CRISIL Ltd. — Investor Presentation 2021

Feb 15, 2021

February 15, 2021

Listing Department National Stock Exchange of India Ltd. Exchange Plaza, 5th floor Plot No. C/1, G Block Bandra-Kurla Complex Bandra (East) Mumbai 400 051

Listing Department BSE Limited P J Towers Dalal Street Mumbai 400 001

Dear Sirs,

Sub.: Corporate Presentation FY 2020

We are enclosing herewith our corporate presentation updated with the Audited Financial Results FY 2020. This presentation will be published on the Company's website - www.crisil.com shortly.

Kindly take this communication on record.

Yours faithfully,

For CRISIL Limited

Company Secretary

ACS 12999

CRISIL Limited

Corporate Identity Number: L67120MH1987PLC042363

2020 Analyst presentation

February 2021

Disclaimer / Safe Harbor

This presentation has been prepared solely as a concise update of Company's quarterly and/or annual results. By reading the presentation slides, you agree to be bound by the following limitations: (a) CRISIL Ltd. ("CRISIL" or "Company") cannot give assurance to the correctness of forward looking statements. These forward-looking information and statements can generally be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use terminology such as "targets", "believes", "expects", "aims", "assumes", "intends", "plans", "seeks", "will", "may", "anticipates", "would", "could", "continues", "estimate", "milestone" or other words of similar meaning and similar expressions or the negatives thereof; (b) By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this presentation. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition or results of operations could differ materially from that or those described herein as anticipated, believed, estimated or expected; c) Given the aforementioned uncertainties, prospective or present investors are cautioned not to place undue reliance on any of these forward-looking statements; d) No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investments decision whatsoever. Investor/prospective advisors must be sought on specific situation from well-informed legal, investment, tax, financial, and management professionals; e) This presentation and its contents are confidential and must not be distributed, published or reproduced. This presentation does not constitute a recommendation regarding the securities of the Company.`

CRISIL is a leading global analytics company driven by its mission of making markets function better

Empowering decisionmaking with cutting-edge

How Covid-19 struck an economic blow

2020 GDP Growth (%)

Global	-4.0
India	-7.7
US	-3.9
Eurozone	-7.2

Source: S&P Global, CRISIL, December 2020; India outlook is fiscal year 2020-21

Bank credit growth to fall to a multi-year low this fiscal

Proactive response to the pandemic ensured business continuity

Maintained 'People first' approach

• Mandatory WFH for most of 2020
• Launched 'CRISIL Care' for doctor consultations, hospitalisation
• Continued employee support through medical expert sessions and wellness sessions
• Digital learning courses/ webinars on pertinent themes

Ensured high customer engagement

Focus on technology ensured seamless operations

• 99%+ workforce remotely connected
• Virtual support for hardware, software and query resolution
• Continuous assessment of info sec measures
• Full continuity of business as the pandemic unfolded
• Periodic assessment of WFH status for all locations

• High impact research papers, analysis, webinars and thought papers on emerging trends released throughout the

2020 Highlights

Continued focus on innovation

• India's first AIF benchmarks
• High frequency district dashboards
• Scenario Expansion Manager (SEM) platform for stress-testing

Multiple recognitions

• Great Place to WorkTM Certified
• Compliance 10/10 award for most ethical business group
• Jamnalal Bajaj Awards for fair business practices
• 100 Best companies for women
• IWEI Top employers 2020

6

• 2 Continued to win new clients and mandates across markets
• 3 Acquired Greenwich Associates
• 4 Completed SEBI-mandated segregation of ratings business

5

Stood resilient and relevant amidst externalities to deliver revenue growth of 14.4% and PAT growth of 3.1%* 1

Greenwich Associates

Customer & market presence

Business strengths

• Nearly five decades of proven track record in benchmarking analytics
• Most trusted brand for sourcing and aggregating high value performance data in financial services
• Complements our existing Coalition CIB benchmarking products & expands offerings to commercial banking, asset & wealth managers
• Augments our expertise by addition of 'Voice of Customer' surveys, proprietary data assets, and capabilities to source and aggregate high value performance data

Greenwich accelerates our strategy to be the leading player in the global benchmarking analytics across financial services

A 'TRUSTED' voice

On point and thought provoking impact pieces

Our SMEs shaping digital discussions

Knowledge partnerships Podcasts

Discussion papers

Digital webinars

CSR initiatives continue to drive tangible and sustainable impact

Financial capability building in Assam, Rajasthan, Haryana and Maharashtra

Promoting environment conservation and larger social consciousness

• Over 2.2 lakh beneficiaries trained for financial literacy
• Provided financial inclusion services through 860+ Sakhis in over 1,300+ villages
• RBI's CFL pilot extended till Nov. 2021 in Maharashtra, Haryana and Rajasthan
• Received the Jury Commendation Certificate under the category Women Empowerment for FICCI CSR Awards 2020

• Planted 42,000+ trees in five cities, taking the total number of tree plantations to 70,000+ since 2015
• Despite COVID-19 pandemic, sustained the larger social consciousness of employees and kept them engaged through virtual interactions with prominent social change leaders.

Serving needs of the society arising from the pandemic

• CRISIL Foundation served over 500,000 meals to migrant workers and labourers in Mumbai
• Extended treatment support through contribution for oxygen cylinders and PPE kits across several locations

Key business trends that will shape the medium term

Accelerated digital transformation

Buoyant capital markets AI/ML adoption

Remote working and distributed model

Increasing focus on nonfinancial risk

Financial and credit stress

Economic revival

Global economy: Moving towards a brighter 2021

Source: S&P Global, December 2020; India outlook is fiscal year 2020-21

Indian economy to catch-up to pre-Covid level by Q2FY22

11% growth

Pre-Covid trend

Note: Numbers rounded off to first decimal

Q4 2020 Financial results

• Income from operations for the quarter up 28.6%
• Profit after tax for the quarter grew by 15.4%
• Final dividend of ₹ 14 per share recommended. Total dividend of ₹ 33 per share for the year 2020 vs. Rs 32 per share previous year

Note: Numbers rounded off to first decimal

FY 2020 Financial results

Consistent track record of high dividend payment

Total dividend#

(in ₹ / Share) Dividend payout* (as a % of PAT)

*Excludes Dividend Distribution Tax

# Per equity share of face value of Re. 1 each

Capital markets issuers saw decline during the year, overall credit growth remains subdued due to dip in industry credit

Source: RBI, SEBI, Ministry of Finance, Prime Database, CRISIL

• In 2020, bond issuances remained range bound y-o-y largely concentrated at AAA
• Further, the number of bond issuers also saw a sharp dip

• period

Pandemic grips credit quality leading to fewer upgrades weakening credit ratio

Source: CRISIL

Credit ratio is defined as the ratio of number of upgrades to number of downgrades. A ratio of more than 1 indicates there are more upgrades than downgrades, and vice versa. Credit ratio excludes rating actions on non-cooperative issuers.

• Economic impact of the lockdown and gradual demand recovery kept credit ratio weak, with downgrades significantly outnumbering upgrades – at 161 upgrades vs 296 downgrades between April 1 and September 30
• RBI's loan moratorium has provided a breather to corporates (especially sub-investment grade firms)
• However, number of ratings on negative watch or outlook has doubled since September 2019

Note: Numbers rounded off to first decimal

Ratings: Highlights

• The Ratings segment registered healthy growth driven by performance of Large Corporate Ratings
• During the year, the bond market increased by 8% y-o-y by in quantum with lower no. of issuers (-18%)
• Our differentiated positioning and high quality of Ratings helped client wins through the year. However, constrained credit growth impacted the mid-corporate ratings, thus off setting growth in the segment
• Completed segregation of credit ratings business into a wholly owned subsidiary, CRISIL Ratings Limited, during Q4 with no impact on clients and other stakeholders
• GAC increased collaboration with SPGI on enhanced surveillance, data and transformation projects, as well as partnered on ESG

Financials

Particulars (₹ cr)	Q4 2019	Q4 2020
Income fromOperations	141.5	150.7
Segment Profits	62.6	58.0
Margin	44.2%	38.5%

Particulars (₹ cr)	2019	2020
Income fromOperations	544.8	565.0
Segment Profits	219.5	226.7
Margin	40.3%	40.1%

Business update

• Launched Ratings Analytica, a personalised portal and mobile application (app)
• Hosted our flagship event 'NBFCs Navigating the pandemic'
• During the year released over 100 PRs and hosted ~30 webinars covering key sectors such as agrochemicals, InvITs/REITS, hospitals, fertilizers, dairy etc.

Innovation & Franchise

Indian MF AUM end the year on a high; Globally, CIBs benefited from trading revenues, however pressure continues

Evolving regulations present opportunities

CCAR: Comprehensive Capital Analysis and Review DFAST: Dodd-Frank Act Stress Tests CECL: Current Expect Credit Loss EBA: European Banking Authority MiFID: Markets in Financial Instruments Directive UMR: Uncleared Margin Rules

PRA: Prudential Regulation Authority TRIM: Targeted Review of Internal Models IFRS: International Financial Reporting Standards IBOR: Interbank Lending Rate FRTB: Fundamental Review of Trade Book

Asia: Nascent

• IFRS9

• IBOR

• Stress Testing

Research: Highlights

Particulars (₹ cr)	Q4 2019	Q4 2020
Income fromOperations	288.8	406.8
SegmentProfits	61.9	71.1
Margin	21.4%	17.5%

Note: Numbers rounded off to first decimal

Particulars (₹ cr)	2019	2020
Income fromOperations	1,044.4	1,282.7
Segment Profits	233.7	209.0
Margin	22.4%	16.3%

Excluding Greenwich, the Research segment revenue was lower by 1.0% in Q4 and higher by 1.2% for 2020

• Research segment grew strongly driven by Global Research & Analytics (GR&A) performance and acquisition of Greenwich
• GR&A saw growth with addition of new logos in traditional areas such as model and traded risk. The business also witnessed traction in non-financial and credit risk
• Growth in the segment was offset by weak performance in Coalition, which saw headwinds due to cost pressures faced by global banks
• India research continued to provide relevant insights and solutions to its domestic clients
• Current year financials include one-time acquisition related costs and impact of Covid as client decisioning slowed across markets we serve

Financials Business update

• Launched India's first AIF benchmarks
• New analytics / research District level risk tracking dashboards, Pandemic perspectives - Greenwich Investor resilience index
• Hosted Flagship event "India Investment Research Conclave"
• Hosted multiple roundtables covering topics such as LIBOR transition, ESG and stress testing; ~50 PRs and webinars on key sectors including steel, cement, pharma, agriculture, telecom, investment banks, commercial banks and asset managers

Innovation & Franchise

27

Focus on infrastructure and technology adoption to create emerging needs for analytics, risk and infra solutions

Risk Solutions

• Need for integrated credit and risk solutions, combining client workflow and data analytics
• Focus on digital enablement across the financial services
• Demand driven by regulatory norms, reporting and compliance needs
• Financial services firms move from an on-premise model to cloud-enabled offerings

Infrastructure Advisory

• ₹100 trillion spend on Infra over next 4 to 5 years with higher budgeted capex on Infra proposed for 2021
• Recent budget announced several steps towards enabling financing for the infrastructure sector – e.g. creation of Development Finance Institution (DFI)
• Increasing emphasis on end-to-end solution, and technology-enabled project monitoring dashboards
• Mixture of funding strategies non-sovereign lending, foreign investment, PPP model and asset monetization

Advisory: Highlights

Particulars (₹ cr)	Q4 2019	Q4 2020
Income fromOperations	34.0	39.8
Segment Profits	2.6	6.4
Margin	7.6%	16.1%

Note: Numbers rounded off to first decimal

Particulars (₹ cr)	2019	2020
Income fromOperations	142.5	134.1
Segment Profits	12.7	10.1
Margin	8.9%	7.5%

• The Advisory segment witnessed good traction during the quarter
• New mandates won in areas of regulatory reporting, credit risk and select city infrastructure projects
• However, the segment witnessed impact of delayed decision making and implementation delays given Covid-19 pandemic impacting full year margins

Financials Business update

rd World Utility Summit on

• Launched portfolio impact assessment offering, to guide clients on addressing the impact of COVID-19
• Launched the new ICON platform with new-age risk assessment models
• Participated as knowledge partners in 3 theme 'Utility next for electricity utilities'
• Hosted multiple webinars during the year on key topics such as Project Finance & PPP Financial Modelling, Contract Development & Management for Urban and Climate PPP Projects

Innovation & Franchise

Risks

Prolonged impact of Covid-19 pandemic and delay in economic revival

Evolving regulatory environment

Information security and cyber-related risks

Adverse currency movement

Intense competition

Reputation risk

In Summary,

CRISIL's businesses demonstrated resilience underpinned by its strong and increasing relevance of best in class insights, opinions and analytics in a year of uncertainty

CRISIL's financial performance in 2020 was driven by its differentiated positioning, new client additions across business segments and a strong focus on efficiencies

Sharp economic recovery benefiting from a low base and expansionary India budget expected to spur growth in 2021

Our focus on strengthening the core, commercialization of new offerings and continued investments in technology and talent to augur well for driving future growth

About CRISIL

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better.

It is India's foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footprint.

It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.

For more information, visit www.crisil.com

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Last updated: May 2018

For further information contact: investors@crisil.com