Advancing Essential Intelligence 1 Safe Harbor statement under the Private Securities Litigation Reform Act of 1995 This presentation contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events, trends, contingencies or results, appear at various places in this presentation and use words like "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "futur ...

Core Viewpoint - The article discusses S&P Global Inc. (SPGI) in the context of its competition with Moody's Corporation (MCO), emphasizing the search for high-quality businesses for long-term investment portfolios [1]. Company Analysis - S&P Global Inc. is positioned as a competitor to Moody's Corporation, indicating a competitive landscape in the financial services sector focused on quality growth [1]. Investment Strategy - The investment strategy outlined involves identifying the best businesses globally to create a portfolio that aims to outperform the market over the long term [1].

Core Insights - The article discusses S&P Global Inc. (SPGI) in the context of its competitor, Moody's Corporation (MCO), highlighting the focus on identifying top-performing companies for long-term investment portfolios [1]. Company Analysis - S&P Global Inc. is positioned as a leading company in the financial services sector, with an emphasis on quality growth and long-term performance [1]. Investment Strategy - The investment strategy revolves around selecting the best businesses globally to create a portfolio that aims to outperform the market over time [1].

Core Insights - North American manufacturers have significantly reduced their purchases of raw materials and intermediate goods in October, indicating a potential slowdown in production in the coming months [1][9][18] Supply Chain Volatility Index - The GEP Global Supply Chain Volatility Index registered -0.33 in October, suggesting that global supply chain capacity remains underutilized, with manufacturers keeping inventories lean and curbing new purchases [4][9] - In North America, the index fell to -0.45, the lowest level since March, indicating that suppliers' capacity is underutilized to the greatest extent since prior to April's tariff announcements [10] - Asia's index dropped to -0.30, primarily due to a slowdown in purchasing by Chinese manufacturers, while Europe saw a slight improvement with the index rising to -0.25 [10] Regional Analysis - North America is experiencing a clear manufacturing pullback, with firms reporting lower material purchasing and reduced inventory building, which points to weaker production through the winter [5][7] - In Asia, the momentum has faded, with a pullback in factory buying across China offsetting continued strength in India, leading to a broader softening across the region [5] - Europe's manufacturing sector is showing only marginal increases in activity, with firms in major economies like Germany, France, Italy, and the U.K. continuing to restrict raw material purchasing, indicating a sluggish industrial recovery [6][9] Inventory and Purchasing Trends - Reports indicate that global procurement managers are experiencing historically low levels of stockpiling due to limited concerns about purchasing price inflation or shortages, reflecting a preference for lean inventories among manufacturers [15] - The global item shortages tracker remains well below its long-term trend level, signaling healthy supply levels for manufacturers, with minimal challenges in sourcing commodities and components [15] Labor and Transportation Insights - There was a modest rise in labor-related capacity constraints in October, with backlogs due to inadequate staff supply reaching a four-month high, although the labor shortages tracker remains only marginally above its long-term trend [15] - Global transportation costs slightly decreased in October, falling just below historically average levels [15]

Core Insights - S&P Global Inc. is a significant player in financial information, analytics, and credit ratings, with a market cap of $149.5 billion, providing essential data for informed decision-making in global capital markets [1] Performance Overview - Over the past year, S&P Global's shares have underperformed the broader market, declining by 1.9% compared to a 14.1% increase in the S&P 500 Index [2] - In 2025, the stock has continued to lag, remaining slightly negative while the S&P 500 has risen by 16.4% year-to-date [2] Sector Comparison - The stock has also underperformed compared to sector peers, with the iShares U.S. Broker-Dealers & Securities Exchanges ETF gaining approximately 17.5% over the past year and 22.8% year-to-date [3] Financial Performance - On October 30, S&P Global reported strong third-quarter results, with revenue increasing by 9% year-over-year to $3.89 billion and adjusted EPS of $4.73, exceeding market expectations [4] - The company raised its full-year guidance, projecting 7-8% revenue growth and continued margin expansion, indicating confidence in its data, analytics, and ratings franchises [4] Earnings Expectations - For the current fiscal year ending in December, analysts anticipate a 13.1% growth in EPS to $17.76 on a diluted basis, with a strong earnings surprise history, having beaten consensus estimates in the last four quarters [5] - Among 26 analysts covering S&P Global, the consensus rating is a "Strong Buy," supported by 19 "Strong Buy" ratings, three "Moderate Buys," and four "Hold" ratings [5] Analyst Ratings - The analyst outlook has improved compared to two months ago, with 18 analysts now suggesting a "Strong Buy" [6] - JPMorgan Chase & Co. has adjusted its price target for S&P Global to $615 from $635 while maintaining an "Overweight" rating, citing the company's Q3 2025 earnings beat and raised full-year guidance [6]

Core Insights - A compelling and diversified product portfolio is driving revenues for players in the Zacks Securities and Exchanges industry, with expected benefits from rising trading volumes, product expansion, and increased adoption of crypto assets [1] - The industry is experiencing a shift towards non-trading revenue sources, which enhances business dynamism and stability [4] - Mergers and acquisitions are accelerating as companies seek growth and innovation [5] - Continuous investment in technology, particularly AI and blockchain, is crucial for enhancing competitiveness and operational efficiency [6][7] Industry Overview - The Zacks Securities and Exchanges industry includes companies that operate electronic marketplaces for trading stocks, options, bonds, and commodities, generating revenue from fees and data services [2] - The industry is witnessing increased adoption of crypto assets, but faces challenges due to regulatory compliance [2] Trends Impacting the Industry - Volatility is driving trading volume, with a projected market size of $49.6 billion by 2028, growing at a CAGR of 12.1% [3] - Companies are diversifying into recurring revenue sources to reduce reliance on trading income, focusing on data services and technology platforms [4] - M&A activity is on the rise, with firms pursuing strategic deals to enhance competitiveness [5] Technology Investments - Industry players are increasing technology investments to improve market models and operational efficiency, leveraging AI and blockchain [6][7] Industry Performance - The Zacks Securities and Exchanges industry ranks 28, placing it in the top 11% of 244 Zacks industries, indicating positive near-term prospects [8] - The industry has underperformed compared to the broader Zacks Finance sector and the S&P 500, with a year-to-date gain of 5.4% versus 13.3% and 16.1% respectively [12] Valuation Metrics - The industry is currently trading at a trailing P/E of 23.57X, compared to the S&P 500's 23.2X and the sector's 17.5X [15] Company Highlights - Cboe Global Markets is positioned for growth with an expanding product line and recurring revenues [19] - S&P Global is well-positioned to benefit from the demand for business information services, with a focus on innovation through acquisitions [28] - Nasdaq is enhancing its non-trading revenue base and focusing on technology and analytics [26] - CME Group is the largest futures exchange, with growth driven by product expansion and global presence [31]

Core Insights - S&P Global's CEO, Martina Cheung, will participate in J.P. Morgan's 2025 Ultimate Services Investor Conference on November 18, 2025, in New York, with a scheduled speaking time from 9:00 a.m. to 9:30 a.m. EST [1] - The conference session will be webcasted, and may include forward-looking information [1][2] - S&P Global provides essential intelligence to governments, businesses, and individuals, enabling informed decision-making across various sectors, including sustainability and energy transition [3] Company Developments - S&P Global has successfully completed the acquisition of ORBCOMM's Automatic Identification System (AIS) business, enhancing its capabilities in the market [5] - The company has added Robert Moritz to its Board of Directors, effective March 1, further strengthening its leadership [6]

Group 1 - The company aims to invest in firms with strong qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them indefinitely [1] - The investment strategy involves managing a concentrated portfolio to avoid underperformers while maximizing exposure to high-potential winners [1] - The company plans to publish articles on selected companies approximately three times a week, including extensive quarterly follow-ups and constant updates [1] Group 2 - The company may rate high-quality firms as 'Hold' if their growth opportunities do not meet the required threshold or if the downside risk is deemed too high [1]

Group 1 - The company aims to invest in firms with ideal qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them indefinitely [1] - The investment strategy involves managing a concentrated portfolio to avoid underperformers while maximizing exposure to high-potential winners [1] - The company may rate strong companies as 'Hold' if their growth opportunities do not meet the required threshold or if the downside risk is deemed too high [1]

Core Insights - S&P Global has successfully completed the acquisition of ORBCOMM's Automatic Identification System (AIS) business, which enhances its maritime analytics and global trade intelligence offerings, supporting its global supply chain strategy [1][3] - The AIS business is recognized as a leading provider of satellite data services for tracking and monitoring vessels, which will be integrated into S&P Global Market Intelligence [1][3] - A strategic alliance framework has been established between S&P Global and ORBCOMM to develop a diverse range of supply chain data and insights, reinforcing S&P Global's commitment to investment in the maritime sector [2] Company Overview - S&P Global (NYSE: SPGI) provides essential intelligence, enabling governments, businesses, and individuals to make informed decisions through data and technology [7] - The company is widely sought after for its credit ratings, benchmarks, analytics, and workflow solutions across global capital, commodity, and automotive markets [9] Acquisition Details - The acquisition agreement was initially announced in April 2025, and S&P Global does not anticipate a material financial impact from this transaction on its overall operations [3] - The AIS business will enhance S&P Global's existing maritime, risk, and trade solutions, further solidifying its position in the industry [2]