SPGI - Earnings call transcript Q2 2022

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Operator

Good morning, and welcome to S&P Global’s Second Quarter 2022 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-answer after the presentation and instructions will follow at that time. To access the webcast and slides go to investor.spglobal.com. now introduce would I Instructions] like Mr. to [Operator of for S&P Grant, Senior Relations President Vice Mark Global. Investor you Sir, may begin.

Mark Grant

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

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

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

Media be like this information is intended contact call this investors to media to ask we would the would from Doug? the However, our that the time, and found I Relations turn Peterson. call At release. whose can for be directed press over questions in team to Doug

Doug Peterson

second Thank you, call. Mark. Welcome to earnings today’s quarter

is of more Global Our incredible truly results more demonstrate S&P After days that efforts our a after combined positioned ever ever. diversified the the first quarter merger company, second better and it’s our XXX than clear combined team. resilient, than as stronger,

We’re and controlled, to maintaining post us issuance fiscal which environment challenging would’ve prior controlling what can be aggregate the results and operational a discipline allowing inconceivable merger. that in been to is

financial with start highlights. our me Let

inflation adjusted non-GAAP financial increased offset decrease technology five in current entirely with almost As and metrics investment XX% be our pro the in adjusted a against quarter. of Adjusted in in Recurring representing quarter. year-over-year ballast continued metrics X% cost discussing pressures synergies period revenue divisions X% in of decreased ago XX% in compensation Revenue as forma providing six on revenue. revenue year only increased to reminder, growth the today the ratings the adjusted year-over-year, non-GAAP will referred and period. a significant X% metrics the by expenses in were

to of a discuss able is Though, will Ewout moment. reflects be which the in guidance, EPS challenging We’re will environment. the we reinstating macroeconomic impact offset some our

midpoint, the smaller to share than a EPS like highlights strategy. the at updated of also businesses quarter. positive would for impact the a the our guidance other allocation our resilience Importantly, I of decrease adjusted capital illustrating few calls the X% and from in second

I merger days the are close. As more now past than mentioned, XXX we

share integration but continues outperforming for we’re schedule, several very We $X.X efforts we’re relative importantly, $XXX. that efforts plan price see accelerate billion businesses, revenue an synergies. parts benefits and original will of development near cost of both and share product are to from proceeding on post completion call. market our with our today’s repurchase volatility Our in innovation areas to on able Momentum at on you our with highlight average on below

efforts weeks, billion additional to launch which coming billion we by a our our already be and seen $X.X in than in pleased short commercial with integrating in We’ve complete expect progress in recorded the the referrals progress teams. relatively We’ve with to more cross-sell marketing I’m period. integration remarkable October year across completed We divisions. X,XXX expect an in ASR the to $X final our end.

cost on the approximately $XX exiting run million. our expectations million in annualized year-to-date and also than an of quarter more rate of realizing We’re synergies $XXX ahead

reached culture we’ve Beyond established We’ve the training transactional multiple necessary and like merger milestones related standardized and to leadership multiple teams business the milestones. also deep operational practices the across layers the divestitures, enterprise. invested in

the office New locations teams fast Data of learning We’re we’ve world consolidation London have announced completed tools combined by entrepreneurial. other machine We days. When and And we our from datasets and seen derive our days AI what such scientists, York software in initiatives developers. technologies to value these engineers, in that Research costs. spent how exploring the teams be our consolidated in Lake and the major leverage City innovative, Lake we’re and real led best with the two our office complete would agile, are These as the to more Head found Data the moving consolidation of and two thrilled just Hackathon data to integration our Kensho fourth around of in teams plan we highlighted on merger, estate that quarter. XX company track on and lowering our expectation Kensho’s

ways Kensho and Link, to commercial add in Kensho datasets Extract, In datasets cases. doubling We more unstructured value that than the NERD, datasets finding across Lake. can Data Scribe, some solutions for current addition training identified new to training

We Global’s enabled compelling to to for also ways classify datasets hackathon capabilities new improve improve and ESG. to This combined S&P assessments realize data the found datasets. country better and us our identified risk of full

and following for greater re-launch markets. research with of cross-divisional to council operational our company the consists S&P the merger. also and We in council mandate Global leadership with new both research leaders insights value the combined to This expertise and core reflect the customer drive membership

that for large scale key greatest council with climate, and disruptions, We’ll potential of first on have the leveraging of have and engaging actions and align One the teams bodies. of and markets. technology customers the across There’s on meaningful and success the digital other company disruption impact was topics customers. regulatory capital a full capabilities be our like stakeholders demand and to for research incredible energy on industry leadership across the supply thought security, insights meaningfully and chains, the

unique in for a natural gas all display XX insights new council have commodity focus on calculation products That basin and areas. full including We areas impactful within product of datasets S&P level Global. in was production from to our and new innovation U.S. second intensity sure most launched the insights, on accelerating we are research quarter. methane exciting for We these insights our and customers make that drive way innovation as see a the

We’re trained significantly has manual using using a satellite self-reported forms. what data disrupt data historically imagery and very from models to EPA process been extracted in-house

to help Mobility, grades In the saw we market financial We six from the now. new engagements all insights and global deliver credit success automotive serving progress Brent we space. also two benchmark. auto platform successful have product crude make launched to carbon out in intensity our in continue In Engineering our customers new Solutions, measures insights to for proof-of-concept building commercial credit software

feeds well, changing innovate We is continue an at PVR and as challenges which intelligence datasets landscape. in to ever of introducing diligence new regulatory Source, ahead products a aimed making like of helping via the compliance clients new market get platform available

X% billion. the the quarter, Now financial decreased to for recap revenue $X.XX results to second

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

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

businesses aggregate revenue strong by posted year-over-year. in growth quarter, in increasing the our X% non-ratings Importantly,

measure as of issuance decrease As XX.X% and which operating segment allocation, representing through the fully we we offset track posting environment of earnings $X.XX, adjusted margin of you year-over-year. know, XX-month X% the and second impact is basis, profit disciplined were to diluted quarter much strong prudent on the trailing a capital a of EPS able and execution

difficult our six five to divisions the positive across report extraordinarily issuance pleased divisions, well with across in Looking growth of ratings executing environment. very I’m an

our the markets. remarkable more XX%. CDS available, launch the market increase access it’s source increased help growth aftermarket uncertain and in portfolio a to readable diversified content by to like continue the our multiple business, to views. Within to drive well intelligence. or navigating and and page in last as as for marketplace. market many constraints, and product our quarter, double-digit more our And the on growth to in second information, workflow trusted saw as growth customers engagement grew result. XX% as Indices, tracking than celebrated provides our data fundamentals, around the deals strength exchange platform Global demand come continue and in for uncertain leadership XX% in of ESG, in revenue nearly tools bench. and second which lines Uncertain S&P text, since anniversary continue This come a a chain We’ve explosive performance, insights solutions in to of in we products and XXX% marketplace waters. we continues thrive movements, to to more derivatives, thought help closed XX% in see in year-over-year, than traded spur seen Global growth S&P growth a the which opportunities for differentiated Customers the work which machine measured indices XX% we our is In research markets supply us consolidated company Our whether year,

turning issuance. Now to

slide decreased down During issuance rated deteriorating more in the the first and year-over-year quarter, issuance global quarter. saw included can in recall rated on Asia, time In trillion XX%. the in as We’ve XX% I’ve and last depicted year issuance XX% by I survey since doing as in this benchmark the what We XX% been asset every issuance Indices calls. region XX% Each rated down slide, details declined we U.S. Europe. further of that the than the in this earnings in additional assets and increased and from in sub XX%, high issuance components aggregate the decreased U.S. S&P XX%, category nearly deck. seeing $XX.X declines second region and European decreased Asia, of is every of Jones was Interestingly, against saw funds a of indices conducts yield, managed year-over-year levels end that sharp to our in which declines XXXX. Dow was actively

trillion. products indices $X.X as and trillion the Assets largest funds increased indices XXX, passive related Numerous strong $X ESG our of the in to in assets. indices sector indexed S&P seen and the support invested climate We’ve and indices. many with trillion our as XX% well to in growth including factor $X.X

XXX fact from see XXX index indexed accounts our faster that still in even asset other XX% strong among of for down indices S&P XXXX, majority XXXX to saw AUM, continue the among the XXXX. S&P in historic We demand AUM the that for for XX% managers. growth of evidenced in we While accounted by the

we this in slide organic asset commercial Indices our like both and like fixed look and IHS years in historical iTraxx AUM the integrate year-over-year initiatives drive ESG this extraordinary as iBoxx on to the second December of revenue in quarter. indices. reach Markit to XXXX, We in quarter, million. about and While excited income growth what very and as $XX basis will ESG delivered nearly this accelerated growth is growing XX% come, innovation cross reported we’re

ETFs the the products ended second at year-over-year introduce We In ETFs growing we our to rapid approximately saw XX% the enhancements new ESG And sustainability launch based ESG and quarter, related of product to a multiple with AUM ESG $XX related indices. second continue and quarter billion. on pace. and we

second evaluations Our index. party ESG sustainable Battery collaboration by strong and their ratings, for the completed Insights driven Within teams S&P XX launched financing Indices continued and we XX opinions Metals and Commodity opinions. demand

Lastly, events we discuss around stakeholder Global several S&P SustainableX in together leaders the sustainability. of world, major the cities hosted Summit the future from bringing groups with various to

the given year, a we outlook. study, environment, provide issuance a this refinancing Twice quarter. global more our update to turning our bit we Now but to wanted color

global impacts as phenomenon to look see debt are maturities, two at bond time outstanding. global Specifically, maturity to a at two total FX there have we average historically. what investors rates. we and The impacts corporate we When look witnessed are similar to highlight

the we see dates maturity decrease phenomena those Over push year, near-term it. update witnessed aren’t next years, a this refinancing in we the as three July by out. in maturities each surprised We’ve so

debt maturing years is down starts over the to to ago, down is global three next significantly next increase six the over next from important total years. While years three to debt over it’s note the it not that maturing XX significantly, and months five

refinancing debt next and for an outstanding expect We FX activity This start total XXXX on adjusted to XXXX true basis. year. particularly is

to debt lowered dollars January, shows on all FX global total foreign since January a converted With by Global July slide at strengthening which by This increased basis, of X% rates. the S&P maturities when dollar the debt if U.S. constant rates. currency at of denominated measured X% U.S. is rated

don’t if in strong we expect now issuance markets healthy While a resilience. not back remain have market also half of over moderate, the view public in seeing history a year, a They the this of likely future. reverse that the reinforce our very demonstrates significant long-term, in debt issuance the in will this and the we’re headwinds that rebound

half. issuance, second quarter the updated to Now Research approximate XX% financial market Ratings an roughly around U.S. issuance to in expected X% XX% the expected decline international year smaller, XX% of in issuance assumptions outlook, decline expected approximately to are bond and in see the Global in a by expected and flat. to for roughly to the range and within a by soften down This the is decrease partially XX% compared to more decrease services back be for is forecast Global and a now the XX% in decrease respectively issuance tempered Non-financials decline XXXX. in year-over-year seen finance are XX% public half. finance finance XX% a XX% half conservative S&P second reflect to has structured its forecast implies issuance. public first down

opportunity discussed issuance wanted As a Research is issuance. issuance, most revenue international product include to forecast however, not reflects ratings closely which forecast. issuance the to tied Ratings medium-term to most would loans, as issuance our take the market market reminder, debt S&P notes included domestic a in But It Global frequently to debt issuance. debt Build is categories cited out is S&P which and nor categories, public the issuance include leverage explain team issuance finance. time includes outlined. a China, Research such forecast is the more which The issuance, from build team, global of and are of different not, does build unrated We of our from unrated market S&P I including of from the time. just our we Ratings that Global subset

bridge our nuances are these differences build market issuance our in well, as gap revenue aggregate year. guidance the issuance for the ratings for other that assumption and there between forecast the underpins While

ratings will guidance XX% issuance. Ewout outline, XX% As assumes decrease in to our revenue a build

Looking company that this stand beyond secular the and issuance, both year trends a see to number we beyond. of benefit

historical above time. customers norms as volatility among benchmarks, expect to data assessments insights. Our creates price oil our This more demand often well for volatility experts in remain as and Insights Commodity and prices in some for

beyond, more production Our pre-pandemic next XXXX. team also line to in returning year expects increase levels by sales to light and Mobility vehicle with

to CARFAX Automotive to and multiple across in grow, product see Mobility tailwinds including our we As Mastermind. lines, segment expect volumes continue

the outlook. evaluate we we year, of remainder that underpin some wanted this to however, of discuss the assumptions As our

course As seen quarter. we noted deterioration we a the we’ve in several June, when the economic guidance, suspended over second indicators of

We customers, as expect impact inflation, environment a our not growth, and lower higher slightly but issuance businesses, lower well. GDP debt our only to

costs. pressure costs our a in approximately to our That XX% of discuss will pressure inflationary showing Ewout we’re and is in on headcount. up technology tied As seeing compensation expenses moment, most with our

not the comprehensive wanted economy outlook, the to of guidance. be metrics inform when to this we all the As in understand some meant assumptions that we a is our help a but of about global make that investors reminder, changes formulating list

today’s announce discussing or expect to pleased December not we’re York While an X XXXX beyond Day we’re call, that in we on hold New on Investor to City.

our as to well as strategy on We’re sharing time. looking forward XXXX, holistic more at and on term positioning preliminary medium financial update some that you targets views a with

making we reiterate the industrial Ewout, our we’re Before, handing businesses. and points of over the pleased and integration are we with to logic reinforcing how clear progress on like resilience to the merger it the the I’d see of proof

world-class area and a appreciate hard have people team in of every the work our across and the dedication firm. We

on to growth, positioning that, through continue evidenced deliver walk incredibly guidance. believe turn our and execute to it by come. years teams With to innovation we’re Our to expand synergies. I’ll and to in well outperformance results margins early the over Ewout? the we company accelerate the Ewout, And

Ewout Steenbergen

With financial items. divisions, Doug. a once more we few company. Doug of are the I our revenue you, evidence highlighted resilient that posting results. six to will to growth, again, other we a moment cover five a take see Thank headline continue stronger,

discussing today, as explicitly well the ago, declined businesses exclude and a a in called adjusted certain also period and As fringe expenses as incentive of financial year of in mentioned, cost, as GAAP. the by corporate refer release results non-GAAP from a accruals. from adjusted synergies unless metrics divested that as Adjusted the well combination contribution Adjusted will metrics as allocated all caused and periods. reduced out Doug ago metrics adjusted forma the pro to we year be for current period, non-GAAP

X%, the due Our post the offset gross partially average net tax decrease in The the expense as was debt jurisdiction. adjusted rate lower increased we income mix to of due increased change merger the in primarily to interest refinancings. rates effective by

As repurchased exclude shares, million of coming which appendix. those the excluding are of the Doug Among items of quarter aware, in expenses. billion we to through free the number. second to an details were $X.X in the $XXX $XXX shareholders to purchases. cash be generated adjusted adjusted We $X.X in from certain in EPS majority our most billion impact launch We can found Year-to-date, share The we of in diluted items the merger-related dividends weeks. flow cash returning as committed items expect million. certain have remain this additional and and we flow, mentioned,

corresponding expect $X.X We $X seen year-end. will against have of billion billion many invoiced Approximately has to in impact FX the that revenue We expenses. to note three-fourth volatility. a international be dollars, our protection is dollar in be currencies by against and our U.S. provides October completed we revenue year-to-date, on some U.S. which that completed revenue both and with final strengthened foreign

seen and an In hedges to to addition impact Year-to-date, unfavorable a we the global revenue impact currencies due hedging the on an favorable U.S. against British have Expenses the active ultimate against have people, Euro to earnings. those Indian program due that due to we footprint Rupee. same in our saw natural the of FX the mitigates further the strengthening movements that place our of Pound. dollar the and impact exist

timing adjustments investments spend investments, business. decisive to forward consulting the protect Actions merger-related capital. shareholder to include management margins growth year, the incentive have reduction we actions investments, limiting in innovation, as We where our investments growth. preserving to already of can, accruals include future to are infrastructure, in areas. integration which have of prudent our our execute past, still committed expenses, These to in P&L we to selective key committed drive while taken select demonstrated in pull our and a This to are our people, some in we to and the taken Turning we of strategic and the and ability forcing synergies, remain hiring, synergies.

the Looking seeing at expenses of compensation we’re the year-over-year clearly quarter, notably in most change in this inflation, impact expenses.

the highlighted with last decisive T&E relatively higher and us FX and allowed well. with as our I expenses acceleration seeing quarter also together Even cost We’re synergies flat outlined, have we year-over-year. of as those to actions cloud favorable keep headwinds,

million across would is our The and quarter the we’re of an efforts to very cost see I on and quarter, and our million. like and provide our Through second we million. teams $XX end pleased through $XXX the the cumulative on achieved synergies of update is In synergy current to Now, divisions second synergies combined in initial corporate, cumulative timeline outperforming rate have the the annualized integration cost progress. revenue to achieve $XXX both year-to-date. we’re our synergies cost run

and pulled previously synergies. diligent been and forward ability synergies revenue we materially the and disciplined have some drive have impacting teams without of Our our identified to growth

We realize said to we synergies, XX% XXXX. $XXX the previously we’re in XXXX, have that XX% cost targeting million of approximately in to expect through

operating still environment. an uncertain in We’re

not the while we’re range. to of at So we’re for out changing confident XXXX, the XX% come likely expected more to target XX% we’re the higher that range end

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

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

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volume those persist year. headwinds of the the rest expect We through to driven

we this on solutions and The X%, year-over-year. by segment initial evaluation by reported operating constant adjusted margin as decreased services offset continued expenses, are market basis revenue disciplined increased ratings decrease decrease and on This primarily Ratings credit and Non-transaction XX.X%. Expenses issuance in revenue well and the the lapping operating as XX% soft depicts basis incentive contributors XX-month segment a profit in lower increases a its as This revenues, a decrease in some ratings difficult second and faced partially offset first ratings segment revenue the decrease in FX, in business. expense credit predominantly of to in decreased of by XX% decrease by X% in credit. occupancy X% structured risk On the T&E due and currency end resulted part was increased and growth salary primarily the conditions operating half, ratings and were to profit a driven profit lower and finance, markets. decreased slide continued points fees. CRISIL in XX% XXX structured annual half expenses driven debt favorable partially fringe discussed. columns difficult basis decelerate While and a a declining XX% already lower outperformance cost spent. with with quarter, Transaction in management, pleased largest the margin. in revenue including corporates revenue we're expect revenue trailing XX% to

governments decreased decreased increased Commodity category to other services X%, turning now Revenue And and financial addition, XX%. increased XX% X%. In CRISIL Insights. the and

impacted However, Russia the X% of debt of this was in annualized conflict. would rate the significantly have conflict compared other respectively. by conflict expected growth year. by impact the $XX Belarus, approximately to revenues and basis, prior of approximately that Russia-Ukraine to Adjusting and activity suspension operating impact and and impacts On grown an run commercial is revenue million million income CI $XX for

XX-month as basis to realization margin adjusted merger XX% were quarter, XX%. The expense, due increased T&E operating profit of this in fringe, segment XX revenues For Commodity increased profit Insights operating points classified increase XX.X%. recurring. Segment was related trailing operating Expenses partially by X% decreased and and salary X% and primarily to synergies. offset of segment the margin profit

Insights momentum. grew by across growth commercial prior and continued assessments strong Looking subscription market for categories, to offerings X% data business price driven compared Commodity the year

and also quarter insights and both Upstream transactional We quarter In services, consecutive marginally saw our XXXX, and insights, Russia. the division increased data ACV Mobility when X% X% data growth, strong second car in strength of solutions impact with offerings. used for of third and advisory year-over-year resources, and the revenue from and adjusting planning by growing driven representing respectively. performance increased primarily energy

a in performance data somewhat classified a mobility by Dealer continued in high spent year-over-year were For slowing strong products. margin new of volumes reduction year-over-year, growth growth by from profit was driven marketing incentive expansion or low by S&P flat increased margin XX adjusted trailing office tempered driven headcount of points strong due operating very stores. offset the strength equipment and mobility's tempered though and advertising compensation. manufacturing XX.X%. Indices operating Growth by products in was Dow were XX-month CARFAX primarily X% adjusted X% year-over-year. basis ETD to persistent and initiatives relatively retention of dealer expense, among profit as and revenue Financials, increased and as well as supply X% This by by our original auto On quarter XX% products growth basis, on resulted unplanned activity segment this year-over-year purchase in across XX% chain driven powered consumer insurance delivered another quarter suppliers revenues of recurring. revenue and demand in cost, by increases Expenses which X%, sales. grew in XX% primarily manufacturer underwriting are OEM in gains other in volumes. and for Jones growth

revenues recurring XX% to quarter, the as XXX trailing segment XX% every to the X% profit due and operating Segment points quarter expenses this the On during T&E increased adjusted Indices classified increased primarily XXX increased profit this basis, mutual quarter, and Data funds segment increase XX.X%. XX.X%. margin X% traded profit Once again, were operating including volume. a increased across derivative AUM volumes increased activities. gains XX% on were are trading and increased operating asset-linked basis XX-month of options margin For and by revenue category more expense. in subscriptions revenue from key new business X% custom than ETFs. up fees increased increased Exchange S&P driven XX% index contracts, in driven technology the

AUM market net and a ETF billion X% depreciation to AUM billion. trillion, ago. Over ending year compared inflows were $XXX past ETF one resulted the $X.X is quarter This in year, decrease totaled $XXX of which

prices, increased average which in on Our changes drive quarter. helped tends Revenue asset which outperformance to lack ETF revenue AUM is X% this year-over-year. based

offerings. division, last in Solutions the saw marketed end ETF year, expect versus driven which by in $X the of of this Engineering XXXX. the totaled BPVC, However, quarter in Code back depreciation half August Most net sequentially the first of our our totaled Within notably we to decrease indices we inflows in billion Pressure non-subscription with associated fees or billion. growth Boiler X% released growth Vessel primarily revenue $XXX was asset-linked

over and the XXX in increased decline For Engineering XX% same increased while Solutions to Engineering was development the by basis this increased expenses, profit as quarter and in revenue operating Subscription margin X% revenues Adjusted On driven This adjusted increased X% X% in a segments were year-over-year, operating margin. basis, recurring. points period. XX% XX-month royalties. of a non-subscription classified XX.X%. trailing profit in resulted Solutions segment revenue product investment contraction

Engineering you is remember quarter of we'll XXXX be even which BPVC, the the million years, duplication the in next not toward of to it will typically published August odd years. approximately in As for important contributes look but quarter third lap Solutions, $X

depicts forma Now guidance. our guidance. And slide this to adjusted And XXXX moving guidance. pro GAAP our slide depicts new reinstated our this

For now $XXX million, now is lower businesses. our expense million our for $XX lower this digit margin the drives with forecasted expansion XXX and incentive and non-ratings expected environment, of points year. $XX seeing issuance as between margins we're on we impacts revenue the expect margin approximately business. $XX compensation. the XX.X% expense recent expansion by strength most in expect basis in-line aggregate non-ratings in and guidance high expectation divisions, elsewhere million ratings expect revenue, within reflecting the downside year. emphasize of corporate year-over-year, partially We see than in offset our operating We to declines $XXX between low-to-mid we previous In the a margin million to XX.X% This Interest decrease our expect million, disproportionately this our allocated guidance. single margins to operating wanted to five the we in range adjusted approximately

capital range billion. division. free following ranges. expect in slide revenue of in to million of We excluding guidance $XXX now our expect the $X.X $X.X margin billion items flow and a The adjusted We expenditures adjusted profit growth and by cash illustrates following approximately operating certain

Market we range low-XX%. and in mid-single Intelligence, digit in the growth the For expect margins revenue

expect the range and mid-to-high now XX%. we margins low-to-mid declines XX% in in Ratings, revenue the For

range For in digit in mid single margins the we revenue XX%. and growth Commodity expect mid the Insights,

the XX%. revenue in expect and range growth we digit high single high the margins in Mobility For

For Indices single expect we low-to-mid and revenue margins growth the in range XX%. the mid-to-high in digit

single For quarter and low expect In Engineering business. proof revenue closing the we our in mid-teens. provides the further margins of of this resilience Solutions, growth digit

at turn have us Our Mark for set ability the and go. profitable to drive with teams growth that Let combined focus teams discipline well to Global. outperforming over with of of capabilities questions. and S&P the the products Those synergies back me speaks differentiated And your call position to on years truly we in phenomenal volumes a to the

Mark Grant

we will take Instructions] now [Operator Ewout. you, Thank question. our first Operator,

Operator

Thank you.

– may with go Our first Sabadra, you RBC is from question Ashish Capital.

ahead. You may go

Ashish Sabadra

be you issuance the Thanks some in for possible the about for guidance, provide it around third taking of wondering Thanks. quarter question. fourth think should for to would year? I just color momentum how the was the versus we back half

Doug Peterson

Hi, Ashish. This is Doug. Thanks for the question.

what of credit provided gave third look team, with difference doesn't what make overall given we've and right some beginning issuance We just overall down research quarter, specifically. then was the of our actually and the is was we your that low-XX% but actually the assumptions. we now, a up first me high our report month, you ratings was today. issuance quarter see month still information range. We at you Investment the to the is the quite high build grade starting weak for say of about give debt new yield start, with research but view I'd the of a, you question and of there what some weak. at was call July, beginning loans issuance disclosure in high-XX%, answering you Let all, One how off between quarter pretty yield a

Ashish Sabadra

color XXXX, run about was but of if of Thanks. I think realized synergies provide wondering on by And we end front run million the you obviously color. being could quarter. how then very the that's the XXXX. $XXX expect that only that That helpful pretty should XX% at execution exiting almost strong in cost to achieve achieved any high with synergies, range also you rate understand rate on the on I a cost

Ewout Steenbergen

is This morning. Good Ewout. Ashih

benefit $XXX XX% you the better amount expect year, are We terms execute in pace already we million, we this integration the more phenomenal So should $XXX of million don't the $XXX run it XXXX, of We positioned obviously because organizations. and is the expect million, think above therefore execution have from precise having of exit, number but year that that's significant that we a you synergies. cost in approximately that rate for we're a for our so of XXXX.

that north million. So of precise $XXX that, I significantly a number you can't will a on number that give be but

Ashish Sabadra

helpful That's color. Thanks. very

Mark Grant

Thanks Ashish.

Operator

Thank you.

Patnaik, – Barclays. with go Our Manav may from next you question is

may go ahead. You

Manav Patnaik

question said should Thank some you. think that the Good morning offset much the just I ratings but of broadly end. least pretty guys. help businesses, Ewout the lowered the at in was guidance, weakness, you lower to non-ratings first think, non-ratings the businesses My on I guidance summary,

today? about, just attempted can that you've level gap your taken in conserve perhaps and you of this guidance So talk

Ewout Steenbergen

good Manav, Yes. morning.

said are but course that our resilient, have environment. to always of businesses very external an immune not We they're

the will are is for June So some slight the business, from the that remain example half is point. the assumption of of, in for seeing management under you XX impact terms second the year flat assets Index

have So that business. index the an impact on will

of there's several So those.

Insights. is impacts Another are example the minimal and relatively impact Russia overall these But modest. on Commodity

you me have to a let gone points guidance. the that assumptions with So other give data respect the into few

we those in than overall be remain high perform is the the the strong, company, already full phenomenal the brand market pleased XX%, have about expect exchange up inflationary as end So of to And actually in but expected think the half six some June be that a up if level, then taper first the of also environment. outcome to point. year. And become lower look expenses our with year period off difficult, to the of XXX you we're said margins mentioned, for Having expect you the which is is points. trading at reason until of from comps seen performance or of XXXX appreciation bound then negative very at range overall[ph] build year. the then this more volatility, really a ratings basis are there when the issuance be And is for more outlook that second we for excluding of XX% extended XX be to half less growth to the price five They very division. really to flat to to derivative, the year-over-year, well the flat we in that a traded

ratings. strong impact think market the the for course overall So company, these of aside we outlooks really are actually for taking

Manav Patnaik

I I margin mean, Got can it. maybe outlook a synergies you schedule, And taken you've ahead if of similar lot the question talked a you cost cetera, still the et down then I mostly. the but of margin ask obviously being front, think about on

run rate guess? or So while, conservative kick is the that in a doesn't just maybe being I for

Ewout Steenbergen

expenses company. the the in Well we are overall seeing a of lot of dynamics

and so of a that and of volume elements are levers being merger us at a as synergies, taking company, in We very this with procurement, eliminate, respect the consolidation have some duplication cost to and the of the at that some our terms synergies actions decisive on of position some but on have to to we of many sourcing the in estate other pressures are management company, parts plus we're fortunate the roles area, the the the levers areas, pointed can we moment. due many inflationary that real other procurement in we particularly benefits the given compensation, of

expansion is or achieving as The being very we non of we a quarter. I about this margin in the position just basis And ratings environment of would the for outcome very million very with margin XXXX. north think and in expenses think expansion be outcome. So $XXX points a well strong said, year would million us were businesses flat strong full second $XXX for XXX

Manav Patnaik

Okay. you. it. Thank Got

Ewout Steenbergen

Manav. Thanks

Operator

you. Thank

Kramm Our next with question is Alex from UBS.

ahead. go may You

Alex Kramm

Hey, Yeah. everyone. good morning,

the the Manav’s guidance, Just Insights adjusted did at your bit, leave basically growth you following nitpicking, and a but prior lower. now margins are and actually this Mobility questionnaire on up unchanged I Commodity little the for maybe look revenue but of two forecast margin is from if segments,

So it I seem like as changed with everything some said, are just you costs does higher.

revenues why the segments sure maybe not the you specifically margins those So because flush out lower be unchanged. to if can would two it

Ewout Steenbergen

are to segments, staying example, small line expense movements adjustment drive on the to respect slight that, changes and but these the really just expected with the those Alex for which you're just line for two could and having segment. that revenues, for within range on margins a the with revenue respect

positive highlighted, this Insights some have as offset we by Russian the Commodity an segment the of where is then we Commodity the that impact me in Insights, as is commercially but businesses. momentum take very So situation, let have example

little of on I So margins being read in into overall, just and changes. bit a as we it. And revenue impacts is impact But part you those really we a These those see are on are seeing of can wouldn't offset it. much a that businesses. too and result, that reflected minor

Alex Kramm

second they two had bit on the just can I've success side, like so Helpful. far, you a asking not what color give just conversations more you're little you. for Okay. sales organizations And least Market around And yes. it basically force, hoping having integrating is Thank year. us sounds clients, the I'm then specifically commercial that Intelligence operating the at until some for are at some really and client you're next

operating I at of So as whole this basically you're representative would've of don't I the to one-offs or business, those one that but if all are planning expect book know be the going with company.

been it's we're what's fully that out quite maybe so And why flush just not maybe hearing and done yet? integrated

Doug Peterson

Yeah. the And division absolutely Alex, ahead Market actually we're on thanks is fully furthest the Intelligence that. that's integrated. that. for

two of of all across products the training divisions. full done the have We

seen go across the with planning the all services customers Intelligence out to the have financial We to prior Market for segments. joint and ability now

some a And by year. financial moving coming into products, about marketplace. We are sets seen more of also of been with also as couple PVR them, have new wins early call both base on have with data of the have have we some is which been which Intelligence. out about a into rules, the we SEC products Market selling responsive which products, talked well lot later wins which from the new products would've service financial to corporate launched. come this one We earlier some traditionally client talked then of early We've what services the more early examples, wins some clients and of as on to

really must that you develop but that able We we cross-sell. anecdotal. we're So to speaking very how also X,XXX leads, of we're those sure the up be we you we'd saw, quickly. that are I'm our doing the following very, speed over and about a with, ahead be as about synergy. and have not cross-sell we're excited and mentioned on with assumptions integration were ideas And prior

So best we're areas this doing is of that on. one actually the think I the

Alex Kramm

good. Very Thank you. Okay.

Doug Peterson

Thanks Alex.

Operator

you. The Kaplan is Morgan Thank Stanley. with from next question Toni

ahead. go You may

Toni Kaplan

thanks. need a another side, that it It to to on ask on it'll like thought taking on take longer the are synergies. feel It the side. synergy one on looks the create the you're really new revenue XXXX given you'd products. you good is target there? revenue But be sense side about I and Wanted time guess, or aware the making you you just progress longer cost great Perfect, makes still do

Doug Peterson

integrated changed the that on customers, fully while Yeah. Thanks able we in $XX two we which three we will about a data the to have to to a really take already I to we the at sales progress Toni. view But this is revenue the But to Well, thought me would understand running for that force. projections synergies early would've sets next is the rate early back-ended million excellent. integrate feel actually the still announced be would've have what more positive been. be to revenue ability It's known quarter have that that of in always the synergies. ahead the something we've to run haven't of be a lot We projections years. it the

Toni Kaplan

– I is guess, wasn't based is only then clarify, up of That sounds want piece IHS Market Intelligence, as with that which in any additional great. business? I year-over-year, that the just comprised color be it software on down, the Solutions just used the volume to Enterprise offerings this just think driving there, thing? legacy slow enterprise to familiar, Solutions And just are services. I I X% managed the and on maybe

Doug Peterson

market you weak. Toni. which But IPOs a Yeah, that the solutions revenues what's as Thanks group. IPO that IPO from incredibly come Yeah. well. and been It portion you're comprised the of business has in includes as there's of know, right about,

one of position but of early we've delivering products, sold underlying corporate on which into So where the quite traditionally is we're well. seen have down which the This seen that's wins solutions. able growth, sector. main issue We're of the slowed doing the the to some been software, areas delivering services has to business being is financial

but weak markets very to So start, some capital positioning. IPO having great in from the off very, impact a

Toni Kaplan

you. Thank sense. Makes

Doug Peterson

Toni. Thanks

Operator

Thank you.

Our with next Mazari from question is Jefferies. Hamzah

may go ahead. You

Hamzah Mazari

good balance side cycle for what business on My ratings question and business, are Hey, the of non-transactional morning. through your year? is just comment the how that of you there the assumptions sort maybe the is on could of stable the

Doug Peterson

on of give morning I will Good you some course that. insights further Hamzah,

As pointing the is elements of they same you revenues bucket and are direction. all non-transaction different know in a not

further give me we're a let So what you expecting here. little in bit insight

what well as fees strong looking as So annual is is CRISIL.

remainder the you So for offset continue second of we ratings to by what those down. evaluation quarter. And have would to to seen which initial year, will the be some ratings, impact credit of also is is well expect M&A that the in-line FX, which linked for of services, do more and

So decline scheme expect digit for that transaction non-transaction bigger I declines. some and this but think revenue for ratings for to year, providing revenue in offset is stability the course best low single a the of

Hamzah Mazari

be looking you on or as or guess business, Thank at data it. And Is be is regulatory are front helpful. the advisors should cracking just that of you. was my I I really is just treated anything, side investment there material? on Got side Indices versus publishers. the think on Very investors should Indices that the Indices the whether this the not looking SEC just at follow-up businesses

Doug Peterson

run request we're for jurisdictions what's are index – Hamzah, know has providers. already some called SEC a business regulated in about out if you the the like as comment under our The regulated as we has jurisdiction about Yeah. and for European BMR.

a We file response. will

It's term low trend As transparency. industry a active lot passive. from there's cost has of an you very that know, a to long independence,

And performance response we surprised last for in years, XX of we'll this regulatory That it. growth not very given the is proposals. and our a obviously were to We index just nothing size have the the to highlight any industry. There's now, all a over of of that as the comment. SEC. is the strong of request related But

Hamzah Mazari

you. Thank it. Got

Doug Peterson

Hamzah. Thanks

Operator

you. Thank

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

You may go ahead.

Jeff Silber

We argue assumptions, later. Thanks play much. devil’s of growth recession. you obviously economic at not a the real But so your a really forecasting In you’re slower in Slide looking what definition have can but let recession is forecasting GDP, me XX where advocate.

assume be different the might in importantly on economy second that be going a recession What would more this the impact half into U.S. the the your Let’s of business global year. segments?

Doug Peterson

we Let have and to the of me then to it Slide start, more assumptions hand color. I’m going XX. you saw that over to But you on some first Ewout give all,

weak matched have a of States, given growth significant higher slowdown in being also by markets, the seen you’ve impacted environment, and in uncertainty been current inflation. United by already Eurozone Each in this a also policies. which of scenario one has slowdown directly being China ratings the globally, increase types We inflation, seemed the with issuance of is in impact our their businesses have in different with the the the business those seen the already and This is by substantial markets.

interest a that in increase That prior range then cost in at for commodity positioning. had some will crude information information a of the projected higher trading could it in to energy years. industry growth in we than and oil, saw which risk does some have you the If overall in higher here, you and that been we our much from well the that’s price volatility looked quite at see the insight be leads business, $XXX the

see could we So some benefits from that.

some with to if more our the we bit them interested – if little environment, going them under in indices impact going see a as but in as Ewout might well businesses from businesses. have people in stress, to time, intelligence think same hand the negotiate risk it about we about if how data should and the Our their accompany we to about market they have at other – customers I’m times. other over to benefits difficult to start information mention

Ewout Steenbergen

ETD more insight one to platform the offset it, the and by ratings before, offset just parts the mention actions. for the business capital revenue, at course the solutions we of doing area. thinking business, And seeing immediately of having volatility intelligence, AUM as the market that market the Doug are transaction opportunity other index then enterprise course, but example markets higher is when businesses have well of we mentioned On in in to fees of businesses, of part a commodity further top sensitive the global Jeff services but we higher are trading take volumes.

The margins. taking And You already executing is to to to we an very us our think uncertain can we us synergies would revenues those year, like others. even and benefit levers of downturn in I to course, achieve. the good playbook And we of this gives benefit is and on for gives recurring extent, protect those differentiator and us of we strong that a resiliency harder. that those and of terms having, half offsetting many point also levers merger that then with a for level pull could a deal we’re all that a compared say diversification at more actions can higher the actually environment this second that clear of to out the a basis the course business, moment our some the are the environment benefit of and future. and is

Jeff Silber

a that you but companies think know other business, back sale I ratings be that they a if weeks ago? a could That’s If see a bond large don’t we saw pretty market pretty I to the or to be come your were over not. frequent might involved, I seem importantly, might don’t were transactional you have more bellwether few a that’ll Do to from impact we’ll yesterday good if market. not timer shift that there expected issue Okay. know the really if revenues, helpful. we Apple.

Doug Peterson

sector. sector, Yes. sectors. biggest lot on large A the grade, strong downdraft institutions at investment the we of pretty in those issuance issuances yield issuers, you’re frequent the actually the where to CCC, programs, Jeff, B, on the from the financial see impact be seen issuer tend non-investment BB really we’ve especially looking grade of high

been very CLOs. formation there’s low So of

from we’ve fact, seen in sector retail a withdrawals so the decrease In seen positions risk for CLOs. and we’ve funding have

real you’ve of we there high seen the on the at seen really particular but Apple, of And in yield the which there, high part real curve, the investment story, the seeing been to need both sector. we’re deeper across the not – biggest bonds the loans look there the all weakness. then But people So a activity, any we’ve institutions we’ve financial lot life is the very on active, and like yield issuance of different grade, seen and that all sector segments. it’s for has

Jeff Silber

much. Really so helpful. Okay. Thanks

Doug Peterson

Thanks, Jeff.

Operator

Thank you.

question next from Our is with Bank. Deutsche Alwy Faiza

You may go ahead.

Faiza Alwy

us I the to synergies. hoping follow-up and point. morning. you, at if good of areas revenue And thank curious where some examples you’re was Hi, give on most you Yes. this could seeing traction

Doug Peterson

Yes.

the that So such first of off really all, we’re on start – excited as fast I said we’re a earlier, cross-sell. we’re to

data types the being a Markit and able those now ENR sector. products we are to clients. bring insights commodity the traditional IHS the door marketed research to were on been had corporate market with the products which the have of clients example, services of areas plats from been finding growth in for are the with opportunities opportunities Investor which which Relations initial were coming it’s products products, are the from that we’ve cross-sell side two used financial is teams for of biggest intelligence penetration lot for being sales to of open traditionally business, what corporate the so and benchmark the seen And segment, had world, see and lot intelligence that that the market and a In

upside the we’ve so A be would And there. area a third index seen within business. lot of

Markit’s brought index income lot know, rate the of they’re and are opportunities. over, there’s you related our fixed business Indices in not fixed we pipeline on ESG that run indices. a be As yet, but These our will to necessarily IHS income in

revenue areas so in three big a that, that far. those coming we in be lot the would So the haven’t largest seen that’s of theme but necessarily yet, interest a but

Faiza Alwy

as the the a yield. look refinancing eases on of curious side just the we high Thanks. assuming just Great. the And business, then you view you wanted rating into get And think about about you you how yield follow-up your we as XXXX. study, won’t said I just And know get around from holistic just I but normalizing comment on market a volatility were talking to XXXX, I’m at high here.

Doug Peterson

$X.X a of We well capital for trillion $X yield trillion the look Yes. obviously in of of a few of available is amount somewhere that’s capital to north ways, trillion we market them at of private equity deployed. around one The industry. $X.X large there’s sponsor the estimate high that that’s in firepower be

pipeline, lot they’re there’s look deals also a to M&A time. be a but taking of actually M&A pipeline the lot We at right of the now completed,

a which M&A, there’s announced, already been slow has but realization So not of completed.

in what’s just I risk to And equity the So at retail of with the mentioned one know, pull the we quite in kind their private market that people look the management we’ve with products. refinancing. answers, as with the participating levers from They the and et XXXX, the especially relates playing you interest liquidity at happening which new yield factors there’s be have not prospects start Traditionally, we’re some that’s out one what’s another cetera, then seen the wealth the approach, generally as earlier they’ll at high are, their rate then of forward but closely. coming look into XXXX. those XXXX, other from happening key of CLOs. refinancing the And what of industry, rates, have times over, is off speaking, sectors. withdrawing growth looking fact, And in been would how be requirement, there’s been to earlier be a with to M&A, formation a going of

uncertainty as go well. that into will in think there’s we stability when we So some more start seeing markets people back and that the

Faiza Alwy

much. so you Thank Great.

Doug Peterson

Faiza. Thanks,

Operator

you. Thank

Our next with Blair. William Andrew Nicholas question is from

ahead. go may You

Trevor Romeo

you Romeo morning. for actually This so good the Thank Hi, is for questions. Trevor Andrew. taking on much

me. two Just ones quick for

it’s that growth kind further. even First see of of in revenue encouraging to all, quarter, of ESG a accelerate the XX%

anything or any ESG time. kind longer rates of of above a of there’s over trend growth evidence that that if growth even that’s the Just there’s environment be wondering higher sustainable current if in kind period boosting might

Doug Peterson

Yes. Good morning.

CAGR course of which bit very ESG in is XX% let we’re kind me period more happy for of a really color phenomenal a coming have level this be growth guiding XX% a little of a of been we of at So the to and growth, to you because course and multi-year great. give on is

seeing If party well, market So assessments transition so or new intelligence a positive as and is we look the coming energy in by doing ratings, insights and well a written sales. underlying nice as to Also And and ESG. Indices around that’s momentum. then have see business, we we cost in technology, that price Indices, data the elements, although opinion, new in growth particularly true clean the lot from activities, couple energy at commodity second been around investing we’re small good also payoff. ESG momentum clearly of some climate a in ESG starting offerings base,

investing to in demands a ESG would momentum that clearly we in it. continue. There’s We’re lot of and market positive expect

Trevor Romeo

that’s Act has Thanks. industry. pretty a The somewhat follow-up. then tax Inflation related credits climate the for significant been maybe energy proposed Reduction great. out And and investments there clean That’s

get of So any that business to something see would it either Thanks. you the were on insights if ESG actually demand business? or having like commodity kind past the

Doug Peterson

before obviously that’s climate like could be a the this, layer still we Generally seeing something sector to Washington. this the the in It’s discussion while infrastructure is in start into geared could it speaking, benefit into market. see it really financing gets as but as market, some bills take which towards the – something going

Trevor Romeo

Okay. much. Thank Understood. very you

Doug Peterson

Trevor. Thanks,

Operator

Huber from Craig with Huber question is The you. next Thank Research Partners.

You may go ahead.

Craig Huber

there, when in Then same you globally? Great. quarter, there use by follow-up you. second first of peak the a along then about curious have are My insights, the customer? the were fuel And lines based fossil revenues expecting commodity oil the Thank what question, percent guys on I end

Doug Peterson

to just to opportunities about relates But our of business, part the based, relates – the But get across large back question some addition, fossil on remember that. group. seen the first I to knowledge energy. have to in complex the our have it we’ve across that don’t increase We’ll the you great fuel to On a answer.

As is study an example, a though fossil be transition. energy to component for going special even a we the necessary fuel, issued on copper copper, copper which isn’t

you answer on the back So fossil to have question. to we’ll get to fuel the

Craig Huber

little right the sales then health given also volatility. – you. your of there And please. customers market What’s the Just talk that pipeline market Thank area the bit now can about that, the of intelligence about you talk like? the looking your a

Doug Peterson

the that is pipeline knowing of despite demand right actually is lot business healthy a quite price a of There’s high insights oil commodity The information. now. Yes. for

study As we of whole products. done, have I mentioned, special we’ve been deploying the energy set new transition a copper

a So lot and position, have of and data. been traditional find industries for even energy commodity still looking the new some and company. a overall industry we’re entire little to insights, of And the then mix very able some are itself gas the across more if our concern, opportunities bit match data there’s of with being the in information to areas stress. strong some new oil the consumers is robust of a might market The

index some to relate launched we’ve new which through data. indices commodities example, the an As business,

products. mix growth we’re opportunities a of and across see pipeline. We company lot match strong So finding the to a

Craig Huber

Great. Thanks, Doug.

Doug Peterson

Thanks. Thanks, Craig.

Operator

Thank you.

Oppenheimer. with is from question next Our Lau Owen

You go may ahead.

Owen Lau

you Good taking Thank and through pricing inflationary please morning, on the in some questions. of your with each your for to an through Could my customers update to you segment. you. give cost ability thank pass us

Doug Peterson

some Hello, insights let Owen, on and me give further that. you

about value the we our generate think start So customers. always when we think for to we first about pricing,

starting uncertainty, current high our also times. of particularly our products know, the as our customers. They’re we higher economic consumption very the an our our current insights, And lot of with of volatility, base know important, valuable. it our And in datasets, that’s valuable then itself all are are environment is for research, point. you the So even products period very in

that we’re to balanced environment, relation about to in our So it’s always increases before we our the is doing on price I to point fair appropriate think pricing. inflationary that customers, said start passing of consider in selectively. a And an part if what Obviously that to high and starting is cost before.

in custom in on business X. change there the made think also changes and we we ratings and now subscriptions data August made some price a have starting have So about index, list

also So fees. ratings a change for mid-year the

thinking examples, of the those are retention the the and and the So our long-term a interest about medium right of from of for a balance context levels couple the always perspective. in but the customers of health company finding company, the and

Owen Lau

of the you. Got That’s quite strong this the of you and about year-over-year. in could talk your And also that up rate retention segment, was the XX% more it. the it then also you on maybe I strength think And about revenue growth? please broadly, business? drive helpful. the from CARFAX then Thank dealer of Could sustainability talk Mobility please Mobility

Doug Peterson

This for the dealers automotive Thanks, chain which is very going. a sales. for from and providing in movement The manufacturing most now Yeah. Owen. about where the closely car of all supply information new the high in car OEMs about the working the is that and disruption sector. the manufacturers right really incentives on a the benefiting business are providing need is is sector, used with programs They’re discounts, tremendously

demand the product dealers very a middle So the high of low right environment. now are in

has board. CARFAX benefiting been so And the across

a the called balance well called were as product, were businesses, there products which incentives at the an launched. and provided. and that’s CARFAX couple that new as the between all look to So how discounts segment spelled Mastermind, Automotive are it’s a EyeQ, of One – manufacturing provides E-Y-E-Q dealer

has really this the CARFAX area demand. tremendously have an highest the So been where And this dealers is benefited by that it’s environment. difficult

Owen Lau

Got very much. you it. Thank

Doug Peterson

Yes. Thanks Owen.

Operator

next The Baird. Meuler is with Jeff from you. question Thank

You may go ahead.

Jeff Meuler

of revenue you. growth of any is in business, the data for is obviously it or growth that give I you magnitude the sense you Thank upstream just adjusted order the your see Yes. of I have third quarter given to straight continuing us Russia-Ukraine. that accelerate of question, my ACV can guess lagging.

Ewout Steenbergen

growth consecutive Jeff, the in we’re ACV the quarter is fact, in upstream business. seeing third that this

the impacted by bit Russia a course, situation. Of

about exclude it the the that the if more in in around business. impact Russia think So for revenues growth quarter for revenue you X.X%, itself of upstream

this So in I few that the for a business. of it that helping up. last going had period this clearly, a energy overall The difficult markets turnaround. the in very situation out of very years, into way, levels are coming but strong this are would the is call are industry This business a CapEx a going

in we positive continue that and to near the future. would expect momentum very So also

Jeff Meuler

inflationary or guess, driven in you’re are by And adjustments the saying Ewout, into of those reallocation of seeing. margin rating you’re Or Okay. pressure the revenue small. that, some of get that that also then I I outlook that I adjustments there are segment is the get the pricing because lower terms get guidance the segments? cost, the Thank corporate absorbed in segment other you.

Ewout Steenbergen

financial down, the changes respect because management also that coming synergies, we reporting the allocations course, are with helped allocations to so No actions of and by on, highlighted. actually of

are a businesses. what of the actually mix really happening reasons very in is you shift a what So seeing is different

was to the Russia year, level, Commodity commercial of second speaking I respect of offset in the AUM the in by for the strong momentum. flat Index the staying about example, with our in for business, impact assumption half Insights So the assumptions,

reasons set overall, these different small. So impacts a of I each very segments. the But for of relatively are think

seen you any But ratings, improvements the the very the five quite outlook and environment year second the area, expansion. seeing shareholders. of think we we’ve for of what can environment in that actually good, not are from is of more our past. the recent main think we where assuming half of issuance course, impact to the for the I are performing compared in seeing resilient positive a divisions margin growth well, really are strong our deliver to expansion six we healthy is in our that this margin revenue And perspective,

Jeff Meuler

Okay. Thank you.

Operator

The you. Sachs. Goldman with question Thank is next from Tong George

ahead. go may You

George Tong

your wanted issuance morning. to Good outlook. I back Thanks. Hi. go to

five to you clarify year-to-date. the will calling performance trends similar XX% will seen mirror issuance a year Can and July? decline you’re to this that Or in the build months be forecasting updated if assumes up months the remaining bottoming June You’re your in XX% over seven year. assuming first issuance performance effectively if we’ve issuance of for in guidance issuance

Doug Peterson

the similar year’s that is assumption it’s to George, the second June and of Yes. half July.

look second the year If you year, the half level year. issuance always in is of half first of lower the of actually at has any the

got towards quite the which there, year think And quite some got got in months you’ve July about of and the summer also always then are end slow. in it, are you market, you’ve U.S. the which If August, you’ve holidays the slow.

expecting it’s similar last that will to we’re couple level issuance been what there be the So the months. will be

George Tong

on dollar is that of adjusted is year-over-year looking basis that issuance growth Okay. And at an or absolute trends? seasonally

Doug Peterson

Both.

George Tong

a from Commodity for it. Okay. And follow-up, calling mid-single-digit then to maybe you’re a growth outlook unchanged outlook. going Got prior as and that back was Insights, your

being of talk mentioned seen. a of You commodity to course, from expect more about the prices you I business? can other but Russia, would’ve Insights potentially headwind, pieces benefit in we’ve the moving Commodity some

Ewout Steenbergen

George.

at the combined look of of actually the sales business. the highlighting clearly seeing So underlying few and quarters components for if Insights, Commodity levels we’re we sales the record the last activity, benefit

low good revenue seeing is are We the commodity are early some now our today of and having the are net-net, synergies, The the that’s for customers. prices it’s the situation transition, a on around we are benefit customers. an from level although, that incredible that benefit. focus to benefit expertise which of that, course, additional then clearly the our have we And on of top we leads of that, And course, also can investments. energy help numbers of

positive. then all will continue. months and a positive insights, all think impact for resource and March. of if So you it the started Board, advisory will because two is will then drivers if year, momentum that impact year, more Then in impact and or and think that Yes, transactional, months bit in looking assessments upstream, across of of be Russia there categories, this that of see I of of is less is little price little the we next the XX underlying lapping a bit I of impact very is the data each it the

George Tong

Got Thank you. it.

Ewout Steenbergen

George. Thanks

Operator

you. Thank

Rosenbaum Our with next from question Shlomo Stifel. is

You may ahead. go

Shlomo Rosenbaum

I’m cut CARFAX sure demand used Hi, little this the in you of segment, thank a discussions. in strong like. But if bit, addressed very prior you. out because with in and so the cars in dealing I Mobility not

some you some to to the little so, you see terms do year of chain see if the – over that see areas in other Or the CARFAX. do you in start out growth expect saw we expect in kind supply improvement better? to do of bit same next we’re of going just If beforehand not seeing that balancing we’ll start see a we’re would or to a of that we going

Doug Peterson

it. Mobility that growth very many high trajectory has Yes. this segment of Thanks, We – Shlomo. a a think has ahead

low of which one to to If dealers you where product. look factors, is don’t automobiles, product right very earlier car that described relates for a used at there’s which need is production couple a different means there that I of new have now. taking the environment, place, have now right They

from analytics, it, can can the Automotive product. data premium. it’s they in or they the CARFAX So at it Mastermind the when need sell whether get sell it’s They they it,

demand even for to the go high going electric coming approach not that. as the move will such starts to production in customers a away taking And And now So be working system toward there’s global to dealer’s is revolution vehicles. the there’s a going back. with place right transmission

approach of approach higher growth from the So much is manufacturing going We the dealer to stay benefit think quite could important. actually production.

Slide which You the X% growth, for been see going of which that we that one even global start producing – talked on in to the the for few earlier, some area the some is the has some increase financial that new we industry think financials. insurance continuing well for XXXX the products another as in produced. next industry, the is services information up And production opportunities financial we think as will them sector. to automotive years sector. up over There’s about credit we’ve We which

and So decisions. that change. manufacturers data to for taking a There’s informed audit institutions a of us to dealers segment, analytics, the through an financial and going across the lot of place the is middle opportunity be insights which at a disruption we the make board, and it’s need think and and to is this the provide lot of

Shlomo Rosenbaum

different just the in count? quarter Not the up is one. we that the the count. kind of this great. count kind Okay, And the share average of maybe finishing what share terms of next ending then, Ewout, a share be But housekeeping should ASRs. expect very quarter, in ending was And to but

least Just at figure trying our the we’re modeling sure to out, appropriately. – share make count

Ewout Steenbergen

this you put the with of you we Shlomo, over can year. slide your a period share specific where see the appendix help in to the the decline count question of and overall

the most of shares So recently. – That sorry, come million with to issuance the Markit million XXX started XXX we IHS after has for down XXX combined shareholders. shares of

so We be will the the true X the into this million $X.X that also Then expect for that like we ended delivery somewhere shares of those be something about be month, ASR have ASR, to X upfront would share, as will enter million new up soon. of billion all a out. billion taken later $X.X delivered we of

million that a delivered So the of then which for the be the shares will XX% ASR issued you shares six months, removed And the of of billion were new that we up end about phenomenal. say Markit course, the the IHS X think could been have we of period $X.X get for at the of and already in of year. is true

So can and you you the mobile decline, link. details appendix the to colleagues more but all that is slide the with your the help of find in

Shlomo Rosenbaum

Thank you.

Doug Peterson

Thanks, Shlomo.

Operator

next from with Thank is JPMorgan. The Steinerman Andrew you. question

You may go ahead.

Andrew Steinerman

upgrade And your Pro, Cap is back desktop, just in year? market desktop wanted to mention an I I know of new you the of momentum you Intelligence, where to adding I and did your second business just renewals. focus And wanted Slide to Market this how driven to data and this IQ to much product you’re is I kind in know of go strong X%. area kind content XX expect half driven. is was want do where the of versus sales Hi. where up which

Doug Peterson

morning, Good Andrew.

respect in retention, up. user based that approach growth levels, growing way. also the Satisfaction And with are level [indiscernible] about see contracts. going commercial with we’re price we going see trends contract is past. we much very also high doing then is a translating steady pickup products We enterprise of satisfaction had pleased and the nice think to business, We good good our with increases are faster to that seeing loads the on the We very value, better in desktop, annualized stable than respect are of page in of momentum.

nicely we are seeing and good around growing steadily commercial momentum like desktop in and it. customer So great what overall, we satisfaction

Andrew Steinerman

Thank you. it. Appreciate

Doug Peterson

Andrew. Thanks

Operator

Thank you.

final from Redburn. take Quelch our will Russell with We question

You may go ahead.

Russell Quelch

of phones Yes. Thank data believe perhaps, in up excess me current for half buyback, And we catch your suite? this To you light expecting you the can priorities in of Should on out lay having use what and appreciate the if for and should, just be you second we product Thanks. areas you be it. our do capital? terms of are year?

Ewout Steenbergen

the way, for you and I thank would following initiating you coverage by for your say the the S&P way this Global. So and on call thank joining in

are return We continued of at capital. looking

our to have with to that. our We specific continue will targets respect management on and we capital execute philosophies,

We’re with very we full the will share happy that our adjusted XX buyback, billion cash the lowering for year. continue flow despite free

with to XX free of next shareholders to and the we’ll with ability flow. have least our We sufficient billion, cash year at XX% complete capital then to returning continue

plans otherwise that the targets the with us. respect moment, path our tuck-in to but propositions. large about to no some from small ESG, no bolt-ons this changes continue and we at philosophy the have nice some Think on additions respect used with We M&A plans, where the can you’re will maybe to and to find see

Russell Quelch

Thanks, Ewout. comments. Thanks your there. I’ll leave it for

Doug Peterson

call, again support. everyone to thank want your for Well, your as for Russell. close for I joining questions it Thanks, and the we

Markit. company and Global resilient as the As much I that how of just and IHS beginning to with call, said at five stronger we months, within see are the it’s a new S&P incredible

integration office a in IMO. the very call We we have it place, robust management

a the We’re to commitment their this team over pleased for all get months Global. for years, value us ready vision create they’ve that for along. S&P together again now as They’ve deal. to you of partnering work sure with we this deliver be really all unified to create the for such call our want been it’s possible two None want together deliver. has years to management hard joining today. can and do great and with to and to effort people. progress come a do last thank ensure enjoyable continue very working make everybody we of the to summer would them job without and Thank new the to everyone businesses I of an And five fantastic and to thank really really have done that X.X job the moving so that I to far, hope of I’m want much. a

Operator

be two this of of available for behalf entire of downloading morning’s S&P call. with on year. version will from thank audio-only replay we and Global’s you The for maintained you hours. the Replays slides good be The now A for S&P Global, month. concludes one audio slides That PDF investor.spglobal.com. participating is maintained the available one presenter for and be call will wish On a will about day. website telephone webcast in

S&P Global (SPGI) 2 Aug 222022 Q2 Earnings call transcript