The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Ashish Sabadra - RBC Capital Markets, Research Division - Analyst
: Let me add my congrats on closing of the deal as well. I just wanted to follow up on the question that Alex asked around the buyback.
When I think about it, you're buying back close to 8% to 9% of the company this year. And when I think about the cost synergies,
achieving 80% of those $600 million cost synergies by 2023, that is another 8% to 9% accretive to the $13.50 EPS this year. And as
you mentioned, you really get the full benefit of the buyback and the cost synergies in 2023.
When you had announced the acquisition, you had talked about a mid-teens earnings growth in '23. I understand you'll provide the
'23 guidance later. But how should we think about -- with this massive buyback which is really benefiting next year and the cost
synergies benefiting next year, how should we think about framework for the earnings growth for '23?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
MARCH 01, 2022 / 1:00PM, SPGI.N - S&P Global Inc to Discuss the Merger Close with IHS Markit Ltd Call
Question: Ashish Sabadra - RBC Capital Markets, Research Division - Analyst
: That's very helpful color. Really appreciate giving that color.
And then maybe just a quick question on the ESG and energy transition. Thanks for providing that $600 million run rate by -- in
revenues by 2025. I was just wondering. Also from a competitive perspective, with this acquisition, you will have, both on the energy
transition as well as ESG, the most comprehensive offering. So how do you think about your competitive positioning improving
going forward in this high-growth area of ESG?
Question: Ashish Sabadra - RBC Capital Markets, Research Division - Analyst
: Congrats once again on the deal.
Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst
: On Slide 16, you note 76% of combined company revenue is recurring in nature. I was wondering if you might add some additional
color to the remaining 24%, specifically in Ratings? How much of that is transactional revenue in Ratings? And maybe you could
help us think through the base level of transaction revenue you might expect in a typical year, considering debt that's scheduled to
mature and then presumably replaced? Just trying to get a better sense for what within that 24% is somewhat predictable versus
not.
Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst
: Right. No, makes sense. That's mostly what I was getting at. I appreciate that.
And then for my follow-up, I just was hoping you could walk through a few examples or use cases of synergy opportunities on the
private asset side. I know you mentioned in your prepared remarks about combining Market Intelligence private company data with
some of the IHS workflow tools. But any additional color on that private asset opportunity? Some of your competitors are obviously
very, very interested in that space as well, so some potential examples would be great.
|
