CRISIL Ltd. — Investor Presentation 2022

Feb 17, 2022

==> picture [596 x 83] intentionally omitted <==

February 17, 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 FY 2021

We are enclosing herewith our corporate presentation updated with the Audited Financial Results FY 2021. 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

==> picture [71 x 35] intentionally omitted <==

Minal Bhosale Company Secretary ACS 12999

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

2021 Analyst presentation

February 2022

==> picture [648 x 361] intentionally omitted <==

1

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.`

2

Agenda

==> picture [65 x 351] intentionally omitted <==

1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

3

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

==> picture [30 x 31] intentionally omitted <==

==> picture [27 x 28] intentionally omitted <==

==> picture [33 x 31] intentionally omitted <==

Ratings Benchmarking Insights Research Services Risk Solutions

Research Services

Market Insights & Analytics

Empowering decisionmaking with cutting-edge #Analytics

#Global footprint

#Innovation to drive growth #Agile to market needs

4

Agenda

==> picture [65 x 351] intentionally omitted <==

1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

5

Global recovery leads to better macro-economic performance

India	Indicator	FY2020	FY2021	FY2022F	FY2023F
	GDP (y-o-y%)	3.7	-6.6	9.2^	7.8
	10-year G-secyield (%, March)	6.2	6.2	6.8	7.0^^
	Fiscal deficit (% of GDP)	4.7	9.2	6.9*	6.4**
	Exchange rate (Re/$, March avg.)	74.4	72.8	75.0	76
	CPI Inflation (%)	4.8	6.2	5.5	5.2
	Repo Rate(%, March-end)	4.40	4.00	4.00
	Credit Growth(%)	6.0	~5.0	~9.0-10.0

==> picture [50 x 48] intentionally omitted <==

Global

Indicator	CY2019	CY2020	CY2021F	CY2022F
World GDP (y-o-y %)	2.9	-3.3	5.7	4.2
United States of America (y-o-y %)	2.3	-3.4	5.5	3.9
Eurozone (Euro Area-19) (y-o-y %)	1.2	-6.5	5.1	4.4
China GDP (y-o-y %)	6.1	2.3	8.0	4.9

Note: F: Forecast; ^NSO first advance estimate, revised estimate; *budget estimate; ^^with upside risks Source: NSO, RBI, Budget documents, Ministry of Finance, CRISIL

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

6

Overall positive trends but few risks remain

Macro Trends Business environment trends

==> picture [45 x 45] intentionally omitted <==

==> picture [45 x 46] intentionally omitted <==

==> picture [45 x 45] intentionally omitted <==

==> picture [45 x 45] intentionally omitted <==

Healthy economic growth Expected capex cycle revival

Geopolitical uncertainty

Inflationary pressures

==> picture [45 x 45] intentionally omitted <==

==> picture [45 x 45] intentionally omitted <==

==> picture [45 x 45] intentionally omitted <==

==> picture [45 x 45] intentionally omitted <==

Buoyant capital market activity Increased emphasis on credit and nonfinancial risk

Accelerated digital transformation

Social and sustainable practices gaining momentum

==> picture [45 x 45] intentionally omitted <==

Evolving supply chain dynamics

7

Agenda

==> picture [65 x 351] intentionally omitted <==

1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

8

2021 Performance snapshot

• Strong financial performance

• Income from operations for the quarter up 18.2% and for the year 2021 up 16.1%

• PBT before exceptional items and tax for the quarter up 33.9% and for the year 2021 up 24.9%

• Profit after tax up 53.2% for the quarter and 31.3% for the year 2021

• Sustained progress on customer, operations, and people agenda

• Robust client additions across all business segments

• Maintained market leading position in corporate bond ratings

• Tapped opportunities across risk transformation, credit risk, buy side research and sustainability

• Positive momentum across new product offerings and solutions

• Enhanced engagement with stakeholders through whitepapers, webinars and events

• Continued focus on “employee first” approach through multiple initiatives

• Investments across talent and technology

9

Robust growth in Q4 2021 and full year 2021

==> picture [931 x 332] intentionally omitted <==

----- Start of picture text -----

Income from operations Profit before exceptional items and tax Profit after tax [1]
₹ crore ₹ crore ₹ crore
+18.2% +33.9% +53.2%
706.0 179.5 168.6
597.2 134.1 110.0
Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021
+24.9% +31.3%
+16.1%
572.6 465.8
1,981.8 2,300.7 458.3 354.7
2020 2021 2020 2021 2020.0 2021.0
© 2022 CRISIL Ltd. All rights reserved.
----- End of picture text -----

• Final dividend of Rs 22 per share, including a special dividend of Rs 7 per share, recommended. Total dividend of Rs 46 per share for the year 2021 vs Rs 33 per share in 2020

Numbers rounded off to first decimal

The results include the full-year financials of Greenwich Associates LLC (acquired on February 26, 2020), while for the same period last year, 10-month financials were considered.

• 1 Profit after tax for the quarter and year ended December 31, 2021, includes Rs 45.8 crore towards profit on sale of property

10

Strategy of sustainable growth driven through new solutions and offerings..

==> picture [305 x 153] intentionally omitted <==

==> picture [302 x 153] intentionally omitted <==

==> picture [188 x 73] intentionally omitted <==

Independent Credit Evaluation Expected Loss Ratings

==> picture [342 x 143] intentionally omitted <==

==> picture [302 x 112] intentionally omitted <==

CRISIL Alternate Investment Funds Benchmarks

CRISIL ESG Scores

11

..including sharper focus on ESG

Our commitment to ESG

==> picture [433 x 151] intentionally omitted <==

==> picture [433 x 151] intentionally omitted <==

Growing suite of offerings

• ESG Scores (India) – 225+ companies

• ESG research for sell side and buy side

• Sustainability assessment of loan book

• ESG Benchmarks and framework assessment

Thought Leadership

==> picture [300 x 158] intentionally omitted <==

• Supporting S&P Global in ESG evaluations

12

Recognition through multiple awards and honors

==> picture [187 x 13] intentionally omitted <==

----- Start of picture text -----

Great Place to Work Recognition
----- End of picture text -----

==> picture [82 x 124] intentionally omitted <==

Awarded 2[nd] year in a row

Diversity Recognition

==> picture [160 x 85] intentionally omitted <==

Part of “2021 Working Mother & Avatar Best Companies for Women in India”

Diversity Recognition

==> picture [152 x 88] intentionally omitted <==

Part of “IWEI Top Employers”

Marketing Impact Recognition

==> picture [176 x 89] intentionally omitted <==

Product Launch – ESG Gauge

Global Recognition

==> picture [149 x 82] intentionally omitted <==

Risk Markets Technology Award for best modelling innovation - SEM

Human Resources Recognition

==> picture [149 x 88] intentionally omitted <==

HR Excellence Award

Governance Recognition

==> picture [88 x 88] intentionally omitted <==

Ethical Business Group

CSR Recognition

==> picture [119 x 89] intentionally omitted <==

CSR Foundation of the Year Award

==> picture [960 x 48] intentionally omitted <==

Agenda

==> picture [65 x 351] intentionally omitted <==

1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance - Ratings

5. Thought Leadership

6. Corporate Social Responsibility

14

Capital markets issuers saw decline during the year; credit growth remains subdued

==> picture [437 x 344] intentionally omitted <==

----- Start of picture text -----

Bond Issuance Quantum (₹ billion)
-23%
7,853
8,000
7,152
6,043
6,000
4,000
2,000
0
2019 2020 2021
# of
547 455 337
Issuers
----- End of picture text -----

==> picture [436 x 327] intentionally omitted <==

----- Start of picture text -----

Credit Growth (%)
16.0%
14.3%
12.0%
9.2%
8.0%
9.2%
4.0%
0.0%
Credit Growth Wholesale Credit Growth
Retail Credit Growth
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
----- End of picture text -----

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

15

Sustained economic recovery driving improvement in credit ratio[1]

Trends in credit ratio and debt-weighted credit ratio (on a 12-month rolling basis)

==> picture [907 x 286] intentionally omitted <==

1Reflects to the ratio of upgrades to downgrades. Excludes rating actions involving ratings with the Issue-not-cooperating (INC) suffix

16

Ratings: Highlights

==> picture [47 x 46] intentionally omitted <==

==> picture [46 x 46] intentionally omitted <==

Financials

==> picture [395 x 178] intentionally omitted <==

----- Start of picture text -----

Particulars (₹ cr) Q4 2020 Q4 2021 Growth
Income from
150.7 165.0 9.5%
Operations
Segment Profit 58.0 66.0 13.8%
Margin 38.5% 40.0% 150 bps
----- End of picture text -----

Business update

==> picture [372 x 181] intentionally omitted <==

----- Start of picture text -----

Particulars (₹ cr) 2020 2021 Growth
Income from
565.0 604.1 6.9%
O erations
p
Segment Profit 226.7 252.7 11.5%
Margin 40.1% 41.8% 170 bps
----- End of picture text -----

• CRISIL Ratings continues to maintain market leading position in corporate bond ratings and added new clients during the quarter driven by improved lending activity in line with economic recovery

• The business also saw increased penetration in the mid-corporate segment and traction for stressed asset offerings

• Revenue at CRISIL Ratings grew 16.8% on-year in the December quarter, and 7.5% in 2021

• Global Analytical Center (GAC) increased support to the analytical, sustainability and transformation projects of S&P Global Ratings Services

• The Ratings segment revenue grew 9.5% on-year in the December quarter and 6.9% in 2021

Note: Numbers rounded off to first decimal

17

Agenda

==> picture [65 x 351] intentionally omitted <==

1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance - Research

5. Thought Leadership

6. Corporate Social Responsibility

18

Indian markets continue positive run and ends the year on a high; Globally, CIB industry normalizes and ESG gains momentum

==> picture [451 x 191] intentionally omitted <==

----- Start of picture text -----

₹ ‘000 crore
3,864
2,993
2,687
2,366
India 2,237
mutual fund
AUM
2017 2018 2019 2020 2021
Average AUM for the Quarter; Source: AMFI
----- End of picture text -----

==> picture [425 x 151] intentionally omitted <==

----- Start of picture text -----

$ billion
600
500
Global CIB 400
revenue
100
pools
0
2018 2019 2020E 2021F 2022F
----- End of picture text -----

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

==> picture [451 x 398] intentionally omitted <==

----- Start of picture text -----

₹ ‘000 crore
609
442
Alternative 348
267
Investment 239
185
142
Funds (AIFs) 93
2018 2019 2020 2021
Source: SEBI
Commitments Investments
$ trillion
40
Global 30
Sustainable 20
Investing
10
Assets
0
2016 2018 2020
Source: Global Sustainable Investment Alliance
----- End of picture text -----

19

Evolving regulations present opportunities

Global themes

• ESG integration, reporting

• • FCC/AML

• Stress Testing

• Cyber security

• Third-party risk

• USA • Customer and Conduct risk • DFAST • FRTB Europe, including UK • CECL • SFDR, EU Taxonomy • BSA / AMLA • CBES, SS 3/19 • OCC’s MRM Handbook • BASEL III finalization APAC & Australia •

• • UMR (Phase V and VI) • ICAAP Data Privacy • BRSR

• • CCR •

• • IRRBB E&S Integration • CVA

• • DTS plan deficiencies • CPS 230

• • Regulatory reporting • APS 117

• • UMR (Phase V and VI)

DFAST: Dodd-Frank Act Stress Tests

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

CBES: BOE’s Climate Biennial Exploratory Scenario SS 3/19: BOE’s Supervisory Standard on Climate Risk SFDR: Sustainable Finance Disclosure Regulation CCR: Counterparty Credit Risk Basel III finalization: FRTB and Output Floors

DTS: Digital Transformation Strategy IRRBB: Interest Rate Risk in the Banking Book CVA: APRA’s Climate Vulnerability Assessment APS 117: APRA’s prudential standard for IRRBB CPS 230: APRA’s new standard for operational risk mgmt.

20

Research: Highlights

==> picture [47 x 46] intentionally omitted <==

==> picture [46 x 47] intentionally omitted <==

Financials

Particulars(₹ cr)	Q4 2020	Q4 2021	Growth
Income from Operations	406.8	494.3	21.5%
Segment Profit	71.1	107.5	51.2%
Margin	17.5%	21.7%	420 bps

==> picture [398 x 173] intentionally omitted <==

----- Start of picture text -----

Particulars (₹ cr) 2020 2021 Growth
Income from
1282.7 1543.7 20.3%
O erations
p
Segment Profit 209.0 324.1 55.1%
Margin 16.3% 21.0% 470 bps
----- End of picture text -----

Business update

• In Research, the Global Research & Risk Solutions (GR&RS) business saw client wins and continued to grow in December quarter led by

• Increased demand for our offerings in the areas of regulatory reporting, product control, sustainability, and buy-side research

• Business opportunities driven by investments in digital and regulatory-driven transformation agenda at financial institutions

• The India Research business witnessed growth following the pick-up in economic activity with increased traction for data, insights, and capital market research offerings

• Revenue growth at Global Benchmarking Analytics was driven by deals with global corporate and investment banks

• Greenwich Associates strengthened its regional client base and expanded relationships with commercial banks

• The overall Research segment revenue grew 21.5% on-year in the December quarter and 20.3% in 2021

Note: Numbers rounded off to first decimal

21

Agenda

==> picture [65 x 351] intentionally omitted <==

1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance - Advisory

5. Thought Leadership

6. Corporate Social Responsibility

22

Advisory: Highlights

==> picture [47 x 46] intentionally omitted <==

Financials

Financials
Particulars(₹ cr)	Q4 2020	Q4 2021	Growth		Particulars(₹ cr)	2020	2021	Growth
Income from Operations	39.8	46.8	17.6%		Income from Operations	134.1	152.9	14.0%
Segment Profit	6.4	8.8	37.5%		Segment Profit	10.1	16.6	64.4%
Margin	16.1%	18.8%	270 bps		Margin	7.5%	10.9%	340 bps

==> picture [46 x 46] intentionally omitted <==

Business update

• The Advisory segment saw good momentum with revenue growing 17.6% on-year in the December quarter and 14.0% in 2021

• The business bagged large wins from multilaterals and expanded its overseas clients' footprint

• The Business Intelligence and Risk Solutions business saw wins for its regulatory offerings

Note: Numbers rounded off to first decimal

23

Agenda

==> picture [65 x 351] intentionally omitted <==

1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

24

A ‘TRUSTED’ voice in Media

==> picture [37 x 37] intentionally omitted <==

==> picture [40 x 39] intentionally omitted <==

Media

==> picture [207 x 111] intentionally omitted <==

Webinars & Events

==> picture [78 x 143] intentionally omitted <==

==> picture [212 x 107] intentionally omitted <==

==> picture [38 x 37] intentionally omitted <==

==> picture [38 x 38] intentionally omitted <==

Reports

==> picture [97 x 131] intentionally omitted <==

==> picture [104 x 134] intentionally omitted <==

Social Media

==> picture [103 x 143] intentionally omitted <==

==> picture [180 x 95] intentionally omitted <==

25

Agenda

==> picture [65 x 351] intentionally omitted <==

1. CRISIL Overview

2. Business Environment

3. Performance Update

4. Segment Performance

5. Thought Leadership

6. Corporate Social Responsibility

26

Continue to create social impact through CSR initiatives

Amplifying CRISIL’s ESG agenda by driving inclusive growth and conserving the environment

==> picture [132 x 76] intentionally omitted <==

==> picture [149 x 69] intentionally omitted <==

Financial capability building of rural women and communities

• Mein Pragati expanded its outreach and impact through 1,800+ trained Sakhis in 2,800+ villages of Assam and Rajasthan.

• During the year, ~850 new Sakhis were on-boarded to cover 1,500 villages

• As part of RBI’s Scale-up CFL Project, 400+ CFL centres launched across 17 States/UTs with support from RBI and sponsor banks

==> picture [216 x 116] intentionally omitted <==

==> picture [149 x 78] intentionally omitted <==

Promoting environment conservation, disaster relief and larger social consciousness among employees

• Afforestation initiatives continued through on-ground partners – total plantation count at 109,000+ trees as against 1 lakh commitment by 2021

• Through “Take The Shot” vaccination drive, 8,300+ marginalized community members were provided Covid-19 vaccination doses

==> picture [90 x 119] intentionally omitted <==

==> picture [120 x 119] intentionally omitted <==

==> picture [31 x 39] intentionally omitted <==

CRISIL Foundation, CRISIL CSR arm has been awarded the CSR Foundation of the Year Award (small companies category) at the 7[th] CSR Impact Awards organised by CSR Box & Dalmia Bharat Foundation.

==> picture [960 x 48] intentionally omitted <==

Risks

==> picture [56 x 319] intentionally omitted <==

Evolving regulatory environment

Information security and cyber-related risks Adverse currency movement Intense competition Reputation risk

28

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

29