CRISIL Ltd. — Investor Presentation 2022

Apr 25, 2022

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April 25, 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.: Analyst Call

We are enclosing herewith our corporate presentation updated with Q1 2022 results which will be used during our Analyst Call on Monday, April 25, 2022 . 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

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

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Creating possibilities CRISIL Analyst Presentation

April 2022

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Disclaimer / safe harbour

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.`

Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of information on which this Presentation is based and is not responsible for any errors or omissions or for the results obtained from the use of this Presentation. CRISIL, especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this Presentation.

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Agenda

1. Introduction

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership & Corporate social responsibility

7. Risks

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CRISIL: Over 30-year journey of innovation and excellence

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11% 2011-21 Revenue CAGR

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8% 2011-21 EPS CAGR

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11 Countries where we have global presence

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4,200+ Employees globally as of March 31, 2022

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38% Female employees globally as of March 31, 2022

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42+ Nationalities and global languages spoken

#Agile Unleashing to market needs #Innovation

Defining #Global best standards

Empowering decision-making with cutting-edge #Analytics

*excludes impact of one-time special dividends

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Agenda

1. Introduction

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership & Corporate social responsibility

7. Risks

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Global growth to moderate amid rising risks

GDP growth (%)

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3.2 3.3
2.4
4.9
5.7 5.2
1.7
8.1
US Eurozone
Japan
China
India
World 7.8
2019 - World 2.8 8.9
2022: 3.6
2020 - -3.9
2021: 6.0
2021E 2022F
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E: Estimated; F: Forecast;

Source: S&P Global (March 2022); India outlook is for the fiscal year FY22 and FY23 respectively

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Overall market trends positive, but risks remain

Market trends

Business environment trends

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Moderating economic growth

Expected capex cycle revival

Geopolitical uncertainty

Inflationary pressures

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Capital market activity losing momentum Increased emphasis on credit and nonfinancial risk

Accelerated digital transformation

Social and sustainable practices gaining momentum

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Evolving supply chain dynamics

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Agenda

1. Introduction

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership & Corporate social responsibility

7. Risks

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Robust performance driven by…

• Strong financial show in the first quarter (Q1) ended March 31, 2022

‒ Income from operations up 20.1% and for the year 2021 up 16.1%

• Profit before exceptional items and tax up 53.2% and for the year 2021 up 24.9%

• Profit after tax up 45.6% and for the year 2021 up 31.3%

• Sustained progress on customer, operations, and people agenda

• Focus on customer centricity leading to robust client additions across business segments

• Maintained market-leading position in corporate bond ratings, and saw robust traction across risk transformation, credit risk, buy-side research and sustainability

• Launched several innovative products and solutions across the credit, risk and regulatory space

• Enhanced engagement with stakeholders through whitepapers, webinars and events

• Continued focus on ‘employee-first’ approach through multiple initiatives

• Accelerated investment spend in people and technology

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…customer-centric innovation and solutions

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Launched several products, including pricing engine, asset classification tool, new industry reports and risk benchmarking

Enabled clients to meet regulatory mandate for Interbank Offered Rate transition (IBOR), Fundamental Review of Trading Book (FRTB) and Comprehensive Capital Analysis and Review (CCAR)

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Delivered multiple new

risk transformation projects for global banks and financial institutions

Supported ESG evaluations and opinions in S&P Global Ratings

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Assigned new across ratings stressed assets and structured finance

Analytics referenced in

over 300 Articles and 100 investor . presentations Presented to over 100 executive committees of banks

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…investments in talent and technology

Talent

Technology

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Launched ‘Manager of the Future’

Programme to upskill people managers on new and evolved skills needed to be effective in hybrid work environment

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Accelerated growth through cuttingedge tech solutions

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Sizably scaled-up new-age, technofunctional skilled workforce to ~ 1200 employees (~30% of the total employee base)

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Application modernization

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on Significant focus skilling employees on Development of application platform sustainability (ESG) as a strategic business towards building better operating imperative leverage Launched DEI statement to enable a Security enhancements and culture of care and shared values movement towards cloud adoption

DEI: Diversity, equity and inclusion

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…commitment to sustainability…

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Launched a comprehensive ESG compendium and ESG scores for top 225 Indian companies

CRISIL Ratings has commenced disclosing the impact of ESG parameters separately when assigning credit ratings

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Integrated ESG analytics, research and benchmarks for global financial institutions

Thought leadership through flagship events, webinars and publications

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Recognition through multiple awards and honours

Great Place to Work Recognition

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Awarded 2[nd] year in a row

Global Recognition

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Risk Markets Technology Award for best modelling innovation - SEM

Diversity Recognition

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

Human Resources Recognition

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HR Excellence Award

Diversity Recognition

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Part of “IWEI Top Employers”

Diversity & Inclusion

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Excellence Award

Marketing Impact Recognition

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Product Launch – ESG Gauge

CSR Recognition

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CSR Foundation of the Year Award

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Agenda

1. Introduction

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership & Corporate social responsibility

7. Risks

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Continued healthy performance for full year 2021 and Q1 2022

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Income from operations Profit before exceptional items and tax Profit after tax
₹ crore ₹ crore ₹ crore
+20.1% +53.2% +45.6%
594.9 169.3 121.6
495.2
110.5 83.5
Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022
+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 2021
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• Final dividend of Rs 22 per share for year 2021, including a special dividend of Rs 7 per share. Total dividend of Rs 46 per share for the year 2021 vs Rs 33 per share in 2020

• Interim dividend of Rs 7 per share for the quarter ended March 31, 2022

Numbers rounded off to first decimal; Profit after tax for the year ended December 31, 2021, includes profit on sale of property

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Agenda

1. Introduction

2. Business environment

3. Performance update

4. Financials

5. Segment performance - Ratings

6. Thought leadership & Corporate social responsibility

7. Risks

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Bond issuance drops further amid uncertain environment and risk aversion; wholesale credit growth remains muted

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Bond issuance quantum (₹ billion) Credit growth (%)
-23%
8,000
7,000
6,000 12.3%
5,000
4,000 7.9%
3,000
-22%
6.1%
2,000
1,000
0
2020 2021 Q1CY21 Q1CY22
Credit Growth Wholesale Credit Growth Retail Credit Growth
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 20-Sep Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22
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Source: RBI, SEBI, Ministry of Finance, Prime Database, CRISIL

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Our differentiated analytical rigour

Long-run one-year default rates (average for the 10 years ending FY2021)

	AAA category	AA category	A category	BBB category
CRISIL	0.01%	0.09%	0.18%	0.71%
OCRA1	0.70%	0.50%	0.60%	1.50%
OCRA2	0.10%	0.10%	0.30%	1.70%
OCRA3	0.21%	0.19%	0.90%	2.59%
OCRA4	0.55%	1.18%	1.81%	2.49%

Source: Data from disclosures by CRAs on “Long run average default rates” for FY2020-21 as per SEBI circular dated June 13, 2019

@OCRA4 has disclosed average default rates only for last 5 financial years. It has also disclosed default rates separately for structured and non-structured instruments, which is contrary to the circular. The data presented here is for non structured instruments.

OCRA: Other Credit Rating Agency

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Ratings: Highlights

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Financials

Particulars(₹ cr)	Q1 2021	Q1 2022	Growth
Income from operations	148.9	163.3	9.7%
Segment profit	70.3	77.8	10.7%
Margin	47.2%	47.6%	41 bps

Particulars(₹ cr)	2020	2021	Growth
Income from operations	565.0	604.1	6.9%
Segment profit	226.7	252.7	11.5%
Margin	40.1%	41.8%	170 bps

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Business update

• CRISIL Ratings continues to strengthen its leading position in the corporate bond market driven by investor preference for best-in-class ratings and new client additions

• Global Analytical Center (GAC) sustained its analytics surveillance support across all practices and continued to drive the data and technology transformation agenda of S&P Global Ratings Services

• Ratings segment revenue grew 9.7% on-year for the quarter ended March 2021, and 6.9% for the year ended 2021

Note: Numbers rounded off to first decimal

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Agenda

1. Introduction

2. Business environment

3. Performance update

4. Financials

5. Segment performance ― Research

6. Thought leadership & Corporate social responsibility

7. Risks

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Global CIB revenue normalises; RoE expected to improve

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Global CIB revenue pools
$ billion
600
500
400
100
0
2018 2019 2020 2021 2022F
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CIB return on equity (%)
20.0%
15.0%
10.0%
5.0%
0.0%
2018 2019 2020 2021E
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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

Source: Coalition Proprietary data; ROE calculated based on Coalition Index Universe

CIB: Corporate and Investment Bank

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Evolving regulations present opportunities

Global themes

• ESG integration, reporting

• • FCC/AML

• Stress Testing

• Cyber security

  • Third-party risk

• USA • Customer and Conduct risk • BSA / AMLA • CECL Europe, including the UK • DFAST • BASEL III finalization • FRTB • CBES, SS 3/19 APAC and Australia

• • OCC’s MRM Handbook • CCR • APS 117

• • • UMR (Phase V and VI) DTS plan deficiencies • BRSR

• • ICAAP • CPS 230

• • IRRBB • CVA

• • SFDR, EU Taxonomy •

• • Data Privacy Regulatory reporting •

• • E&S Integration 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

CBES: BOE’s Climate Biennial Exploratory Scenario; SS 3/19: BOE’s

Supervisory Standard on Climate Risk CCR: Counterparty Credit Risk DTS: Digital Transformation Strategy ICAAP: Internal Capital Adequacy Assessment Process IRRBB: Interest Rate Risk in the Banking Book SFDR: Sustainable Finance Disclosure Regulation

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 IRRBB: Interest Rate Risk in the Banking Book

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Indian markets continue strong run, ends fiscal 2022 on a high

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India mutual funds AUM
Alternative Investment Funds (AIFs)
₹ ‘000 crore ₹ ‘000 crore
609
3,864
442
2,993
2,687 348
2,237 2,366
267
239
185
142
93
2017 2018 2019 2020 2021 2018 2019 2020 2021
Commitments Investments
Average AUM for the Quarter; Source: AMFI Source: SEBI
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• Heightened activity in capital market and growth in bank credit leading in focus areas power demand for research, valuations and analytics

• Infrastructure-led capex in roads and renewables by government and PLI-led capex revival to boost spending

• Focus on newer areas such as sustainability and green sectors

PLI: Production Linked Incentives

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Research: Highlights

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Financials

Particulars(₹ cr)	Q1 2021	Q1 2022	Growth
Income from operations	312.2	394.2	26.3%
Segment profit	53.2	95.6	79.7%
Margin	17.0%	24.3%	730 bps

Particulars(₹ cr)	2020	2021	Growth
Income from operations	1282.7	1543.7	20.3%
Segment profit	209.0	324.1	55.1%
Margin	16.3%	21.0%	470 bps

Business update

• Revenue growth at Global Benchmarking Analytics was driven by increased engagements with key clients in the corporate, commercial, and investment banking space

• Global Research & Risk Solutions (GR&RS) business saw client wins and continued to grow led by increased demand for our offerings in the areas of risk, data transformation, regulatory, product control, sustainability, and buy-side research

• GR&RS continued to cater to regulatory and transformation-oriented demand, by leveraging synergies and striking partnerships

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

• The overall Research segment revenue grew 26.3% on-year for the quarter ended March 2022 and 20.3% for the year ended 2021

Note: Numbers rounded off to first decimal

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Agenda

1. Introduction

2. Business environment

3. Performance update

4. Financials

5. Segment performance — Advisory

6. Thought leadership & Corporate social responsibility

7. Risks

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Focus on infrastructure and technology adoption to create needs for advisory services, analytics and digital solutions

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Infrastructure Advisory

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Business Intelligence and Risk Solutions

• Higher budgeted Infra capex proposed for 2022 - areas of focus such as Roads, Ports, Logistics and Energy

• Demand for integrated credit and risk solutions combining data, analytics and customizable workflows

• Higher allocation under PLI scheme to give a fillip to renewables and sustainability themes

• Focus on digitizing client and internal process journeys to enhance user experience and increase productivity

• Diversification in long term funding sources for infrastructure investment – Green bonds, foreign investment, PPP model, asset monetization, InvITs, etc.

• Increasing emphasis on advisory solutions around emerging new solutions to mitigate climate change

• Financial services firms accelerating migration to the Cloud with a preference for implementation light SaaS solutions

• • Demand for platforms and services for regulatory and compliance related reporting

PLI: Production Linked Incentive PPP: Public-Private Partnership InvITs: Infrastructure Investment Trust

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Advisory: Highlights

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Financials

Particulars(₹ cr)	Q1 2021	Q1 2022	Growth		Particulars(₹ cr)	2020	2021	Growth
Income from operations	34.0	37.4	10.0%		Income from operations	134.1	152.9	14.0%
Segment profit	2.6	4.1	57.7%		Segment profit	10.1	16.6	64.4%
Margin	7.6%	11.0%	341 bps		Margin	7.5%	10.9%	340 bps

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Business update

• The Advisory segment saw good momentum with revenue growing 10% on-year during the quarter ended March 2022 and 14.0% during the year ended 2021

• The Infrastructure Advisory business won mandates from multilaterals and the private sector and expanded its overseas clients' footprint

• The Business Intelligence and Risk Solutions business saw traction for its client risk & regulatory reporting solutions and deepened its wallet share with existing domestic and international clients

Note: Numbers rounded off to first decimal

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Agenda

1. Introduction

2. Business Environment

3. Performance Update

4. Financials

5. Segment Performance - Advisory

6. Thought leadership & Corporate social responsibility

7. Risks

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A ‘trusted’ voice in media

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Media
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Webinars and events

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Reports
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Social media

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Driving social impact via CRISIL Foundation for the past 9 years

2013-14

2015-16

2017-20

2021-22

Ideation and pilot testing of key CSR Initiatives

• Formally registered as the CSR Arm of CRISIL Limited

• CSR Strategy focusing on women empowerment (Mein Pragati) and environment conservation (CRISIL Re)

Tapping the social value within CRISIL

• CRISIL RE and Change The Scene (CTS) – the bedrock of CRISIL’s environment

• conservation & employee engagement

Impact focus, agile Covid-19 response

• Mein Pragati enters Phase II to drive sustainable impact through Sakhi cadre.

• Covid response - The 10k Meal Project for daily wage earners, Oxygen For All to support hospitals, Vaccination for communities

Scale-up in 18 states / UTs with RBI’s support

• Plans afoot to expand Mein Pragati impact and reach

• Scale-up of CFL centres in 18 states/UTs with support from RBI

• 1 lakh plantations completed through CRISIL Re

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

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Agenda

1. Introduction

2. Business environment

3. Performance update

4. Financials

5. Segment performance ― Advisory

6. Thought leadership & Corporate social responsibility

7. Risks

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Risks

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Geopolitical environment Evolving regulatory landscape Information security and cyber-related risks People cost inflation Currency movement Reputation risk

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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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