Download pdf - Markit Investor Presentation - September 2015

Investor Presentation September 2015

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Important notice

Forward-looking statements

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and

Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this

presentation that address activities, events or developments that Markit Ltd. (“Markit” or the “Company”) expects, believes or

anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-

looking statements contained in this presentation may include the expectations of management regarding plans, strategies,

objectives and anticipated financial and operating results of the Company. Markit’s estimates and forward-looking statements are

mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and

operations. Although Markit believes that these estimates and forward-looking statements are based upon reasonable

assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Markit.

When used in this presentation, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are

intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties,

many of which are beyond the control of Markit, which may cause actual results to differ materially from those implied or

expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in

Markit’s filings with the United States Securities and Exchange Commission (“SEC”). Markit’s SEC filings are available at

www.sec.gov or on the investor relations section of its website, www.markit.com. Markit undertakes no obligation and does not

intend to update these forward-looking statements to reflect events or circumstances occurring after the date of this presentation.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this

presentation. All forward-looking statements are qualified in their entirety by this cautionary statement.

Non-IFRS financial measures This presentation also includes measures defined by the SEC as non-IFRS financial measures. Markit believes that these non-

IFRS measures can provide useful supplemental information to securities analysts, investors and other interested parties

regarding financial and business trends relating to its financial condition and results of operations when read in conjunction with

the company’s reported results. Definitions and reconciliations of these non-IFRS measures to most directly comparable IFRS

financial measures are available in the Appendix of this presentation and in Markit’s Annual Report on Form 20-F.

Copyright ©2015, Markit Group Limited. All rights reserved and all intellectual property rights are retained by Markit.

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Agenda

Introduction to Markit

Business segment overview

Q2 2015 results review

Financial overview

Appendix


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Investing in a growing, profitable and cash generative

leader in financial information services

— Leading global provider of financial information services with a scalable and

stable business model

— Trusted partner to a diverse global customer base and deeply embedded in their

systems and workflows

— Solid organic revenue growth, favorable margins, high recurring revenues, and

strong cash flow generation

— Large and rapidly growing addressable market due to increased regulation and

cost pressures in the financial industry

— Strong track record of innovation and well positioned to capitalize on future

growth opportunities

— Strong balance sheet that provides flexibility to accelerate growth through value

enhancing acquisitions

— Management team highly incentivized to execute


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Leading global provider of financial information services

Enhancing transparency | Reducing risk | Improving operational efficiency

Customers Users Asset classes

Banks Corporates

Asset managers Insurance companies

Hedge funds Securities firms

PE / VC funds Clearing firms

Pension funds Software / data vendors

Equities FX

Credit Structured finance

Loans Commodities

Rates CDS

Bonds Environmental

Traders Valuation analysts

Risk managers Actuaries

IT professionals Research analysts

Investment professionals Portfolio managers


1 Includes $495m in share repurchases conducted in August 2012 payable in quarterly installments through to May 2017. As of December 31, 2014, outstanding amount of $211.1m. Leverage ratio as

presented is calculated using Markit’s publicly reported definition of Adjusted EBITDA and Net Debt and not the definitions and methodology set forth in its revolving credit facility.

2003

founded

3,500+

institutional

customers

$1.1bn

2014 revenue

$488m

2014 Adjusted

EBITDA

0.65x

2014 Net debt /

Adjusted EBITDA1

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Trusted partner to a diverse and global customer base


Other2

Global revenue base Key highlights

FY 2014 revenue: $1.1bn

Broad diverse customer base1

─ 3,500+ institutional customers

─ Renewal rate of approximately

90% for recurring fixed fee contracts

─ Largest customer accounts for

<5% of revenue

─ Well-recognized brand

Diversified global blue-chip customer base

1 Chart figures represent composition of customer base by number of customers. 2 "Other" includes consultants, accountants, NGOs, law firms, individuals, media/press, project developers, trade associations, self-regulatory organizations, and other.

US50%

European Union39%

Other11%

0%0%0%0%0%0%0%0%

Other 2

Institutional investors

Government and academic

Software / data vendors

Banks

Securities and clearing firms

Corporates and insurance

Hedge fund and private equity / Venture capital

Asset managers

0%0%0%0%0%0%0%0%

Other 2




Banks




Asset managers

0%0%0%0%0%0%0%0%

Other 2




Banks




Asset managers

0%0%0%0%0%0%0%0%

Other 2




Banks




Asset managers

0%0%0%0%0%0%0%0%

Other 2




Banks




Asset managers

0%0%0%0%0%0%0%0%

Other 2




Banks




Asset managers0%0%0%0%0%0%0%0%

Other 2




Banks




Asset managers

19%

22%

12%

8%

10%

5%4% 0%

20%Asset managers

Hedge fund and private equity / Venture capitalCorporates and insurance

Securities and clearing firmsBanks




Other 2

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Leveraging our industry expertise and leading

technologies across three complementary divisions

Critical financial market information

sourced, created, enriched and

delivered

Trade processing solutions for OTC

derivatives, FX and syndicated loans

Advanced enterprise solutions tied to

Markit technology and software

Information

Processing

Solutions


$294m 27.6%

$285m 26.8%

$486m 45.6%

Pricing & reference data

Indices

Valuation and trading

services

MarkitSERV

Loan settlement

Managed services

Enterprise software

2014 revenue

(m)

2014 adj.

EBITDA margin

Information $486 49.2%

Processing $285 55.0%

Solutions $294 31.7%

Markit $1,065 46.0%

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Top 10 products comprise ~80% of 2014 revenue

Managed services

16%

Enterprise software

12%

Processing 27%

Valuation and trading

services 18%

Indices 8%

Pricing and reference

data 19%

Pricing and reference data

─ Fixed income (CDS, Loans, Bonds)

─ Securities lending data

Indices

─ Fixed income indices (iBoxx, iTraxx)

Valuation and trading services

─ Totem

─ Portfolio valuations

OTC derivatives, loans, FX processing

─ OTC derivatives (IRS, CDS, Equity) and FX

─ Syndicated loan settlement

Enterprise software / Managed services

─ WSO software / WSO services

─ On Demand

─ Enterprise Data Management (EDM)

Info

rma

tio

n

Pro

ce

ss

ing

S

olu

tio

ns

Total 2014 revenue

$1.1bn

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Acquiring and building businesses that expand the

breadth and depth of our products and services

CDS pricing

CDS

reference

entity

identifiers

Dividend

forecasting

Index

management

Loan pricing

Daily equity &

commodities

data

ABS pricing

Credit event

auctions

OTC

derivatives

buy-side

valuations

Metrics

Research

aggregation

Instant

messaging

Desktop and

data feed

solutions

OTC

derivative

trade

processing

Portfolio

reconciliation

Structured

finance

cashflow

modelling

Loan CDS

indices

& pricing

Bespoke

indices

Document

management

Macro -

economic data

Portfolio

compression

Syndicated

loan portfolio

management

software

Trade

confirmations

Loan mapping

service

Environmental

registry

Evaluated

bond pricing

Credit trade

confirmation

Market share

analysis

Loan

settlement

Valuations

management

Entity

identifiers

Mobile

applications

Broker voting

SmartText

Online

advertising

manager

Liquidity

metrics

Loan

processing

Risk analytics

Quantitative

research

and trading

analytics

FX trade

processing

Commission

management

Loan index

Securities

finance

Enterprise

data

management

Credit factors

Instrument

reference data

ETF data &

analytics

ISDA

amendment

service

RED

acquired

Totem &

DaDD

acquired

LoanX

acquired

Chasen

acquired

Communicator

acquired

MarketXS

acquired

BOAT

acquired

CDS IndexCo

acquired

International

Index

Company

acquired

NTC

Economics

acquired

FCS acquired

SwapsWire

acquired

DTCC

DerivSERV

joint venture

created

TZ1 acquired

ClearPar

acquired

STORM

acquired

Wall Street on

Demand

acquired

QuIC acquired

Logicscope

acquired

QSG acquired

Data

Explorers

acquired

Cadis

acquired

26 94 140 313 470 1,081 1,439 2,041 2,414 2,849 3,278

CLO pricing

RMBS index

Tri-Party repo

data

Corporate

actions

Private equity

valuations

Loan analytics

Credit

checking

Tax document

management

Collaboration

services

50% of

MarkitSERV

acquired

GCA acquired

Credit indices

European

ABS

performance

monitoring

European

equity trade

reporting

platform

Quote

parsing

Operational

benchmarking

2004 2005

2006

2008 2009

2011

2012

2013

2007

2010

2003

Investment

management

solutions

Social media

research

signals

Flash Japan

manufacturing

PMI

Client

onboarding

Intraday

iNAVs

Tax

compliance

services

RMB bond

index

2014

thinkFolio

acquired

Majority stake

in CTI

acquired

3,616

Employees


Acq

uis

itio

ns

Pro

du

cts

Securities

processing

Loan trade

closing

FX broker

affirmations

FX option

confirmations

Prime

brokerage

software

Loan

custodian

services

FX pre-trade

processing

4,000+

2015

Agreed to

acquire

Halifax House

Price Index

Information

Mosaic

acquired

Agreed to

acquire

CoreOne

Technologies

DealHub

acquired

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Accretive acquisitions to drive growth


─ Positions Markit as a leading

provider of end to end

securities processing solutions

─ Strong synergies with Markit

Corporate Actions allows us to

support the full corporate

actions trade lifecycle

─ Helps customers improve

operational efficiency through

automation

─ Closed July 1st and will be

integrated into Solutions

division

─ A leading provider of index

management, data management,

regulatory reporting and prime

brokerage services to financial

institutions

─ Will benefit from our global sales

relationships and distribution

capabilities

─ Further strengthens Markit executive

team

─ To be integrated across Information

and Solutions divisions

─ Timing subject to customary closing

conditions

─ Provides trading solutions, post-trade

processing and transaction lifecycle

support for the $5 trillion FX market

─ Complementary to Markit’s offerings

and positions us to deliver a more

comprehensive set of solutions to our

combined set of customers

─ DealHub will benefit from the scale

provided by Markit’s global sales and

customer service capabilities and from

synergies with Markit’s multi asset

class trade processing services

─ Closed September 4th and will be

integrated into Processing division

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.irishjobs.ie/Recruiters/Information-Mosaic-Ltd-3606.aspx&ei=ptBtVaCrM4nfU7eCgTA&bvm=bv.94911696,d.d24&psig=AFQjCNHXBh4XgfkPSpV7ijLBGni727mpZQ&ust=1433346581561051

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Secular trends offer long term growth opportunities


Markit is addressing the most critical areas in a large market that is undergoing

unprecedented change

Growing markets…

Focus on efficiency in financial services

Emerging markets and developing economy growth

Shifting investment styles

Changing regulatory landscape

Evolving technology and communication

Financial data

Order management systems

Data management

Risk management

Reporting and compliance

Indices

…driven by key industry trends

Business segment overview

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Overview of Information division

— Provides pricing and reference data, indices and valuation

and trading services across multiple asset classes

and geographies

— Products used for independent valuations, research, trading,

and liquidity and risk assessments

— Serves over 2,700 customers including buyside firms, sellside

firms, exchanges, central banks, regulators, government

agencies, rating agencies, research organizations, accounting

firms, consultancies, technology and service providers, and

other companies using both direct and third-party

distribution channels

— Predominantly recurring fixed fee, subscription

based revenue

— Principal competitors are Bloomberg L.P., FactSet, Interactive

Data Corporation and Thomson Reuters Inc.

Pricing and

reference data

CDS, Loans, Bonds

Securities lending data

Indices

Cash Bond Indices (iBoxx)

Credit Derivative Indices (iTraxx)

Securitized Product Indices

Economic Indices (PMI)

Custom Indices

Valuation and trading services

Totem

Portfolio valuations

Investment services

Research and OTC services

Information division

113k

CDS

instruments

priced daily

2.3m

Bonds priced daily

$15.5tn

Lendable inventory in

securities finance

dataset

85% of global GDP

Covered by PMI

surveys

$81bn

AuM in ETFs

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Information division financial performance Information division

431.3 459.6

486.5

214.5 217.2 239.2

0

100

200

300

400

500

600

2012 2013 2014

Revenue Adjusted EBITDA

49.7% 47.3% 49.2%

40%

41%

19% Valuation andtrading services

Pricing andreference data

Indices

Adjusted

EBITDA

margin

Revenue ($m)

Subsegments FY 2012 FY 2013 FY 2014

CAGR %

FY2012 – 2014

Pricing and reference data 159.0 182.8 199.8 12.1%

Indices 80.3 86.6 91.5 6.7%

Valuation and trading services 192.0 190.2 195.2 0.8%

Information 431.3 459.6 486.5 6.2%

FY 2014 revenue: $486.5m

Subsegment revenue split Financial performance ($ million)

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Overview of Processing division

— Offers trade processing solutions globally for OTC

derivatives, FX and syndicated loans

— Enables interdealer brokers, buyside and sellside firms

to confirm transactions rapidly and increase efficiency by

optimizing post-trade workflow

— Reduces operational risk, facilitates compliance with

global reporting regulations and supports clearing

connectivity to 16 OTC clearinghouses

— Predominantly recurring variable-fee revenue model

— Principal competitors are Bloomberg L.P., Intercontinental

Exchange, Inc. and Traiana, Inc.

MarkitServ Loan Settlement

Rates

Credit

Equities

FX

US Syndicated Loans

European Syndicated Loans

Processing division

2,000

customers

90,000

Derivative

transactions

processed daily

16

Clearinghouse

connections

14

Swap execution

facilities (“SEF”)

connections

238.8

265.3

284.9

124.5

138.1

156.6

0

50

100

150

200

250

300

2012 2013 2014


Financial performance ($ million)

52.1% 52.1% 55.0% Adjusted

EBITDA

margin

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Overview of Solutions division

Solutions division

8,000

Counterparty

Manager

buyside

subscribers

$264bn

WSO Services

AUM

2m

Corporate actions

securities

2.1bn

On Demand webpage

views served weekly

105

WSO Software

customers

Enterprise Software

Enterprise Data Management (EDM)

WSO Software

Analytics

thinkFolio

Information Mosaic

Managed Services

On Demand

WSO Services

Counterparty Manager

Corporate Actions

Tax Solutions

kyc.com

— Provides configurable enterprise software platforms and end-

to-end managed services; designs, builds and hosts mobile

and web applications for financial services customers

— Offerings capture, organize, process, display and analyze

information, manage risk and meet our customers’ regulatory

requirements

— Broad customer base including buyside and sellside firms,

custodians, private equity firms, wealth management firms

and retail brokerages

— Combination of recurring fixed and variable-fee revenue

model, with non-recurring revenue from software sales and

associated services

— Compete with firms such as Clarient Global LLC,

GoldenSource, IBM Algorithmics and Intralinks Holdings, Inc.

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190.5

223.0

293.7

67.6 77.5

93.1

0

50

100

150

200

250

300

350

2012 2013 2014


Solutions division financial performance Solutions division

35.5% 34.8% 31.7% Adjusted

EBITDA

margin

57%

43% Managed Services

Enterprise Software

Subsegment revenue split Financial performance ($ million)

Revenue ($m)

Subsegments FY 2012 FY 2013 FY 2014

CAGR %

FY2012 – 2014

Managed Services 108.3 131.6 167.6 24.4%

Enterprise Software 82.2 91.4 126.1 23.9%

Solutions 190.5 223.0 293.7 24.2%



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Q2 2015 financial highlights and recent developments

─ Revenue increased +6.7% on a constant currency basis with

organic revenue growth +5.1% ─ Information organic revenue growth +4.9%

─ Solutions organic revenue growth +13.2%, acquired growth +6.1%

─ Processing organic revenue decline (2.5)%

─ Continued profitability with strong margins maintained ─ Adjusted EBITDA margin of 44.6%

─ Adjusted Earnings of $68.4 million

─ Adjusted diluted EPS of $0.36

─ Announced acquisitions of Information Mosaic, CoreOne

Technologies and DealHub

─ Completed $650m secondary offering with $350m concurrent

share repurchase

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Information

($ million)

122.2 123.3

58.6 59.3

0

20

40

60

80

100

120

140

Q2 2014 Q2 2015


+0.9%

Q2 2015 Q2 2014 YoY% 6M 2015 6M 2014 YoY %

Revenue 123.3 122.2 0.9% 243.9 239.9 1.7%

Organic growth - - 4.9% - - 5.6%

Adjusted EBITDA 59.3 58.6 1.2% 117.5 113.8 3.3%

Adjusted EBITDA margin 48.1% 48.0% 0.1% 48.2% 47.4% 0.8%

Q2 overview:

─ Continued growth across

fixed income pricing and

reference data products

─ Double digit organic growth

in Indices

─ Maintained strong Adjusted

EBITDA margin

Organic

revenue

growth

+4.9%

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Processing

($ million)

Q2 overview:

─ Impact from electronic trading

and clearing reduced revenue by

approximately $5m

─ Increased volumes in the rates

asset class were partially offset

by weaker performance in credit

─ Strong Adjusted EBITDA margin

72.1 67.5

38.9 36.2

0

10

20

30

40

50

60

70

80

Q2 2014 Q2 2015


(6.4)%

Q2 2015 Q2 2014 YoY% 6M 2015 6M 2014 YoY %

Revenue 67.5 72.1 (6.4)% 134.9 144.2 (6.4)%

Organic growth - - (2.5%) - - (2.4)%

Adjusted EBITDA 36.2 38.9 (6.9)% 71.6 78.2 (8.4)%

Adjusted EBITDA margin 53.6% 54.0% (0.4)% 53.1% 54.2% (1.1)%

Organic

revenue

growth

(2.5)%

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Solutions

($ million)

70.3

82.3

22.5 25.8

0

10

20

30

40

50

60

70

80

90

Q2 2014 Q2 2015


+17.1%

Q2 2015 Q2 2014 YoY% 6M 2015 6M 2014 YoY%

Revenue 82.3 70.3 17.1% 165.8 139.9 18.5%

Organic growth - - 13.2% - - 13.8%

Acquisition related - - 6.1% - - 6.9%

Adjusted EBITDA 25.8 22.5 14.7% 53.6 44.7 19.9%

Adjusted EBITDA margin 31.3% 32.0% (0.7)% 32.3% 32.0% 0.3%

Q2 overview:

─ Strong organic revenue growth

─ Largest businesses – On

Demand, WSO, EDM – continue

to deliver strong growth

─ Corporate Actions continues to

grow strongly; acquisition of

Information Mosaic expected to

enhance future growth

─ Maintained Adjusted EBITDA

margin while continuing to invest

in new initiatives

Organic

revenue

growth

+13.2%

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Management actions to deliver EPS1 growth

Management actions in 2015:

─ Share buyback of $350m as part of secondary

offering

─ Agreed to acquire Halifax House Price Index

─ Acquisition of Information Mosaic

─ Announced acquisition of CoreOneTechnologies2

─ Expected execution of remaining $150m share

buyback authorisation3

─ Expected terming out of debt structure3

~10%

2016 Adjusted DilutedEPS

2016 Adjusted DilutedEPS (inclusive of

management actions)

Additional Adjusted

Diluted EPS growth

expected from

management actions4

1. Adjusted diluted earnings per share

2. Subject to regulatory approval and closing conditions

3. Subject to conditions at the time

4. Net impact of all management action through 2015


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Net debt / leverage

($ million)

June

30th, 2015

December

31st, 2014

Bank borrowings 371.9 224.5

Share buyback 170.2 211.1

Total borrowings 542.1 435.6

Cash and cash equivalents (119.5) (117.7)

Net debt 422.6 317.9

LTM Adjusted EBITDA(1) 493.1 488.2

Leverage (2)

H2 2015 management actions

0.86x 0.65x

─ Acquisition of Information Mosaic

─ Acquisition of CoreOne Technologies3

─ Expected $150 million share buyback4

Pro forma leverage

(Year end 2015) ~ 1.5x

6M overview:

─ Strong operating cash flow of

$197.9 million with significant

contribution from positive

working capital movements

─ Disciplined deployment of capital

expenditure of $63.6 million for

6M 2015

─ $394.1 million outflow on share

buybacks

─ Net debt increased $104.7

million

1. LTM Adjusted EBITDA is defined as Adjusted EBITDA for the previous twelve month period to date reported

2. Leverage is defined as net debt divided by LTM Adjusted EBITDA

3. Subject to regulatory approval and closing conditions

4. Subject to conditions at the time

\ 26

187.3

191.7 190.8

~182

~180 ~182

4.4

2.3 ~2

~2

3.2

~11

~4

Q4 2014 Dilution Q1 2015 Dilution Sharerepurchase

Q2 2015 Dilution Sharerepurchase

Q3 2015 Dilution Sharerepurchase

Q4 2015 FY 2016

Estimated in-quarter weighted average number of shares, diluted

Managing diluted shares outstanding

1

─ $350m share repurchase (~14m shares) completed June 10th, 2015

─ $150m remainder of authorised share buyback programme expected to be utilised by year end

─ Future buybacks expected to offset dilutive impact of annual compensation awards and option exercises

(million)

Expected

Dilution refers to dilutive impact of employee options and restricted stock.

Q2 and Q3 share repurchase totals refer to June 10, 2015 share repurchase of approximately $350m. Q4 share repurchase total is time-weighted and assumes utilisation of remaining

$150m authorisation in Q4 2015 (subject to conditions at the time) and share price of $26.30.

Q3 and Q4 dilution assumes average share price of $26.30 and option exercise of over 3m shares in each quarter.

2016 assumes a flat average share price, the exercise of 12.6m options and that all proceeds from exercise are utilised to repurchase shares.


\ 27


Shares outstanding

Summary

─ Average share price is a key driver of the

dilution calculation, an indicative estimate of

the impact of share price fluctuations on

diluted share count is shown in the table

─ Weighted average number of shares, diluted

is calculated in accordance with IFRS

─ The majority of options with a strike price

below $26.70 vested on IPO

─ Options with a strike price at $26.70 largely

vest in tranches over a 5 year period from

IPO date or January 2014

─ Option exercises will generate substantial

cash inflows as well as cash tax benefits

(million except share price) Q2 2015 Q2 2014

Number of shares outstanding at the reporting date 176.7 180.9

Weighted average number of shares, basic 183.1 177.3

Option dilution 6.5 4.8

Restricted shares dilution 1.2 0.7

Weighted average number of shares, diluted 190.8 182.8

Share price used for 2Q15 dilution calculation $26.30 $21.80

Illustrative average

share price

Illustrative diluted average

number of shares (million)

$23 188.0

$27 191.3

$30 196.5

Exercise price Outstanding (million) Unvested (million)

< $15.00 3.4 –

$15.00- $19.99 4.3 –

$20.00- $26.69 18.3 6.2

> $26.69 30.5 27.5

Total 56.5 33.7

Three months ended June 30th – Reported

Illustrative weighted average diluted number of shares three

months ended June 30th 2015

Total outstanding options at June 30th 2015

Financial overview

\ 29

Track record of consistent financial performance

Financial overview

$261$305

$358

$421

$488

2010 2011 2012 2013 2014

Adjusted EBITDA

Adjusted EBITDA margin

$145

$185

$218

$248

$279

2010 2011 2012 2013 2014

$668

$763

$861

$948

$1,065

2010 2011 2012 2013 2014

Note: Financials presented under IFRS accounting guidelines. Adjusted EBITDA, Adjusted Earnings and Adjusted EBITDA margin are non-IFRS financial measures.

Please see Appendix for definitions of these measures and a reconciliation of non-IFRS financial measures to IFRS financial measures.

─ Recurring revenue ~95%: products and services primarily offered through recurring fixed fee and

variable fee agreements

─ Strong organic growth: breadth of offerings and large, global customer base allow cross-selling of

products and services

─ High cash generation: high adjusted EBITDA margins and low capital requirements

Revenue ($m) Adjusted EBITDA ($m) and margin Adjusted Earnings ($m)

46.2% 45.8% 47.0% 45.6% 46.0%

\ 30

Stable and diversified revenue streams

Financial overview

Revenue growth composition

2014 revenue by geography

Note: Acquisition related growth is defined as revenue growth from acquired businesses through the end of the fiscal year following the fiscal year in which the acquisition was completed.

Recurring fixed

renewal rate: ~90%

2014 revenue by type

US50%

European Union39%

Other11%

5.9% 6.1%

7.8%

7.0%

4.0%

4.6%

12.9%

10.1%

12.4%

2012 2013 2014

Organic growth Acquired growth & FX

Recurring fixed 53%

Recurring variable

42%

Non-recurring 5%

\ 31

Consistent delivery across divisions

Financial overview

48%53% 50%

49%

36%

30%32%

32%16%

17%18%

19%

$360

$407

$433

$489

2011 2012 2013 2014

49%50% 48% 46%

30%

28%28%

27%

21%

22%

24%

27%

$763

$861

$948

$1,065

2011 2012 2013 2014

Revenue ($m) Adjusted EBITDA1 ($m)

1 Adjusted EBITDA by business segment shown before any deduction of non-controlling interest. Please see Appendix for reconciliation of non-IFRS financial measures to IFRS financial measures.

‘11 – ‘14 CAGR

11.8%

22.0%

7.8%

9.2%

‘11 – ‘14 CAGR

10.8%

18.3%

6.7%

11.1%

Adjusted EBITDA Margin

Solutions 34.7% 35.5% 34.8% 31.7%

Processing 56.7% 52.1% 52.1% 55.0%

Information 46.7% 49.7% 47.3% 49.2%

Processing

Solutions

Information

11.8%

7.8%

9.2% 11.1%

6.7%

22.0%

18.3%

10.8%

\ 32

Financial overview

Acquisitions 43%

Internal investments

21%

Share repurchases

36%

1. Internal investments 2. Acquisitions 3. Share repurchases

2010 – 2014 cumulative capital allocation

Total: $2,395m

$70 $75 $99 $131 $125

$242

$67

$381$224

$129

$183

$52

$619

$495

$194

$1,099

$355

$254

2010 2011 2012 2013 2014

($m

m)

Internal investments Acquisitions Share repurchases

─ Target leverage ratio of 1.5 – 2.0x

─ In order to maintain or adjust the capital structure, Markit returns capital to shareholders, issues new shares or sells

assets to reduce debt

1

1 Includes $495m in share repurchases conducted in August 2012 payable in quarterly installments through to May 2017. 2 Does not reflect $350m share repurchase completed June 10, 2015.

($m

)

Balanced and flexible capital allocation framework

2

\ 33

Committed to long-term financial objectives

─ Maintain 5-7% organic revenue growth

─ Double digit revenue growth with acquisitions

─ Maintain low to mid 40% Adjusted EBITDA margin

Disclaimer: These objectives are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of

which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are subject to

change. Actual results will vary and those variations may be material. Nothing in this presentation should be regarded as a representation by any person that these

objectives will be achieved and the Company undertakes no duty to update its objectives as circumstances change.

Financial overview

Appendix

\ 35

Impact of electronic trading on Processing

~40% ~60%

Loans /FX /Equities

Rates /Credit

~30%

~30%

Rates /Credit notimpacted

Rates /Creditimpacted

2014 Processing revenue by asset class

Rates / Credit revenue

Regulation will introduce trading rules over the next three

years that affect standardized OTC derivatives

─US: CFTC already enacted rules, SEC yet to issue final rules

─Europe: likely implementation late 2016 or 2017

─Asia: various jurisdictions in different stages of implementation

Loans / FX / Equities

─No anticipated material impact from new regulations

─Future growth will come from strong market volume increases in Loans and

increased market share and new solutions in FX and Equities

Rates / Credit

─Half of Rates / Credit revenue derives from less liquid products and markets which

are unlikely to be impacted by trading rules

─For electronic/cleared trades, simpler processing results in lower revenues per

ticket (up to ~80% lower ticket price)

─Electronic/cleared trading impact on market share and volumes not fully known

─Revenue impact estimated to be phased in over three years through 2017

Gross estimated annual revenue impact of $50–60m

─Pricing discounts implemented in Q2 2015 estimated $3–5m revenue impact per

quarter ($12–20m annual revenue impact)

Potential mitigants to financial impact:

─Further growth in Loans, Equities, and FX

─New services such as FX Options

─Trade volume increases due to electronic trading

─Managing costs to minimize the Adjusted EBITDA impact


Appendix: Processing division

\ 36

Definitions Revenue growth We measure revenue growth in terms of organic revenue growth, acquisition related revenue growth, foreign currency impact on revenue growth and constant currency revenue

growth. We define these components as follows:

Organic – Revenue growth from continuing operations from factors other than acquisitions and foreign currency fluctuations. We derive organic revenue growth from the

development of new products and services, increased penetration of existing products and services to new and existing customers, price changes for our products and services and

market driven factors such as increased trading volumes or changes in customer assets under management.

Acquisition related – Revenue growth from acquired businesses through the end of the fiscal year following the fiscal year in which the acquisition was completed. This growth

results from our strategy of making targeted acquisitions that facilitate growth by complementing our existing products and services and addressing market opportunities.

Foreign currency – The impact on revenue growth resulting from the difference between current revenue at current exchange rates and current revenue at the corresponding prior

period exchange rates.

Constant currency – Total revenue growth, excluding the impact of exchange rate movements from the prior period to the current period. This is equal to the combination of organic

and acquisition related revenue growth, as described above.

Revenue by type

Revenue by type is how we classify the income recognized from the sale of our products and services into three groups as defined below:

Recurring fixed revenue – Revenue generated from contracts specifying a fixed fee for services delivered over the life of the contract. The fixed fee is typically paid annually,

semiannually or quarterly in advance. These contracts are typically subscription contracts where the revenue is recognized across the life of the contract. The initial term of these

contracts can range from one to five years and usually includes auto-renewal clauses.

Recurring variable revenue – Revenue derived from contracts that specify a fee for services which is typically not fixed. The variable fee is typically paid monthly in arrears.

Recurring variable revenue is based on, among other factors, the number of trades processed, assets under management or the number of positions we value. Many of these

contracts do not have a maturity date while the remainder have an initial term ranging from one to five years.

Non-recurring revenue – Revenue that relates to certain software license sales and the associated consulting revenue.

Other Non-IFRS Measures

Adjusted EBITDA is defined as profit for the period from continuing operations before income taxes, net finance costs, depreciation and amortisation on fixed assets and intangible

assets (including acquisition related intangible assets), acquisition related items, exceptional items, share based compensation and related items, net other gains or losses, including

Adjusted EBITDA attributable to joint ventures and excluding Adjusted EBITDA attributable to non-controlling interests.

Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue, excluding revenue attributable to non-controlling interests.

Adjusted Earnings is defined as profit for the period from continuing operations before amortisation of acquired intangibles, acquisition related items, exceptional items, share based

compensation and related items, net other gains or losses and unwind of discount, less the tax effect of these adjustments and excluding Adjusted Earnings attributable to non-

controlling interests.

Adjusted EPS diluted is defined as Adjusted Earnings divided by the weighted average number of shares used to compute earnings per share, diluted.

Appendix: Definitions

\ 37

Appendix: reconciliation of non-IFRS financial measures to IFRS financial measures

Reconciliation to Adjusted EBITDA

($ million)

Q2 2015 Q2 2014 6M 2015 6M 2014 FY2014

LTM ended

June 2015

Profit for the period 44.5 29.4 99.0 69.2 164.1 193.9

Income tax expense 22.6 9.6 43.4 25.2 56.5 74.7

Finance costs – net 3.7 3.9 7.8 8.3 16.9 16.4

Depreciation and amortisation - other 26.4 23.5 51.3 46.8 100.1 104.6

Amortisation – acquisition related 14.4 14.1 28.8 28.3 57.9 58.4

Acquisition related items - 2.2 - 5.0 (12.4) (17.4)

Exceptional items 1.8 31.3 3.2 42.4 84.9 45.7

Share based compensation and related

items 8.7 3.1 18.6 6.1 16.0 28.5

Other (gains) / losses – net (0.2) 2.9 (8.1) 5.4 6.0 (7.5)

Share of results from joint venture not

attributable to Adjusted EBITDA (0.6) -- (1.3) - (1.1) (2.4)

Adjusted EBITDA attributable to non-

controlling interests (0.4) -- (1.1) - (0.7) (1.8)

Adjusted EBITDA 120.9 120.0 241.6 236.7 488.2 493.1

\ 38

Reconciliation to Adjusted EBITDA

2010 2011 2012 2013 2014

Profit for the period 151.2 156.2 153.1 147.0 164.1

Income tax expense 43.8 50.6 42.7 63.7 56.5

Finance costs – net 18.2 22.9 28.9 19.4 16.9

Depreciation and amortisation - other 48.2 62.7 66.7 86.0 100.1

Amortisation – acquisition related 28.5 34.4 46.2 50.1 57.9

Acquisition related items (11.3) 4.8 0.9 (1.4) (12.4)

Exceptional items 30.9 11.6 40.3 60.6 84.9

Share based compensation and related items 14.9 11.7 16.2 8.1 16.0

Other losses / (gains) – net 0.1 4.6 11.6 (0.7) 6.0

Share of results from joint venture not

attributable to Adjusted EBITDA 0.0 0.0 0.0 0.0 (1.1)

Adjusted EBITDA attributable to non-controlling

interests (63.5) (54.5) (48.4) (11.5) (0.7)

Adjusted EBITDA 261.0 305.0 358.2 421.3 488.2

($m)


\ 39


Reconciliation to Adjusted Earnings

($ million)

Q2 2015 Q2 2014 6M 2015 6M 2014

Profit for the period 44.5 29.4 99.0 69.2

Amortisation – acquisition related 14.4 14.1 28.8 28.3

Acquisition related items - 2.2 - 5.0

Exceptional items 1.8 31.3 3.2 42.4

Share based compensation and related items 8.7 3.1 18.6 6.1

Other (gains) / losses – net (0.2) 2.9 (8.1) 5.4

Unwind of discount(1)

2.3 2.4 4.8 4.9

Tax effect of above adjustments (2.7) (17.1) (8.3) (20.1)

Adjusted Earnings attributable to non-controlling interests (0.4) - (1.1) -

Adjusted Earnings 68.4 68.3 136.9 141.2

Weighted average number of shares for computation of

earnings per share, diluted 190,780,009 182,777,170 191,085,644 180,724,370

1. Unwind of discount represents the non-cash unwinding of discount, recorded through finance costs – net in the income statement, primarily in relation to our share buyback liability.

\ 40

Reconciliation to Adjusted Earnings

2010 2011 2012 2013 2014

Profit for the period 151.2 156.2 153.1 147.0 164.1

Amortisation – acquisition related 28.5 34.4 46.2 50.1 57.9

Acquisition related items (11.3) 4.8 0.9 (1.4) (12.4)

Exceptional items 30.9 11.6 40.3 60.6 84.9

Share based compensation and related

items 14.9 11.7 16.2 8.1 16.0

Other losses / (gains) – net 0.1 4.6 11.6 (0.7) 6.0

Unwind of discount1

3.4 8.9 9.3 12.4 10.5

Tax effect of above adjustments (14.6) (7.6) (24.1) (18.0) (47.4)

Adjusted Earnings attributable to non-

controlling interests (58.2) (39.8) (35.1) (9.7) (0.6)

Adjusted Earnings 144.9 184.8 218.4 248.4 279.0

Weighted average number of shares for

computation of earnings per share, diluted 182,347,790 181,730,830 180,020,120 175,550,760 184,467,540

($m)

1 Unwind of discount represents the non-cash unwinding of discount, recorded through finance costs – net in the income statement, primarily in relation to our share buyback liability.


mines data,

pools intelligence,

surfaces information,

enables transparency,

builds platforms,

provides access,

scales volume,

extends networks,

& transforms business.