Moody's Corporation · NYSE:MCO
Moody's — Merger or Acquisition (August 2021)
19 slides from Moody's's merger presentation, Aug 5, 2021
Slide 1: Moody's Accelerates Integrated Risk Assessment Strategy with RMS Acquisition
Moody’s Accelerates Integrated Risk Assessment Strategy with RMS Acquisition August 5, 2021
Slide 2: Introduction
Introduction Shivani Kak Head of Investor Relations Moody’s | Better decisions Acquisition of RMS – August 5, 2021 2
Slide 3: 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. The forward-looking statements in this document are made as of the d
Slide 4: Strategic Overview
Strategic Overview Rob Fauber President and Chief Executive Officer Moody’s | Better decisions Acquisition of RMS – August 5, 2021 4
Slide 5: Transaction Summary
Transaction Summary RMS » RMS is a leading global provider of climate and natural disaster risk modeling and analytics that underpins the Overview property & casualty (P&C) insurance market - enabling insurers and reinsurers to understand, measure, price and manage risk » Bringing Moody's Life and R
Slide 6: Customers Are Searching for Holistic Solutions to Better Understand Emerging, Interconnected Risks
Customers Are Searching for Holistic Solutions to Better Understand Emerging, Interconnected Risks Selection of use cases addressable by Moody’s solutions Risk horizons Weather and natural disaster analysis Transfer pricing Supply chain management and trade credit Credit & Cyber Financial Fixed inco
Slide 7: Large Growth Opportunity in Insurance Data and Analytics Markets
Large Growth Opportunity in Insurance Data and Analytics Markets Insurance data and analytics markets are large and growing rapidly… …while pressures to transform are accelerating » Insurers are increasingly incorporating CAT Risk ESG, Climate and other risk factors into Models and Data ~13% loss mo
Slide 8: RMS Enhances and Scales Moody's Insurance Analytics Offerings
RMS Enhances and Scales Moody’s Insurance Analytics Offerings Moody’s and RMS have complementary assets in the Life and P&C insurance segments; potential for significant revenue opportunities with combined scale and capabilities 5% Other 5% Other ~400 ~$170M1 ~$320M2 Risk Models of Revenue of Revenu
Slide 9: Moody's and RMS Will Enable CRE Professionals to Make Better Decisions
Locale Moody’s and RMS Will Enable CRE What are the characteristics of this neighborhood and location? Professionals to Make Better Decisions » » Forecasts for the local economy Location attractiveness » Construction trends Environment How exposed is this property to catastrophe risk and extreme wea
Slide 10: Expanding Moody's Climate Solutions
Expanding Moody’s Climate Solutions RMS data can be leveraged for a wide range of Moody’s applications Floods Earthquakes Extensive coverage RMS & Consolidated data Expanded and improved coverage MOODY’S Combined data will feed into of climate-related hazards Moody’s climate-adjusted credit and natu
Slide 11: Financial Highlights
Financial Highlights Mark Kaye Chief Financial Officer Moody’s | Better decisions Acquisition of RMS – August 5, 2021 11
Slide 12: Path to Achieving Financial Targets
Path to Achieving Financial Targets Core Insurance Cross-selling Financial Targets1 » Scale RMS’s sales force » New customer base for Moody’s » CAT risk market growth Analytics’ offerings » Introducing medium-term MA » Expansion into uninsured risk markets » RMS model insights for Moody’s adjusted o
Slide 13: Revised FY 2021 Guidance
Revised FY 2021 Guidance Updated FY 2021 Guidance1 FY 2021 Guidance as of July 28, 2021 Revenue No change Increase in the low-double-digit % range Expenses Approximately 10% Increase in the mid-single-digit % range Operating Margin 45% to 46% Approximately 47% Adjusted Operating Margin2 Approximatel
Slide 14: Transaction Financing and Capital Allocation Strategy
Transaction Financing and Capital Allocation Strategy Financing Considerations Capital Allocation Priorities » Subject to customary approvals, acquisition expected to close in late 3Q 2021 Investing in Growth Opportunities » ~$2.0B RMS purchase price funded with a combination of cash-on-hand and new
Slide 15: Key Takeaways
Key Takeaways » Accelerates Moody’s integrated risk assessment strategy, providing new expansion opportunities across multiple risk adjacencies while also enhancing Moody’s core offerings » RMS meaningfully expands our existing insurance business and provides entry into the P&C insurance and reinsur
Slide 16: Questions and Answers
Questions and Answers Rob Fauber President and Chief Executive Officer Mark Kaye Chief Financial Officer Steve Tulenko President, Moody’s Analytics
Slide 17: Investor Relations
Investor Relations ir.moodys.com ir@moodys.com
Slide 18: 2021 Outlook
2021 Outlook The following are reconciliations of the Company's adjusted forward looking measures to their comparable U.S. GAAP measure: Moody’s | Better decisions Acquisition of RMS – August 5, 2021 18
Slide 19: Moody’s | Better decisions Acquisition of RMS – August 5, 2021
© 2021 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