Earnings call transcript Q4 2022

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Operator

Good morning. And welcome to S&P Global’s Fourth Quarter and Full Year 2022 Earnings Conference Call. I’d like to inform you that this call is being recorded for broadcast. [Operator Instructions]

I would now like to introduce Mr. President Relations Vice S&P Senior Grant, of for Investor Global. Mark may begin. you Sir,

Mark Grant

Good today’s Chief on for quarter you Executive Chief morning. thank And Ewout and joining Doug President year Steenbergen, earnings Executive Officer; are President and XXXX S&P Officer. call. all Presenting and today’s Vice Peterson, and Financial full fourth Global

Ratings. Market Q&A of Kansler, President Adam portion joined be by President of For Cheung, S&P today’s Intelligence Global also S&P Martina call, Global we will and of

press our with today. a earlier issued We release results

If they a copy investor.spglobal.com. financial you of need the can and release at schedules, be downloaded

actual The Any can that results conference Private and discussion Securities statements Securities discussed statements current on and uncertainties uncertainties such the descriptions anticipated including to other current XX-Q may the within U.S. in periodic reports Act Reform contain and of these and XXXX, are and conditions based may of matters forward-looking forward-looking subject in in from filed and and risks today's are Litigation to A projections, with expectations of events. be the Forms our statements. cause economic Commission. differ future XX-K, meaning Exchange materially estimates call risks found these of results

as to same calculated the to measures and us The company. media and comparable and difference measures the business the should understand call. during operating we expects legislation today's a non-GAAP is Any perspective release accordance financial Investor the aware management. the has attention the to of of contains in contact investor this information. call We're GAAP. company's on Global of some make performance we're more provided to representatives the This the US also impact or I the from between to the release with In on that potential ownership company's earnings better that between European regulation. view earnings exhibits providing Relations with and comparisons obtain or meaningful information call, periods conference non-GAAP reconcile S&P the to X% adjusted specific of enable who investor have your would to like investors financial

However, this whose from media that found information release. call can ask media we questions our the and to in for relations the would be directed intended contact is investors, team be press

Doug I time, this to At like the Peterson. to turn over call would Doug?

Doug Peterson

Mark. innovative joining you, and Global. today's looking call. to S&P year everyone Welcome to earnings We're forward very a at Thank exciting

you Day, of three we pace action history decisive years. accelerating the on our at profitable with discipline. shared taking Global growth resilience, drive we significant customers, Investor advantage over was to all we company we're value the have at In the As innovation next built people a XXXX, and and XXXX of to year five for S&P of our to shareholders position our XXXX. in incredible create our and to

unless look financial period highlights, adjusted pro to we adjusted the non-GAAP be our discussing we'll refer that for and metrics to at the remind And guidance. from period, a on or financial as results the currency ago businesses exclude explicitly also previously constant year GAAP. the in basis. contribution X% X% called periods. metrics all adjusted As that you current XXXX metrics for forma decreased revenue in today I non-GAAP out Adjusted want divested Adjusted

you more become to and able our in in But our far what issuance, revenue would As be business debt not tell call from headline the growth and rate we earnings. which the dramatic everyone diversified this resilient. has drove decreases is on saw revenue knows, that decline

offset commercial That While in a environment suspension the and by a our FX Russia. unstable our we our that despite in of decrease businesses. came growth macroeconomic XX% other majority of ratings saw decrease headwinds, vast and the growth was X% operations revenue, in

preserve our Despite to adjusted synergies due strategic the action significant outperformance expenses decisive timing flat and we and discretionary inflation on our able XXXX. year-over-year in year, to to of cost relatively investments. incentive prioritization We throughout also the and keep management were margins took around spending compensation, actions

proud a XX% Our the for job guidance and we've introduced We have strong setting lot EPS of, revenue teams to done remarkable XX% growth. growth X% our X% be includes a up and a initial which today, XXXX. company a to to

our expect of and from have Importantly, figures updating we're of discontinued introduced businesses. so year expected for to our Investor forward investors contribution from capital completed our accomplishments our our operations, move revenue our outlined to few Solutions structure We important Solutions, against in half in fixed and of Markit to merger We're operations as Engineering vision to average the to growth be interest XXXX, excluding Day, earnings bold IHS impactful both looking next would we Powering volatility. portfolio the as steps the Engineering cost We XXXX, approximately these a lowering impact took Engineering X%. both debt years. progress at those our rate we the not rates, at Markets, initiatives priorities our with of moving Amongst X% optimize Solutions Global optimized include well, key on further our protecting growth strategic we and we forward.

and active XXX of was just based which XXth first transition shape to passive our from month the asset anniversary Index. the last ETF, index-based celebrated the continue also management, on We to secular S&P

strides. that the we As continue had XXXX, at make to clear of we great the we to it's look beginning initiatives strategic

of million. software infrastructure We the fastest targets XXXX original than more cost successfully ERP outperform told vendor to We was systems, us for major in our size. ever company our $XXX target realized generating to $XXX a in by integrated synergy cost fully million million our including what our integration of original XX%, $XXX XXXX compared synergies

momentum, nearly post-merger. X,XXX generating We continued drive cross-sell synergy to commercial referrals

great initiative spend. to and transformational our made our optimize with strategic also We investments progress our technology

choice destination continued for our our a people making we on sure of remains Lastly, and S&P relentless candidates. focus Global

our indicated diversity. in our efforts employees Our of XX% and culture People Survey Internal or endorse our more

continued in as solutions, term long invest in well made out and bolster several as growth sustainability small for market to XXXX. We private acquisitions We energy our transition. and round to offerings

had S&P but business strengths by We new regulators, that Division and growth can help agreement that Solutions to in businesses optimize across XXXX customer These we where important business. we divest We of announced Global decisions S&P in will We and made to were steps drive the leverage required sell also the an upgrades beyond. performance portfolio Engineering to Global. our decided position entire markets financial the the and several merger divestitures at to product and took launches also related several value KKR.

will stewards the the assets of periodically optimal and disciplined review to any the portfolio As continue at business be time. of structure always, given we to determine

contributor XXXX. XXXX to in results our financial has move global sharp issuance, continued which we decrease to largest the performance, been Shifting as macro through to debt our the deteriorate

despite the full the or decreased decrease saw we in The yield the rated high issuance extraordinarily in levels challenges. from were the but financials issuance the global XX% XX% leveraged is XX% of particularly from environment impact XXXX. the we execution saw we when our with those across issuance, noticeable certainly in in decrease pleased For a company including which high year, loans. This teams impacted XXXX,

clear results of our previously, our disciplined aggregate to commitment evidence execution. provide financial As mentioned I

in and XXX approximately the have would XXXX adjusted expanded basis operating Excluding by margin business, ratings been have revenue points. X% growth would

in margin of XXXX shown Each quarter five in a We our We positive revenue discuss four constant the in our growth sets Ewout us financials will fourth moment. in discipline divisions expansion the six strength divisions of saw XXXX. and and believe six admirably positive growth growth performed a and in return to our revenue XXXX. divisions. of up for in overall currency

We continue to results SustainableX. deliver impressive in

to than grew $XXX million. by XX% climate year-over-year we XXXX, more and In revenue ESG

and consider sustainability in Under ended we is an increase growth in in and with in as depreciation XX% AUM be net include As We XXXX. methodology net ESG forward. and in reduction in price going that and at the from products the XX% updated billion. ESG and we XXXX more appendix, we revenues you'll of million we've disclosing year-over-year. and outlined new you rather in Investor methodology, energy ETF expect impact generated That is of flows all than than transition transition resulting to Day beginning XXXX XXXX $XXX reaching sustainability just AUM revenue see XX% when we'll a energy our it of from base AUM X% growth $XX impressive growth particularly the from net our

the & including launch based factors XXXX, We Duration Social Sustainable Bond Green, climate new Index. new in continued to S&P/BMV or on sustainability indices Target

Intelligence, from our of versus opinions. Within and new insights an financing completed At green the evaluations also competitors amount to they corporate we commodity corporations world. enormous assessments. in sustainability data efforts core of XX We XXX launched a ratings, are remains around products our sustainable enable and XXXnd party market This differentiator opinions, the key directly the us collect as sustainability mobility.

methodology XXXX. the in that For ends March

We XX% have than increased CSA representing year-over-year. participation already a more growth X,XXX companies, to survey

We billion the XXth practices Report. also expect sustainability. sustainability-linked launched annual $X.XX company fourth continued bond industry to in the of own adopted The more notes companies in advance than Report our and participate Impact X,XXX March. issued and TCFD by We end sustainability-linked to leading its framework. annual We Sustainability

third to the onetime long-term parties. several and XXXX. funding receive now presentation to our for the $XXX ensured a to continue of shift Foundation via efforts the from grant Global S&P million, We leading like for I'd our recognition outlook

actually refinancing maturing ago last trillion This out X% full global next and is study study of latest the month. debt a issued The five is over this total study years. year in year's study over looking nine The when from the amount this global was the $XX.X years. X% up earlier up from

years. this over next shows maturities have the how evolved the few us Importantly,

jumps XXXX we from at unsurprisingly maturities maturities bottom line of pipeline increase is look to is year's XX% XXXX in That XXXX, several at of While maturities the next XX% see healthy The study. over if there that the over very have debt years. coming XXXX, decreased XXXX increase XXXX. to years expected the in last a we maturities a to looking course

in growth rated currency in XXXX, any a why outstanding see continue continued we decades refinanced. total issuance usually a debt at and increase trend year-over-year declines ratings don't we and will is see calls compound leveraged After a research not our and group structured to total gains does US this long it The growth reason outstanding finance, gets X% forecast, looking X% And an loans. financial Please change. this Now, constant in on forecast debt of include in a that would outstanding, non-financials, Public Historically, not forecast, note rate finance services, marked debt to for issuance for X% positive in return for X%. of X.X% issuance for issuance revenue decrease that of a XXXX. anticipates basis.

which issuance, recent build Our and financial to guidance have we more as differ market described results materially quarters. in are from can tied closely issuance

For for build XXXX, be we to X% expect the full Issuance to approximately X% up year.

in view to forecasting from They're Now growth let's X.X% move GDP global of latest XXXX. economists. the our

the While GDP This Right expected in the outlined in slide growth think are we business most be or of which different positive in slide. is a negatively first that could assuming second many ways expect number a There our the factors that assess followed of stabilization depicts it There are potential to or Each story different recession to going be external year, now, number we half. year of a carefully half also into by are and factors we're on two facing this parts the positively potential we've company. mild halves. impacts also important those XXXX. headwinds, of we positive, impact business. a of the this

great Volatility to and a is certain and exchange of insights and in markets as as the our equities to headwind example, can in traded a indices a trading our business. services it tailwind business derivatives be while parts global serving commodity commodities

confident the growth to to we're that times investing through for create immune aren't in long these is right shareholder and certainly we the value. of While environment, uncertainty the way cycle term macroeconomic

on our and optimizing leveraging we're for We're Global growth. the want temptation remarks sure market. prepared can to make development features in we excited steps finish for that of position my That's we're sure the this our to teams the technology products rapidly make to aggressively most slide. powerful While bring others hunker to spend to platforms product growth, down, years may to so taking to and why new I'm profitable S&P give available

Kensho we continues within S&P world's vision with the of We you with the announced savings drive companies. collaborative strategic technology a laid AWS technology allows recently contributor This Day. relationship partnership of us to consolidate key Amazon innovative most innovation Global. long-term agreement to further contracts at to for out and be through one to Investor culture a long-term a

and that Since data vision and on them in team see with then technology language significant I our those for last Global. product been a and truly fall machine to and customers, enterprise, the have models accelerate technologies the breakthroughs potential. agendas models that and the across visited R&D was transformative of had organization leverage Kensho's made respect using artificial throughout and technical the all and to leverage potential growth but drive the newest to progress their bold not this to Kensho's work learning doing make intelligence to innovation S& unique across Kensho has with AI power to only how machine learning large available We embed to efficiency. impressed office

sustainability organic investments acquisitions that areas and energy innovation. and transition, growth enhance like and we'll our We'll very selectively strategic markets is in This also private pursue make to opportunistic and continue exciting.

we begin Global. we revenue reporting is transparency accountability. continue vitality time truly exciting our practice our will As year, at of S&P be It this to and an long

now turn to provide going financial over the our Steenbergen, like Ewout? additional performance who is outlook. to And and insights to I'd into Ewout call

Ewout Steenbergen

previously financial contribution adjusted called and unless adjusted discussing non-GAAP periods. that all period the year XXXX forma The will be Doug. for current period, Adjusted also explicitly the non-GAAP pro today the results and exclude ago in in our GAAP. to businesses as guidance you, adjusted we metrics Thank metrics out adjusted from for divested refer metrics

our with Adjusted largely $X.X issuance results. challenging environment billion, by and decreased financial start macroeconomic Let revenue a quarter to fourth X% conditions. me driven

ago, demonstrating across combination would full discipline of by allocated fourth incentive Adjusted ratings, quarter and year the expense corporate costs. driven year-over-year. were the expenses synergies for year, expenses revenue Excluding have flat X% increased roughly from and reduced a Adjusted strong improved company. a

quarter, primarily XXX basis points to X% revenue expenses fourth year. XX.X%, profit operating compared prior decreased the For to Adjusted to by declines ratings. in contracted by margin driven

margins Excluding adjusted basis ratings, points would improved XXX than more have year-over-year.

which driven total rate Adjusted completed increased expenses, found $XXX diluted the our but EPS $X.X X%, generated modestly, the the flow, be of We this related those impact Our debt expense of items cost free in were right delivery the million interest by of for fourth the final $XX by repurchase adjusted merger program quarter certain in quarter. items provided approximately Among effective offset around cash debt. full exclude executed average adjusted earlier XXXX, tax share appendix. in excluding the partially range net of was items billion number. the adjusted higher lower accelerated year. we fourth the week. midpoint up details of share guidance our can with We we from certain levels, billion in In

$XXX Actions Turning inflationary expense more we than to roughly to noted, timing incentive limiting in high keep forward delivered certain pull synergies, we in million to and investments, the and expenses in acted expenses, reductions as decisively a accruals, I spend despite adjusted for environment. for selective managed pleased areas. to report include taken hiring XXXX, I'm adjustments and the a full reduction some of consulting year. flat

and was more our closely provide update Looking rate would cumulative annualized have $XXX specifically. million fourth we representing our in after expense to ten achieved largest cost exiting the those XX% savings, months. of like XXXX, contributor synergy the In at synergies, on $XXX to progress I only target run quarter an million

quarter $XXX in and achieve cost to is cumulative our the $XX run We integration synergies. the synergies end of rate cumulative make progress of the achieved $XX revenue an million. million fourth on through to continue and With million, annualized synergies

and originally cost expect in are revenue XXXX, XXXX, and million outperformance For the million respectively. $XXX but synergies of in to of synergies XX% synergies million approximately we $XX cost achieve XXXX, We targeted target. targeting XX% now of we $XXX the with

of but is originally target expected in of with $XXX XXXX, unchanged. the the engineering also now divestiture synergies we We though expect full solutions, approximately of revenue our XX%, million XX%

lower realization profit profit real solutions, data division enterprise advisory this growth increased points by decreased X% margin in and X%, and declines quarter, incentive Now expenses results. to desktop adjusted the XX% synergies, XXX revenue and strong XX.X%, slower continued solutions. to with increased margin spend. let's segment operating in Adjusted compensation of by turn cost on offset XX-month profit the basis estate a Segment in Intelligence Market and driven basis operating increased operating was XX.X%. trading growth segment

Looking growth basis, across X% and grew X%. was revenue grew risk categories down enterprise solutions revenue and market pro data X%, and advisory a grew in desktop there was solutions and revenue most intelligence, solutions X%, revenue credit on forma

we of IQ. primarily growth Overall, continue desktop to desktop, impact offerings demand below desktop our was sales our see for reported subscription the from our due For onetime strong some products like to though, expectations Capital in line.

our For in offset on in decreased line's solutions. This strength business continued markets private performance partially softness revenue the in markets by X%. capital weigh was volume-based enterprise solutions, as products to software

continued ratings. services, revenue year X% primarily basis, revenue basis this initial remained to issuer quarter to muted on year-over-year. Non-transaction due constant to increases decreasing XX% Ratings continued and XX% as in a CRISIL. prior market X% a softness the lower difficult compared in volumes partially turning on ratings but slight sequentially, decreased issuance improvement credit currency Now conditions offset and rating reported evaluation by Transaction Issuance. decreased on with revenue to face saw

As M&A and the the of with are and we the market purely here historically are relative and respectively, RES Issuance a seeing indicative those declines correlated strength ICR are activity, of reminder, revenue conditions. environment

operating year-over-year expenses increased management basis. and expenses on increased in a and a margin in driven On XX-month XXX-basis by and a XX% fourth incentive Adjusted trading In in profit offset the lower segment profit basis, segment XX%, decrease margin resulted This to XX%. segment primarily surveillance operating was expense XX.X%. salary profit fees partially by adjusted decreased point constant issuer disciplined operating quarter, frequent decrease currency a expense.

Now, partially revenue. documented lines. Insights, offset by across driven contributor looking solid revenue The end well Commodity by all X% in largest was markets. now the increased X% revenue to CRISIL at its Issuance, by decline performance turning And business in other growth ratings and

fourth by Ukraine quarter commercial However, to due the was million XXXX. a the settlement impacted $XX Russia- growth a million of debt in conflict and headwind $X

of impact fourth year-over-year grown the Russia-Ukraine commercial the in approximately Excluding quarter. have in would Commodity settlement, Insights X% this

to profit suspended Russia of XXXX T&E margin the and the provision, operations synergies, for we the advertising Therefore, will that merger to note partially the of segment impact and an important XX% related The material operating in It's remaining points expense increased expenses March first consulting higher were costs. lower increased and roughly trading flat adjusted XX-month commercial primarily Adjusted and growth compensation, year-over-year XXX see operating quarter the period increase quarter, in in loss was XXXX. promotion we is rates. a operating in by due margin bad offset XX.X%. profit segment XX.X%. to basis Segment spends debt profit

the Insights power by offset as in transactional gas. the market higher gas, compared strong demand categories, services generated the we momentum and XXXX. for Looking increased wasn't Advisory of from solutions, quarter, subscription and in and prior particularly revenues the and data repeated partially Commodity driven and price a renewables. X% commercial quarter in saw resources XXXX from event strength liquefied by business advisory energy quarter and and in natural by gas power transition continued across insights year, data fourth assessments grew that X% in offerings, continued driven Energy grew X% to growth

good the that pleased report grew ACV by not growth the business recognition upstream quarter, certain revenue has in recurring. upfront driven are this ex-Russia, primarily I'm Upstream, to had momentum line of the while products was fourth quarter Moving revenue to X% software

We for growth digit expect upstream range in low the single XXXX.

driven performance financials. Timing increased and spend expenses X% a dealer, year by driven In cloud quarter, headcount Adjusted manufacturer across and in by advertising revenue increased and versus division, expenses. our of the broad-based Mobility ago XX% period. strong primarily fourth in increases year-over-year,

XXXX. profit Manufacturing Polk and primarily other year-over-year in was expect a compression of resulted by This X% the strong for XXX recall driven We Dealer points a driven strength Financials decrease X% grew demand products. conclusion basis segment operating continued revenue trading new adjusted subscription in profit adjusted and and increased XX%, operating to strength Automotive major margin expense insurance driven XX%. X% in underwriting in year-over-year growth moderate increased several by by On XX-month deals. volumes and CARFAX year-over-year. margin in Solutions our business. the basis,

S&P revenue year-over-year offset declines growth Dow exchange in Indices, Jones as X% in to fees increased rated revenue. derivatives Turning asset-linked

in discretionary profit quarter, continued decreases there other the as margin one to was an increased During offset Segment outside XX.X%. profit basis services and and spend uptick time and increased decreased investments X% operating segment by areas. adjusted partially X% the XXX in expenses strategic compensation operating points

trading On basis, was the XX-month the adjusted profit segment XX.X%. margin operating

including rated Asset-linked fees key increased volume. price XX% were on S&P Exchange Index in AUM subscriptions ETFs. new realization. custom options X%, activities driven revenue increase primarily down business increased lower in driven contracts, than trading increased more across volumes by and by and Data X%, derivatives XXX a XX%

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

decreased Our X% average AUM ETF year-over-year.

last revenue the of of in investment X% was declined quarter, negative to by FX. driven spend, the expenses BPVC, by in August timing Coat, Engineering released primarily Pressure XXXX. X% the of which favorable Solutions due Adjusted offset or the increased impact Vessel Boiler planned

our enhancements, customer revenue our you to year invest reset compensation our and the people delivered by growth Day. Before some about across at key be of synergies initiatives. of and with growth, messages a all XXXX will to our of moving tie-ins results these We'll wanted Global targets. drivers is the S&P highlight strategic and incentive I annual see the of in Investor growth. how we expected core XXXX driven will to continue company, guidance, the product

our in drive to disclosing continue technology to we impact we'll XXXX the investments, these accelerating with results, position order of positive first enhanced see products or new and invest across revenue revenue, assess in by and our as We'll areas key growth in few investment for energy sustainability generated two metrics innovation quarter which the investors products as revenue strategic vitality including disclose our from a private new markets, company is the also organization. innovation, help transition. as the also We'll begin from the generated either well and

new In disclosures, begin of a regular performance we'll addition measure to investors cadence these inter of quarter disclosures help to products. observable market

begin XXXX and growth a ETD January volumes XX, area the year-over-year basis data. will We'll month starting rate when of in this issuance disclose monthly the on disclosing build later we

just maintains In best-in-class in between commitment and out to Global monthly high disclosures broken build ever. and uncertain on issuance a volatile and market, accountability disclose shareholders. investment also we our to S&P important a and potentially We disclosure yield. more its grade I quarterly addition the are volumes And than that outlined reporting know will for basis transparency

to be as in the guidance guidance. this noted of divestiture initial slide Solutions will not depicts moving this pending Now guidance, our to at XXXX adjusted release, due providing and GAAP Engineering time, we our press

the back growth, our in in continued expect a strengthening then reflecting belief year. the some we half the economic revenue, X% first of For XXXX of mild half of to and X% recession

X%. Excluding of Engineering X% growth Solutions, between we expect divestiture to the impact the to of revenue be

$XX Solutions expense reset and stranded part million. driven compensation a million $XX $XXX million allocated growth of post from The incentive of and by to corporate divestiture. in the year-over-year expectation Engineering costs to in million is $XXX of expect We approximately

XX.X% an from We the certain $XX.XX amortization Diluted increase related which expect EPS, margin deal billion $XX.XX expand approximately to XX.X%. $X.X which to year-over-year billion. to be is excluding Adjusted flow, to midpoint. cash expected operating excludes the of $X.X is of to to free XX% range items

We at shareholders adjusted of through a XX% and of least flow free to dividends target to continue return buybacks. cash

We net to share Engineering after also the for from Solutions repurchases. to plan tax divestiture utilize the proceeds

launch for coming share a which to authorized expect a has ASR, plan buyback XXXX, weeks. board our such, with we the which $X.X to $XXX billion we begin million As in

a we dividend share. expect Lastly, of $X.XX quarterly

slide to division Intelligence, The beginning following X.X% X.X% growth our margins Market range between XX% and the XX%. in with by illustrates guidance expect we and

As in lap markets driven Investor growth our the ability volume is we confident skilled as XXXX well headwinds and and we such markets we're this that's businesses mentioned growing supply from chain, to accelerate FX. Day, business and at our as positioned private in

In between Ratings, X% in and non-transaction by price grow growth be to growth revenue with we and continued X%, volume to expect driven and revenue.

be be between XX%. for assumption Ratings issuance for up XXXX. to XX% expected Our is between in and X% X% Margins are and build to

we In X.X% XX%. the expect Commodity Insights, in and revenue margin between growth XX% X.X% to range and

expect expense strength X.X% some to quarter. markets commodity XX% grow realization new and new generally first We expect we XX%, further the adoption. between to benefit and price continued our Mobility, impact margins in the Russia chain, XXXX. to of look normalization between auto products forward by Market Similar see after we to from synergies realization, and of and X.X% revenue in driven business lapping and Intelligence division, expect Commodity In Insights supply

expect moderate to to the expect increase we substantially X%, margins up revenue growth of in and quickly fourth quarter, in growth XX% flat outsized expect be we growth In the XXXX. expense XX%. to revenue below expense from Importantly, indices, be with we to to

fees underlying from Investor asset-linked at movements asset in lags As revenue we indicated Day, prices. our

exchange XXXX will lap in comps XXX decline derivatives. the we very in revenue, S&P will also negatively the strong impact the year's traded this So

the our foundation people. execution like I highlight a Global. Q&A, system along for to estate real IHS year closing incredible and it turn it drive and We also our for was in footprint, S&P investments. action critical We strong, people plan. to a the continued our saw of at was our and very that transformation. by time the it with at synergy of execution thank of a Markit. merger integration was But to demonstrated our same moment over a come. But rationalized to timeline, the foundation. build was The we the a We of XXXX decisive strategic cost delivered take speed growth in years what intend Before truly XXXX would of highlight fast dedication on strong year made and of our XXXX

And Adam your call and Mark with Martina that, back over we'll have to questions. for the turn us join and

Mark Grant

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

Operator

Instructions] [Operator

you. Thank

Our from Sachs/ Goldman first from Tong question comes George

George Tong

Good Hi, morning. thanks.

issuance impact You expect issuance ratings in with expect to you build build growth expectations revenue? of your to pricing to X%, for bridge guidance you X% including revenue and Can X% X% growth how in mix for issuance XXXX.

Ewout Steenbergen

Ewout. George. This Good is morning,

Let you me components. a those give couple of

you and As in think the positive on are X% growth expected environment. growth economic in if price breaking uncertain non-transactional. of non-transaction, stated is that's see, that we to annual you always the to about issuance. on is the have continue build categories much that overall to to transactional RES, you be combination the a we we expected. transactional fees. ICR side, in growth and And X% for ratings volume. revenue continued And bit very depends Ratings then see then Also, know, because a category out in And see and volume What two

for that X% to of Ratings of So the add X% in to range components revenue up that XXXX. those some expectation are will

overall constructive would quite So it. XXXX. after Got say I

George Tong

slower growth enterprise in why improve trends Market you're growth decelerated believe solutions. due in quarter on you in Can to desktop performance and declines enterprise and revenue elaborate intelligence XXXX? and the seeing desktop may you in in

Doug Peterson

Doug. is this George,

to hand Adam call to I it to welcome Adam, the today. over I Martina and Before want

you. ask call. on the met couple Martina. presidents going X, you on But join pleased Adam, Day to to And the it's over at of each to our earnings December be to Adam of Investor us today them a As and we're

Adam Kansler

Thanks, in desktop revenue how desktop perform we quarter very in We're George. didn't but business, our expected. this confident our

little you on a pressure. give me color Financial industry Let services bit obviously of that. under

belt grow immune that our have that QX. to in that and certain nature. offering. well. extremely that products of you side are continued the that right Within desktop desktop revenue engagements said, core largest Consulting advisory in see banks, tied approach You saw products tightening, our now some desktop to cautious we're and These impact are taking line, now, they're to That a the that. and offering sell not non-recurring

we're XXXX, confident user X% As in and remain active desktop year. our position. competitive we forward to up look about saw growth, our We this excited growth out we

a relationships XXXX. our our challenging delivering This dramatically. growth for in offering. Speeds increased customers significant in we driver An and is upgrades in renew as year. important the great with expand We're us

New features being released.

You data announced ECR our capabilities saw Fixed on we loan in coming. income XXXX. and our live desktop

Understand QX not know line solutions. expected, I'll about two excited spend as two while and as well. that forward. just you enterprise about revenue So confident asked very that components. seconds growth I quarter the separate really we're on quite that we

that That performed and solutions expect we capital customers portfolio for well volumes. use well and year, platforms Software group XXXX. are industry compliance our And and directly activity markets really first monitoring. impacted perform by into to to workflow for continue this a section that really really

of lot double businesses. A those are digit growth

When platform, the we we in a to second drops impact the stabilize. is markets current that negative as we and those expect forward significant look markets comparables saw year. in impact XXXX, really industry negative impacted double-digit as by moderate lap that bucket, The into capital activity

for have outlook we ‘XX. solutions positive a do as very forward enterprise we into So go

Operator

comes Our from from question JPMorgan. next Andrew Steinerman

Alex Hess

promoter Yes, and And for with was Investor XXXX with believe that is But principally maybe score solutions. of Maybe the focus where This innovation, Andrew tracking, you I it Day reflects the modestly. how was XXXX's revenue start index Steinerman. target Alex on us been on sort vitality came having engineering lowered hi. update can is synergy that mentioned just in, Hess

of that what that you achievable. target remains confidence maybe gives pretty

Ewout Steenbergen

the Thanks Alex. for being on morning, call. Good

new But customers Engineering over for You We $XXX a number example, in assumed of those. company of so Engineering due of collaboration through with revenue of had walk revenue Insights Commodity shares synergies in not XXXX Engineering well Solutions, segments both down with firmly we about that Solutions our total period. in the slightly tuned the synergies Solutions. million in many are to some we me five-year each ask of divestiture the are to are other across of because the questions, together committed synergies, the revenue a so at all still number are a Engineering Solutions. concerned we finding let as that couple as

are really momentum lot new There the of about, the seeing. lot asking that. happy of in development, we general, also of is interactions within We're what actually very commercial company. really strong lot around You're product a of customer a all innovation,

with sustainability target XXXX. hit XX% we a to that And over seeing You're vitality years. for next target ESG few we our we told get for you revenue vitality, over what respect to was the have that

XXXX. we report happy got very actually in already I'm there to that

our innovation speed over another the of of the was year we're So last company. level just XX% as indication increasing within that vitality

Alex Hess

maybe the through to Great. degree much. comparisons of half issuance can front turn some And us XXXX steeper that January and year? to which walk Thank then maybe of half you back maybe assumptions, facing the to build you in your versus weighted to this is so the

Martina Cheung

as Issuance. the market the XXXX, half feeding half. for with with recovery for recession for well see second our Issuance Alex. We first the our would question, Martina. Thanks in in This overall a not We consistent both for is build mild the as view macroeconomic chances some into

And could in the see half half. the expect Issuance by softness in little a so second bit more recovery to first followed you some in

Operator

comes from Stanley. Morgan question next Kaplan Our Toni from

Toni Kaplan

asset class And Thank you a it a ask the I really it's indices. I like opportunity lot investing massive. you're wanted about really to there. seems market opportunity much. so is multi and meaningful know

have You products. index brands within leading

a a being now. matter income multi is like, need indices? a better having Like now, equity or my for than used convincing it so will clients be separate it's that do indices hybrid, And that and there's of right is class think fixed combination a asset of question them

class equity asset multi better just fixed makes what Thanks. indices income weighting and than indices? Just

Doug Peterson

Toni. Thanks, Yes.

has also annuities, that for also use understand seeing it The for seeing are It's They of time. about they which at It's have class. use any basis desks asset we're industry. to Where types the client asset especially know, exactly in ability portfolio many the you index products, looking to insurance demand asset it As bank classes. insurance class multi a the is business is of the structured in multi in multi at is independence. industry, product we transparency. we're what's for point that wrappers. looking the And

in a So growth of this. lot seeing we're

a the can product of those this you is which what asked coming meets the that is that about two single demand difference? question client. from is industries. difference the a high seeing needs You we're right And put The together now very

the getting them. asset As built ETFs from classes, then you trading around are multi start

to ecosystem the see anyway. So starting the also to it's passive trend when of And grow. we part we active see entire

very products ask actually It's of S&P of it's of and within have important is business. about, question. one think of and the I one franchises now can iTraxx, you IBOX, the most we because all This of one Fixed these across the our areas house. own all-in excited growth So CDX our index we're Global finally, with Income produce leading we on that

Toni Kaplan

guess Then higher mid-single eight? plat there, Terrific. normal IHS, to sort level guess really as that of part bridge I growth within up, really about or at level a of X% at going digit resources wanted like get And platin Commodity know wasn't follow sort Insights long of from to what's own normal term a I it sort legacy to wasn't sustainability its sort in the the I market. to back midpoint. to look Thanks. the Is drive of I I that's ask of about thinking you resource up there growth. on the and when

Ewout Steenbergen

the our very years. Russian highlight to that markets, in saw over about the the commercial we the next be overall with that think are some from is think point XXXX and the few fact relationship going customers. for conflict constructive growth and the the headwinds to Russia, dynamics business that that first, is helpful our you Well, currently if one also those from we Toni, Russia-Ukraine for we stopped in customers commodity market markets of

away So forward. obviously going that going headwind is

energy what we new seeing traditional on is resources. our are Secondly, energy customers focused are that both and resources

benefiting we're that course respect there time seeing. of So additional both where from terms to going market lot activity prices with trends we're capital in exploration of is and same the of the a expenditures current on at

are from us. But at time energy customers and also our help on the needs same focused transition

energy advisory, research, all data, providing insight, same the are of around transition that we at So time.

lot secular And years. So possible. told that expect that think few over of business we to this to Investor at X% we tailwinds we we range XXXX. grow you X% business that absolutely Day is this into believe in next XXXX has a the is What and

to We are very committed hitting that number.

Operator

Alex Kramm UBS. from next with Our comes question

Alex Kramm

the and Maybe but some the bit, a there quarterly touch morning, good of everyone. interested some cadence. particularly the past little I seasonality in here there's can Hey, in been in know or surprises outlook the you segments. on margin

we segments. help driven probably you as out in in XXXX? So seasonality, in typical but can and out? the between call a to coming synergies saw it maybe maybe what Ewout I the lot is Anything relates you other Issuance, would us call be to in particular maybe maybe going understand to seasonality, ratings by

Ewout Steenbergen

for the conflict couple Alex, that as of well impact to first of started as Russia-Ukraine terms high items year, in facing the still to about, more the south go March. seasonality, think economy are about March comps also from a of quarter first we started realize because last of the in

quarter a still first are bit comps So high.

we back that the we Day, during here the said that are are as think to Investor the now a that the recession you of and also mild first is I in year. we a to the item very ship third second in half And strengthening about expecting, The say half element then with is tight the respect economic of running expenses. some can year know

most benefit thing the So we're benefit from way. start economic to in careful a growth we a we given time starting is very to need markets because that then turn to going And the once GDP the up, is to the uncertainty are we're definitely important year, starting right when that this this perspective. going

plan in as year, know. We our for have growth of this investments a lot you

once So to investments at make we start those a up right have the so to right going we're that to large markets moment to again. swing the going that be time beneficiary we're it

of So those elements of timing couple think in year. this you should are a for the about terms

Alex Kramm

like those I Maybe earlier. to to earlier. some with now, up you Adam can you that expect a bit that And you more of expect maybe businesses you be the be capital clearly what talk of capital bit some you decently? enough. know maybe expect that you more you're tie Do flattish what about or activity follow So do market you a in headwinds maybe well. environment seeing and little right helpful a can market sensitive would as were can to in fair actually be there question discussed then more specific the intelligence just if little to areas. kind Okay, that recover just selling the markets

Ewout Steenbergen

parts you In have Alex. the in strong comparables still the of very markets were significant year, still part of year-on-year the early Thanks, because very XXXX. first pretty Okay.

As see in some we markets, come lot activity through XXXX, but aggregate well do as we and still resilience see early you we a part levels as we do. this do see of cautiousness in year, the of

expect about that's quite As develops, we think your year, the significantly. for out internally, obviously platforms. how today. the we we modest total year-on-year We'll see And right year, the activity year the but to as get towards the capital sit we part here of in latter thinking out call we starts markets flatten across comparison increase in what us budgeted

Operator

Our next from comes Capital Markets. BMO from Jeffrey Silber question

Jeffrey Silber

so this year. I to Thanks a much. your further wanted into dig for little bit outlook

but weeks than better a recession push growth be first the new second forecast? half we in off If recession know about into could upside economic see seems to I it's then mild bit. recovery your if it the the expected. little case, a that's in or the we're either a we avoid year, expecting anything, and the about half. talked early, in and You've six Where

Ewout Steenbergen

in the at that gone It's I Jeff, the year is expectation This full terms have the markets assumptions our a best management's of into is you underlying plan. forecast, for time. and can of best middle this the our the couple elements road. point we're giving estimates. in for guidance of give

the So, the sensitive full The about for markets year. year business. equity flat example, think with market for is businesses, our index this assumption

on so a we're basis. February changing looks our well. January say could far not and plan better, But You a bit as month-to-month

volumes That to as be into markets average the more we're have expecting coming line be with XX% flat. years. less in last from year, what on previous gone seen well levels outlook, declines index well or we as as is to So in in flows as the have ETD elevated assumption that

and think other with we the the sensitive for our company everything market about point given the of is this to estimate We is the at then we know the already ratings, gave And assumptions best some respect so has that time, plan. businesses, you into in this gone markets.

Jeffrey Silber

I Okay, appreciate the color.

issue. me hot on issue in you Let focus AI. it's switch gears the this addressing and Obviously, a appreciate I markets Doug, today.

a traction You there, guys the number should Kensho seem you Where of purchase and forward? look gotten your with to game be the going ahead years have most of of ago. for what we

Doug Peterson

him Kensho, models, AI to we've harness able the with the the to decision But Cambridge, were have by entire machine we the inside day hand Jeff. develop it financial investments for and sciences is something that's they're language they Kensho, and in oversees since me made seeing across some recently time spent the in We're in language on which Ewout I to we press I the should investment some thank and very the able that been of doing large right show now. data We're addition of Kensho organization the and in some already very to Well, finish pleased to answer. in the products. R&D made interesting over I learning. you, markets, we've every company that think to

Ewout Steenbergen

a the you of mind exactly really terms data doing number in blowing these for today is first what Kensho numbers. actually hear it's And of you me organization. points let Jeff, give if

have EXTRACT this transcripts. $XX.X Pro saved platforms, other platform. text link speech enriched and XXX,XXX million X-million-hour private million. Also, hours unstructured There numbers called and sets, called market, language for a the per are entity investment product intelligence our our has ingested XX work NERD moment some our are of data entities. is that million savings sets two are data data And data platform. year that to the Scribe, sets, saving those documents private has on expanding research into connected the Annual into products points. go model, Kensho for those to IQ on $X our ID Cap Pro market database, X So link the It approximately is of which at of But customers. Cap reports data IQ can men over ingesting on. strategic list has million And achieved

And it's really me you you with Sometimes Kensho it's hear what I numbers. impressive. agree but is really when hope exactly those not understood doing,

shifting natural that that language processing. to future right. now is spot. sweet And Kensho, sweet large spot are today you everything of exactly is models really But Kensho's we're language in the because reading about

is sets, So trained the expensive have of Kensho develop financial Global But is language actually the S&P It's if language large stronger FinLM, today assets. quality very The which to that's cost compute is factor. differentiating sets, data already on models. model a high. a developing you very called data higher data

and Also, number avoiding say. solution the questions. is very compute something That's we're Kensho most So AI developing new. complex is Kensho significant which financial time so to the the costs, answer to Solver

solution about read this in on can in we not well. large a models working actually so math. are strong also You And as being area language

we doing where on, very that Kensho company are and the so And this pleased five ago. So impressive. you working acquiring if it's in it's all up, for very add ahead be just what it I we're can years company far already think

Operator

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

Craig Huber

could first Great. the outlook Curious you this would issuance little let's year. ratings well. high focus for bank have as further throw us My you thought Maybe if loans. this and build for outlook a if yield we your Good CLOs for for could, give a if little morning. in bit, question on on year you

Martina Cheung

here. Martina it's for question. Thanks Yes, Craig. the Hi,

XXXX is specifically, low this of all year. yield know, corporates, what high But X%. projecting US overall but X% in we're and is structured for year FS up everything high about underlying I a in X.X%. presentation, was on can outlook X.X% really The highlighted Public break his don't We on factors, And say X%. finance a had Craig. in out our So around you yield as Doug finance bank loans decline

And we market in the see high so year. growth yield this

some I does is touch in structured the and what finance or can Act. the for think which that pipeline team in research around the reflect on concern Finance maybe we decline I the expectation CLOs X% CLOs, characterize just bank on Structured for the capture loans underpinning

Craig Huber

thank be you be that pricing where Okay, this X% follow price year about might the coming think you. And When portfolio, of pricing throughout higher might you my you. highlight should price. the than X% we would expect more Thank that. maybe up. normal, to What ahead areas normalized

Ewout Steenbergen

terms, going contribution think products a price up to generate. products value what is given first higher are customer, our customers. good Craig, when is about The of also always to we must that the news start for consideration general most the environment. is high And we in obviously, do the element we have pricing. obviously cost with the we price. Pricing about very reflect we to inflationary needs to Cost take into that first start think our our

So and given area. to pass certain the an facts we across products we on area have believe another depending relationships, or price depending on But environment. in general, opportunity we have on board, in one increases customer higher circumstances, the inflationary higher

Operator

comes Alwy from Our next from Deutsche Faiza question Bank.

Faiza Alwy

morning. good Hi, Yes.

being today advantage [inaudible], a announced only year. has been It's on seems I high has think is this high for my is Martina take first question so but So outperformed and we few Martina, call. it a which the have the really want think surprising. I like I yield weeks, expectations market far just yield of to been new deal

on course and has do through of the sort this surprising yield you year? give expect of So your the market high us to this evolve been you for view how

Martina Cheung

early from terms for to January as Yes, base too few But at last this call. ‘XX build second Look, the overall, it's and to how the on puts point, how the plays yield quite do variables. so thanks and was have really into much growth into around to of we've what that a I so we I low week, it this our see expectation mentioned question. to relates and which just mean, first macro issuance I would play and compare as saying our still absolutely to been macro expect the really high half, issuance trends. expectations half, overall in our We a factors takes guide

Faiza Alwy

a secondly, it. around revenue you. Got revenue synergies. around Thank bigger picture then the question And Question synergies.

how $XX you seen XXXX. for have bridge of an color some sort do again, these best what's at get run sort $XXX million on and about synergies talked term. You've place, million the the rate where next step take you've loan then of us Give we where to result, additional to revenue that

Ewout Steenbergen

Faiza, let for it additional a then me start with answer, and general Adam color some over hand I in market intelligence. to

that general, levels what about already a from cross-sell conversion referrals positive both we seeing leads across intra is So very with X,XXX very activity We're deficient perspective. and the inter-deficient, speaking in generated, been are company. good or have

can customers of So them, new what really about to is, development. we next that to we to product start can are more what The add seeing more bring course, talk general in to to us is we're how on focus happy value. phase

the be next I to Adam over we some definitely revenue ahead will synergies. But originally. we're and we the wave for track feel handed of timing color. planning the of that on that And So additional had well

Adam Kansler

to our realization. selling customer we this able part products perform most have. us synergy start. probably we exciting that great was gave capabilities to this In early a is cross-sell, a happens together in year, And expanded in merger now that the on what of were about It's mostly a first question Thanks. that set bringing of bases good XXXX, because and the this type of

revenue. now move because into Ewout building I capabilities. products combined to of capabilities in we that product described, are able generating As our five think really Already of deliver combined already XXXX, becomes set it we're XXXX, a about new of as

expanding types doing. solutions, exciting of workflow market over of and customers things is what confidence revenue markets much for combined who basic We mentioned, targets Those later data the and into $XXX wants and information, look incorporating we're analysis. our capacity like million data are about bringing of private lot in the in intelligence solutions, capabilities and comparables we offerings give XX what over fixed sustainability our and are also public this to workflow I sets us larger our total think desktop together have alone. our part These income loans pipeline, just to for with And a building years. company most as the at product customer get as in financial out of into synergy capabilities

Operator

from Our Lau next Oppenheimer. Owen from question comes

Owen Lau

revenue good think Hey, partnership. questions. somehow Could But expense and we announced how this you my Kensho think opportunity control color you more related Thank And also Thanks. add partnership taking with for in your it's you AWS, about morning. great. would please will should here on yesterday? I deploy be how the to you incremental

Doug Peterson

with together pandemic, years. site have having we've We to of do why where a servers. switch us we two both before these was we AWS. servers? started a our been AWS. hundreds already ago, and in all farms? hundreds of we Owen, data had an a strong realized had business in put And this a I I the had of the companies visiting few we the very And acre And that for we be of said, Should and transition server is merger, relationship relationships that we for cloud had years had many years. many A when on moving

operations. culmination So going new we're approach to where together to day-to-day saw to run with over how the come the yesterday we've incredible an our years, with we've partnership the you up a And combine come developed of to merger contracts them.

opportunities. contract customers can this data able to as about cooperation, we serve sets look products, how new bring being brings to is we intelligence do for completely future. But developing strategic has, shaping the at We opportunities We approach We some together we that see that most companies large data the together what AWS and our exciting for earlier have, new We types this already with has, innovation. for When other markets us signed learning the with new artificial doing. We're yesterday. partner. a the of we're contract. just been of that can that two accelerate machine that incredible are completely language AWS talked the models, of for the those an pleased think to

will follow But In that ask Ewout some addition, answer the that later about with on and you we strategic up. part. financial up aspects, aspects and follow asked I'll questions some to

Ewout Steenbergen

Good morning, Owen.

would we spending actually be a continue with having If contractual that is according computes will than total on a we're AWS, total next a to about this agreement think to billion next put of forecast, $X over five in multi $X years. spent our billion over more the years. the the couple in and in we philosophy with perspective, cloud you're cloud about And

us this So This not an this in is to is is benefits. cloud increase total. what than significant But in in two actually is very spend total number. forecast exactly or line, brings is our higher actually particular this

perspective of actually is strategic more AWS, to the technology IHS as And said, in and contracts this will significant this moment first that part Markit to because innovation. combining important able as contract. help S&P the secondly, very our this will the of with partnership from generate and synergies new partnership cost advance by Doug course at is new is my already we be Global this The

capabilities of and sets that We'll really companies. both a be able including years. that are to and combine on enhance end And of customer we having experience expect will capabilities will able we over that specific to important We few sides, be the incredible with to the the course. technologies next both leading most AI up platforms data add Kensho very

Owen Lau

your private on That's And one other it. Got helpful. the market. in very investment is then

do going this or year? angle kind And solutions kind what know what but So new year? year, this disclosures I you be of of to will this have launching you're on you target provide more revenue any

you. Thank

Adam Kansler

to Happy Adam. that. It’s Owen. Hi, take

private markets expand. continue to So

portfolios where have monitor, things private equity reporting for report, debt, issuance to sustainability the valuations, all private increasing market. to significant and deliver we continued regulatory seeing Manage a monitoring of and footprint, private requires are already report tools, disclosure, to large These portfolio You're we're credit pressures needs tools. like metrics. well that positioned test areas against solutions additional and

class regulatory everyone in monitoring, workflow an While continued will you grow. and some solutions, the think reporting, have that year all solutions I agrees described, that valuations, of room And portfolio tempering I continue this growth. significant to asset types see is for fundraising, this

Martina Cheung

is a from bit Martina. a I'll rating add And Owen, just here this standpoint. little in

does companies markets, LBO we managers, BDCs, quite the it's we work bit the asset users of contribute and loans whether do also multiple et activity, private it So rate in And bit through M&A, in portfolio cetera. business, overall obviously analysis to our quite credit sector. that support sponsor, a to syndicated a

We closure we've debt couple of the last key in of have dialogue, the of a pent-up a ramping in with saw somewhat the engagement good was markets. And relationships interest up heard lot been fueled public lot the new customers players, have XXXX, to and What with years. in A was good come specifically from back to private over public growth demand that by looking markets. a we opportunities. of lot of we interest

and business the we market public lot not of here, there's working just opportunity very but with closely markets, activity a private clients. coming in overall, back see in also to our But

Operator

question from Moore Jefferies. from next Our comes Stephanie

Stephanie Moore

you to I morning. touch good Thank business. Hi, question. for the on mobility wanted the

lot time, there's way I the in other Thanks. to aware not of. at it to thoughts right be but same should your love if would decline new, think the of in up stack just of dynamics I a are kind to has dynamics, this that's in do in given prices, the that you it's drivers going maybe a proven all XXXX, about in could whether But environment. CARFAX think think this view I business think that that we pretty is there's increased benefit get car the or these used resilient, happening be year production how to

Doug Peterson

the you the with you have Doug. of to capabilities financial we Stephanie, about And about suppliers, institutions products, mobility When dealers, financing the the automotive set There's this the from What you to all the to are the insurance to Yes, is the of look have Polk that to think the that OEMs mastermind, automotive the which different think starts you CARFAX, companies, sector. mentioned. at a Analytics. way business. across it business, all is this

for incredible this types All has transformation mobility of data with seen these the place that taken And driven to analytics. them volatility of a forecasting. an we've of research, last markets. has automotive different players for data, years looking and lot all over the three of the digital And for for in business all of are analytics, for

the place taking vehicles. an with In that, in see industry electric incredible we addition to transformation

bringing And electric markets different working in these the it's types also and also seen introducing new is to people to types a new is benefit element of a it's, going incentives. of data cars, cars, we on be for of vehicles are all We've used whether more with so back which how dealer depending whether can analytics. it's that of markets

the is’ very business carefully believe And We're that is that on business. our watching are. own depending the very our we use market so forecast whatever data we to own the factors actually resilient and

Ewout Steenbergen

Doug drivers terms let me give in you little some the of to revenue a what Stephanie, said. And, bit, of addition in

the our following prices the coming higher we and cars the used new revenue for So with the see normalization, that drivers. down, levels, inventory market are for dynamics

margins for levels. sales OEMs dealers going those forward hand, come On will on other are most bit, having some we demand being the the the that But a for be marketing have will there likely products hand, the a will down impact an higher and used on that of products. one mean retention that and and

you that different is terms seeing. X.X% dynamics new Therefore, we're market offset of current are confident in So able that X.X% and to streams that having. dynamics the hit the are say there an a automotive that growth we're we're in of level kind quite we could in new the the to revenue

Stephanie Moore

of And that you How as, might kind current make of of characterize just see sales Thanks. you activity expect to we would the given as or are for M&A potential kind well Thank maybe maybe you. and forward. sense your opportunities kind evaluate dynamics, current then, other as that could do think going there market you portfolio opportunities? more divestitures those

Doug Peterson

approach They key taking the that you drivers Day. we about know, Investor the at trends the markets. are of like those of look And all secular shift markets. chain relate in of the you us how to all financial value at heard sustainability, and play. changes to place to and looking We've talk data supply things passive, about As markets, across analytics internationalization capital markets, on the private active and talked companies analytics, from digitized, becoming

bring should we we portfolio, each of at discipline opportunistic also we could if opportunity that had see look that continue to the what And those looked growth the going portfolio? are want sort M&A. So into we our and we for businesses know, the businesses? look the of owner at portfolio of with type to over some comes And you we to look long something have business in to it of for so you assume run across what our when we're But the know we going is we are the best as always to a portfolio. Are be we've have. drivers the that we

Operator

from question comes next from Patnaik Our Manav Barclays.

Unidentified Analyst

on for is This morning. Brendan Good Manav.

which are you be Just on reporting wanted and transition guys to climate ask will the great. on, ESG revenue, which

your XXXX? in and growth assumption for driving are you what's including what So in that the

Ewout Steenbergen

morning. Good

we therefore the you categories. the and And have if inclusion So call transition. that's base under at energy adding revenue definition We're new XXXX, the reported look for for million. ESG, revenue old and three sustainability we $XXX new

three thematic the then coming with the we're from respect e-fees can transition insights But revenues slide find of commodities energy the that in main the deck. the from business, for categories index from is and to business coming the is and You mobility the appendix details revenues that factors adding business.

CAGR adding the brings about still an years. and become this those with of will XX% into there next from million XXXX. So then definition XXXX are business categories we by over expect for few to to the $XXX baseline the $XXX grow three the that expectation is that million we our new And

Unidentified Analyst

Great, are at settled. just what longer guess wait kind of pick to. treasurers? same of I And maturity hearing want they expect if the switching you and still from just couple thank I know just then to XXXX we you. up years, over corporate have the could see in little the a the walls, but next obviously to spreads they time, rates But

So just from that? what treasurers are on you hearing

Martina Cheung

answer Brendon, I Martina. it's Hey that can question.

the refinancing. So historically debt years. our presentation, associate as precise numbers rated for used would labeled as What of been we to maturity question. little data. think has corporate X. is purposes a which obviously, trillion the to seen I for heart in say maturities maturing look us trillion we're goes seeing, figure in like about the as $X.X your six over It's by would specifically you next of our XXXX January $X as have part I to know about much things still the trillion $X.X of corporate around what difficult of out wall of issuance, gets refinancing, We general has

refinancing expect hear, example, with indication a for we of A XXXX see any we couple of of So we year key coming any early activity maturities. scale. from terms in on points the deleveraging, potential meaningful don't refinancing what this

terms inflation attention the We interest see second the rates also are part of what somewhat to year. and of stabilizing paying we in close in

issuance, still there's uncertain, mentioned opportunistic but I'd earlier. as for some So pretty room it's

Operator

Jeff Meuler question Baird. comes next from from Our

Jeffrey Meuler

thank you. Yes,

margins recent in excess guess I just wondering our think, to aligned years. volume ebb to resources current Martina, what for lot and extent flow And a in with than may ago. in good other given if we than couple of see I normalization or you. incentive know trends. how incremental don't stretched capacity. things comp there's I years it were you that revenues you're appear, volumes ratings closely Obviously, recent of Thank running incremental maybe have a the been within tighter

Martina Cheung

that recovery for couple to Thanks the later as absorb needs this around years a in the volatility. higher capacity invested research increased or this couple year. last business during uncertainty and and the we've with of our our a manage you the expecting see maintained dramatically demand And ahead we're last Well, of shocks, The market, some question, capacity for areas, the Jeff. ratings. insights we growth to you'll know, our the try the that years of analytical we've more little over

to very of we've this hard our in latter in the anticipate as increases capacity to year So worked well volumes. part for that, as maintain

of I that done the our of the the operating as benefited scenario, have. make point shared have, Day, but all the some course, always levers And And or to so the right our continuing location, last it's Investor with this would year as have from all past whether changes merger. expenses, enhance now, part we are during disciplined in T&E. model. small that around We said comfortable prudent very levels we we examine we with cost any I in is synergies we the our And on very with have extreme clearly of substantially options, analytical strategy,

Operator

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

Ashish Sabadra

that solution about that data -- global advisory been accelerate and how also in question about business. two-part front, can Hi. wondering data if I more And reference I IHS you potential those second the there. S&P to risk was the financial you has market should And Thanks a was that of if and question. ‘XX? taking to, my further strong. on sorry, first wanted can trends I a modest driving question the on and is continues be was combination potentially slowdown was about risk intelligence, There the distribution solution. There Thanks. marketplace on and talk cloud the for pretty customer on the credit to has can going just conversations a was the into think we how then to analytics. growth on have I how talk just wondering

Doug Peterson

Ashish, thanks question. for the

had in software QX take delivery the let the First, credit me mentioned that this We large a piece XXXX. business is and question. just of solutions risk a delivery, FRA, a is large of

that year-on-year XXXX comparable quarter. a of QX have a you challenging So made

remains historically. I and move Ewout that's thing our to particularly to, business underlying you're in grow direct; as customers and credit continues the it they referring out exciting that we into very our forward called capabilities a ratings This path express that our ratings has capabilities the So earlier and really think has strong. capabilities. more it more Actually corporate analytics as is

So quite forward. excited about that

I of is for needs within sets applications and enterprise, customers now to their a that combined satisfy data about our the of credit can think wide asked large bring data I and Australian solutions. a to This the that because capabilities Even data combined risk of able the across RFPs this broad we advisory to you we're and respond have we management of in firms. an saw our with broad set of just to range bank Second, customers. bear win where morning, very

to I So expect do that continue.

data And to question, I we're scope together the opportunity sets answer think of even an more together. into sets think able to data integrate front more, integrate this even to those have further businesses. advisory we and our as to the the accelerate I as your lead synergies we're more come and those will cloud we increasing in data

of run our that cloud complete really about more launch and out across our capability a sets, many the advisory developing to new continued capabilities in data do products, gives applications want, and a that artificial data available data Once in data the deliver of many applications relationship. a in relationship. data and important the next to and in our see business for to the launched the we I other long-standing migration. be of highlighted really that making to sets all us out of intelligence the we're the of you'll they in now capabilities and delivering of as part AWS much cloud, think we application is wide that the phase solutions market the broad acceleration do cloud full within Ewout already is very those cloud, have in customers intelligence. efficient to What This the the we've today this customers. scope way reflected science On this that are is multi cloud and full the opportunity description products and of

Operator

Russell from comes question next Quelch from Redburn. Our

Russell Quelch

much. Yes, thanks very

billion Solution return incremental after-tax check, of a is for that? Engineering buybacks. from This permissible XXXX, this the part be you capital be be when the that question but First will $X.X considered on sale, just may to the or would buyback

Ewout Steenbergen

capacity XX% solutions. billion, Engineering the $X.X of Russell, XXXX. our flow included dividends the in so after forecast is That’s the this you deduct, $XXX build for and we will out that how take for debt cash up million pay $X.X And can that free for proceeds year, you how the for that billion guidance brings to buybacks

Russell Quelch

billion, expected XX you. shows Martina, is slide Martina. I always us chart expected idea Thank can last maturities maturities you for of year and what the of [inaudible] versus new $X.X my my this on give out year. to The question XXXX for for is Can in impact about is issues? And if is big Perfect. were growth pricing second so we on get probably it an out how be maturities back

Martina Cheung

of done have to that, maturity low. opportunistic XXXX was to reason two why because is because so forward prior way a were the rates back for and pull there to of ton don't front the maybe years XXXX you in question, actually saw lower maturities, go me. market in of and tapping done and Yes, the a this know have thanks me I if let volume we the ‘XX helpful. Russell. numbers XXXX, There's overall to is

plays if number forward sure little and our year. out the possibility $X.X half. is not the have first that's for but to of of between pull We're see in X We that. is of seeing you're XXXX second charts think we for ‘XX, how but helpful a the January this you, from So there year for anticipating the as really trillion bit

Russell Quelch

yes. Okay,

Sorry. That's Yes. billion. a

So saw there what in XXXX just you your trillion so to you higher than in ‘XX? the number $X.X lower check of than is answer what or saw

Martina Cheung

to was higher It's ’XX what compared what was higher on executed in executed, refinancing. was

Operator

comes from question from Shlomo final Stifel. Rosenbaum Our

Unidentified Analyst

provide the Can mentioned multi you color on strategic in talk What about more Adam anything know Hi, can earlier. beyond that? this asset else Shlomo. indices? I is were for And the you you indices for this investments expenses onetime class unit?

Ewout Steenbergen

agile strategic product was much needed a is asset at more the So, that product from new this investing faster much the And of see in in consulting that is changes. very the things the quarter, expenses already a but what entrepreneurial Also, is should quarter working those thematic in business faster of the help you fourth development, investments that, also consulting context growth. if in to look driving context perspective of you investments business move is to in future in spend of in early initiatives. you new index quarter discussed see in of call, be like that in some the a faster areas the for make with transformation environment, business to terms sustainability, that to that you to those see one And multi some class terms et cetera. factors, the large

index double-digit very and high the during well business So with our the margins in that XXXX the in should that we XXs on Investor growth Day position XXXX deliver to revenue discussed level.

take I'm impressed the say in to have themselves fourth very business actions. transforming see I index the They quarter, setting and context interpret And expenses They're really the business. a really, of you growth that. should by up in trajectory. on the decisive their you So faster

Doug Peterson

everyone. you thank Well,

future secular like to company. thank we've they're XXXX been and Global. the of global with them mentioning the because this private proud to throughout XXXX beyond. in our analytics that and mentioned and to We're the the for have reason help especially vision very future. we And market last decisive want of need despite to powering the bold market IHS And and throughout Markit people work the merger all successful and and XXXX was transition new S&P growth take strategic did all conditions, the and earlier, we shape advantage going we This they energy But accomplishments year, the markets, that for I of the really of trends resilience, for action, in insights for allow I a tremendous we're that positioned markets. As had investment year well is the turbulent all markets. again challenging is doing think of us in we're call,

to to you of want call also questions. I today all join for the thank excellent your

throughout with to you very wait are future year. can't more share our We excited the and about

us today. for you joining thank So

Operator

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

S&P Global (SPGI) 9 Feb 232022 Q4 Earnings call transcript