Moody's Corporation · NYSE:MCO
Moody's — Q3 2020 Earnings Presentation
74 slides from Moody's's earnings presentation, Nov 11, 2020
Slide 1: 3Q 2020 Investor Presentation
3Q 2020 Investor Presentation November 11, 2020
Slide 2: Disclaimer
Disclaimer Certain statements contained in this release are forward-looking statements and are based on future expectations, plans and prospects for the business and operations of Moody’s Corporation (the “Company”) that involve a number of risks and uncertainties. Such statements may include, among
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. Appendix 3Q 2020 Investor Presentation - November 11, 2020 3
Slide 4: Moody's Overview
1 Moody’s Overview
Slide 5: Company Overview
Company Overview Leading global provider of credit Independent provider of rating opinions, insight and tools Provides financial intelligence credit rating opinions and for financial risk measurement and analytical tools related information for over and management supporting our customers’ 100 years
Slide 6: Moody's Priorities for Strategic Growth
Moody’s Priorities for Strategic Growth Enhance technology infrastructure to enable automation, innovation and efficiency Foster employee engagement and creative solutions through our diverse workforce and inclusive environment Global Integrated Risk Assessments Moody’s Core Strengths Expand into Ne
Slide 7: Priorities for Strategic Growth: Investing with Intent
Priorities for Strategic Growth: Investing with Intent Recent investments accelerate strategic growth priorities BUSINESS ADJACENCIES REGIONAL EXPANSION Acquire Media » MARC: Minority investment in a Malaysian domestic rating agency » Enhances KYC business Know Your Customer » Curated news and workf
Slide 8: Priorities for Strategic Growth: ESG Integrated Across All Platforms
Priorities for Strategic Growth: ESG Integrated Across All Platforms, Driving Growth and Enhanced Relevance + + Stand-alone ESG & MIS Integration MA Integration Climate Solutions Climate Risk Solutions ESG Assessments Carbon Transition ESG & Climate Risk Assessment Impact on Credit Real Estate Solut
Slide 9: Financial Overview
2 Financial Overview
Slide 10: Moody's Corporation Financial Profile
Moody’s Corporation Financial Profile 3Q 2020 TTM Revenue: $5.3 billion MIS Other 1% Recurring Transaction U.S. Non-U.S. PPIF 9% FIG RD&A1 45% 45% MIS 10% 28% MA SFG 7% ERS 10% 55% 55% CFG 35% Full Year 2020 Guidance as of October 29, 20202 Revenue » Increase in the high-single-digit % range Effecti
Slide 11: Macro Assumptions Underpinning Our Outlook
Macro Assumptions Underpinning Our Outlook Macro assumptions underpinning our guidance1 2020 GDP Benchmark interest rates remain low; U.S. high-yield -6% United States spreads of ~500 bps -9% Euro area -5% Global U.S. unemployment rate High yield default rate of ~8% by year-end rising to ~8%2 1. Sou
Slide 12: Financial Performance
Financial Performance1 Revenue1 Adjusted Diluted EPS3 $ Billions $ Per Share $9.95 - $10.15 High-single-digit $10.00 MIS Revenue MA Revenue % growth $6.0 $9.00 $4.8 $8.00 $5.0 $4.2 $4.4 $3.5 $3.6 $7.00 $4.0 $2.0 $1.4 $1.7 $6.00 $3.0 $1.2 $1.2 $5.00 $8.29 $2.0 $7.39 $2.9 $4.00 $6.07 $2.3 $2.4 $2.8 $2
Slide 13: Long-Term Growth Opportunities
Long-Term Growth Opportunities Three Levers to Achieve EPS Growth REVENUE High Single Digit % Growth Range1 Issuance Volume & Mix Coverage Moody’s Analytics Pricing Initiatives ADJ. OPERATING MARGIN High-40s % Range1 Cost Discipline Process Re-Engineering Technology Enablement Investing for future g
Slide 14: Capital Allocation Strategy
Capital Allocation Strategy Prudent approach in uncertain times Capital allocation goals Capital allocation levers INVESTING IN GROWTH OPPORTUNITIES Reinvestment Acquisitions RETURN OF CAPITAL Dividends Anchored around Ensure adequate Provide Meet return Manage risk Share repurchase a BBB+ rating fi
Slide 15: Investment Criteria and Post Acquisition Review
Investment Criteria and Post Acquisition Review Clear Industrial Logic Disciplined Financial Targets Post-Acquisition Review Strategic fit is the most important factor and the Long held, clear financial framework for Disciplined and rigorous monitoring post close first screen external (and internal)
Slide 16: Key Takeaways
Key Takeaways Growth Company Operational Excellence Disciplined Capital Allocation » Long-term financial expectations » Strategic initiatives generate » Emphasis on returning excess remain positive cost efficiencies, enabling capital to stockholders through » Balanced revenue model reinvestment and
Slide 17: Capital Markets Overview
3 Capital Markets Overview
Slide 18: 3Q 2020 Credit Market Update
3Q 2020 Credit Market Update Buoyant credit markets despite ongoing real economy disruption from COVID-19 Real Economy Credit Markets COVID-19 Pandemic Investment Grade Bonds » New cases of COVID-19 increased in the U.S. and Europe » Record issuance volumes1 » Policy responses: some U.S. states and
Slide 19: CFG Spotlight: Issuance-driven Revenue Growth
CFG Spotlight: Issuance-driven Revenue Growth Issuance by Line of Business CFG Issuance Volume and Transaction Revenue ($ Billions) $1,000 100% 100% 85% 7% 4% 7% 10% 12% 10% 14% $900 90% $103 80% 16% 20% 14% 14% 15% 20% $800 80% 65% 18% 37% $171 60% 70% $700 40% 41% 37% 31% 24% 36% 40% 60% 34% 29% 2
Slide 20: Refunding Needs Continue to Build
Refunding Needs Continue to Build Next Four Years North America and EMEA Total Refunding Needs1 as of: $4,000 $3,806 10% $3,466 $3,500 $3,000 $ Billions $2,500 $1,972 $2,000 $1,500 $1,000 Jan '12 Jan '13 Jan '14 Jan '15 Jan '16 Jan '17 Jan '18 Jan '19 Jan '20 Sep '20 1. Amount reflects total maturit
Slide 21: Refunding Needs Support MIS Long-term Fundamentals
Refunding Needs1 Support MIS Long-term Fundamentals Debt Maturities: North America Moody’s-Rated Corporate Bonds and Loans2 $624 » Approximately $1.8 trillion of $532 non-financial corporate debt 311 maturing in North America $ Billions $387 205 Speculative Grade Bank Loans $252 86 Speculative Grade
Slide 22: Increased Issuance Volume Offsets Impact of Longer Average Maturities
Increased Issuance Volume Offsets Impact of Longer Average Maturities U.S. Investment Grade Bond Issuance by Maturity Length U.S. High Yield Bond Issuance by Maturity Length 1-2 years ($ Billions) ($ Billions) $341 3-5 years 6-10 years 11-30 years $264 Long term $230 $167 $165 $176 $184 $166 $130 $9
Slide 23: Debt Leverage and Interest Coverage in North America and Europe
Debt Leverage and Interest Coverage in North America and Europe Credit Metrics: North American Speculative Grade Companies Debt / EBITDA EBITDA / Interest Expense 8.0x 6.2x Interest Coverage 6.0x 5.2x 5.3x 5.5x 5.4x 5.5x 4.7x 4.9x 5.1x 4.6x 4.6x 4.5x 4.3x 4.4x 4.6x 4.0x 2.9x 2.6x 2.7x 2.9x 3.0x 3.0x
Slide 24: Default Rate Forecast Reflects COVID-19 Impacts; Expected to Peak in 1Q 2021
Default Rate Forecast Reflects COVID-19 Impacts; Expected to Peak in 1Q 2021 Default Rates for Speculative-Grade Speculative-Grade Covenant Quality Indicators2 Corporate Rated Issuance1 Global U.S. Europe U.S. Loans U.S. Bonds European Bonds Weakening 16% 5.0 14% 4.51x 4.5 12% 4.22x 10% 4.1% global
Slide 25: Liquidity and Refinancing Prominent Drivers of Issuance YTD 2020
Liquidity and Refinancing Prominent Drivers of Issuance YTD 2020, While M&A Declined Uses of Funds from USD High Yield Bonds and Bank Loans1 YTD 20202 Issuance Drivers: Debt Refinancing M&A Capital Spending Shareholder Payments Liquidity / Working Capital 100% 9% 8% 8% 8% Opportunistic refinancing d
Slide 26: Disintermediation of Credit is an Ongoing Trend
Disintermediation of Credit is an Ongoing Trend in the Global Capital Markets European Non-Financial Corporate Bonds vs. U.S. Non-Financial Corporate Bonds vs. Bank Loans Outstanding Bank Loans Outstanding Bonds Loans Bonds Loans €7,000 $9,000 €6,000 $7,500 50% €5,000 73% $6,000 4 4 $ Billions € Bil
Slide 27: Moody's Investors Service
4 Moody’s Investors Service
Slide 28: Moody's Investors Service Financial Profile
Moody’s Investors Service Financial Profile 3Q 2020 TTM Revenue: $3.3 billion » 25% recurring revenue Recurring U.S. » 32% recurring revenue Transaction Non-U.S. MIS Other 1% 38% Corporate Public, Project, Finance & Infrastructure 66% 56% Finance 15% Financial 62% Institutions 16% 34% Structured » 5
Slide 29: MIS Guidance: Robust YTD Driving Improved Outlook
MIS Guidance: Robust YTD Driving Improved Outlook1 Revenue Adjusted Operating Margin1 FY 2020 Issuance Guidance1,2 Low-double-digit 78% Approximately 60% 60% % increase 58% $3,200 58.0% $3,000 $2.9B 38% 25% High-teens $2,800 % range 18% $2,600 $2,400 -2% $2,200 -22% -10% $2,000 $1,800 -42% -35% $1,6
Slide 30: The Benefits of a Moody's Rating
The Benefits of a Moody’s Rating Investors seek our opinions and particularly value the knowledge of our analysts and the depth of our research. Wider access Tangible Planning Transparency, Responsive to to capital financing benefits and budgeting credit comparison investor demand and market stabili
Slide 31: Managing Ratings in Turbulent Times
Managing Ratings in Turbulent Times Transparency and relevance of credit ratings through the cycle Order sectors by degree Order issuers by Reassess all Reassess ratings Monitor credit profiles Coordinate Take account of of exposure vulnerability ratings in the most of the most associated with all o
Slide 32: Illustrative Value of a Moody's Rating
Illustrative Value of a Moody’s Rating Example: 10 year $500 million corporate bond Unrated Rated by Moody’s $500,000,000 Bond $500,000,000 x 4.3% Interest rate x 4.0% = $21,500,000 Annual interest payments = $20,000,000 x 10 years Tenor x 10 years = $215,000,000 Lifetime interest expense = $200,000
Slide 33: Broad Coverage Serves Global Needs
Broad Coverage Serves Global Needs ~11,400+ 1,000+ 33 MCO employees*** Analysts Offices* ~15 Years Lead/Senior Analyst tenure ***As at 30 September 2020. 3Q 2020 Investor Presentation - November 11, 2020 33
Slide 34: Strongly Positioned in Emerging Markets
Strongly Positioned in Emerging Markets Emerging Markets - Domestic TAM MIS Emerging Markets Revenue1 Chile Malaysia MIS Affiliate (majority) Others MIS Affiliate (minority) Moody’s Local $342M South Africa National Scale Ratings Brazil Other Emerging Markets Mexico Argentina China Peru Egypt $700M
Slide 35: Moody's in Greater China
Moody’s in Greater China 2nd Largest Onshore Bond Market at $15 Trillion Revenue and Attributable Income from China2 Total debt securities outstanding 2012–20201 MIS Cross Border Revenue Total MA Revenue Attributable Income from CCXI 2012 2020 200 $176 50 4% 40 150 $ Millions 30 100 21% -2% 20 0% 0%
Slide 36: Moody's ESG: Driving Standards Beyond Credit
Moody’s ESG: Driving Standards Beyond Credit Market Trends Key Stats2 Outreach » Moody’s forecasts global green, social » Over 700 media engagements and sustainability bond issuance to be from January to September 2020 driven by $325 to $375 billion in 20201 30+ 5,000+ Moody’s events and research Ye
Slide 37: Enhanced ESG Solutions
Enhanced ESG Solutions Index Partnerships Second Party Opinions (SPOs) » Partnered with Euronext on a new » VE launched an enhanced SPO ESG index powered by VE data: the service for sustainable bonds Euronext ESG80 ESG Integration featuring an updated impact » Agreements to provide ESG data in into
Slide 38: Moody's Analytics
5 Moody’s Analytics
Slide 39: Moody's Analytics Financial Profile
Moody’s Analytics Financial Profile 3Q 2020 TTM Revenue: $2.0 billion » 96% recurring revenue2 » 94% retention rate3 Recurring Transaction U.S. Non-U.S. 11% Research, Data and Analytics1 57% 72% 89% Enterprise Risk 43% Solutions 28% » 77% recurring revenue » 93% retention rate 1. Includes trailing t
Slide 40: MA Guidance: Recurring Revenue Creates Stability
MA Guidance: Recurring Revenue Creates Stability1 Revenue Adjusted Operating Margin1 Mid-single-digit Approximately 30% % increase $2.0B 27.8% 1 2019 2020F 2019 2020F 1 Key drivers of MA FY 2020 outlook1 » Strong recurring revenue mitigates COVID-19 impact » RD&A growth driven by strong demand for K
Slide 41: Subscription Sales Resilient Through COVID-19 Disruption
Subscription Sales Resilient 2020 OUTLOOK 2021 OUTLOOK Through COVID-19 Retention Disruption Positive Retention holding Positive Retention expected at ~94% despite to remain stable Continued demand for insights and initial concerns analytics Subscription Sales Growth YTD 2020 RETENTION ~96% Research
Slide 42: Moody's Analytics Has Several Platforms for Growth
Moody’s Analytics Has Several Platforms for Growth Revenue Has More Than Tripled Since Inception $2,000 Moody’s Analytics 2019 Revenue: $1,954m $1,800 2008 – 2019 CAGR: +12% (~60% organic) $1,600 $1,400 Enterprise Risk Solutions 2019 Revenue: $522M $1,200 2008 – 2019 CAGR: +14% $ Millions (~68% orga
Slide 43: Diverse Product Solutions
Diverse Product Solutions Continuous improvement of content and user experience provides tools for customer to make better decisions, faster Integrated Experience: Ease of Use Enhanced Content & Coverage: More Value 1,400+ 2,900+ Asset Managers Commercial Banks Onboard customers Compliance modules C
Slide 44: Newly Integrated Capabilities Help Customers Make Better Decisions
Newly Integrated Capabilities Help Customers Make Better Decisions Leveraging interoperability to create new solutions CUSTOMER NEEDS CAPABILITIES & DATA NEW INTEGRATED SOLUTIONS Credit Sentiment Score Credit Sentiment Score and AI powered news Early warning tools to identify CreditEdge feed added t
Slide 45: RD&A: Subscription Growth Driven by Retention, Upgrades and Pricing & New Sales
RD&A RD&A: Subscription Growth Driven by Retention, Upgrades and Pricing & New Sales Subscription Sales Growth (constant currency) First Half 95.6% 8.2% 4.7% 108.5% Expansion of ratings coverage 2020 Retained Base Upgrades and Price New Sales Business Base Production of insightful credit analysis Fu
Slide 46: Bureau van Dijk Collects and Enhances Information to Deliver High Value Solutions
RD&A Bureau van Dijk Collects and Enhances Information to Deliver High Value Solutions High Value Customer Solutions KYC, compliance and financial crime Corporate finance and M&A Conduct on-boarding and anti-money laundering research with Find targets/sellers, perform M&A/deal analysis and conduct d
Slide 47: BvD Acquisition – Growth Synergies Are Coming Through Today
RD&A BvD Acquisition – Growth Synergies Are Coming Through Leveraging Moody’s financial stability and scale Strong tailwinds in Compliance, RDC acquisition Sales playbook – segment expertise and team selling 1,2 Pre-Moody’s 1 Today 2017 Revenue Significant investment in coverage and product TTM 2020
Slide 48: BvD: Diverse Client Base and Broad Range of Use Cases
RD&A BvD: Diverse Client Base and Broad Range of Use Cases BvD Customer Mix by industry1 Use Case Growth Rates 38% Growth of Compliance Government 45% 12% Use Case YoY Growth (2019 vs. 2018) 40% Avg Growth of Other Financial and Compliance Education, Use Cases Institutions, 35% 29% 22% 30% 25% Profe
Slide 49: BvD + RDC Makes Us a Leading Global Player in KYC
RD&A BvD + RDC Makes Us a Leading Global Player in KYC Improved accuracy and streamlined decisions » Bureau van Dijk accelerating growth with Moody’s: BvD post acquisition BvD revenue growth1 of ~16% and adjusted operating margin2 of ~52% » BvD + RDC creates a leading provider of data for compliance
Slide 50: ERS Empowers Customers' Success With Analytics
ERS ERS Empowers Customers’ Success With Analytics Technology with a purpose – Enabling better, faster decisions Our business solutions Our customers Accounting Balance sheet Insurers management Impairments, Portfolio, valuation IFRS-17 and ALM1 Banks Corporates Customers Credit decisioning & RegTec
Slide 51: ERS: Recurring ~80% of Revenue with Mid-teens CAGR
ERS ERS: Recurring ~80% of Revenue with Mid-teens CAGR ERS Revenue: Recurring1 vs. Non-recurring » ERS recurring revenue has grown by Recurring Revenue CAGR2 = 16% approximately $200 million since 2015 $500 100% » Emphasis on subscription products supports scalability, drives operating leverage and
Slide 52: Global Regulatory and Accounting Drivers for the ERS Business
ERS Global Regulatory and Accounting Drivers for the ERS Business EMEA Revised SA FRTB CVA review operational risk Incorporate ESG risks BoE/ PRA Revised SA Updated into supervisory process ST market risk Leverage Ratio Revised minimum HLA requirement capital requirements Revised for MR Revised G-SI
Slide 53: Appendix
6 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 Other 2 Investment Grade Speculative Grade Bank Loans U.S. Speculative-Grade Bank Loans Non-U.S. Speculative-Grade Bank
Slide 55: Corporate Finance: Revenue Diversification
Corporate Finance: Revenue Diversification Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non - U.S. U.S. Transaction Recurring 100% 100% 80% 25% 20% 25% 35% 31% 30% 29% 28% 31% 29% 80% 38% 63% 64% 65% 68% 63% 66% 62% 65% 67% 69% 72% 60% 60% 40% 40% 75% 80% 7
Slide 56: 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 $160 $350 $140 $300 $120 $0 $44 $1 $250 $ Millions $1 $49 $49 $ Billions $1 $1 $31 $100 $47 $1 $1 $39 $57 $51 $41 $32 $0 $200 $51 $36 $38
Slide 57: Structured Finance: Revenue Diversification
Structured Finance: Revenue Diversification Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non - U.S. U.S. Transaction Recurring 100% 100% 80% 56% 80% 36% 37% 36% 39% 43% 42% 62% 63% 63% 61% 64% 64% 62% 63% 64% 61% 44% 45% 48% 57% 53% 60% 60% 40% 40% 64% 63%
Slide 58: 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 $160 $2 $140 $2 $500 $3 $3 $8 $29 $3 $3 $3 $3 $6 $120 $10
Slide 59: Financial Institutions: Revenue Diversification
Financial Institutions: Revenue Diversification Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non - U.S. U.S. Transaction Recurring 100% 100% 80% 37% 44% 40% 42% 42% 42% 44% 50% 45% 48% 49% 80% 53% 51% 52% 46% 50% 58% 59% 54% 58% 55% 60% 72% 60% 40% 40% 63%
Slide 60: 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 and Infrastructure Finance Other Long-Term Rated U.S. Muni Bonds Rated Global Project and Infrastructure Finance Bonds $150 $250 $200 $ Billions $ Million
Slide 61: Public, Project and Infrastructure: Revenue Diversification
Public, Project and Infrastructure: Revenue Diversification Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non - U.S. U.S. Transaction Recurring 100% 100% 34% 31% 33% 35% 28% 31% 80% 80% 39% 42% 39% 41% 37% 60% 60% 59% 65% 64% 61% 64% 63% 62% 65% 62% 60% 60%
Slide 62: Moody's Analytics: Financial Overview
Moody’s Analytics: Financial Overview Professional Services Enterprise Risk Solutions Research, Data and Analytics Revenue1: Distribution by Line of Business Revenue1: Mix by Year Revenue1: Mix by Quarter $2,400 $600 100% 6% 9% 9% 9% 9% 9% 9% 8% $2,000 $500 $31 28% 26% 27% $159 $43 $145 80% 29% $44
Slide 63: Historically, Moody's Revenue and Interest Rates Have Not Been Strongly Correlated
Historically, Moody’s Revenue and Interest Rates Have Not Been Strongly Correlated MCO Revenue and Interest Rates MIS Revenue (L) MIS Revenue Guidance MA Revenue (L) MA Revenue Guidance MCO Revenue (L) 10-yr U.S. Treasury Yield (R)1 $6,000 9% 7.8% +120bps 8% $5,000 7% 6.5% +100bps $ Millions $4,000
Slide 64: Proactive Capital and Liquidity Management
Proactive Capital and Liquidity Management Bond portfolio WAC1 Balanced maturity schedule5 $ in millions 1000 5.0% 4.7% 900 4.3% 4.3% 800 4.5% 3.9% 700 4.0% 3.5% 3.3% 600 4.2% 3.3% 300 3.5% 3.9% 4.0% 500 879 3.0% 3.4% 3.4% 400 250 300 330 586 600 2.5% 2.1% 2.4% 500 500 500 200 400 400 400 2.0% 250 3
Slide 65: MIS 3Q 2020: Favorable Revenue Mix
MIS 3Q 2020: Favorable Revenue Mix Issuance1 $1,250.0 $ Billions MIS Revenue $1,200.0 1,242 $950 $825 YoY Change 1,189 $850 $746 $9 $1,150.0 $750 $9 $133 11% 3Q19 3Q20 $650 $120 $134 12% MIS Adjusted Operating Income and Margin $550 $120 +410bps 64.2% $ Millions $88 (16%) $700 65.1% 65.0% 64.9% 64.8
Slide 66: MA 3Q 2020: 8% Organic Constant Currency Revenue Growth
MA 3Q 2020: 8%1 Organic Constant Currency Revenue Growth MA Revenue2 YoY MA Adjusted Operating Income and Margin $531 Change $200 +220bps 31.4% $494 $500 29.2% ($14) $43 $145 8% $36 $400 $134 $ Millions $ Millions $300 $100 $167 $200 $386 $145 $317 22% $100 $0 $0 15.0% 3Q19 3Q20 3Q19 MA MA Revenue M
Slide 67: Drivers of Sustainable Corporate Value
Drivers of Sustainable Corporate Value Introduced Sustainability Disclosures in our Public Filings E N V I R O N M E N TAL G O V E R N AN C E » Focused on reducing greenhouse gas emissions with » Professional integrity science-based targets1 on our path to net-zero » Systematic risk management » Com
Slide 68: Technology: Innovating with Purpose
Technology: Innovating with Purpose Next Gen Tech is a Defining Element of our Culture, Setting Stage for Growth » Incorporating alternative data sources to augment » NLP based early warning and monitoring tools for SME credit scoring accuracy MIS analysts and MA customers » QuantCube pilot program
Slide 69: Moody's Global Presence
Moody’s Global Presence Americas Argentina Mexico Brazil Panama Canada Peru Chile United States Costa Rica Europe, Middle East & Africa Austria Poland Belgium Portugal Cyprus Russia Czech Republic Saudi Arabia Denmark Slovak Republic France South Africa Germany Spain Israel Sweden Italy Switzerland
Slide 70: Reconciliation of Adjusted Financial Measures to GAAP
Reconciliation of Adjusted Financial Measures to GAAP Adjusted Operating Income and Adjusted Operating Margin Reconciliation1 TTM (in $ millions) 2015 2016 2017 2018 2019 3Q 2020 Moody's Corporation Net Debt Reconciliation Operating Income $1,491 $651 $1,821 $1,868 $1,998 $2,448 Operating Margin 42.
Slide 71: Reconciliation of Adjusted Financial Measures to GAAP (cont.)
Reconciliation of Adjusted Financial Measures to GAAP (cont.) Moody's Corporation Operating Margin Guidance Reconciliation 2020F1 Projected Operating Margin - GAAP Approximately 45% Depreciation & Amortization Approximately 4.5% Restructuring Approximately 0.5% Loss pursuant to the divestiture of MA
Slide 72: Reconciliation of Adjusted Financial Measures to GAAP (cont.)
Reconciliation of Adjusted Financial Measures to GAAP (cont.) Moody's Corporation Diluted EPS Reconciliation 2015 2016 2017 2018 2019 2020F1 Diluted EPS - GAAP $4.63 $1.36 $5.15 $6.74 $7.42 $9.30 - $9.50 Legacy Tax (0.03) - - - - - Impact of Litigation Settlement - $3.59 - - - - Captive insurance co
Slide 73: Investor Relations
Investor Relations ir.moodys.com ir@moodys.com moodys.com
Slide 74: 3Q 2020 Investor Presentation - November 11, 2020
© 2020 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