CRISIL Ltd. — Investor Presentation 2024

Jul 16, 2024

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July 16, 2024

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 2024

We are enclosing herewith our corporate presentation updated with Q2 FY 2024 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

MINAL Digitally signed by MINAL AMIT AMIT BHOSALE Date: 2024.07.16 BHOSALE 21:25:56 +05'30'

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

CRISIL Analyst Presentation

July 2024

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Disclaimer / Safe harbor

This presentation has been prepared solely as a concise update of the 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

1. CRISIL overview 2. Business environment

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3. Performance update 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility

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CRISIL overview

Ratings Services

Ratings

Active ratings outstanding for ~7,000 large and mid-scale corporates and financials institutions

Global Analytical Centre

We provide intelligence, benchmarks, analytics and transformative solutions to organizations, accelerating their progress and catalysing economic growth . Our solutions enable organizations to decide with conviction

Largest data, analytics and research partner for S&P Global Ratings

Research, Analytics & Solutions

Market Intelligence & Analytics (MI&A)

Provider of unique insights and comprehensive risk & analytics solutions powered by proprietary data and deep domain expertise

Global Research & Risk Solutions (GR&RS)

Partners with world’s biggest financial institutions in helping them grow revenues, minimize risk, enhance productivity, make better decisions and enhance returns

Global Benchmarking Analytics (GBA)

Leading provider of strategic benchmarking, analytics and insights to top 20 global banks, 35 of top 50 commercial banks and 95 of top 100 asset managers

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Global presence

4,600+ employees globally; 40+ nationalities across 12 countries; ~39% women employees

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Certified ‘ Great Place to Work ’ in India for 4[th] year in a row and recognized among Top 100 Best Workplace for Women in India

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CRISIL among Top 50 organizations and Winner for 2[nd] year in a row in the Model Validation category

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Solutions Category award for Model Validation Tools and Accelerators in Chartis STORM 2024 ranking report

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‘Bronze’ employer by India Workplace Equality Index (IWEI)

Map not to scale, for representation purpose only

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Agenda

1. CRISIL overview 2. Business environment 3. Performance update 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility

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Key trends in macro and business environment

~~Global~~

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Global GDP growth is holding up, with the U.S. and India leading the way. The US Federal Reserve and the RBI are expected to implement rate cuts in the latter part of 2024

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While there is optimism, the ongoing economic uncertainty has prompted a cautious stance on discretionary spending by global clients

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Global banks continue to focus on operational efficiencies, regulatory compliance and business transformation. Sustained activity in private capital

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Increased volatility due to macro uncertainties leading to greater client need for benchmarking solutions to target opportunities and efficiencies

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Growing impetus on captives by global institutions

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Continued advancement of emerging technologies such as Gen AI

~~India~~

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India’s GDP grew by a higher-than-expected 8.2% in FY’24. GDP growth to moderate to 6.8% this fiscal on account of high interest rate and lower fiscal impulse due to fiscal consolidation

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Healthy corporate balance sheets, robust banking system, government’s capex focus and broad-basing of private investments will be supportive of domestic activity

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Bank credit growth continued a steady path supported by the retail and services sectors. Growth in bond issuances likely to remain sluggish until the rate cuts are implemented by the RBI

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Medium-term growth trend expected to remain healthy, largely fueled by capital and efficiency

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Agenda

1. CRISIL overview 2. Business environment

3. Performance update 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility

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Resilient performance amidst global market challenges

3.3%

H1 2024

• Ratings Services segment delivered revenue growth driven by steady bank credit growth supported by the retail and services sectors. Large industry credit growth was tepid, and bond issuances declined during the quarter

3.4% Q2 2024

• CRISIL ESG Ratings & Analytics Limited, a wholly owned subsidiary, received approval as Category 1 provider of ESG ratings in India

Income from operations

• Research, Analytics and Solutions segment saw momentum in lending solutions, regulatory support and benchmarking offerings amid curtailed discretionary spending by global clients; Market Intelligence & Analytics (MI&A) saw traction for credit, risk, data and analytics, and consulting offerings

3.8%

• Interim dividend of ₹8 per share declared in Q2 2024

H1 2024

6.7% Q2 2024

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Profit before tax (PBT)
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• Hosted the 2[nd] Annual Ratings Infrastructure Summit titled ‘Surging on Policy Pivot’, Ratings Conclave – Pune chapter, and panel discussion in New York on credit portfolio monitoring

• CRISIL Foundation expanded its outreach to more than 3 lakh rural community members, resulting in over 1.4 lakh linkages to various financial services and social security schemes in Assam and Rajasthan under the flagship ‘Mein Pragati’ programme

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Agenda

1. CRISIL overview 2. Business environment

3. Performance update 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility

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Financial performance for H1 and Q2 2024

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Income from operations Profit before tax (PBT) Profit after tax (PAT)
₹ crore ₹ crore ₹ crore
+3.3%
+3.8% -2.9%
1,535.0
1,485.9
388.6 403.5 296.3 287.8
H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024
+3.4%
+6.7% -0.3%
771.0 797.4
195.0 208.0 150.6 150.1
Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024
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• Interim dividend of ₹8 per share declared in Q2 2024

Note: Numbers rounded off to first decimal

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Agenda

1. CRISIL overview 2. Business environment 3. Performance update 4. Financials 5.[Segment performance – ] Ratings Services 6. Thought leadership 7. Corporate social responsibility

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Bond issuances remained sluggish; Bank credit growth continues to be rangebound

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Bond issuance quantum (₹ billion)
9,803
7,617
2,952
1,888
2022 2023 Q2 2023 Q2 2024
No of
~700 ~1,000 ~350 ~330
Issuers
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Source: Prime Database, RBI *Data may get revised by Prime Database

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Credit growth (%)

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25.0%
20.0%
17.8%
16.1%
15.0%
15.1%
10.0%
5.0%
0.0%
Credit Growth Wholesale Credit Growth Retail Credit Growth
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Ratings Services performance highlights

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Financials

Particulars (₹ cr)	H1 2023	H1 2024	Growth
Income from operations	377.2	414.7	9.9%
Segment profit	167.5	187.8	12.1%
Margin	44.4%	45.3%

Particulars (₹ cr)	Q2 2023	Q2 2024	Growth
Income from operations	190.7	212.5	11.4%
Segment profit	77.8	86.5	11.2%
Margin	40.8%	40.7%

Note: Numbers rounded off to first decimal

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Business update

• The revenue of CRISIL Ratings Limited grew 10.7% on-year during the quarter, maintaining its leading position in the corporate ratings market, driven by investor preference for best-in-class ratings

• Global Analytical Centre (GAC) witnessed growth in delegation of ratings surveillance work and demand for support in new areas from S&P Global

• CRISIL Ratings hosted the 2[nd] Annual Ratings Infrastructure Summit titled ‘Surging on Policy Pivot’ and the Ratings Conclave – Pune chapter. It published reports on the ratings round-up for H2 FY24, and the airlines, InvITs, and REITs sectors, and hosted webinars on thermal power, IT, credit funding, and the chemical sectors

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Agenda

1. CRISIL overview 2. Business environment

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3. Performance update 4. Financials 5.[Segment performance –] Research, Analytics & Solutions 6. Thought leadership 7. Corporate social responsibility

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Healthier bank balance sheets and financialization of savings

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Banking sector gross NPAs India mutual funds AUM
₹ ‘000 crore
9.3%
8.5%
5,975
7.4% 5,488
4,993
5.9%
4,085
3,864
3.9% 2,993
2,687
2.8%
FY19 FY20 FY21 FY22 FY23 FY24
2019 2020 2021 2022 2023 Q1 2024 Q2 2024
Source: CRISIL MI&A Research Average AUM; Source: AMFI
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Focus on profitability of global banks impacting discretionary spends

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Global CIB revenue pools
$ billion
650
600
550
500
50
0
2020 2021 2022 2023 2024F
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Revenues Pools analysis includes revenues from all Institutional Clients and Corporates with annual sales turnover > $ 1.5bn; 2024 forecast is as per preliminary estimates.

Source: Coalition Greenwich Competitor Analytics; Coalition Greenwich Proprietary data

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CIB Return on equity (%)

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%
16
14
12
10
8
6
4
2
0
2019 2020 2021 2022 2023
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ROE calculated based on Coalition Index Universe

RoE Index numbers include Credit Suisse until 2020 and have been replaced with Wells Fargo from 2021 onwards

Source: Coalition Greenwich Competitor Analytics

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Research, Analytics & Solutions performance highlights

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Financials

Particulars (₹ cr)	H1 2023	H1 2024	Growth
Income from operations	1,108.7	1,120.4	1.1%
Segment profit	215.5	209.2	- 2.9%
Margin	18.7%	19.4%

Particulars (₹ cr)	Q2 2023	Q2 2024	Growth
Income from operations	580.3	584.9	0.8%
Segment profit	106.2	122.3	15.2%
Margin	18.3%	20.9%

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Note: Numbers rounded off to first decimal

Business update

• Global Research and Risk Solutions (GR&RS) saw impact of curtailed discretionary spending by global clients. The business saw momentum in lending solutions and regulatory support

• Global Benchmarking Analytics (GBA) continues to focus on deepening client engagements and developing new analytical solutions

• Market Intelligence & Analytics (MI&A) saw traction for credit, risk, data and analytics, and consulting offerings

• GR&RS hosted a panel discussion in New York on credit portfolio monitoring and published reports on commercial real estate, private capital markets, covenant monitoring, and ESG data monitoring. GBA published insights on market structure and technology in equities, fixed income and FX trading, bond markets, treasury bills, commercial lending, and corporate banking. MI&A hosted webinars covering the EV, auto and auto component sectors, diversified Engineering, Procurement and Construction (EPC) companies

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Agenda

1. CRISIL overview 2. Business environment

3. Performance update 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility

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Thought leadership

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CRISIL Ratings Conclave, Pune chapter
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Agenda

1. CRISIL overview 2. Business environment

3. Performance update 4. Financials 5. Segment performance 6. Thought leadership 7. Corporate social responsibility

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Driving positive social impact through CSR initiatives

Financial capability building of rural women and communities

To observe the World Environment Day (June 5), senior leaders across CRISIL came together as part of a larger campaign ‘#PassTheGreenTorch” – a step towards building environmental responsibility and stewardship

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‘#PassTheGreenTorch”
responsibility and stewardship
Field visit by CRISIL CSR Committee in Assam
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• Mein Pragati expanded its community impact to more than 3 lakh community outreach through its trained Sakhi cadre in Assam and Rajasthan

• As part of RBI’s scale-up of the CFL* project, 675 centres continue to be operational, facilitating outreach of 19 lakh across 14 states and 4 UTs

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Promoting environment conservation and volunteering

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Environment conservation – key initiatives around plantations and wetland clean-up drives organised, with participation from CRISIL volunteers

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*CFL: Center for Financial Literacy

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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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