CRISIL Ltd. — Investor Presentation 2022

Jul 26, 2022

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July 26, 2022

Listing Department Listing Department National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, 5[th] floor P J Towers Plot No. C/1, G Block Dalal Street Bandra-Kurla Complex Mumbai 400 001 Bandra (East) Mumbai 400 051

Dear Sirs,

Sub.: Corporate Presentation Q2 2022

We are enclosing herewith our corporate presentation updated with the Q2 FY 2022 Financial Results. 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

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Minal Bhosale Company Secretary ACS 12999

Encl.: a/a

CRISIL Limited

Corporate Identity Number: L67120MH1987PLC042363

Registered Office: CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai - 400076. Phone: +91 22 3342 3000 | Fax: +91 22 3342 3001 www.crisil.com

Q2 2022 Analyst Presentation

July 2022

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 forwardlooking 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.`

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Agenda

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1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

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CRISIL: Over 30-year journey of innovation and excellence

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11% 8% 2011-21 Revenue CAGR 2011-21 EPS CAGR Global presence across 38% 11 countries Female employees

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12600+ Clients

42+

Nationalities and global languages spoken

#Agile Unleashing Defining to market needs #Innovation #Global best standards

Empowering decision-making with cutting-edge #Analytics

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Agenda

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1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

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Growth slows due to inflation and geo-political uncertainty

India Global	Indicator	FY2021	FY2022	FY2023F
	GDP(y-o-y%)	-6.6	9.2	7.3
	10-year G-secyield(%, March)	6.2	6.8	7.5
	Fiscal deficit(% of GDP)	9.2	6.9	6.4^
	Exchange rate(Re/$, March avg.)	72.8	75.0	78.0
	CPI Inflation(%)	6.2	5.5	6.8
	Repo Rate(%, March-end)	4.00	4.00
	Credit Growth(%)	~5.0	~9.0-10.0
	Indicator	CY2020	CY2021	CY2022F
	World GDP (y-o-y %)	-3.3	6	2.9
	United States of America (y-o-y %)	-3.4	5.7	2.4
	Eurozone (Euro Area-19) (y-o-y %)	-6.5	5.2	2.6
	China GDP (y-o-y %)	2.3	8.1	3.3

Note: F: Forecast; ^upside bias

Source: NSO, RBI, Budget documents, Ministry of Finance, CRISIL, World Bank Numbers rounded off to first decimal

FY represents the financial year (Apr-Mar period) CY represents the calendar year (Jan-Dec period)

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Strengthening headwinds challenging growth

Macro Trends

Business environment trends

Downward pressure on global growth

Capital market activity losing momentum

Prolonged geopolitical uncertainty Expected capex cycle revival Inflationary pressures

Elevated commodities prices

Increased emphasis on credit and nonfinancial risk

Social & sustainable practices gaining momentum

Accelerated digital transformation Evolving supply chain dynamics

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Agenda

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1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

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Performance Snapshot

• Highlights

• Income from operations for the quarter up 26.5% and for H1 2022 up 23.4%

• PBT before exceptional items and tax for the quarter up 34.9% and for H1 2022 up 43.3%

‒ Profit after tax up 35.8% for the quarter and 40.3% for H1 2022

‒ Interim dividend of ₹8 per share declared

• Robust growth across businesses despite challenging environment

‒ Ratings business maintained market leading position in corporate bond ratings

‒ Global businesses saw robust growth across areas such as risk transformation & benchmarking offerings ‒ Enhanced engagement with stakeholders through leadership summits, whitepapers, webinars and events ‒ Increased Investments in talent and technology

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Robust growth in Q2 2022 and H1 2022

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Income from operations Profit before exceptional items and tax Profit after tax
₹ crore ₹ crore ₹ crore
+26.5% +34.9% +35.8%
668.5 177.3
528.5 131.4 136.9
100.8
Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022
+43.3% +40.3%
+23.4%
346.6
1,023.7 1,263.5 241.9 184.3 258.5
H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022
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❖ Declared interim dividend of ₹8 per share

Note: Numbers rounded off to first decimal

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Agenda

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1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance - Ratings

5. Thought Leadership

6. Corporate Social Responsibility

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Capital markets issuers declined during the quarter; Credit growth was supported by wholesale credit

Bond Issuance Quantum (₹ billion)

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7,853
8,000
6,614
6,000
4,000
-28%
2,000
1,120
810
0
2020 2021 Q2 2021 Q2 2022
# of
~450 ~530 ~160 ~110
Issuers
-32%
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Credit Growth (%)
20.0%
16.4%
16.0% 12.1%
12.0%
8.0%
10.7%
4.0%
0.0%
Credit Growth Wholesale Credit Growth Retail Credit Growth
Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 20-Sep Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22
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Source: Prime Database, RBI *Data as on date; may get revised by Prime Database

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Ratings: Highlights

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Financials

Particulars(₹ cr)	Q2 2021	Q2 2022	Growth
Income from Operations	136.6	159.1	16.5%
Segment Profit	52.0	60.3	16.0%
Margin	38.1%	37.9%

Business update

Particulars(₹ cr)	H1 2021	H1 2022	Growth
Income from Operations	285.5	322.4	12.9%
Segment Profit	122.3	138.1	12.9%
Margin	42.8%	42.8%

• Amid the challenging credit environment, CRISIL Ratings’ revenue rose 20% in Q2 2022, driven by increased traction in bank loan ratings

• With the addition of new clients, the business continues to strengthen its market-leading position in corporate bond ratings, on account of investor preference for best-in-class ratings

• Global Analytical Center (GAC) strengthened analytical support across surveillance & ESG and contributed to transformation initiatives of S&P Global Ratings Services

• The Ratings segment revenue grew 16.5% y-o-y in Q2 2022 and 12.9% in H1 2022

Note: Numbers rounded off to first decimal

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Agenda

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1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance - Research

5. Thought Leadership

6. Corporate Social Responsibility

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Growth normalizes amid uncertainties and cost pressures

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₹ ‘000 crore
3,864 3,884 3,823
India mutual fund AUM
2,993
2,687
2,366
2,237
2017 2018 2019 2020 2021 Q1 2022 Q2 2022
Average AUM for the Quarter; Source: AMFI
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$ billion
600
400
Global CIB
revenue 200
pools
0
2018 2019 2020 2021 2022F
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Revenues Pools analysis includes revenues from all Institutional Clients and Corporates with annual sales turnover > $ 1.5bn; FY22 is as per preliminary estimates. Above analysis is as per Coalition Standard Taxonomy; Source: Coalition Proprietary Analytics

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₹ ‘000 crore
Alternative Investment Funds (AIFs)
609 641 694
442
348
311
267 284
239
185
93 142
2018 2019 2020 2021 Q1 2022 Q2 2022
Source: SEBI Commitments Investments
CIB return on equity (%)
20%
15%
10%
5%
0%
2018 2019 2020 2021
Source: Coalition Proprietary data; ROE calculated based on Coalition Index Universe
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Evolving regulations present opportunities

Global themes

• ESG & Climate Risk integration and reporting

• FCC/AML

• Governance of AI/ML models

• Stress Testing

• USA • BSA / AMLA • CECL Europe, including the UK • DFAST • BASEL III finalization • FRTB • CCR • OCC’s MRM Handbook • DTS plan deficiencies • UMR (Phase V and VI) • ICAAP • IRRBB • SFDR, EU Taxonomy

• • SS 3/19 • Regulatory reporting

• • UMR (Phase V and VI)

BSA/AML: Banking Secrecy Act, Anti-Money Laundering Act CECL: Current Expect Credit Loss DFAST: Dodd-Frank Act Stress Tests FRTB: Fundamental review of the Trading Book OCC’s MRM: Office of the Comptroller of the Currency; Model Risk Management UMR: Uncleared Margin Rules

Basel III finalization: FRTB and Output Floors CCR: Counterparty Credit Risk DTS: Digital Transformation Strategy ICAAP: Internal Capital Adequacy Assessment Process IRRBB: Interest Rate Risk in the Banking Book SS 3/19: BOE’s Supervisory Standard on Climate Risk SFDR: Sustainable Finance Disclosure Regulation

• Cyber security

• Third-party risk

• Customer and Conduct risk

• • DORA (EU) APAC and Australia • APS 117 • BRSR • CPS 230 • CVA • Data Privacy

• • E&S Integration

APS 117: APRA’s prudential standard for IRRBB BRSR: Business Responsibility and Sustainability Report CPS 230: APRA’s new standard for operational risk mgmt. CVA: APRA’s Climate Vulnerability Assessment DORA: Digital Operational Resilience Act IRRBB: Interest Rate Risk in the Banking Book

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Research: Highlights

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Financials

Particulars(₹ cr)	Q2 2021	Q2 2022	Growth
Income from Operations	355.4	469.5	32.1%
Segment Profit	79.9	111.0	38.9%
Margin	22.5%	23.6%

Particulars(₹ cr)	H1 2021	H1 2022	Growth
Income from Operations	667.7	863.7	29.4%
Segment Profit	133.1	206.6	55.2%
Margin	19.9%	23.9%

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Business update

• In Research, the segment continued its strong performance with growth being driven by both global businesses Global Research & Risk Solutions (GR&RS) and Global Benchmarking Analytics (GBA) across areas such as risk transformation & benchmarking offerings

• GR&RS business saw steady growth on the back of diversification in accounts and conversion of new opportunities

• GBA grew by closing renewal deals and signing up of new clients

• India Research witnessed demand for fixed-income and industry-research reports

• The overall Research segment revenue grew 32.1% y-o-y in Q2 2022 and 29.4% in H1 2022

Note: Numbers rounded off to first decimal

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Agenda

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1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance - Advisory

5. Thought Leadership

6. Corporate Social Responsibility

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Advisory: Highlights

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Financials

Financials
Particulars(₹ cr)	Q2 2021	Q2 2022	Growth		Particulars(₹ cr)	H1 2021	H1 2022	Growth
Income from Operations	36.5	40.0	9.7%		Income from Operations	70.5	77.4	9.8%
Segment Profit	4.4	4.4	-		Segment Profit	7.0	8.6	22.9%
Margin	11.9%	11.1%			Margin	9.9%	11.1%

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Business update

• Infrastructure Advisory logged robust revenue growth driven by key project wins in the roads, transport, BFSI and commodities space

• The Business Intelligence and Risk Solutions business benefited from regulatory focus on credit risk, and saw traction for products built on its proprietary platforms

• The Advisory segment revenue grew 9.7% y-o-y in Q2 2022 and 9.8% in H1 2022

Note: Numbers rounded off to first decimal

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Agenda

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1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

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A ‘TRUSTED’ voice in Media

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Media

Reports

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Webinars & Events
Social Media
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© 2022 CRISIL Ltd. All rights reserved.
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Agenda

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1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

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CRISIL Foundation continues to create social impact

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Financial capability building of rural women and communities

• Mein Pragati continues to drive outreach and impact through 1,600+ trained Sakhis in 2,800+ villages of Assam and Rajasthan.

• In Rajasthan, project has moved from direct implementation to NGO model with two new implementing partners on-boarded.

• As part of RBI’s Scale-up CFL Project, 420+ CFL centres continue to be managed through a 1,790+ on-ground team to facilitate community outreach.

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Promoting environment conservation and larger social consciousness among employees

• Afforestation initiatives continued through on-ground partners – first physical volunteering engagement carried out in June

• CRISILites were also engaged through various virtual engagements – like mentoring and virtual volunteering programmes.

• Key campaigns around World Environment Day and Earth Day garnered enhanced engagement with CRISILites

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About CRISIL Limited

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.

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

CRISIL Privacy Notice

CRISIL respects your privacy. We may use your contact information, such as your name, address, and email id to fulfil your request and service your account and to provide you with additional information from CRISIL. For further information on CRISIL’s privacy policy please visit www.crisil.com/privacy

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