Empowering People. Repowering Relationships.
Powering the Markets of the Future.
S&P Global’s 2019 Investor Fact Book highlights the Company’s strong financial results. We achieved meaningful progress toward medium-term targets introduced in May 2018 (see table to right). In the first year, we delivered 3% revenue growth and 23% adjusted diluted EPS growth. Free cash flow, excluding certain items, increased 8% year-over-year to $2 billion. In 2018, we returned 108% of free cash flow, or $2.2 billion, to shareholders through share repurchases and dividends. The 108% return of free cash flow far exceeds the 75% of free cash flow annual return target we committed to on Investor Day in 2018. We also generated meaningful margin improvement in every business in 2018.
In 1969, a moon landing elevated the race to space to a new level. Fifty years later, S&P Global’s rapid innovation group is elevating the race to space to a new level, only this time it’s the race to workspace. Our mission is to embed personalized insights and essential intelligence into the workspaces, workflows, and workstations of customers around the globe. We are taking the lead in today’s workspace race by building for the future, both through organic projects and acquisitions such as Kensho, Panjiva, and RateWatch. But it’s not only about reaching for the rising technology and data stars, it’s also about listening to our customers, paying close attention to the competitive landscape, and watching key market trends.
So, even as we continue to invest in new technology, add new data sets, enter new geographies, and launch new products, we know that empowering people and repowering relationships will produce the all-stars who will help propel us to the next level and provide the ingenuity, support, and inspiration that are so essential in powering the markets of the future.
Meaningful Progress Achieved in 2018 Toward Medium-Term Targets*
|Total company measures:|
|Organic revenue growth||Mid-to-high single-digit||3 of 4 businesses|
|Adjusted diluted EPS growth||Low double-digit||23%|
|FCF return to shareholders||≥75%||108%**|
|Adjusted operating profit margin:|
|Ratings||high 50s||+240 bps to 56.0%|
|Market Intelligence||mid-to-high 30s||+200 bps to 34.1%|
|Platts||low 50s||+200 bps to 49.1%|
|Indices||mid-to-high 60s||+160 bps to 68.0%|
|S&P Global||low 50s||+230 bps to 48.8%|
* Medium-term targets were introduced at S&P Global’s Investor Day in May 2018 and refer to a 3- to 4-year horizon
** Returned 108% of free cash flow, excluding certain items, to shareholders in dividends and share repurchases
Investments Totaling $90 Million to $110 Million Planned in 2019 to Help Fuel Additional Future Growth
|Domestic ratings in China|
|Market Intelligence China initiative|
|Platts commercial expansion in Asia|
|Ramp up ESG data factory|
|Pilot new ESG analytic and data products|
|Platts agriculture acceleration|
|Continued Kensho collaboration|
|Continued deployment of data science, AI, cloud, machine learning, and robotics tools|
Progress on New ~$100 Million, 3-Year Cost Reduction Program
- $45m across support functions and real estate
- $15m in technology and digital infrastructure
A Message from S&P Global Investor Relations…
S&P Global’s 2019 Investor Fact Book is intended to help investors understand the various businesses within our Company by providing insights into the growth levers for each of our businesses, examples of new growth and productivity initiatives, and time-series data to help with historical modeling.
This year we are highlighting new Company-wide initiatives, including:
|Additional investments in global, innovation, and technology to fuel growth|
|Our $100 million, three-year cost reduction program|
And, as always, we include those sections most frequently sought by investors:
|Ten years of bond issuance data by world area and asset type (pages 22–26)|
|S&P Global Ratings’ Track Record: Standing the Test of Time (page 27)|
|New this year: Trends in the leveraged loan market (pages 28–29)|
|How S&P Global Market Intelligence is harnessing new data and technology (pages 32–35)|
|Commodity futures contract history for S&P Global Platts benchmarks (pages 42–43)|
|S&P Dow Jones Indices Annual Survey of Assets (page 45)|
Throughout the 2019 Investor Fact Book you will see examples of how the content and technology from our recent acquisitions provide rich new essential intelligence for our customers. You will also find examples of how we are applying artificial intelligence and machine learning to create new efficiencies and improve products. The online edition features expanded content, including related video content, new reports/studies released during the year, and Excel downloads of key financials.
We would greatly appreciate any suggestions for additional content that you would find useful. Please pass along your suggestions and let us know if you have questions.
Robert (Chip) S. Merritt
Senior Vice President, Investor Relations
T 212 438 4321
Celeste M. Hughes
Senior Manager, Communications & Shareholder Relations, Investor Relations
T 212 438 2192
Please refer to all source material cited herein for more information, including information relating to disclaimers and intellectual property rights associated with such material.