we’re we has as possible management Yes, believe in we periods. But as specifically certain know is might on are tactical market timing decisions obviously be sometimes to we you like philosophy timers, during that the commenting that much as down or market a in we not scale that not cost dollar up be otherwise why

the So said market And would are be I market of I be to timers cannot that terms that, give doesn't we numbers of in ourselves. for management as we believe obvious because capital to significant shareholders. possible return specifics much in like as further like reasons on these should but

Peter Appert

And users suggested on that of on I model seeing and little Doug you your might prepared Am expand pushback maybe just bit hearing from that have correctly IQ could Capital you're change. comments a the that?

Douglas Peterson

that some my before out we impression, - our to have cases them this still has we’re we IQ all. that I end in a different to very look impression. of go per are. the it's Cap it's large just six go on five, if another is that year an organization enterprise-wide approach contracts, contracts and enterprise gives have final us a a clients not way contract. XXXX the at maybe of we approach to an divisions going sorry I to also gave opportunity contracts I'm that have contract at point what wide gave I'm you all them My have accounts going you the very complete of It’s their customer. seat current different of an the shifting approach a No, even In some want to till of a sorry In different to to number conversion, contract to we a to some well. multiple it's point an move simplify cases cases but from to contracts out combination the but the to shift to those difficult across unify and to

Chip Merritt

that. punch-list, And any new be just anytime release be if like have going word to to had we and fact there’s of we’re just to the performance feedback and release with things use weekend and in things need to sort be with usability a over MI that deal there’s you the application to there the what is deal know bugs, trying going you resolved

we’re now fixing one mostly if Internet on use we that trivial an don’t seems but browser you’re browser, for your to just fact speed there So out that. old you, slow

we a on. work that's thing So kind of that

Operator

from Goldman This from Fitzgerald Sachs. question Conor comes

ask may You your question.

Conor Fitzgerald

or for of when looking on marginal of reinvestment reinvesting more business is the benefits dollars back color little Just reform mentioned going? your in some tax you a the

Ewout Steenbergen

businesses in of businesses. last emerging the capabilities. of So surfaces some core strategically that and reporting and are we Beta. some in strategically Platts price opportunities we reinvest but ESG Think fixed Smart commodity looking those and the our business, risk markets for about analytics. for When income we about ratings have indices announce benchmarks or additional are domestic all and at that capital important areas areas Think us about our looking growing our then strengthen Market international, at demand Intelligence to are the our without in and of analytics supply grow certain ratings philosophy indicated year, mid targets to Think of some for to important.

businesses areas the are for itself. those the So

on also philosophy We’re technology, core perspective. in core looking please but at at inorganic terms valuation company, areas look some capital are We're and very looking talents, other disciplined important the company. that specific capabilities management the we organic basis, be for investing investing and of capabilities the a this in metrics at basis, apply of assured

with company is they think the important to respect So that hurdle hit rates forward. those very certain opportunities are going critical that we

Conor Fitzgerald

that over has of it you’re could are ways for focused about structured more for what make lot an infrastructure bill. of potential potentially its pass, Congress? structure impact be the the there's if bill start And your to business a Obviously bill then more lot but it’s the that there drive hear the recently way if did just conversations a looking we as been a a to positive see do coming about we such if could a your key thoughts, on months and things for

Douglas Peterson

looking five responsive team particular and for additional included not Intelligence. practices been global infrastructure brought are analytics it’s at know Well We and we've team. to in data Ratings. our in people you Market years. bolstered across a able be a in infrastructure just in infrastructure now the in that We very over of United States We've businesses that's as

through oil through carefully. have index and obviously have key And elements then We also investments going the Platts we’ll business. we some is in Washington indices energy, watch few and infrastructure the infrastructure a from gas, bill to but that coming that have benefits

instead that very years is that is X in XX cases investment slow of to bring approaches of One permitting. Canada have literally a can also lot areas of countries to like lot States United some the Permitting United compared quite be of or infrastructure private couple robust the and which them is in one States Permitting years. faster capital. a done a Australia

we will factors the one infrastructure. that investment think a permitting critical moving is So get faster that into of lot

private the state it’s or capital be at real partnership approach the level coming most that towards place. where openness and also going will leveraging Washington states that factors most the seeing of and said communities where municipal at takes important from the to of on in more Second Canada support and place of Australia. local be I is that It's to level, an infrastructure as the and takes public, one very into

So more stimulate to we the used capital faster, and it investment. also fixes federal see we more when transportation lot in more airports, and for are those coming see the other into we that the will see private infrastructure, programs a ports coming

will the So municipalities, market, comprehensive you particularly faster our more view getting - out and that different we and of all and through which infrastructure if be a be divisions. to growth, the more part us overall reach our into jobs see robust investment benefit will will this that starts the is benefit investment the then of which it approach activity will states supporting the see is we’ll

Operator

comes question McHugh Tim Blair. from This from William

your question. ask may You

Tim McHugh

this doing the Just restructuring you apologize to comment some lift to what at roles, can a you be then in but on there automate of any I to is as of secondly, I point, trying you revenue movements guidance guess exchange additional you the would follow-up some business. XXXX type if assumed color the kind I this, this are activities miss given And rate helpful. want here? around about of elaborate have the much think Ratings still

Ewout Steenbergen

a restructuring at would had the is find give we in first can and in example we’re will looking question. effective. ratings Until examples, question then organization. two the commercial Ratings the more few you many Ratings. organizations me make about restructuring I to take where commercial organization make opportunities FX Tim, two let I areas one our on your recently comments we

in that based rate run together senior one reduce forward. on those the moved going more we commercial management have particularly organization We created to we’re positions and able restructuring,

that technology can that ongoing the also efficiency, forward. project is so think work the higher more intake, putting standardization will so and focus to in more is automated workflow help work mobiles simplified Another about ratings place, and with of be which on will support analysts our population tools example analysts data of value-added in and the that going more

dollars those revenues. in clear we revenues Australian areas a call are then currencies those give the which So we With see where positive in what Ratings in couple perspectives. our And forward. have Euro negative you Indian Euro denomination. exchange means opportunities is respect have and exposure Euro in base negative let higher we expense exposure going pound British on and exposure a foreign expenses and means exposure on have rupees, The to me rates, of company's higher we we

economic impact We those company's have exposures to basis extent. mitigated order extent sure to program in make offset an large to on some a that the is to FX

guidance based you most the rates we currencies and with today you ForEx that is our our to confident this recent have to are if in that guidance is look respect overall providing properly we're you reflected So provided we are at market spot morning. on the where

Tim McHugh

on year is compared I how of that couple being XXXX counting benefit And Is level for you're to guess I normal of a terms other that that and just broken follow-up numbers, of that kind out? years. one the is in last the last guess pension now -

Ewout Steenbergen

we if Yes, less similar years pension well compare to is level it background funded a or you a there and the it’s more previous that on have plan.

or So we similar particularly the been more asset assumption on have helpful compared our income to but create less reporting to in what is plan this pension years. previous

Operator

from Shlomo question This Stifel from Nicolaus. comes Rosenbaum

ask may your question. You

Shlomo Rosenbaum

the is from tax that is that the forecast by deals expense have how funds? will PE First impact for some treated leverage of of question legislation, deductibility is and you is come how the finance recent the interest

Douglas Peterson

a rules out. and by a anyway minor taxes profits, reasons, of organizations shield We've leverage trying given tax they’re procedures not could for a lot it one the really operating operating we’re looking very to always impacted potentially been that overall paying necessarily model companies the that at type are and there's a their just been this to impact is - be theoretical taxes. this see from few We even though not leverage paying

allow modeled is about deductibility level to that We more your leverage of there we've which it still out you also or that's profitability where have think expense. is of times that interest six will a a less

So a securitizations different for from impact what to that whether going other directly seen to of fishing leverage of financing types way the is other of going we're but we've financial impact quite very our And investment bankers some for doesn't sure very, tools initial organization. it’s to big an not exactly modeling at - little its legitimate corporate be or around that necessarily or that looking the is a opportunities for have leverage. tools of show because types use aren't bit

So, we’re to we much going impact. see that don't of an think

Shlomo Rosenbaum

of Capital seeing in just the people competitors in SNL migrations lot largely enterprise you displace kind competitively count increase a trying that then competitors? And terms information there the of to or Is organization seat is just this just the IQ. with of necessarily displacement of to this from I'm not guys basically on you have had might to enabling put beforehand? access see

Chip Merritt

think meaningful you’re time. at I don’t displacement any this seeing

so might to now that competitive tandem their for someone use been have them might in they and them our has who You to firm while. a product. in competitive using And product have opportunity product conjunction gives access they use the

anything time right think that So I robust. don't I away think over happens but certainly

Douglas Peterson

What that I'd penetration we new add is that have users. the a lot of is

get a firm new we firm-wide you able or then when contract see XX has XX open maybe new customer. mentioned up we've enterprise-wide get - you or for to which and it some a as users new And is been it you also coming a So whatever seats XX in.

another is that customer to measure So important we us carefully. itself also and that's growth thing

Operator

Bill Wells from now question Warmington take will We from final Fargo. our

may ask question. You your

Bill Warmington

for So IQ on quick you the Capital question business.

that sell-side But a part and cost IQ sell-side big is fact of what question of mentioned cost II. for had specifically does likely create that pressure and facing that kind is the is since FactSet? an You the with you it’s given MiFID Bloomberg under a more versus of Capital not option lower do. What my lot opportunity

Douglas Peterson

banks, et banks, of are First we sell-side, side, our of types let I have cetera. front Chip all industries, believe of them that advantages business out, in got other one of types diversified me very We just might at across we've academic figures models companies, fingertips. of the point financial buy regulators, different of the don't me insurance have his investment institutions,

of the across we model believe a content coming as and that cetera experience, SNL they and adding with allows users data us which data well Cap the types et users that kinds we’re between other of together IQ can it's good provide content to So diversification different is that services types have alternative data need. we the multiple of that services specially as

We one in of industry, we but one where of is areas to So we're of your more of other see opportunity can displace on question that we dependent products? not the any overall terms believe point your an will type as competitive. is, that more expensive be

Bill Warmington

ESG needle? get the Beta on these within how is the Smart Then big days. starts business, and point a question follow-up it a business index it to move take long index how And where the does to then to

Ewout Steenbergen

in become if absolute But of are and streams it your think standard you from then lot you standard of look business, you're relatively picked be have take can still revenue revenue early, the numbers put benchmarking at in market effort you up once to the very large. future it’s this in the to the nature certainly and it a is you can I modest have off invest being in to perspective. the a trying

took investments very time get That done off at successful over a kinds it in about multiple that long of is and an and at of be product point fixed. point was can it was very to time. the Think over So some investment this over CBOE years. those period

making we're that modest those today, relative is but So exactly why investments.

vest We’re new and revenue of and over taking of driver larger time indices, be back company. into the margin the benefit that the the industries for benchmark will the

Chip Merritt

exact go Bill if you the I our we recall back number. to slides if second quarter gave

Bill Warmington

it. Got

Chip Merritt

know I exactly. don't the number

Douglas Peterson

and we types ETS, the This just their is also provide also of one And indices needs. it’s where to part structuring in of wealth index structuring for custom products of which the where the investors business. that's addition the investment areas lot not of it's offices sovereign see we necessarily their are responsive and interest direct using of of debts a these from other types family funds, other itself banks

Chip Merritt

Bill number to Beta XXX end side the for you. it. found assets a for XXXX, accounted At Smart in billion of

Bill Warmington

- of so the don’t XXXX XXXX number? then, the have And okay, we point reference that's end

Chip Merritt

XXXX. That of was the end

So new I don't a end have yet. you number XXXX for of

Bill Warmington

the to forward you look insight. for very much I Thank seeing.

Douglas Peterson

Thank is Doug. you, this

closing of but couple do largest a point XX of doesn't make Jones. on make even drop was just in briefly to drop the top comments. the me want actually Dow market Let the history it the I X,XXX comment in in It points in percentage very drops index terms, list yesterday, terms.

XXX the that single and actually over percentage we've terms. years, largest Given got drop this XXX managing since in been data it's the all we've

percentage only it’s put markets So are its context. in down there, think looking should terms our economies the which to in we that XXX right growing. overall and approach we the number our now at built plan, way We've

tailwind very low, the for the Our liquidity tax and inflation still a reform strong think have rates capital U.S. economy. low, very is banks still are we world, around strong is

place we’re economic we some in forward. do us so the and that and aside believe to aspects markets technology going going the the around And transformation of grow going putting business conditions to overall all be to volatility positive taking are very how

We’re and concluded strong very that we with strong momentum very XXXX pleased performance.

five improvement growth for the of of topline organic the that year been years. for XX%, we've the growth entire Our margin carrying last through

strong promising in the to future. from we're and the cash good We very to are we benefiting work are reform approaches markets capital in with starting and going position team the tax what think leadership how with a off year U.S. also a with very

We on all So, the working with during forward you appreciate listening year. we to you look the of call.

at quarter very our our now much. on you will be time see we Day. Investor call We you between in first and Thank the

Operator

That concludes question-and-answer slides session, this investor.spglobal.com. this in replay of available including call, presented of be from available version call. is downloading morning’s two the A replay for hours. A one will on month participating today the about by and PDF for XX thank you maintained you today of we be day. will Global's S&P from On wish for Global, telephone. months for from and good behalf website a S&P The

S&P Global (SPGI) 6 Feb 182017 Q4 Earnings call transcript