Company introduces new enterprise and
division financial target model
Strategic emphasis on private markets,
sustainability, credit and risk
Reiterates the strength of customer value
proposition
NEW
YORK, Dec. 1, 2022 /PRNewswire/ -- S&P
Global (NYSE: SPGI) will unveil its new strategic direction and
growth targets at its 2022 Investor Day today in New York. The event will be the first Investor
Day for the combined Company, following the completion of S&P
Global's merger with IHS Markit earlier this year, and the first
for the Company in four years.
S&P Global President and Chief Executive Officer
Douglas L. Peterson will
join members of the Company's Executive Committee to detail the
Company's plans for achieving sustainable growth in and across its
divisions, each with foremost positions across the financial,
commodity and automotive data sectors.
"There has never been a more exciting time to lead S&P
Global, and over the next three to five years, our strategic focus
on Powering Global Markets will form the foundation of our
interaction with our customers, investors, and our people," said
Mr. Peterson.
"The combination of our iconic brands delivers unparalleled
access to data, insights and intelligence that our customers need
to make their most significant decisions, particularly during times
of uncertainty and volatility. We are excited about the opportunity
to share this evolution of our strategic approach, while we
underscore the vital role we play in the markets."
S&P Global's multi-year enterprise and divisional strategy
will revolve around five key thematic pillars:
- Customer at the Core: Enhance the value delivered to
more than 100,000 customers globally by developing integrated,
cross-divisional offerings where applicable, and deepening its
embedded role in the workflows of existing and new customers.
- Grow and Innovate: Boost investments and generate
revenue synergies from six key areas of transformative growth over
the next decade, including private markets, sustainability,
climate, energy transition, credit and risk management, and
emerging markets.
- Data and Technology: Expand the potential of data and
technology through innovation, AI and machine learning; enable the
success of the integration process; ensure superlative data
governance and regulatory compliance; and optimize the company's
technology expenditure.
- Lead and Inspire: Engage the company's diverse global
team to ensure they benefit from future growth through ongoing
investments in integration, training, and career opportunities to
support their aspirations.
- Execute and Deliver: Accelerate the pace of innovation,
revenue growth, adjusted operating margin, and disciplined capital
management to deliver greater shareholder value.
Enterprise Financial Target Model
During the event, S&P Global will introduce the following
medium-term financial target model, expected to be achieved by
2025-2026:
- Seven to nine percent organic annual revenue growth
- Adjusted operating margin in the range of 48% to 50%, and
- Low to mid-teens annual adjusted diluted EPS growth
The Company is not providing preliminary GAAP expectations for
2023 due to the challenges and impracticability with estimating
some of the necessary components of GAAP measures.
The Company will provide a look at its preliminary non-GAAP pro
forma adjusted expectations for 2023. Based on an assumption of a
mild recession in the US and Europe during the first half of 2023: non-GAAP
pro forma adjusted organic revenue growth in the range of 6.5% to
8.0%, non-GAAP pro forma adjusted operating profit margin in the
range of 45% to 47%, and low double-digit non-GAAP pro forma
adjusted diluted EPS growth. The Company expects to provide formal
2023 financial guidance, including Division-level expectations, in
conjunction with Q4 2022 earnings results in February 2023.
Division Financial Target Models
The Company will also introduce target financial models (also
expected to be achieved by 2025-2026) for each Division, as
follows:
- Market Intelligence: Organic annual revenue growth in
the range of 7% to 9% and Adjusted Operating Profit Margin in the
range of 35% to 37%
- Ratings: Organic annual revenue growth in the range of
6% to 9% and Adjusted Operating Profit Margin in the range of 58%
to 60%
- Commodity Insights: Organic annual revenue growth in the
range of 7% to 9% and Adjusted Operating Profit Margin in the range
of 48% to 50%
- Mobility: Organic annual revenue growth in the range of
7% to 9% and Adjusted Operating Profit Margin in the range of 41%
to 43%
- S&P Dow Jones Indices: Organic annual revenue growth
above 10% and Adjusted Operating Profit Margin in the range of 67%
to 69%
"We have full confidence in our ability to achieve these
ambitious medium-term targets, which reflect the resilience of our
financial model, the ability to accelerate growth and innovation by
continued investments, and our focus to deliver unparalleled value
for our customers," said S&P Global Chief Financial
Officer Ewout
Steenbergen.
Access Details for Webcast
Attendance at the in-person event is by invitation only. Any
interested parties may tune in to the live video webcast.
Investor Day will begin streaming live on December 1, 2022 at 1:00
p.m. EST and will conclude by 5:00
p.m. EST. The video webcast will be available, live and in
replay for one year, at investorday2022.spglobal.com (please copy
and paste URL into web browser). Discussions may include
forward-looking information.
The presenters' slides will be posted to the Company's Investor
Relations website on December 1, 2022
at 12:45 p.m. EST. Additional
information presented during Investor Day may be made available at
http://investor.spglobal.com.
Event Speakers
S&P Global's Investor Day will include presentations and
panel discussions from:
- President and CEO Douglas L.
Peterson
- EVP and CFO Ewout
Steenbergen
- S&P Global Market Intelligence President Adam Kansler
- S&P Global Ratings President Martina Cheung
- S&P Global Commodity Insights President Saugata Saha
- S&P Global Mobility President Edouard Tavernier
- S&P Dow Jones Indices CEO Dan
Draper
- EVP and Chief Information Officer Swamy
Kocherlakota
- S&P Global Market Intelligence Chief Technology Officer and
Head of Data Science Yaacov Mutnikas
- Kensho CEO Bhavesh Dayalji
About S&P Global
S&P Global (NYSE: SPGI) provides essential intelligence. We
enable governments, businesses and individuals with the right data,
expertise and connected technology so that they can make decisions
with conviction. From helping our customers assess new investments
to guiding them through ESG and energy transition across supply
chains, we unlock new opportunities, solve challenges and
accelerate progress for the world.
We are widely sought after by many of the world's leading
organizations to provide credit ratings, benchmarks, analytics and
workflow solutions in the global capital, commodity and automotive
markets. With every one of our offerings, we help the world's
leading organizations plan for tomorrow, today.
Contact
Investors:
Mark Grant
Tel: + 1 347 640 1521
mark.grant@spglobal.com
Media:
Ola Fadahunsi
Tel: +1 332 210 9935
ola.fadahunsi@spglobal.com
Comparison of Adjusted Information to U.S. GAAP
Information: The Company reports its financial results in
accordance with accounting principles generally accepted in
the United States ("GAAP"). The
Company also refers to and presents certain additional non-GAAP
financial measures, within the meaning of Regulation G under the
Securities Exchange Act of 1934. These measures are: non-GAAP pro
forma adjusted organic revenue guidance, non-GAAP pro forma
adjusted operating profit margin guidance, and non-GAAP pro
forma adjusted diluted EPS guidance. Reconciliations of these
forward-looking non-GAAP financial measures to comparable GAAP
measures are not available due to the challenges and
impracticability with estimating some of the items. The Company is
not able to provide reconciliations of such forward-looking
non-GAAP financial measures because certain items required for such
reconciliations are outside of the Company's control and/or cannot
be reasonably predicted. Because of those challenges,
reconciliations of such forward-looking non-GAAP financial measures
are not available without unreasonable effort.
The Company's non-GAAP measures include adjustments that reflect
how management views our businesses. The Company believes these
non-GAAP financial measures provide useful supplemental information
that enables investors to better compare the Company's performance
across periods, and management also uses these measures internally
to assess the operating performance of its business, to assess
performance for employee compensation purposes and to decide how to
allocate resources. However, investors should not consider any of
these non-GAAP measures in isolation from, or as a substitute for,
the financial information that the Company reports.
Forward-Looking Statements: This press release
contains "forward-looking statements," as defined in the Private
Securities Litigation Reform Act of 1995. These statements,
including statements about COVID-19 and the completed merger (the
"Merger") between a subsidiary of the Company and IHS Markit Ltd.
("IHS Markit"), which express management's current views concerning
future events, trends, contingencies or results, appear at various
places in this press release and use words like "anticipate,"
"assume," "believe," "continue," "estimate," "expect," "forecast,"
"future," "intend," "plan," "potential," "predict," "project,"
"strategy," "target" and similar terms, and future or conditional
tense verbs like "could," "may," "might," "should," "will" and
"would." For example, management may use forward-looking statements
when addressing topics such as: the outcome of contingencies;
future actions by regulators; changes in the Company's business
strategies and methods of generating revenue; the development and
performance of the Company's services and products; the expected
impact of acquisitions and dispositions; the Company's effective
tax rates; and the Company's cost structure, dividend policy, cash
flows or liquidity.
Forward-looking statements are subject to inherent risks and
uncertainties. Factors that could cause actual results to differ
materially from those expressed or implied in forward-looking
statements include, among other things:
- worldwide economic, financial, political, and regulatory
conditions, and factors that contribute to uncertainty and
volatility, natural and man-made disasters, civil unrest, pandemics
(e.g., COVID-19), geopolitical uncertainty (including military
conflict), and conditions that may result from legislative,
regulatory, trade and policy changes;
- the ability of the Company to retain customers and to implement
its plans, forecasts and other expectations with respect to IHS
Markit's business and realize expected synergies;
- business disruption following the Merger;
- the Company's ability to meet expectations regarding the
accounting and tax treatments of the Merger;
- the volatility and health of debt, equity, commodities and
energy markets, including credit quality and spreads, the level of
liquidity and future debt issuances, demand for investment products
that track indices and assessments and trading volumes of certain
exchange-traded derivatives;
- the demand and market for credit ratings in and across the
sectors and geographies where the Company operates;
- the Company's ability to successfully recover should it
experience a disaster or other business continuity problem from a
hurricane, flood, earthquake, terrorist attack, pandemic, security
breach, cyber attack, data breach, power loss, telecommunications
failure or other natural or man-made event, including the ability
to function remotely during long-term disruptions such as the
ongoing COVID-19 pandemic;
- the Company's ability to maintain adequate physical, technical
and administrative safeguards to protect the security of
confidential information and data, and the potential for a system
or network disruption that results in regulatory penalties and
remedial costs or improper disclosure of confidential information
or data;
- the outcome of litigation, government and regulatory
proceedings, investigations and inquiries;
- concerns in the marketplace affecting the Company's credibility
or otherwise affecting market perceptions of the integrity or
utility of independent credit ratings, benchmarks and indices;
- the effect of competitive products and pricing, including the
level of success of new product developments and global
expansion;
- the Company's exposure to potential criminal sanctions or civil
penalties for noncompliance with foreign and U.S. laws and
regulations that are applicable in the domestic and international
jurisdictions in which it operates, including sanctions laws
relating to countries such as Iran, Russia,
Sudan, Syria and Venezuela, anti-corruption laws such as the
U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of
2010, and local laws prohibiting corrupt payments to government
officials, as well as import and export restrictions;
- the continuously evolving regulatory environment, in
Europe, the United States and elsewhere around the
globe, affecting S&P Global Market Intelligence, S&P Global
Ratings, S&P Global Commodity Insights, S&P Global
Mobility, S&P Dow Jones Indices, S&P Global Engineering
Solutions, and the products those business divisions offer
including our ESG products, and the Company's compliance
therewith;
- the Company's ability to make acquisitions and dispositions and
successfully integrate the businesses we acquire;
- consolidation in the Company's end-customer markets;
- the introduction of competing products or technologies by other
companies;
- the impact of customer cost-cutting pressures, including in the
financial services industry and the commodities markets;
- a decline in the demand for credit risk management tools by
financial institutions;
- the level of merger and acquisition activity in the United States and abroad;
- our ability to attract, incentivize and retain key employees,
especially in today's competitive business environment;
- the level of the Company's future cash flows and capital
investments;
- the impact on the Company's revenue and net income caused by
fluctuations in foreign currency exchange rates; and
- the impact of changes in applicable tax or accounting
requirements on the Company.
The factors noted above are not exhaustive. The Company and its
subsidiaries operate in a dynamic business environment in which new
risks emerge frequently. Accordingly, the Company cautions readers
not to place undue reliance on any forward-looking statements,
which speak only as of the dates on which they are made. The
Company undertakes no obligation to update or revise any
forward-looking statement to reflect events or circumstances
arising after the date on which it is made, except as required by
applicable law. Further information about the Company's businesses,
including information about factors that could materially affect
its results of operations and financial condition, is contained in
the Company's filings with the SEC, including Item 1A, Risk
Factors, in our most recently filed Annual Report on Form 10-K,
as supplemented by Item 1A, Risk Factors, in our most
recently filed Quarterly Report on Form 10-Q.
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SOURCE S&P Global