Presentation Made at The Analyst Meet (Company Update)

CRISILs 2016 Results
Analyst Meet
February 17, 2017
2017 CRISIL Ltd. All rights reserved.

Disclaimer / Safe Harbor
This presentation has been prepared solely for use at the investor/analyst presentation. By attending the meeting where
this presentation is made, or 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
Agenda
CRISIL is a global, agile and innovative analytics company

Growth driven by opportunities in India and overseas
Strong fundamentals and sustained returns to shareholders

Ratings: Drivers and performance
Research: Drivers and performance
Advisory: Drivers and performance
Key risks and challenges
Summary
3
Agenda


Summary
4
5
CRISIL is a global analytics company

Driven by its mission and core values
Mission
To make markets function better by providing independent

opinions, actionable insights, and efficient solutions
Core values
6
Unparalleled analytics underpins ratings, data, research,
and solutions
23,000+ large and mid-scale
corporates and financial
Indias leading rating agency institutions; 100,000+ SME
ratings assigned to date
90% of Indias banking industry

India's largest independent research house by asset base are our clients
World's largest and top-ranked provider of high-end Work with top 75 global
research and analytics services financial institutions
Solutions provider to 70 banks

India's leading BFSI Risk Solutions provider and financial institutions in India
and emerging markets
Leading infrastructure advisor to governments and Operate in India and emerging

multilaterals markets
7
Strengths, rigor and distinctive capabilities power our
analytics
India and emerging markets Developed markets
Leading brand, independent voice and first Leading provider of research and
point of contact for regulators, policy makers analytics with deep domain
and industry associations for capital markets expertise in Financial Research,
and Risk & Analytics for both the

sell- and buy-side, with a track
Proprietary IP using 4,000+ primary sources, record of superior analytical and
and extensive data coverage including 70 execution capability
sectors and sub-sectors for research
Proven approach / methodology for credit Strong relationships and access
ratings, with coverage of more than 23,000 with leading global investment
large and mid-scale corporates and financial banks and buy-side players.
institutions and having assigned 100,000+ Quarterly touchpoints with more
SME ratings / assessments to date than 1,000 decision makers
Local presence within key regions: India, Owns unique historical data on
China, Eastern Europe (Poland) and Latin investment banking revenue pools,
America (Argentina) and proprietary analytics and
benchmarks under Coalition
An open and meritocratic culture that attracts

and retains talent
8
Agility and innovation are central to our culture
Ratings Research Advisory
Rated Indias first CRISIL Inclusix Index Launched early warning

commercial mortgage system for portfolio
backed security Transaction banking monitoring at banks
analytics for global
Rated the first corporate & investment Launched end-to-end

infrastructure indexed bond banks credit processing system
for banks
Rated the first Innovative solutions to
infrastructure development global financial institutions Solutions for smart city
fund development
Security level valuation for
Rated an innovative mutual funds and Advised the railways
partially guaranteed insurance companies ministry for structuring an
debenture issue innovative fund for
Valuation of market-linked catalyzing private and
Assigned the first rating on debentures for the first time foreign capital into the
an Infrastructure in India sector
Investment Trust
Rated Indias first

insurance hybrid
Instrument
9
We are a leading voice in the market

1. BRICS seminar on developing the bond markets organized by the Ministry of 6. Ashu Suyash, MD & CEO, CRISIL moderated a panel at the S&P
Finance, Government of India and FICCI Global Market Intelligences at NYU Stern, New York
2. Somasekhar Vemuri, Sr. Director, CRISIL Ratings addressed at 2nd Annual 7. CRISIL and S&P Global Ratings jointly conducted seminars in
Conference on Bond Financing for Infrastructure in Mumbai Mumbai, Hong Kong, and Singapore
3. CRISIL co-sponsored the 3rd Edition: Impact of the Fundamental Review of 8. Hosted the 4th edition of the Annual Bond Market Seminar, Corporate
the Trading Book in London Bonds & India's New Financial Order' in Mumbai
4. Indian Economy Outlook briefed the US Senate Committee on Foreign Affairs 9. CRISIL co-sponsored the 5th Annual Risk EMEA 2016 in London
10 and the US Dept. of Commerce
5. Coalition: primary source for analyzing IB revenues
Agenda


Summary
11
Long-term trends augur well for CRISIL businesses
India Global
Remains a fast growing economy, with Global economy in a better shape, yet
improving macro-economic fundamentals challenged by divergent monetary policies
Macro trends
Credit growth and investment cycle expected Brexit and other global events, while adding to
to pick up challenges, also create opportunities for growth

New Regulatory framework supports development Changing global regulatory framework create a
regulations of markets and institutions: insolvency and positive outlook for risk services, analytics and
and paradigms bankruptcy code, power sector reforms IP-oriented offerings
in risk
Opportunities arising from Basel III, Compliance analytics becoming centre-stage
management
regulations, and IFRS / IndAS
Credit and corporate bond market poised for Global banks are restructuring their operating
Financial growth, driven by regulatory changes models, given margin pressures
services
opportunities Banking revenues expected to double Emerging need for specialised data and
between 2015 and 2020, led by SME and differentiated research amid high fund flows
retail and diminishing yields
Fintechs transforming business models Technology is enabling use of analytics in risk

Technology as management
an enabler and Start ups offer opportunities to partner on
a disruptor outside innovation AI and machine learning bringing in efficiencies
in operating models
12
Agenda


Summary
13
Strong and sustained financial performance
Segment operating revenues
crore
+12%
1,547
1,253 1,380
1,111 76
978 63 66
55 56 1,004
645 745 880
526
396 410 445 434 468

Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
Profit before tax

crore
+11% 476
376 406
359
314

Note: Numbers rounded off
14
Increasing revenue per employee
Revenue per employee*
3,856
3,629
3,424 3,454
3,329

40
38
36
32
29
Revenue per employee ( lakh) Average number of employees during the year
*Based on segment revenue
15
Growth across business segments in 2016
Segment Revenues
crore +14%
+18%
1,004
-2% +8% 880
745
445 434 468 +4% +15%

63 66 76

2014 2015 2016
Segment Profit
crore
+21%
+26%
331
-11% +1% 274
217
166 147 148
-65% -39%
7 2 1
16
Improved earnings per share in 2016
EBITDA Diluted EPS

crore
+15%
462 +15%

+3% 45.3
+6%
388 400 39.5
37.4
31% 30%
29%
2014 2015 2016 2014 2015 2016
EBITDA EBITDA Margins
17
Consistent track record of delivering shareholder returns
Return to shareholders
crore
69% 71%
63%
59%
53%
45

37 40
36
31
+15%
299
102 232
157 170
131
197
Dividends (incl. distribution tax) Dividend payout

Buyback EPS
Note: Numbers rounded off
18
Agenda


Summary
19
Broad and deep analytic coverage

Financial
Corporate Securitization Bank Loan
Institution SME
Ratings Ratings Ratings
Ratings
~2 trillion rated ~23,000 ratings 100,000+ ratings
~ 7000 trillion rated debt quantum till date
quantum till date announced announced
Industrials Banks ABS/ MBS Corporates SME/NSIC

Rating
Utilities NBFCs CDO
MFI Grading
Public HFCs CMBS CRISIL
finance Verified
MFIs Annuity and
Future-flow Real Estate
Others
Securitization Grading
Rated since 1997 to December 2016

Source: CRISIL Ratings
20
The domestic bond market provided a fifth of
outstanding funding to Indias corporate sector
61.0 71.3 81.4 92.0 101.6

100%
18.7% 19.6% 19.3% 21.1% 22.4%
80%

9.4% 10.7% 11.1% 12.1% 12.1%
60%
40%
71.8% 69.7% 69.5% 66.8% 65.5%
20%
0%
Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Bank Credit External commercial borrowings Corporate bonds and commercial papers
Represents total outstanding stock in Rs lakh crore
Source: RBI; SEBI; Ministry of Finance
21
Bank credit growth has been a challenge
Trend in credit growth

20%
18%
16%
14%
12%

10%
8%
6%
4%
2%
0%
Credit growth Wholesale Growth Retail Growth
Source: RBI, CRISIL Research
Credit growth has been in single digits in the past two years, dipping in November and December
2016 after demonetisation
In this period, retail credit growth has been buoyant supported by consumption sectors, while
wholesale credit remained subdued due to low investment demand
22
and debt-weighted credit ratio is yet to fully recover
Semi-annual trends in the credit ratio and the debt-weighted* credit ratio
2.50
2.13
2.00 1.75
1.64

1.50
(times)
1.18
0.91 0.87 0.76
1.00
0.66 0.72 0.76 0.72
0.62 0.59
0.50 0.29 0.61 0.27
0.24 0.20
0.11 0.11
0.00
H2-12 H1-13 H2-13 H1-14 H2-14 H1-15 H2-15 H1-16 H2-16 9MFY17
Credit ratio Debt weighted credit ratio
Source: CRISIL
*Credit ratio is the ratio of upgrades to downgrades recorded during a period.
Debt-weighted credit ratio is the ratio of total debt on the balance sheets of firms upgraded versus firms downgraded, excludes financial sector players.
CRISIL expects credit ratio to remain above 1 in the near term primarily because of strong domestic
consumption
However, debt-weighted credit ratio is expected to remain under stress
23
however, healthy growth in both bond issuances and
number of issuers
6.0 500
4.92
450
5.0 4.51
400
4.33

350
4.0
3.52
Rs. lakh crore
300
2.71
3.0 250
200
2.0
150
100
1.0
50
0.0 0
FY13 FY14 FY15 FY16 9MFY17
FIN CGS No. of Issuers (RHS)
Source: Prime Database, * CRISIL estimates
24
Regulations to provide fillip to the development
of the Indian corporate bond market
Encourage large borrowers to access capital markets for their
RBI took the lead in 2016 incremental funding requirements
to take pressure off the
banking system Encourage banks to credit enhance bonds to enable funding of the
infrastructure assets

SEBIs enhanced standards for credit rating agencies (CRAs) aims to
Other regulators and increase disclosures and transparency
ministry continue to
support bond market The Ministry of Finance encouraged CRAs to introduce new expected
development loss (EL) ratings to enable infrastructure projects to borrow from the bond
markets
Proposed measures to accept corporate bonds under the liquidity

adjustment facility (LAF) window expected to improve liquidity in the bond
market (RBI)
Further actions going Proposed revision in commercial paper guidelines can widen the working
forward capital and short-term funding market for corporates and FIs beyond
banks (RBI)
Implementation of insolvency and bankruptcy code will contribute to the
development of the Indian corporate bond market
25
Our performance has been driven by innovation and
analytical excellence
Ratings: 2016 highlights
CRISIL rated India's first hybrid issuance in the insurance sector

Drove Assigned the first rating on an infrastructure investment trust
innovation

through new Launched and assigned Indias first rating on the new Infra EL scale
products
Developed rating criteria for hybrid instruments issued by insurers for the first
time in India
Focussed approach to portfolio surveillance

Look back process
Focused on
analytical Highest rating stability, lowest default rates and lowest intensity of rating actions
excellence across CRAs
Strong focus on automation supports consistency, quality and efficiency of

analytical process
26
Agenda


Summary
27
Integrated research, risk and analytics services
India Global
Largest independent research house in Equity and Fixed income research support
India covering economy, industry, capital
Offerings
Credit risk support

markets
Data analytics
Fixed income valuations, debt/hybrid

indices and mutual fund research Risk & analytics services Derivatives and
Modelling
Executive Training
Competitor, Client and Country Analytics
Retail &
commercial Investment banks Asset managers NBFCs Insurers Corporates
banks
Clients
28
Research and analytics remains integral to the strategies
of clients, and their needs are evolving rapidly
New opportunities arising due to need for

A differentiated investment research in the global
markets

Increasing requirements due to regulatory changes
B
and evolving risk paradigm
C Strong demand in benchmarking analytics
Growing customer preference in India for integrated

D
views and actionable insights
29
A New opportunities arising because of the need for
differentiated investment research in the global markets
Consistent decline in Global IBs revenue Growth of the Global High Yield Market
351
277 269 265 258
218
152 129 119 110

68 64 61 65
56
65 69 76 85 83
2009 2012 2013 2014 2015
FICC Equities IBD
Global ETF assets growth Assets in Smart Beta ETFs

$Billion $Billion
4,000 500
3,000 400
300
2,000
200
1,000 100
0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Global ETF Assets Assets in Smart Beta ETFs
30 Sources: Coalition, Bloomberg, Industry sources, CRISIL GR&A Analysis

B Increasing requirements due to regulatory changes and
evolving risk paradigms
Key regulations Description Opportunities
Enhancing and validating

To assess whether banks have
Enterprise risk CCAR, quantitative risk models (credit
sufficient capital to continue risk, market risk, etc)
DFAST, EBA stress
operations through times of economic
testing
and financial stress Model documentation and

regulatory submissions
To assess the capital requirements,

leverage and liquidity metrics of banks Enhancing market risk
Global regulatory Basel Committee on Banking quantitative models
prescription Basel III, Supervision (BCBS) standards on Building better risk data
FRTB, BCBS 239 revised market risk framework (FRTB) management and reporting
and effective risk data reporting infrastructure
(BCBS 239)
Increased buy-side research

Customer protection
To strengthen investor protection and opportunities
MiFID II, FINRA
regulations
increase transparency Data analytics to drive investment
decision-making
31
C Strong demand in benchmarking analytics
Corporate & Equity FICC Investment

Securities Trade Cash
investment sales & sales & banking
services finance management
banking trading trading division
Understanding competitor performance

Competitor Benchmark performance by sizing leads / gaps

analytics Optimise allocation of resources
Support business strategy and planning
Identifying client opportunities

Client Evaluate client wallet opportunities
analytics Identify cross selling leads
Support client strategy and account planning
Sizing market opportunities

Country Assess market positioning
analytics Define regional opportunities
Support resource allocation and entry/exit strategy
32
D Growing customer preference in India for integrated views
and actionable insights
CRISILs access to proprietary and public gives it an edge in to provide deep and
data across economy, industry, company developing analytics, actionable insights through
and capital markets which can be leveraged a portfolio of offerings
Economy Opinions across 70

sectors
Industry Customised
research offerings
Company Benchmarking
tools
Capital
markets $
Valuation services
Source: McKinsey & Co analysis
33
Scaled up analytics/IP offerings across client segments
Research: 2016 highlights
New offerings in the area of stress testing and model validation

Developed new
analytics and Opened new opportunities for client additions in buy-side and credit risk
research

offerings Regulatory change management services, financial crime and compliance
analytics
Leveraged
technology to Added niche solutions to our existing risk-based offerings
offer wider set of
integrated Leveraged technology to improve time to market of our offerings
solutions
New analytics in transaction banking

Expanded IP
based products Coalition Analytics Platform
and offerings
Seven new fixed-income indices in India
34
Agenda


Summary
35
Our solutions and services enable risk management
and policy making
Risk Solutions Infrastructure Advisory
Provides integrated risk management Provides advisory services across the
solutions and services infrastructure development cycle
Credit lifecycle management

Internal ratings, loan origination and credit Policy, reforms and regulatory advice
monitoring systems
Strategy/Market and project advisory
Model development and validation
Bid advisory
Risk Management
Capacity building and institutional
Risk governance framework development strengthening
Capital computation for Basel II and Program management and implementation
operational risk solutions support
Reporting and analytics
Clients include banks, financial Institutions, governments and multilateral agencies
36
Business environment continues to be driven by policy,
regulatory and technological changes
Markets
Asset quality decline with rising non- Increased government spending on
performing asset levels infrastructure in India
Leverage big data analytics for Ambitious and visionary programs by the

decisioning Indian government
Focus on standardising and Infrastructure development in emerging
automating processes markets, Africa and south-east Asia
Regulators
Changing regulations with Structural change expected in the way
introduction of IFRS9, IndAS and infrastructure development is funded
BASEL III Focus shifting from policy formulation to
sustainable projects, their completion and
monitoring
Customers
Emphasis on financial inclusion / Co-operative federalism -> opportunities at
deeper market penetration and cross- the state and city levels
sell
Emergence of payment and small
banks
37
Strengthened presence across segments through
expanded suite of offerings
Advisory: 2016 Highlights
Deeper client engagements on Deep engagement and leading

Leveraging deep

model development and validation advisor on smart cities
domain and
expertise Renewed focus on credit and risk Policy and strategic advisory on
modelling in India flagship government programs
Implemented solutions across the Increased penetration at the state

Expanding across credit life-cycle government level
the value chain Increased coverage in the NBFC Foray into large multi-year
segment program management mandates
Expanded international coverage

High-profile power sector event on
Expand outreach through high profile events in
Recharging Discoms
and thought Africa and Middle East
Several articles, webinars under
leadership Successfully hosted several
CRISIL Infra Intelligence banner
webinars
38
Agenda


Summary
39
Uneven global economic growth
Uncertain regulatory environment

Adverse currency movements
Reputation risk
Intense price competition
40
Agenda


Summary
41
Summary
CRISILs core analytics, culture of agility and innovation, and global

presence underpin its mission of making markets function better
We are a leading voice in the market and known for our strong thought

leadership
We have maintained a consistent track record of sustained financial

performance and shareholder return
We have delivered a solid performance in 2016 despite a challenging

environment
CRISIL is well positioned to benefit from long term trends in India and
globally
42
Disclaimer / Safe Harbor
This presentation has been prepared solely for use at the investor/analyst presentation. By attending the meeting where
this presentation is made, or 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.`
43
44
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CRISILs 2016 Results

2017 CRISIL Ltd. All rights reserved.

2017 CRISIL Ltd. All rights reserved.

CRISIL is a global, agile and innovative analytics company

2017 CRISIL Ltd. All rights reserved.

CRISIL is a global, agile and innovative analytics company

2017 CRISIL Ltd. All rights reserved.

2017 CRISIL Ltd. All rights reserved.

To make markets function better by providing independent

2017 CRISIL Ltd. All rights reserved.

90% of Indias banking industry

2017 CRISIL Ltd. All rights reserved.

Solutions provider to 70 banks

Leading infrastructure advisor to governments and Operate in India and emerging

2017 CRISIL Ltd. All rights reserved.

An open and meritocratic culture that attracts

Ratings Research Advisory

Rated Indias first CRISIL Inclusix Index Launched early warning

2017 CRISIL Ltd. All rights reserved.

Rated Indias first

2017 CRISIL Ltd. All rights reserved.

CRISIL is a global, agile and innovative analytics company

2017 CRISIL Ltd. All rights reserved.

2017 CRISIL Ltd. All rights reserved.

Fintechs transforming business models Technology is enabling use of analytics in risk

CRISIL is a global, agile and innovative analytics company

2017 CRISIL Ltd. All rights reserved.

2017 CRISIL Ltd. All rights reserved.

Profit before tax

Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

Revenue per employee*

2017 CRISIL Ltd. All rights reserved.

Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

*Based on segment revenue

2017 CRISIL Ltd. All rights reserved.

Ratings Research Advisory

EBITDA Diluted EPS

2017 CRISIL Ltd. All rights reserved.

2014 2015 2016 2014 2015 2016

EBITDA EBITDA Margins

2017 CRISIL Ltd. All rights reserved.

Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

Dividends (incl. distribution tax) Dividend payout

CRISIL is a global, agile and innovative analytics company

2017 CRISIL Ltd. All rights reserved.

2017 CRISIL Ltd. All rights reserved.

Industrials Banks ABS/ MBS Corporates SME/NSIC

Rated since 1997 to December 2016

61.0 71.3 81.4 92.0 101.6

2017 CRISIL Ltd. All rights reserved.

Represents total outstanding stock in Rs lakh crore

Source: RBI; SEBI; Ministry of Finance

Trend in credit growth

2017 CRISIL Ltd. All rights reserved.

Credit growth Wholesale Growth Retail Growth

Source: RBI, CRISIL Research

2017 CRISIL Ltd. All rights reserved.

2017 CRISIL Ltd. All rights reserved.

Source: Prime Database, * CRISIL estimates

2017 CRISIL Ltd. All rights reserved.

Proposed measures to accept corporate bonds under the liquidity

CRISIL rated India's first hybrid issuance in the insurance sector

2017 CRISIL Ltd. All rights reserved.