CRISIL Ltd. — Investor Presentation 2024

Feb 19, 2024

February 19, 2024

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 2023

We are enclosing herewith our corporate presentation updated with the Audited Financial Results FY 2023. 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

3342 3001

www.crisil.com

2023 Analyst Presentation

February 2024

© 2024 CRISIL Ltd. All rights reserved.

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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CRISIL overview

We accelerate progress by providing intelligence, benchmarks, analytics and transformative solutions essential for organisations to

make decisions with conviction

Ratings Services

Ratings Services

India's premier ratings agency having rated 35,000+ large and medium-scale entities

Global Analytical Centre

Research and analytics partner for S&P Global

Research, Analytics & Solutions

Global Research & Risk Solutions

Leading provider of risk, data analytics, ESG and climate risk integration, and bespoke research services to world's leading banks, asset managers and other financial institutions

Global Benchmarking Analytics

Foremost provider of strategic benchmarking, analytics and insights to 300+ clients in global financial services

Market Intelligence & Analytics

India's leading provider of research, consulting (infrastructure, energy, public finance, sustainability and renewables), risk, data & analytics, and training solutions Serving 90% of India's banking industry by asset base

Global presence

4,700+ employees globally – 40+ nationalities across 12 countries; ~39% women employees

.An S&P Gl..,.__I ,..,,... C ornpany

5. Segment performance 6. Thought leadership 3. Performance update 2. Business environment 1. CRISIL overview 4. Financials •► •► •►

7. Corporate social responsibility •►

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Macroeconomic indicators

Indicator	FY2023	FY2024F	FY2025F
GDP (y-o-y %)	7.2*	7.3^	6.4
10-year government bond yield (%, March average)	7.4	7.0	6.8
Fiscal deficit (% of GDP)	6.4	5.8#	5.1**
Exchange rate (Re/$, March)	82.3	83.0	83.5
Consumer Price Index-based inflation (%)	6.7	5.5	4.5
Reporate (%, March-end)	6.5	6.5	5.5
Credit growth –Banks + NBFCs (%)	15.4	~14-15	~14-15
Corporate revenue growth rate@(%)	20	~8	9-11

Global

Indicator	CY2022	CY2023F	CY2024F
World GDP (y-o-y %)	3.5	3.3	2.8
US GDP (y-o-y %)	1.9	2.4	1.5
Eurozone (Euro area 19) (y-o-y %)	3.4	0.6	0.8
China GDP (y-o-y %)	3.0	5.4	4.6

*Provisional estimate; ^NSO First Advance Estimate, # Revised Estimate; **Budget Estimate F – Forecast; @ based on ~700 listed Indian corporates excluding Oil & Gas and BFSI

Source: The National Statistical Office (NSO), RBI, Budget documents, Ministry of Finance, CRISIL MI&A, World Bank, S&P Global

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

© 2024 CRISIL Ltd. All rights reserved.

Key trends in macro and business environment

Expected soft landing of the global economy and continued geopolitical uncertainties

Slowdown in discretionary spending by global financial institutions

Global banks continue to focus on growth, regulatory spends and business transformation

Global

Sustained activity in private markets

Rapid advancement of emerging technologies such as GenAI

India showed resilience and emerged as the world's fastest-growing major economy in 2023

India

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

5. Segment performance 6. Thought leadership 3. Performance update 2. Business environment 1. CRISIL overview 4. Financials •► •► •►

7. Corporate social responsibility •►

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Highlights of Q4 and 2023 business performance

• 11.6% Q4 2023 13.4% FY 2023 Income from operations 34.7% Q4 2023 16.9% FY 2023 Profit before tax (PBT)
• Ratings Services delivered revenue growth driven by investor preference for best-in-class ratings
• Research, Analytics and Solutions segment saw traction in research, lending solutions, consulting and benchmarking analytics despite macro uncertainties and cost pressure on global clients
• PBT for Q4 2023 and FY 2023, includes a one-off gain of Rs 29.4 crore due to sharp devaluation of the Argentinian peso. Excluding this impact, PBT for Q4 2023 grew by 20.5%. 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
• Continued focus on customer centricity and delivering value to all our stakeholders through investments in technology, talent and new solutions
• Hosted flagship event 'CRISIL India Infrastructure Conclave', NBFC seminar and sectoral webinars in India. Globally published whitepapers and reports on key themes such as leveraged lending, Basel III and FRTB framework, US commercial real estate lending, and the growing impact of GenAI in finance
• During the quarter, CRISIL Foundation's financial literacy efforts covered over 2 million rural people in 14 states and 4 Union Territories. The Foundation continues to be the leading implementation partner of the Reserve Bank of India's MoneyWise Centres of Financial Literacy (CFL) programme

5. Segment performance 6. Thought leadership 3. Performance update 2. Business environment 1. CRISIL overview 4. Financials •► •► •►

7. Corporate social responsibility •►

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Financial performance for Q4 and FY 2023

* Note:

Numbers rounded off to first decimal

PBT for Q4 2023 and FY 2023, includes a one-off gain of Rs 29.4 crore due to sharp devaluation of the Argentinian peso. Excluding this impact, PBT grew by 20.5% and PAT grew by 18.9% in Q4 2023

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

• Final dividend of Rs 28 per share recommended. Total dividend of Rs 54 per share for the year 2023 vs Rs 48 per share previous year

.An S&P Globlll Company

© 2024 CRISIL Ltd. All rights reserved.

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

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Corporate bond market grew in 1H2023 but declined in second half as yields rose; wholesale credit rangebound

Bond issuance quantum (₹ billion)

Credit growth (%)

© 2024 CRISIL Ltd. All rights reserved.

Source: Prime Database, RBI *Data may get revised by Prime Database

Ratings Services performance highlights

Financials

Particulars (₹ cr)	Q4 2022	Q4 2023	Growth
Income fromoperations	177.2	209.6	18.3%
Segment profit	71.2	86.2	21.1%
Margin	40.2%	41.1%

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

Note: Numbers rounded off to first decimal

Business update

• CRISIL Ratings maintained its leadership in corporate bond ratings given investor preference for best-in-class ratings. Overall, revenue was up 15.5% on-year in the quarter, and 16.8% in 2023
• Global Analytical Center (GAC) continued to drive surveillance support across the analytical practices of S&P Ratings, and partnered on data and technology transformation programs
• The Ratings segment grew 18.3% in the quarter and 16.4% for the year ended December 31, 2023

© 2024 CRISIL Ltd. All rights reserved.

5. Segment performance – Research, Analytics & Solutions 6. Thought leadership 3. Performance update 2. Business environment 7. Corporate social responsibility 1. CRISIL overview 4. Financials •► •► •► •►

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Domestic asset flows, low NPAs augur well for Indian financials

Focus on profitability of global banks impacting discretionary spends

Global CIB return on equity

CIB: Corporate and Investment Bank; ROE calculated based on Coalition Index Universe

17 Revenues Pools analysis includes revenues from all Institutional Clients and Corporates with annual sales turnover > $ 1.5bn. Above analysis is as per Coalition Standard Taxonomy Source: Coalition Proprietary Analytics; Coalition Greenwich Proprietary data

Research, Analytics & Solutions performance highlights

Financials

Particulars (₹ cr)	Q4 2022	Q4 2023	Growth
Income fromoperations	645.1	708.2	9.8%
Segment profit	144.0	166.5*	15.6%
Margin	22.3%	23.5%

Particulars (₹ cr)	2022	2023	Growth
Income fromoperations	2,105.3	2,367.1	12.4%
Segment profit	457.1	493.6*	8.0%
Margin	21.7%	20.9%

Note: Numbers rounded off to first decimal

*Segment profit for Q4 2023 and FY 2023 includes a one-off gain of Rs 29.4 crore due to sharp devaluation of the Argentinian peso

Business update

• Global Research & Risk Solutions (GR&RS) saw traction in research and lending solutions
• Global Benchmarking Analytics (GBA) saw momentum in corporate and investment banking (CIB), driven by the emphasis on client engagement and product innovation
• Market Intelligence & Analytics (Ml&A) witnessed momentum in credit, risk and consulting offerings
• Amidst macro uncertainties and pressure on discretionary spending by global banks, the research, analytics and solutions segment grew 9.8% in the quarter and 12.4% in year ended December 31, 2023

5. Segment performance 6. Thought leadership 3. Performance update 2. Business environment 1. CRISIL overview 4. Financials •► •► •►

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7. Corporate social responsibility

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Thought leadership

© 2024 CRISIL Ltd. All rights reserved.

5. Segment performance 6. Thought leadership 3. Performance update 2. Business environment 1. CRISIL overview 4. Financials •► •► •►

7. Corporate social responsibility

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Delivering social impact through CSR initiatives

• Mein Pragati expanded its community impact to more than 3.6 lakh community outreach through its trained Sakhi cadre in Assam and Rajasthan
• Livelihoods initiative in Rajasthan expanded to 106 women weavers with the objective of training them in rug making skills and enhancing their livelihoods
• As part of RBI's scale-up of the CFL project, 615 centres currently operational, facilitated community outreach of 2 million across 14 states and 4 Union Territories of the country

Financial capability building of rural women and communities Promoting environment conservation and larger corporate social consciousness

• © 2024 CRISIL Ltd. All rights reserved.
• Environment conservation afforestation and water rejuvenation initiatives completed at Sundarbans, West Bengal, and Rajasthan respectively
• Daan Utsav (Joy of Giving) campaign featured collection drives across CRISIL locations through local NGOs

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 through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong, UAE and Singapore.

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.

For more information, visit www.crisil.com

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