In this year’s Investor Fact Book, we are highlighting:
The new strategic vision and medium-term financial targets post-merger
Accelerating innovation with generative AI & LLMs with Kensho
Growth through Private Markets, Sustainability & Energy Transition, and Risk Assessment
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 31–35
S&P Global Ratings’ Track Record: Standing the Test of Time page 36
S&P Global Commodity Insights’ commodity futures contract history for benchmarks and its renewable energy business pages 45–46
S&P Dow Jones Indices Annual Survey of Assets page 57
A Message from S&P Global Investor Relations
For decades, S&P Global has demonstrated its commitment to its customers, its people, and the communities in which we all live and work. The last year has provided ample opportunity for us to highlight the importance of our products and services to our customers, the resiliency of our business, and our commitment to disciplined execution.
Following the merger with IHS Markit in February 2022, we immediately set to work integrating our teams and operations, delivering on promised synergies, and galvanizing around a common vision for the future of the company – Powering Global Markets. This vision was unveiled to investors at our December Investor Day and was built on five strategic pillars: Customer at the Core, Grow & Innovate, Data & Technology, Lead & Inspire, and Execute & Deliver. We outlined plans that we believe will deliver strong and profitable revenue growth over a multi-year horizon, and reiterated our target to return at least 85% of free cash flow to investors through dividends and share repurchases.
We reinforced our commitment to transparency and accountability by introducing new key metrics, including Private Markets revenue, Sustainability & Energy Transition revenue, and the Vitality Index. We also began disclosing key market-observable data points on a monthly basis to help investors monitor specific measures of performance like Billed Issuance and Exchange-Traded Derivatives volumes.
To help investors measure performance over the course of 2022, we also provided non-GAAP pro forma adjusted financials that are included throughout this fact book. Additionally, we are including highlights in product development, artificial intelligence, and sustainability.
The goal of our Investor Fact Book is to serve as a resource for current and potential shareholders and analysts, and as always, we welcome feedback on ways we can make this resource more impactful.
Powering Global Markets
Introduced New Strategic Vision and Medium-Term Financial Targets at 2022 Investor Day
Focusing on multiple areas to accelerate revenue growth
What we are doing
How it is measured
Merger Revenue Synergies
Robust planning to identify cross-sell and new product opportunities
Run-rate synergies ~$350M in 2026
Business Rationalization
Reorganize portfolio to focus on growth and synergies
Revenue growth and margin expansion
Technology Innovation
Plan developed to shift 5-10% of $2B+ annual spend from infrastructure to innovation
Tech spend on growth ~40%
Organic Investments
Central funds earmarked to invest in innovative growth opportunities
Vitality Index >10%
Transformational Adjacencies
Actively pursue key growth areas— Sustainability and Energy Transition and Private Markets
Revenue growth
Continue to drive superior shareholder returns via a clear strategy that is backed by financial strength and strong execution
Targets were introduced at S&P Global’s Investor Day in December 2022. Cost synergy was introduced with a target of 80% and was increased to 85%. Revenue synergy was introduced with a target of ~50% achievement in 2024 and was changed to 45%
(2)
Cumulative synergies include synergies achieved both prior to, and since, the merger close on 2/28/2022 through the indicated period
(3)
Includes both recurring revenue and a portion of the one-time revenues we expect to achieve in subsequent years