CRISIL Ltd. — Investor Presentation 2022

Feb 17, 2022

February 17, 2022

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 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

Minal Bhosale Company Secretary ACS 12999

CRISIL Limited

Corporate Identity Number: L67120MH1987PLC042363

2021 Analyst presentation

February 2022

© 2022 CRISIL Ltd. All rights reserved.

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.`

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

Ratings Benchmarking Insights

Research Services

Risk Solutions

Market Insights & Analytics

Empowering decisionmaking with cutting-edge #Analytics

#Global footprint

#Innovation to drive growth

#Agile to market needs

Global recovery leads to better macro-economic performance

Indicator	FY2020	FY2021	FY2022F	FY2023F
GDP (y-o-y %)	3.7	-6.6	9.2^	7.8
10-year G-sec yield (%, 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
RepoRate (%, March-end)	4.40	4.00	4.00
Credit Growth (%)	6.0	~5.0	~9.0-10.0

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)

Overall positive trends but few risks remain

Healthy economic growth

Expected capex cycle revival

Geopolitical uncertainty

Inflationary pressures

Macro Trends Business environment trends

Buoyant capital market activity

Increased emphasis on credit and nonfinancial risk

Accelerated digital transformation

Social and sustainable practices gaining momentum

Evolving supply chain dynamics

© 2022 CRISIL Ltd. All rights reserved.

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

Robust growth in Q4 2021 and full year 2021

• 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

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

CRISIL Alternate Investment Funds Benchmarks

CRISIL ESG Scores

© 2022 CRISIL Ltd. All rights reserved.

..including sharper focus on ESG

Our commitment to ESG

Growing suite of offerings Thought Leadership

• ESG Scores (India) – 225+ companies
• ESG research for sell side and buy side
• Sustainability assessment of loan book
• ESG Benchmarks and framework assessment
• Supporting S&P Global in ESG evaluations

Recognition through multiple awards and honors

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

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

Sustained economic recovery driving improvement in credit ratio1

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

Ratings: Highlights

Financials

Particulars (₹ cr)	Q4 2020	Q4 2021	Growth
Income fromOperations	150.7	165.0	9.5%
Segment Profit	58.0	66.0	13.8%
Margin	38.5%	40.0%	150 bps

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

Business update

• 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

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

Evolving regulations present opportunities

• ESG integration, reporting
• FCC/AML
• Stress Testing
• Cyber security
• Third-party risk
• Customer and Conduct risk

APAC & Australia • Data Privacy

• BRSR • E&S Integration
• CVA
• CPS 230
• APS 117

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

USA

• DFAST • FRTB • CECL

• BSA / AMLA

• OCC's MRM Handbook • UMR (Phase V and VI)

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.

Europe, including UK

• SFDR, EU Taxonomy

• BASEL III finalization

• DTS plan deficiencies • Regulatory reporting • UMR (Phase V and VI)

• CBES, SS 3/19

• ICAAP • CCR • IRRBB

Research: Highlights

Financials

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

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

Advisory: Highlights

Financials

Particulars (₹ cr)	Q4 2020	Q4 2021	Growth	Particulars (₹ cr)	2020	2021	Growth
Income fromOperations	39.8	46.8	17.6%	Income fromOperations	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

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

5. Thought Leadership

• 6. Corporate Social Responsibility

A 'TRUSTED' voice in Media

Media

6. Corporate Social Responsibility

Continue to create social impact through CSR initiatives

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

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

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

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

Risks

Evolving regulatory environment

Information security and cyber-related risks

Adverse currency movement

Intense competition

Reputation risk

© 2019 CRISIL Ltd. All rights reserved.

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

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