#1Q1 2020 Analyst presentation April 2020#2Disclaimer / 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 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.` 2 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#3Agenda 1. CRISIL Overview 2. Business Environment 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 3 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#4CRISIL, a leading global analytics company #Agile to market needs Unleashing #Innovation Defining #Global best standards Empowering decision- making with cutting-edge #Analytics 1,00,000+ 33,000+ 3,500+ Customers ratings employees & B $1.88 Trillion of Indian debt securities valued by us 17 of the top 20 global investment banks are customers ₹ Rated over 150,000 micro, small and medium enterprises (MSMEs) in India H✓ Work with 41 of the top global asset managers E 90% of India's banking industry by asset base are our clients 50 9 countries direct presence ₹‍ 4 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#5Agenda 1. CRISIL Overview 2. Business Environment 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 5 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#6Covid-19 pandemic impact leads to a global recession and a very deep slowdown for India Indicator FY2018 FY2019 FY2020 FY2021F Real GDP (y-o-y %) 7.0 6.1 5.0* 1.8 Investments (y-o-y %) 7.2 9.8 1.0* 10 year G-sec yield (%, March) 7.6 7.5 6.2 6.5 Fiscal deficit (% of GDP) 3.5 3.4 3.8# India Exchange rate (Re/$, March avg.) 65.0 69.5 74.4 CPI Inflation (%) 3.6 3.4 4.8 4.4 Gross NPA (%) 11.6 9.4 -9.5** 11-11.5% Repo Rate (%, March-end) 6.00 6.25 5.15 4.40 Bank Credit Growth (%) 7.4 11.0 ~6.0** 1-3% Indicator CY2017 CY2018 CY2019 CY2020F World GDP (y-o-y %) 3.8 3.6 2.9 -2.4 United States of America (y-o-y %) 2.3 2.9 2.3 -5.2 Global Eurozone (Euro Area-19) (y-o-y %) 2.5 1.9 1.2 -7.3 China GDP (y-o-y %) 6.9 6.6 6.1 1.2 Note: F=forecast; # Budget estimate; * NSO provisional estimate; ** Estimate Source: NSO, RBI, CRISIL, S&P Global Economics and Oxford Economics 6 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#7Business environment 局 Risk-off due to Covid Increased market volatility Emergence of new risks. Digital transformation இ 8 Supply chain disruptions Declining commodity prices ESG as an investment criteria Financial and credit stress 7 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#8Agenda 1. CRISIL Overview 2. Business Environment 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 8 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#9Note: Q1 2020 results Total Income Income from operations crore +2.9% +9.4% 427.8 462.6 415.8 422.9 crore Q1 2019 Q1 2020 +15.0% 88.1 76.6 Q1 2019 Q1 2020 1. Numbers rounded off 2. The financials include pro rata performance of Greenwich Associates LLC Profit After Tax 9 Q1 2019 Q1 2020 CRISIL completed the acquisition of Greenwich Associates LLC (Greenwich) on February 26, 2020. For the quarter ended March 31, 2020,excluding Greenwich, Total Income grew by 7.1% and PAT rose by 26.8%. CRISIL An S&P Global Company 2020 CRISIL Ltd. All rights reserved.#10Proactive response to Covid-19 pandemic Co-ordinated and timely response (5) People • • • • Proactive work from home initiated for all employees Dedicated Covid-19 24/7 medical helpline Digital learning courses/ webinars on pertinent themes Professional and confidential counselling offered to employees Operations • • • Seamless and high quality client delivery Continued high productivity and efficiency levels Strong client connect being maintained virtually Technology and Information Security • • 99%+ workforce tech-enabled within weeks Scaled up Zoom and WebEx to enhance connectivity Virtual Desktop Interface/ VPN and Citrix enablement Effective risk monitoring for timely detection and responsiveness Step up in engagement with our clients and policymakers 8=8 Customer engagement • • High impact research papers, credit alerts and thought papers for clients including C-suite, senior stakeholders, and industry members Exclusive webpage on impact of COVID-19 garnered good response Thought leadership • • • Multiple exclusive webinars on Covid- 19 impact conducted for banking executives Hosted Ratings Round Up (RRU) webinar on 'Fiscal 2020 : Credit quality trends and the road ahead', 2000+ attendees Strong coverage on Covid-19 related Research & Ratings publications Ratings Pandemic to weigh on India Inc credit quality Research CRISIL An 95 Global Company The Covid-19 fallout Quantifying first-cut impact of the pandemic Impact note | March 19, 2020 CRISIL 10 10 2020 CRISIL Ltd. All rights reserved. CRISIL An S&P Global Company#11Agenda 1. CRISIL Overview 2. Business Environment 3. Financial Performance 4. Segment Performance - Ratings 5. Thought Leadership 6. Corporate Social Responsibility 11 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#12Fewer number of issuances in the bond market; Overall credit growth declines further impacted by wholesale credit Bond Issuances ( billion) Credit Growth Bond issuance quantum 24.0% 6,998 7,000 19.0% 6,000 5,750 5,000 14.0% 4,000 9.0% 3,000 2,000 1,902 1,620 4.0% 1,000 -1.0% 0 CY 2018 CY 2019 YTD 2019 YTD 2020 # of Issuances 2452 2473 608 433 Source: RBI, SEBI, Ministry of Finance, Prime Database, CRISIL YTD Bond data is for Jan - 17th March 12 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Credit Growth Wholesale Credit Growth Jan-19 Mar-19 May-19 NBFC crisis Covid-19 Jul-19 Sep-19 Nov-19 Jan-20 Retail Credit Growth CRISIL An S&P Global Company 7.3% 3.5% 17.0% 2020 CRISIL Ltd. All rights reserved.#13Ratings: Q1 2020 highlights Financials --- ------ Particulars ( cr) Q1 2020 Q1 2019 Income from • 133.2 129.6 Operations Segment Profits 57.6 47.5 Margin 43% 37% Note: Numbers rounded off 13 . Business update · The Ratings business maintained its growth momentum posting 14.6% y-o-y growth in revenue, driven by investor preference for best-in-class. ratings, concerted effort towards new client acquisition, and continued traction in securitisation transaction ratings Segmental growth was offset by de-growth in the SME business given the impact of Covid-19 The quarter also saw new corporate groups becoming clients, and wins for independent credit evaluation offerings Global Analytical Center (GAC) continued to play a key role in surveillance and data transformation activities for key stakeholder S&P Global Ratings The segment margin further improved driven by strong performance of the Ratings business Innovation and franchise • CRISIL continued to provide sharp analytics through its 14 articles and 7 credit alerts published during the quarter CRISIL published timely alerts on Covid-19 along with its credit implications and provided deep insights to our clients, markets and regulators Hosted webinar on 'Fiscal 2020 Credit quality trends and the road ahead' CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#14Agenda 1. CRISIL Overview 2. Business Environment 3. Financial Performance 4. Segment Performance - Research 5. Thought Leadership 6. Corporate Social Responsibility 14 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#15Research and analytics remains relevant as AuM grows; impact of Covid-19 to play out over next few quarters crore '000 crore India mutual fund AUM* $ billion Global CIB revenue pools 2,687 2,716 2,366 2,237 1,693 1,341 2015 2016 2017 2018 2019 2020Q1 535 528 530 534 522 492 92,825 142,115 AIF Investments made in India 54,173 28,486 14,031 5,721 2014 2015 2016 2017 2018 2019 $ trillion Global AUM 2015 2016 2017 2018 2019 2020F 145 111 85 .9 64 2012 2016 2020F Active Passive 2025F Alternative CIB: Corporate and Investment Banking; AUM: Assets Under Management (*AUM taken as quarterly average AUM for last quarter of every calendar year); AIF: Alternate Investment Fund (Includes Category I, II and III investments made) Source: SEBI, AMFI, CRISIL, Coalition, PwC AWM Research Centre analysis, Industry Sources 15 CRISIL An S&P Global Company 2020 CRISIL Ltd. All rights reserved.#16Research: Q1 2020 highlights Financials 264.4 245.4 Particulars ( cr) Q1 2020 Q1 2019 Income from Operations Segment Profits 55.7 63.1 Margin 21% 26% Note: Excluding GA, the research segment registered revenue growth of 3.8%, with a segmental profit growth of 3.3% and Q1 2020 margin of 25.6% Note: 1. Numbers rounded off -------- • • • Business update Research segment grew its revenue 7.7% following a recovery in the Global Research & Analytics (GR&A) business; Model and traded risk offerings saw good traction with new project wins CRISIL completed the acquisition of Greenwich Associates LLC (GA) on February 26, 2020. Financials include pro-rata performance of GA Coalition continued to see growth for its industry-leading client and competitor benchmarking analytics by expanding client relationships across the US, Asia and Europe Growth in the India Research business was supported by the launch of new reports in industry research and an investment research module on Quantix, an integrated data and analytics platform Innovation and franchise Published 11 high impacts reports on topical matter such as Covid-19 - 'The Covid-19 Fallout', Union budget – ‘A quiver of arrows' - Released whitepapers on Bank of England's 2019 stress test and financial stability results, Quantifying climate risk and impact of Covid- 19 on Pension and Insurance Industries 2. The financials include pro rata performance of Greenwich Associates LLC 16 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#17Agenda 1. CRISIL Overview 2. Business Environment 3. Financial Performance 4. Segment Performance - Advisory 5. Thought Leadership 6. Corporate Social Responsibility 17 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#18Advisory: Q1 2020 highlights Financials Particulars (cr) Q1 2020 Q1 2019 Income from 30.2 40.8 • Operations Segment Profits 0.7 4.1 Margin . 2% 10% Note: Numbers rounded off 18 Business update New client wins across Infrastructure Advisory and Risk Solutions Covid-19 led delays in decisioniong and closure of contracts impacted segment performance Demand for risk assessment models and credit monitoring solutions remains strong Innovation and franchise • CRISIL participated as knowledge partners in 3rd World Utility Summit on theme 'Utility next for electricity utilities' CRISIL also participated in 'Conference on Future Fuels for Transportation', organized by FICCI and the 'Wings India 2020 - Global Aviation Summit', organized by the Ministry of Civil Aviation (MOCA), Airport Authority of India (AAI) and FICCI CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#19Risks كه Covid-19 pandemic Global recession and sharp slowdown in India Uncertain regulatory environment Information security and cyber-related risks (S) Adverse currency movement Intense price competition Reputation risk 19 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#20Agenda 1. CRISIL Overview 2. Business Environment 3. Financial Performance 4. Segment Performance 5. Franchise and thought Leadership 6. Corporate Social Responsibility 20 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#21Leading provider of independent opinion and research CRISIL An SAP Gistal Company CRISIL An S&P Global Company Ratings CRISIL Research Ashu Suyash, MD & CEO, CRISIL joined PM's pre-budget consultation meeting in New Delhi on January 9th, 2020. parate credit CRISIL CRISIL *TCI 60 Radice Supported by MS ASSOCHAM MER HAM ASSOCHAM OCHAM Hetal Gandhi Director, CRISIL Research ASSOCHAM 7th MSMES Excellence Award & Summit 30 Jan 2020 | New Delhi SILVER PARTNERS PGIM MUTUAL FUND util Déjà vu on the highway? Will current players manage growth? Will past issues come back to haunt these players? A quiver of arrows Union Budget 2020-21 February 2020 mmit 2020 EDITION Global Research & Analytics Global Research & Analytics CRISIL CRISIL An S&P Global Company CRISIL Somasekhar Vemuri, Senior Director, CRISIL Ratings at the CII Mutual Fund Summit 2020 Quantifying climate risk Exploring best-fit stress-testing frameworks for financial firms February 2020 Bank of England's 2019 stress test and financial stability results January 2020 CRISIL An S&P Global Company World" Ustiny Sum Revenue security January 2023 PPP Clinic organised by CRISIL at Ramada Resort in Der es Salaam. 3rd- 7th Feb 2020 | Tanzania CRISIL BUSCRAMA 2020 21 Global Research & Analytics Declog the spigot Addressing liquidity risks posed by Covid-19 CRISIL CRISIL An S&P Global Company 2020 CRISIL Ltd. All rights reserved.#22Agenda 1. CRISIL Overview 2. Business Environment 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 22 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#23Giving back to the community The 10K meals project The 10k meals project Fe SO Support to 'Sakhis' under 'Mein Pragati' CRISIL Foundation #WeAreMore yak CRISIL's state-of-the-art kitchen in Mumbai prepares over 10,000 meals per day for the underserved while adhering to safety and health protocols Free meals distributed to migrant labourers and daily wage earners stranded due to the lockdown Tech-based helpline support to the Mein Pragati and MoneyWise beneficiaries in Assam, Rajasthan, Maharashtra and Haryana Focus on ensuring well-being and health, and provide timely, relevant updates on relief measures under Covid-19 package 23 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.#24About CRISIL 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 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 Connect with us: LINKEDIN | TWITTER | YOUTUBE | FACEBOOK | INSTAGRAM CRISIL Privacy Notice CRISIL respects your privacy. We 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 and other parts of S&P Global Inc. and its subsidiaries (collectively, the "Company) you may find of interest. For further information, or to let us know your preferences with respect to receiving marketing materials, please visit www.crisil.com/privacy. You can view the Company's Customer Privacy at https://www.spglobal.com/privacy Last updated: May 2018 For further information contact: [email protected] 24 CRISIL An S&P Global Company © 2020 CRISIL Ltd. All rights reserved.