S&P Global Inc at William Blair Growth Stock Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : That's -- we're going to hit on a bunch of those topics as we go through. But maybe I'll start with the growth rate. At your Investor Day back in December, you outlined basically a growth target in 2025 and 2026 of 10% growth, which is quite a bit higher than what's expected this year but more in line with your historical average, albeit off a bigger base. So I want to start there for context, but kind of talk through what are the components of that organic growth target? What are the things that get you there over the medium to long term? How much comes from new product growth versus market appreciation versus other factors?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : And it sounds like obviously you have this kind of base of exceptionally well respected and known brands and products, another part of driving organic growth or flows as we speak to. And this part of the business is new product development. And I think one of the new product areas that you seem to be most excited about as an organization is multi-asset, some of which is enabled by that iBoxx brand that you bought with IHS. So can we talk a little bit about multi-asset indices and ETFs, the products that you've already launched in that area post-IHS merger and maybe just overall, the way that you go to market in that -- with that particular set of products?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Just so I understand, the insurance market is -- like what is -- okay, so I understand the S&P brand and all the assets you have and making it a one-stop shop. Is it the same things driving adoption eventually or maybe in the early stage of adoption in that market that have driven the shift from active to passive in other parts of the market to this point? Are there other, I don't know, dynamics or things about the multi-asset class product that fits well there? Is it liquidity? I'm just trying to better understand maybe why they're lagging and why they won't continuously lag or why -- where is the ramp? And why is it coming?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Makes sense. Thank you. I think one of the things that I've learned from covering MSCI in the past and obviously the index business here is there is a pretty significant first-mover advantage in a lot of these cases. In multi-asset, there are other competitors that I would imagine are going after the same thing. And we know the names of some of them that are well-known. Can you talk a little bit about the competitive set and maybe your right to win in this market?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Makes sense. Switching gears a little bit, I want to talk about another area of new product, maybe not a new product area but certainly a bigger growth opportunity with index, which is ESG and sustainability. It's a major initiative within the broader S&P Global enterprise. But I want to speak to obviously its role in the index business. Can you speak to how you're capitalizing on the secular growth opportunity within ESG, how you're leveraging not only the assets that you have already within the index business but maybe across other segments of S&P to bring value to customers?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Perfect. Maybe I'll wrap it up in terms of the growth opportunity discussion with the two other areas that you called out at Investor Day: Factors and Thematics. Can you spend some time talking about what you have in terms of offerings in those areas? And again, similar question to the other two topics of why there is an opportunity there to drive growth to that 10% level.

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Maybe I'll take the Kensho reference to switch gears a little bit and ask kind of the topic du jour about artificial intelligence. Obviously, it's leveraged very broadly across the S&P firm. Can you talk a little bit about -- you say the sectors and some of the new products that it has already created. Is it something that can create additional products in the future? Is it something that can create additional efficiencies? Obviously, it's a pretty efficient organization already or segment at least already. But if you could speak a little bit more to kind of that very hot topic. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 08, 2023 / 3:40PM, SPGI.N - S&P Global Inc at William Blair Growth Stock Conference

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Makes sense. We've talked at various points in this conversation about the combination of assets, leveraging IHS, leveraging different parts of the segment. But I want to focus on maybe the integration of IHS Markit's capabilities into your business. Are you effectively done with that transition? Where are you on the integration arc? I know you've already put together some new products out there, but just trying to get a sense. Is this one segment at this point? Or are there still some kind of remaining initiatives in place to make it one business?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Makes sense. We've got about 5 or 6 minutes left. I want to maybe pull away from S&P and speak more holistically about the industry. We've highlighted or you've highlighted some of the bigger-picture secular trends at play. So I'm going to start with the first one, which is that shift from active to passive. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 08, 2023 / 3:40PM, SPGI.N - S&P Global Inc at William Blair Growth Stock Conference In terms of its share of the overall market, how do you think about the runway? I don't know if there's any numbers you could put around that. And also does a choppier market environment, like what we have seen over the past 12 months, in your view, kind of impact that trajectory at all, whether it be temporary or over the long term?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Makes sense. Maybe related, I think investors in this space and other of your competitors are constantly interested in fee pressure and what -- and you said price-taker. But I'm speaking more specifically to the fees on the ETFs themselves. Can you talk about the trajectory there? Obviously, there -- and I don't mean to be answering the question for you. But obviously, there are larger customers or bigger products that are going to have a little bit more leverage to get basis points down. Can you talk a little bit about overall trajectory of S&P Dow Jones' cut of the traditional passive ETF or ETMF?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Perfect. And then maybe one last one. I get asked about the threat from self-indexing every so often, maybe less so now than years ago. But just kind of curious about how you think about self-indexing from some of your clients. I know you've talked about a lot of REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 08, 2023 / 3:40PM, SPGI.N - S&P Global Inc at William Blair Growth Stock Conference the reasons for the S&P moat. But is that something that you guys think a lot about? Is it something that has impacted your business in any way to this point? Or would you expect it to have a meaningful impact going forward?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : All right. Great. We have about a minute left. So I'll wrap it up there, unless there's anything, Dan, that we haven't covered that you'd like to message to the group before we wrap up.