Moody's Corporation · NYSE:MCO
Moody's — FY2022 Earnings Presentation
75 slides from Moody's's earnings presentation, Feb 23, 2023
Slide 1: 4Q & FY 2022 Investor Presentation
4Q & FY 2022 Investor Presentation February 23, 2023
Slide 2: Disclaimer
Disclaimer Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, as
Slide 3: Table of Contents
Table of Contents 1. Moody’s Overview 2. Financial Overview 3. Capital Markets Overview 4. Moody’s Investors Service (MIS) 5. Moody’s Analytics (MA) 6. ESG & Climate Solutions 7. Appendix 4Q and FY 2022 Investor Presentation 3
Slide 4: Moody's Overview
1 Moody’s Overview
Slide 5: Company Overview
Company Overview Global integrated risk assessment firm providing credit rating opinions, analytical Independent provider of solutions and insights that empower Provider of financial intelligence credit rating opinions and organizations to make better, faster decisions and analytical tools supportin
Slide 6: Moody's as an Integrated Risk Assessment Business
Moody’s as an Integrated Risk Assessment Business Selection of Use Cases Addressable by Moody’s Solutions $40B+ Current Addressable Helping customers make Weather and natural Market BETTER DECISIONS disaster analysis Transfer pricing Supply chain management CURATED DATA1 and trade credit Entities Se
Slide 7: The Power of Integrated Risk Assessment
Company X 123 Boulevard, 00000 Refer (Recommendation)1 RiskScores 9 U.S. Wildfire RMS 5 U.S. Earthquake RMS 2 U.S. Wildfire – Urban Conflagration RMS The Power of Commercial Real Estate Mortgage Lender » Could rents or values change? » Can my customer afford to make the necessary » Do buildings need
Slide 8: Full Year 2022 Operating and Strategic Highlights
Full Year 2022 Operating and Strategic Highlights Realizing the potential of our global integrated risk assessment opportunity Collaborate, Modernize People, Culture Customer First Invest with Intent & Innovate & Sustainability » Top overall ranking in » Expanded emerging » Integrated acquired » Div
Slide 9: Financial Overview
2 Financial Overview
Slide 10: Moody's Corporation Financial Profile
Moody’s Corporation Financial Profile Full Year 2022 Revenue: $5.5 billion Recurring Transaction U.S. Non-U.S. DS 31% PPIF 24% 47% 8% MIS1 FIG R&I 9% 13% MA2 SFG 69% 8% D&I 53% 13% CFG 23% Full Year 2023 Guidance as of January 31, 20233 Revenue Increase in the mid-to-high-single-digit percent range
Slide 11: Macro Assumptions Underpinning our FY 2023 Outlook
Macro Assumptions Underpinning our FY 2023 Outlook Macroeconomic Assumptions1 Benchmark Rates GDP2 Inflation & Unemployment Default Rates FX Rates & Credit Spreads 0% - 1% United States Global benchmark rates to remain elevated, Global inflation levels to decline, but remain Global high yield $1.20
Slide 12: Medium-Term Guidance with 2022 Base Year
Medium-Term Guidance with 2022 Base Year1 M E D I U M - T E R M 2,3 MCO Revenue At least 10% growth MA Revenue Low-to-mid-teens % growth MIS Revenue Low-to-mid-single-digit % growth MCO Adjusted Operating Margin Low-50s % range MA Adjusted Operating Margin Mid-30s % range MIS Adjusted Operating Marg
Slide 13: Investment Criteria and Post-Acquisition Review
Investment Criteria and Post-Acquisition Review Clear Industrial Logic Disciplined Financial Targets Post-Acquisition Review Strategic fit, the most important factor, is the first Long held, clear financial framework for Disciplined and rigorous monitoring post-close screen external (and internal) i
Slide 14: Successful Delivery of M&A
Successful Delivery of M&A Pre- Post- Capabilities Ann’t Acquisition Acquisition Target Performance Acquired Date Growth1 Growth2 ON TRACK Incremental $150M revenue Climate & Natural Achieved 6% sales growth in 20224 by 2025 Disaster Risk Aug 2021 LSD% HSD - LDD% Modelling (RMS) EXCEEDED Accretive t
Slide 15: Capital Markets Overview
3 Capital Markets Overview
Slide 16: Default Rates Expected to Rise; High Yield Spreads Fluctuate Around Historical Average
Default Rates Expected to Rise; High Yield Spreads Fluctuate Around Historical Average Default Rates for Global Speculative-Grade Corporate Rated Issuance1 U.S. HY Bond Spreads2 Baseline Optimistic Moderately Pessimistic Severely Pessimistic U.S. HY Bond Spreads Avg U.S. HY Bond Spread 16% 1,000 14.
Slide 17: MIS: Refinancing Needs Remain Significant Following Outsized Issuance
MIS: Following Outsized Issuance in 2020 and 2021, Refinancing Needs Remain Significant MIS-Rated Non-Financial Global Corporate Investment Grade (IG) Issuance MIS-Rated Non-Financial Global Corporate High Yield (HY) Issuance IG Bond Issuance IG Bond Issuance Avg U.S. 10YR Treasury U.S. 10YR Treasur
Slide 18: Refunding Needs Support MIS Long-term Fundamentals
Refunding Needs1 Support MIS Long-term Fundamentals Debt Maturities: U.S. Non-Financial Corporate Bonds and Loans ($B)2 $666 $610 291 $412 246 Speculative Grade Bank Loans $255 160 Speculative Grade Bonds 113 140 39 28 39 Investment Grade » Refinancing needs remain approximately 187 214 251 234 flat
Slide 19: Debt Leverage and Interest Coverage in North America and Europe
Debt Leverage and Interest Coverage in North America and Europe1 Credit Metrics: North American Speculative Grade Companies Debt / EBITDA EBITDA / Interest Expense 8.0x Interest Coverage 5.6x 5.9x 5.5x 6.0x 5.1x 5.1x 5.3x 5.4x 5.4x 5.3x 4.6x 4.5x 4.5x 4.6x 4.9x 4.3x 4.0x 2.9x 3.0x 3.0x 3.0x 3.0x 2.9
Slide 20: Leveraged Finance Issuance Driven by Refinancing and M&A Activity
Leveraged Finance Issuance Driven by Refinancing and M&A Activity Uses of Funds from USD High Yield Bonds and Bank Loans1,2 5% 5% 6% 3% 5% 8% 8% 14% 20% 19% 26% 26% 25% 42% 83% 75% 75% 66% 69% 69% 50% FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Debt Refinancing M&A Other 3 1. Percent of
Slide 21: Average Maturities Remain Consistent with Historical Trend
Average Maturities Remain Consistent with Historical Trend Despite Lower Issuance Volumes FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 TOTAL ISSUANCE ($B)1 $462 $561 $979 $580 $428 $128 $212 $361 $369 $95 AVG. MATURITY2 12.0 12.4 14.7 13.6 13.1 8.6 8.4 7.8 8.3 8.3
Slide 22: Debt Capital Market Penetration
Debt Capital Market Penetration Emerging Developed Size of bubble reflects 2022 GDP Developed Western Europe8 North America 6 Other Asia3 Asia7 CEE/CIS2 ASEAN1 India Latin M.E. & Africa5 America4 China 0% 20% 40% 60% 80% 100% 120% 2022 Private Sector Capital Market Debt Securities (International & D
Slide 23: Moody's Investors Service
4 Moody’s Investors Service
Slide 24: Moody's Investors Service Financial Profile
Moody’s Investors Service Financial Profile Full Year 2022 Revenue: $2.7 billion » 39% recurring revenue » 39% recurring revenue U.S. Recurring Non-U.S. Transaction MIS Other1 2% Public, Project, & Infrastructure 39% Finance 56% 16% Corporate » 57% recurring revenue Financial Finance Institutions 47
Slide 25: Expecting Moderate Improvement in 2023 Issuance
Expecting Moderate Improvement in 2023 Issuance1 2023 Issuance Factors FY 2023 Issuance Outlook1,2 POLITICS & POLICY Total Issuance Total Issuance Low-single-digit % » Geopolitical risks » Energy, trade, climate, tax and regulatory policies I N F L A T I O N & C E N T R A L B A N K A Investment C T
Slide 26: Well-Positioned for Measured Issuance Rebound
Well-Positioned for Measured Issuance Rebound Following Relatively Muted Activity in 20221 Revenue1 Adjusted Operating Margin1 » Market uncertainty expected to continue through (at least) 1H 2023, with Increase in the Mid-50s percent intermittent opportunistic activity until more low-to-mid-single-d
Slide 27: MIS Revenue Growth Opportunity
MIS Revenue Growth Opportunity Medium-term guidance remains unchanged given persisting market uncertainty1 LONG-TERM GROWTH DRIVERS EMERGING ECONOMIC EXPANSION DISINTERMEDIATION VALUE-BASED PRICING OPPORTUNITIES GDP growth drives Improved opportunity for Meeting customers’ Network effects demand for
Slide 28: The Benefits of a Moody's Rating
The Benefits of a Moody’s Rating Investors seek Moody’s opinions and particularly value the knowledge of its analysts and the depth of Moody’s research Transparency, Access to capital credit comparison and Responsive to Planning Analytical market stability investor demand and budgeting capabilities
Slide 29: Illustrative Impact of Adding a Moody's Credit Rating
Illustrative Impact of Adding a Moody’s Credit Rating Example: 5-year $500 million corporate bond Not Rated by Moody’s Rated by Moody’s $500,000,000 Bond $500,000,000 1.20% 5-Yr US Treasury Bond Rate 1.20% 500 Option Adjusted Spread (bps)1 435 6.20% Interest Rate 5.55% = $31,000,000 Annual Interest
Slide 30: Full Year 2022 Facts & Figures
PEOPLE ~$73tn ~$73 trillion 12,800+ trillion MCO employees FACTS & FIGURES Total rated Total rated Full Year 2022 1 debt debt1 1,700+ Analysts AMERICAS EMEA ASIA PACIFIC 40+ 33,900+ TOTAL RATED DEBT Countries/Regions Rated Organizations and Structured Deals $41+ trillion $19+ trillion $10+ trillion
Slide 31: How we Participate in Global Domestic Markets
How we Participate in Global Domestic Markets South Africa Chile Malaysia MIS affiliate (majority) Others Nigeria MIS affiliate (minority) Mexico MIS Emerging Markets Revenue1 Moody’s Local Argentina Other Emerging Markets $343M Brazil Peru Egypt Israel $750 $179M million China Size of domestic CRA
Slide 32: Moody's in Greater China
Moody’s in Greater China 2nd Largest Onshore Bond Market at ~$22 Trillion Revenue and Attributable Income from China2 Total debt securities outstanding 2Q 2012 - 2Q 20221 MIS Cross Border Revenue Total MA Revenue Attributable Income from CCXI 2Q 2012 $60 2Q 2022 $125 5% $ Millions $ Trillions $40 19
Slide 33: Moody's Analytics
5 Moody’s Analytics
Slide 34: Integrated Risk Assessment Strategy Delivers Impressive Results
Integrated Risk Assessment Strategy Delivers Impressive Results LEVERAGING DEEP MARKET DELIVERING UNMATCHED CAPABILITIES CURRENTS RESULTS Extensive, Uniquely Outpacing Competitors in ARR2 10% 60 Curated, Proprietary Data $30B+ Current Addressable Market1 Rich Product RETENTION RATE3 Quarters of Deve
Slide 35: Diverse Customer Base Across Multiple Sectors
Diverse Customer Base Across Multiple Sectors1 70% 52% 4,400+ Corporates 900+ Insurance Companies of the Fortune 1002 of the Forbes 1,0003 2,600+ 900+ Commercial Banks Real Estate Entities 15,200+ 2,300+ 600+ Customers Professional Services Educational Institutions 1,900+ 200+ Securities Dealers and
Slide 36: Assembling and Integrating Capabilities
Assembling and Integrating Capabilities Underwriting Lending & ESG & Climate Origination Assessment Portfolio Mgmt. Regulatory Investment Compliance Analysis KYC Decision Data & Solutions Research & Information Economic Insights Other Forecasts Proprietary & Models Data Models & Private & Analytics
Slide 37: Data & Information Snapshot
D&I Data & Information Snapshot Raw ingredients for unique insights $712M REVENUE » Create and aggregate extensive data from multiple sources » Standardize, cleanse and curate data » Distribute through cloud-based platforms, APIs and other web interfaces 9% DATA SETS INCLUDE ARR GROWTH1 Data feeds f
Slide 38: Research & Insights Snapshot
R&I Research & Insights Snapshot Generating actionable insights $733M REVENUE » Model and measure risks related to credit, financial, climate, operational, cyber and others » Forecast and benchmark micro and macroeconomic implications » Provide valuable insights and opinions that inform global decis
Slide 39: Decision Solutions Snapshot
DS Decision Solutions Snapshot Integrating best-in-class data and analytics $1,324M REVENUE » Integrate and connect data, research and analytics for enriching customer applications » Build and support software for specific customer workflows » Embedded components in external ecosystems 11% SOLUTIONS
Slide 40: Operating in Growing Markets
Operating in Growing Markets Full Year 2022 Revenue Spotlight on ARR2 Expansion Decision 30% 48% Solutions KYC & Compliance 88% recurring revenue 25% 93% retention rate1 Full Year 2022 ARR Growth 20% Life Insurance Research & 26% Insights Banking 15% $2.8 billion 99% recurring revenue 96% retention
Slide 41: Strong Execution Enables Consistent Revenue Growth
Strong Execution Enables Consistent Revenue Growth Exceptional value creation - revenue has more than tripled since inception $3,000 2022 Revenue: 2008 – 2022 CAGR: $2,769M +12% (~60% organic) $2,500 CAGR $2,000 12% $ Millions $1,500 $1,000 $500 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 42: Recurring Revenue Growth Drives Margin Expansion
Recurring Revenue Growth Drives Margin Expansion Full Year Recurring And Transaction Revenue Adjusted Operating Margin1 Recurring Transaction Recurring % ~ ~18% Recurring Revenue CAGR 94% +~640bps 93% 91% 31.0% 85% 84% 78% 24.6% FY17 FY18 FY19 FY20 FY21 FY22 2017 2023F 1. Guidance as of January 31,
Slide 43: Building on a Foundation of Strong Customer Retention
Building on a Foundation of Strong Customer Retention 94% 8% 9% 111% Full Year 2022 Retained Base 1 Upgrades and Price New Sales Business Base 95% 7% 9% 111% Full Year 2021 Retained Base Upgrades and Price New Sales Business Base 93% 7% 10% 110% Full Year 2020 Retained Base Upgrades and Price New Sa
Slide 44: MA: Full Year 2023 Guidance
MA: Full Year 2023 Guidance1 Continued focus on profitable revenue growth and reinvestment to fuel future expansion » ARR2 growth expected to accelerate as our mid-90s retention rates and strong customer-orientation enable cross-selling, KEY DRIVERS OF tactical pricing, product development and sales
Slide 45: Accelerating Revenue Growth
Accelerating Revenue Growth Medium-Term Revenue Target Drivers Strong Customer Retention Rates New Product Development Within 5 years1 Cross-selling, Upgrades & Pricing Low-to-mid-teens % Total Revenue CAGR Increased Distribution Capacity Continued SaaS Transition Note: SaaS = Software as a Service.
Slide 46: KYC: Best-in-Class Compliance Solutions
DS KYC: Best-in-Class Compliance Solutions Well-positioned to deliver differentiated solutions in a growing market INDUSTRY TRENDS KYC SOLUTIONS Complex Sophisticated D ATA 450+ Companies regulatory crime tactics World’s preeminent and comprehensive database on: million and entities environment » En
Slide 47: RMS: Expanding Mission-Critical Role to Other Industries
DS RMS: Expanding Mission-Critical Role to Other Industries » Cross-trained sales forces to offer » Deepening relationships with P&C » Embedding climate-related breadth of combined product suite customers by providing Moody’s financial loss estimates across holistic suite of products and multiple us
Slide 48: Awards & Accolades
Awards & Accolades Recognition for our industry-leading solutions: data, research, analytics and software 4Q and FY 2022 Investor Presentation 48
Slide 49: ESG & Climate Solutions
6 ESG & Climate Solutions
Slide 50: Moody's Transparent and Rigorous ESG & Climate Capabilities
Moody’s Transparent and Rigorous ESG & Climate Capabilities » Our award-winning ESG & Climate risk data is integrated across our business and capabilities ~$190 million » We enable customers to obtain a holistic view of their ESG & Climate risk exposure 2022 ESG & Climate by providing both a financi
Slide 51: Moody's Core ESG & Climate Capabilities
Moody’s Core ESG & Climate Capabilities » Issuer Profile Scores (IPS)1 » Positive & Negative Screening Data ESG » Credit Impact Scores (CIS)1 » Normative Standards Screening Data » Analyst-driven and modeled » Regulatory Data ESG Scores » Data for 100+ ESG and Climate Indices Climate » Carbon Transi
Slide 52: ESG & Climate at Moody's
ESG & Climate at Moody’s Snapshot1 35+ 10,000+ 300M+ 10,000+ Years of ESG experience ESG Credit Impact Scores Companies scored via a Climate physical risk scores Pioneers of ESG analysis for over (CIS) and Issuer Profile combination of analyst-verified Spanning countries, sub three decades, while pr
Slide 53: Appendix
7 Appendix
Slide 54: Corporate Finance: Revenue and Issuance
Corporate Finance: Revenue and Issuance1 Revenue2: Mix by Quarter Issuance4: Mix by Quarter Global Non-Financial Investment-Grade Bonds Global Non-Financial Speculative-Grade Bonds 3 Other Investment Grade Speculative Grade Bank Loans U.S. Speculative-Grade Bank Loans Non-U.S. Speculative-Grade Bank
Slide 55: Corporate Finance: Revenue
Corporate Finance: Revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 100% 100% 25% 20% 22% 25% 23% 30% 28% 30% 80% 80% 38% 39% 45% 50% 68% 70% 68% 63% 68% 66% 66% 66% 65% 68% 63% 66% 60% 60% 40% 40% 75% 80% 78% 75% 72%
Slide 56: Financial Institutions: Revenue and Issuance
Financial Institutions: Revenue and Issuance1 Revenue2: Mix by Quarter Issuance3: Mix by Quarter Banking Insurance Managed Investments Other Global Speculative Grade Financial Corporate Bonds Global Investment Grade Financial Corporate Bonds $180 $2 $3 $2 $700 $160 $8 $8 $3 $3 $600 $20 $140 $3 $13 $
Slide 57: Financial Institutions: Revenue
Financial Institutions: Revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 100% 100% 80% 47% 47% 46% 46% 46% 41% 43% 47% 45% 80% 44% 47% 46% 47% 53% 48% 50% 52% 50% 50% 53% 55% 62% 58% 57% 60% 60% 40% 40% 53% 53% 54% 54
Slide 58: Public, Project and Infrastructure: Revenue and Issuance
Public, Project and Infrastructure: Revenue and Issuance1 Revenue2: Mix by Quarter Issuance3: Mix by Quarter Public Finance and Sovereign Project & Infrastructure Finance Long-Term Rated U.S. Muni Bonds Rated Global Project & Infrastructure Finance Bonds $200 $200 $150 $150 $ Billions $ Millions $59
Slide 59: Public, Project and Infrastructure: Revenue
Public, Project and Infrastructure: Revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 100% 100% 31% 34% 32% 30% 32% 32% 34% 32% 36% 33% 80% 80% 46% 45% 39% 62% 61% 55% 61% 58% 60% 58% 61% 60% 63% 64% 62% 62% 60% 60% 40
Slide 60: Structured Finance: Revenue and Issuance
Structured Finance: Revenue and Issuance1 Revenue2: Mix by Quarter Issuance3: Mix by Quarter ABS RMBS CMBS Structured Credit Other ABS RMBS CMBS Structured Credit $200 $500 $1 $400 $150 $0 $0 $97 $ Millions $0 $ Billions $67 $39 $1 $1 $53 $57 $300 $70 $100 $36 $0 $60 $59 $31 $0 $38 $52 $31 $38 $34 $
Slide 61: Structured Finance: Revenue
Structured Finance: Revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 100% 100% 34% 35% 31% 35% 35% 80% 80% 43% 41% 43% 56% 49% 52% 50% 52% 59% 59% 63% 65% 63% 69% 68% 67% 67% 68% 67% 60% 60% 40% 40% 66% 65% 69% 65% 65
Slide 62: Moody's Analytics: Financial Overview
Moody’s Analytics: Financial Overview Decision Solutions Research & Insights Data & Information Moody’s Analytics Revenue: Mix by Quarter Revenue: Distribution by Line of Business Revenue: Mix by Year $800 100% $3,000 $700 90% 25% 26% 26% 26% 25% 30% 31% 29% 27% 80% $2,500 $712 $600 $178 $180 $180 $
Slide 63: Moody's Revenue and Interest Rates Over Time
Moody’s Revenue and Interest Rates1 Over Time MIS Revenue (L) MIS Revenue Guidance MA Revenue (L) MA Revenue Guidance MCO Revenue (L) 10-yr U.S. Treasury Yield (R)1 $7,000 9% +240bps 7.8% 8% $6,000 7% 6.5% $ Millions $5,000 +100bps +120bps 6% 5.8% $4,000 5% 4.7% 3.9% $3,000 4% 3.3% +200bps +180bps 3
Slide 64: Maintaining Financial Flexibility through Proactive Management
Maintaining Financial Flexibility through Proactive Management Bond portfolio WAC1 Balanced maturity schedule4 $ in millions 5.1% 4.7% 4.6% 4.3% 4.3% 3.9% 300 4.1% 3.5% 3.3% 3.3% 3.3% 3.6% 4.2% 3.1% 300 3.9% 4.0% 800 3.1% 500 250 3.4% 3.4% 534 500 600 2.6% 500 300 500 500 3.0% 400 400 2.1% 300 300 3
Slide 65: Disciplined Approach to Capital Management
Disciplined Approach to Capital Management Capital Allocation Priorities Increasing Dividends Through Market Cycles COVID-19 Recession INVESTING FOR $3.50 GROWTH $3.00 $2.50 1 Great Reinvestment $2.00 2001 Recession Accelerating organic growth $1.50 Recession $1.00 2 Acquisitions Advance global inte
Slide 66: Drivers of Sustainable Corporate Value
Drivers of Sustainable Corporate Value Placing sustainability at the core of the business Better Business Better Lives Better Solutions » Committed to net-zero by 2040: Moody’s is one of the » Progressed on our customer-focused diversity, equity » Expanded our Issuer Profile Scores (IPS) and Credit
Slide 67: Modernizing our Internal Data & Technology Infrastructure
Modernizing our Internal Data & Technology Infrastructure to Further Enhance Business Capabilities Cloud and Platform DevOps » Progressing on our cloud infrastructure journey to » Continuing our DevOps journey within MIS and allow “always on”; majority of MA workloads are in MA to promote high quali
Slide 68: Innovation Enabled by Artificial Intelligence (AI)
Innovation Enabled by Artificial Intelligence (AI) Utilizing natural language processing (NLP) and machine learning (ML) across Moody’s external products and solutions mlfabric™ MA Products » Extensible modular ML framework to accelerate & » QUIQspread: product capable of automating scale ML across
Slide 69: Reconciliation of Adjusted Financial Measures to U.S. GAAP
Reconciliation of Adjusted Financial Measures to U.S. GAAP Moody's Corporation Adjusted Operating Income and Adjusted Operating Margin Reconciliation Moody's Corporation Net Debt Reconciliation (in $ millions) 2018 2019 2020 2021 2022 (in $ millions) 2018 2019 2020 2021 2022 Operating Income $1,868
Slide 70: Reconciliation of Adjusted Financial Measures to U.S. GAAP (cont.)
Reconciliation of Adjusted Financial Measures to U.S. GAAP (cont.) Moody's Corporation Operating Margin Guidance Reconciliation 2023F1 Projected Operating Margin – U.S. GAAP Approximately 37% Depreciation & Amortization Approximately 7% Restructuring Expense Approximately 0.5% Projected Adjusted Ope
Slide 71: Reconciliation of Adjusted Financial Measures to U.S. GAAP (cont.)
Reconciliation of Adjusted Financial Measures to U.S. GAAP (cont.) Moody's Corporation Diluted EPS Reconciliation 2018 2019 2020 2021 2022 2023F1 Diluted EPS – U.S. GAAP $6.74 $7.42 $9.39 $11.78 $7.44 $8.05 to $8.55 Acquisition-Related Intangible Amortization Expenses $0.40 $0.42 $0.51 $0.65 $0.83 ~
Slide 72: Annualized Recurring Revenue (ARR)
Annualized Recurring Revenue (ARR) The Company presents Annualized Recurring Revenue (“ARR”) on a constant currency organic basis for its MA business as a supplemental performance metric to provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in time
Slide 73: Key Assumptions Underlying our Medium-Term Targets
Key Assumptions Underlying our Medium-Term Targets Moody’s medium-term guidance refers to a time period within 5 years and reflects assumptions about numerous factors that could affect its business and is based on currently available information reviewed by management through and as of today’s date.
Slide 74: Investor Relations
Investor Relations ir.moodys.com ir@moodys.com moodys.com
Slide 75: Moody's legal notices
© 2023 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liabilit