CRISIL Ltd. — Investor Presentation 2024

Apr 16, 2024

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April 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.: Intimation of Investor Presentation

We are enclosing herewith our corporate presentation updated with Q1 2024 results which will be used during our Analyst Call on Friday, April 19, 2024.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 Bhosale Bhosale Date: 2024.04.16 22:18:32 +05'30'

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

CRISIL Analyst Presentation

April 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

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1. CRISIL overview

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership

7. Corporate social responsibility

8. Risks

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CRISIL overview

Ratings Service

Ratings

Active ratings outstanding for ~7000 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
CRISIL among Top 50
organizations and Winner
for 2 [nd] year in a row
Model Validation category
‘Bronze’ employer by
India Workplace Equality
Index (IWEI)
© 2024 CRISIL Ltd. All rights reserved.
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Map not to scale, for representation purpose only

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Agenda

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1. CRISIL overview

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership

7. Corporate social responsibility

8. Risks

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Macroeconomic environment

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2022 2023F 2024F
GDP growth (%) 7.6
7.0
6.8
5.2
4.6
3.4 4.3
3.5 2.5 3.5
3.2
3.0
2.5
1.9
0.7
0.5
0.3
0.1
World US Eurozone UK India China
Pause in interest rate Rates lowered in
Jul 2023 Sep 2023 Aug 2023 Feb 2023
hikes since Aug’2023
Interest rate 5.375% [1] 4.5% [2] 5.25% [3] 6.5% [4] 3.45% [5]
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• For India, FY begins on April of calendar year

• 2023 growth resilient despite continued global uncertainties and higher-for-longer rates

• Only a mild growth moderation is expected in 2024 due to strong performance of India and US

• Risks for 2024 growth come from high interest rates and potential impact of elections in major economies

1 US Federal Funds rate | 2 EU Refinancing rate | 3 UK Prime Lending rate | 4 RBI Repo rate | 5 China loan prime rate Source: S&P Global, CRISIL

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Key trends in macro and business environment

~~Global~~

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Global banks continue to focus on operational efficiencies, regulatory compliance and business transformation

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Sustained activity in private capital

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Pressure on discretionary spending by global financial institutions

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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 GenAI

~~India~~

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GDP growth to moderate to 6.8% this fiscal due to high interest rate, fiscal consolidation and uneven global growth

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

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Bank credit growth to remain rangebound and growth in bond issuances likely to moderate in 2024 owing to high interest rates

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

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Agenda

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1. CRISIL overview

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership 7. Corporate social responsibility 8. Risks

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Resilient performance amidst global market challenges

13.4% 2023

3.2% Q1 2024

• Ratings Services segment delivered revenue growth despite reduced growth in bond issuances and tepid corporate credit growth during the quarter ended March 2024

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

Income from operations

• Focus continues delivering value through investments in developing solutions, digital capabilities and talent

• Interim dividend of ₹ 7 per share declared in Q1 2024

16.9% 2023

1.0% Q1 2024

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Profit before tax (PBT)
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• Hosted the flagship India Outlook seminar, titled ‘Pivots, pillars and pace’ and released The India Outlook Report 2024. Globally published thought leadership insights and reports on topics across banking sector, private markets and sustainability

• CRISIL Foundation expanded outreach to more than 2.5 lakh rural community members through its ~2,600-strong cadre of sakhis in Assam and Rajasthan during the first quarter under the flagship ‘Mein Pragati’ programme

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Agenda

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1. CRISIL overview

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership

7. Corporate social responsibility

8. Risks

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Financial performance for full year 2023 and Q1 2024

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Income from operations Profit before tax (PBT) * Profit after tax (PAT)
₹ crore ₹ crore ₹ crore
+13.4%
+16.7%
+16.9%
3,139.5
2,768.7 564.4 658.4
742.4 867.7
2022 2023 2022 2023 2022 2023
+3.2%
+1.0% -5.5%
714.9 737.7
193.6 195.5 145.8 137.7
Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024
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© 2024 CRISIL Ltd. All rights reserved.
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• Interim dividend of ₹ 7 per share declared in Q1 2024

* PBT for FY 2023, includes a one-off gain of Rs 29.4 crore due to sharp devaluation of the Argentinian peso. A rise in the US dollar against the rupee and the British pound had increased profitability (PBT) for FY 2022 by Rs 30.1 crore on account of revaluation of a subsidiary loan

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. Financials

5.[Segment performance – ] Ratings Services

6. Thought leadership 7. Corporate social responsibility 8. Risks

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Corporate bond market grew 9% in Q1 2024 vs 28% for full year 2023; Wholesale credit rangebound, Large corporate credit growth was tepid at 6.6%

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Bond issuance quantum (₹ billion) Credit growth (%)
25%
9,768
10,000 20% 18.1%
8,000 7,617 16.5%
15%
6,000 15.1%
4,000 10%
2,862
2,629
2,000
5%
0
2022 2023 Q1 2023 Q1 2024 0%
No of
~700 ~950 ~350 ~400 Credit Growth Wholesale Credit Growth Retail Credit Growth
Issuers
Source: Prime Database, RBI
Data may get revised by Prime Database
© 2024 CRISIL Ltd. All rights reserved.
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 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
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Ratings Services performance highlights

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Financials

Particulars (₹ cr)	2022	2023	Growth
Income from operations	663.4	772.4	16.4%
Segment profit	278.6	334.7	20.1%
Margin	42.0%	43.3%

Particulars (₹ cr)	Q1 2023	Q1 2024	Growth
Income from operations	186.5	202.2	8.4%
Segment profit	89.7	101.3	12.9%
Margin	48.1%	50.1%

Note: Numbers rounded off to first decimal

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Business update

• CRISIL Ratings maintained its leadership in corporate bond ratings given investor preference for best-in-class ratings. Overall, revenue was up 11.7% on-year in the quarter, and 16.8% in 2023

• Global Analytical Center (GAC) saw robust surveillance work delegation by S&P Global Ratings

• CRISIL Ratings hosted webinars covering sectors such as hospitality, capital goods, textile, airlines, renewables, InvITs and REITs

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Agenda

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1. CRISIL overview

2. Business environment

3. Performance update

4. Financials

5.[Segment performance –] Research, Analytics & Solutions

6. Thought leadership

7. Corporate social responsibility

8. Risks

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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
9.0%
8.5%
5,488
4,993
7.4%
4,085
5.9% 3,864
2,993
2,687
3.9%
2.8%-2.9%
FY19 FY20 FY21 FY22 FY23 FY24F 2019 2020 2021 2022 2023 Q1 2024
Source: CRISIL MI&A Research Average AUM; Source: AMFI
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Healthier corporate balance sheets and higher capacity utilization conducive for incremental capex

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Net debt to EBITDA and debt levels of Indian companies Capacity utilization
90%
Rs. lakh crore Times
25 3.5
80%
2.9
2.7 2.7 2.8 3.0 70%
20
2.3 2.5 60%
1.8 1.9
15
2.0 50%
1.5 40%
10
1.0 30%
5
0.5 20%
0 0.0 10%
FY17 FY18 FY19 FY20 FY21 FY22 FY23
Long term debt Short term debt Net debt to EBITDA 0%
FY18 FY19 FY20 FY21 FY22 FY23 FY24
Note: Net debt to EBITDA analyzed based on performance of ~718 companies (barring BFSI, Oil & Gas);
FY represents fiscal year ending March
Note: FY represents fiscal year ending March
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
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Source: Industry, CRISIL MI&A Research

Source: RBI, CRISIL MI&A Research

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Focus on profitability of global banks impacting discretionary spends

Global CIB revenue pools

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$ 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)	2022	2023	Growth
Income from operations	2,105.3	2,367.1	12.4%
Segment profit	457.1	493.6*	8.0%
Margin	21.7%	20.9%

Particulars (₹ cr)	Q1 2023	Q1 2024	Growth
Income from operations	528.4	535.5	1.3%
Segment profit	109.3	86.8	-20.6%
Margin	20.7%	16.2%

*Segment profit for 2023 includes a one-off gain of Rs 29.4 crore due to sharp devaluation of the Argentinian peso

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Note: Numbers rounded off to first decimal

Business update

• Ml&A saw traction in credit, risk, data & analytics, and consulting offerings. Partnered with FICCI for the ‘PM Gati Shakti Summit’ and launched the report at the event and hosted webinars on agriculture and livelihood sector and the upstream textile sector

• Global businesses saw the impact of slowdown in discretionary spending by global financial institutions

• GR&RS saw momentum in lending solutions and regulatory support; and added new logos during the quarter. Published thought leadership pieces on topics such as private markets, US community banking stumble, blue bonds, and EU SFDR amendments

• GBA continues to make progress with both global and regional banks with focus on developing new analytical solutions. Published insights on consolidation in corporate banking, and market structure and technology trends in Equities, FX trading, Bond Markets and Treasury bills

SFDR: Sustainable Finance Disclosure Regulation

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Agenda

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1. CRISIL overview

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership

7. Corporate social responsibility

8. Risks

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Thought leadership

Media Coverage

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Outreach – webinars, events and reports

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CRISIL’s 8[th] Edition of India Outlook Seminar 2024

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CRISIL and CII launched knowledge report on Road Safety

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Agenda

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1. CRISIL overview

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership

7. Corporate social responsibility

8. Risks

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11 years of driving positive social impact through CSR initiatives

CRISIL Foundation completed 11 years of impactful work and continues to drive meaningful, positive social and environmental change.

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Financial capability building of rural women and communities

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• Mein Pragati expanded its community impact to more than 2.5 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 currently operational, facilitated community outreach of 20 lakh across 14 states and 4 UTs.

Promoting environment conservation and volunteering

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Environment conservation – plantation and water rejuvenation initiatives continued in West Bengal and Rajasthan respectively

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Agenda

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1. CRISIL overview

2. Business environment

3. Performance update

4. Financials

5. Segment performance

6. Thought leadership 7. Corporate social responsibility

8. Risks

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Risks

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Geopolitical and market environment Evolving regulatory landscape Information and cyber security Currency movement

Technology disruption – Generative AI

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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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