Moody's Corporation · NYSE:MCO
Moody's — FY2023 Earnings Presentation
74 slides from Moody's's earnings presentation, Feb 29, 2024
Slide 1: 4Q & FY 2023 Investor Presentation
4Q & FY 2023 Investor Presentation February 29, 2024 May 18, 2023
Slide 2: Table of Contents
Table of Contents 1. Moody’s Overview 2. Financial Overview 3. Moody’s Analytics (MA) 4. Moody’s Investors Service (MIS) 5. Capital Markets Overview 6. Innovation 7. Appendix Moody’s | Decode risk. Unlock opportunity. 4Q and FY 2023 Investor Presentation 2
Slide 3: Moody's Overview
BASS Moody's Overview a a s = = me
Slide 4: Our Company
Our Company Moody’s Analytics Moody’s Corporation Moody’s Investors Service Financial intelligence and analytical tools Global provider of integrated perspectives on risk, Delivering independent credit supporting customers’ growth, efficiency and risk including credit rating opinions, analytical rat
Slide 5: Helping Customers Accelerate Value Creation in an Era of Exponential Risk
Helping Customers Accelerate Value Creation in an Era of Exponential Risk Research Data Decision Solutions Ratings & Insights & Information Banking Insurance KYC Moody’s Agency of Premier fixed income Unparalleled database on SaaS businesses serving Choice research business companies & credit missio
Slide 6: Providing Integrated Perspectives on Risk
Providing Integrated Perspectives on Risk Selection of use cases addressable by Moody’s solutions Weather and natural disaster analysis $40B+ Helping customers make better decisions Supply chain management Current Addressable Transfer pricing Market and trade credit Curated Data1 Fixed income Commer
Slide 7: Financial Overview
2 Financial Overview
Slide 8: Moody's Corporation Financial Profile
Moody’s Corporation Financial Profile FY 2023 Revenue: $5.9 billion DS PPIF 23% MA1 8% R&I MIS2 48% FIG 31% 9% 15% Non-U.S. Transaction SFG 7% D&I 52% 69% CFG 13% U.S. Recurring 24% 3 Full Year 2024 Guidance Revenue Increase in the high-single to low-double-digit % range Effective Tax Rate 22% - 24%
Slide 9: 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 Mid-to-high-single-digit % growth MCO Adjusted Operating Margin Low-50s % range MA Adjusted Operating Margin Mid-30s % range MIS Adjusted Operating Mar
Slide 10: 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 Long held, clear financial framework for Disciplined and rigorous monitoring first screen external (and internal) investments
Slide 11: Moody's Analytics
3 Moody’s Analytics
Slide 12: Integrated Perspectives on Risk Deliver Impressive Results
Integrated Perspectives on Risk Deliver Impressive Results Leveraging Unmatched Deep Market Currents Delivering Results Capabilities » Extensive, Uniquely Curated, » Outpacing Competitors in $30B+ 10% 90%+ 64 Proprietary Data Current Addressable Market1 ARR2 Growth Retention Rate Quarters of Consecu
Slide 13: Strong Execution Enabling Consistent Revenue Growth
Strong Execution Enabling Consistent Revenue Growth Exceptional value creation - revenue has more than tripled over the last decade $3,500 2023 Revenue: 2008 – 2023 CAGR: $3,000 $3.1 billion +12% (~60% organic) $2,500 CAGR $ Millions $2,000 $1,500 12% $1,000 $500 $0 2008 2009 2010 2011 2012 2013 201
Slide 14: Assembling and Integrating Capabilities
Assembling Lending & Underwriting ESG & Climate and Integrating Origination Portfolio Mgmt. Assessment Regulatory Investment Capabilities Compliance KYC Analysis Decision Data & Solutions Research & Information Insights Other Economic Proprietary Forecasts Data & Models Private & Models & Public Ana
Slide 15: Diverse Customer Base Across Multiple Sectors
Diverse Customer Base Across Multiple Sectors1 6,600+ 900+ Corporates and Real Estate Entities Professional Services 2,600+ 600+ Commercial Banks Educational Institutions 80% 61% 1,900+ of the Fortune 1002 of the Forbes 1,0003 100+ Asset Managers Securities Dealers and Investment Banks 14,800+ 160+
Slide 16: Data & Information
Data & Information Value proposition $789M We provide data and solutions to be used across the enterprise for master data needs and to help customers make decisions across Origination & Underwriting, Portfolio Monitoring & Management, Risk & Capital Management, and Finance & Reporting activities. Re
Slide 17: Research & Insights
Research & Insights Value proposition $884M We provide solutions that offer customers a consistent, holistic view of risk to make decisions across Origination & Underwriting, Portfolio Monitoring & Management, Risk & Capital Management, and Finance & Reporting activities. Revenue Sustainable competi
Slide 18: Decision Solutions: Banking
Decision Solutions: Banking Value proposition $521M We provide powerful, scalable tools to help enable banks to make decisions about Lending, Risk & Capital Management, and Finance & Reporting activities. Revenue Sustainable competitive advantage Expertise » Award-winning Cashflow analytics & Risk R
Slide 19: Decision Solutions: Insurance
Decision Solutions: Insurance Value proposition $550M We provide powerful, scalable tools to help enable insurers, reinsurers and brokers to make decisions with Underwriting, Risk & Capital Management, and Finance & Reporting activities. Revenue Sustainable competitive advantage Expertise » Propriet
Slide 20: Decision Solutions: KYC
Decision Solutions: KYC Value proposition $312M We provide workflow solutions to banks, insurers, corporates, and governments, enabling them to onboard and monitor their customers and suppliers, as well as perform third-party risk management. Revenue Sustainable competitive advantage Expertise » Pro
Slide 21: Recurring Revenue Growth Drives Margin Expansion
Recurring Revenue Growth Drives Margin Expansion Recurring and Transaction Revenue Adjusted Operating Margin1 Recurring Transaction Recurring % ~15% Recurring Revenue CAGR +~410bps 94% 94% 93% 30% to 31% 91% 85% 26.4% 84% FY18 FY19 FY20 FY21 FY22 FY23 2018 2024F 1. Guidance as of February 13, 2024.
Slide 22: Building on a Foundation of Strong Customer Retention
Building on a Foundation of Strong Customer Retention MA ARR Growth Attribution 94% 7% 9% 110% Year-end 2023 Retained Base Upgrades and Price New Sales Business Base 7% 9% 110% 94% Year-end 2022 Retained Base Upgrades and Price New Sales Business Base MA ARR Growth by Quarter 11% 10% 10% 10% 10% 10%
Slide 23: MA is Capitalizing on Innovation Opportunities in 2024
MA is Capitalizing on Innovation Opportunities in 2024 ARR1 Revenue1 Adjusted Operating Margin1 Increase in the Increase by low-double-digit approximately 30.5% 30% - 31% percent range 10% $3.1B 10% growth 2023 2024F 2023 2024F 2023 2024F 1. Guidance as of February 13, 2024. Refer to Table 12 – “202
Slide 24: Accelerating Revenue Growth
Accelerating Revenue Growth Strong Customer Retention Rates New Product Development Medium Term Cross-selling, Upgrades & Pricing Target1 Low-to-mid-teens % Total Revenue CAGR Increased Distribution Capacity Continued SaaS Transition Note: SaaS = Software as a Service. 1. As of February 13, 2024. Re
Slide 25: Banking Customer Spotlight: Workflow Solutions that Combine Data, Analytics, and Software
Banking Customer Spotlight: Workflow Solutions that Combine Data, Analytics, and Software Case Study: A North American Bank Lending BROADEN 5x » Customer Verification (KYC / KYS) Workflow Initial ARR1 » Customer Acquisition Solution » Customer Onboarding » Credit Decisions Workflow » Loan Monitoring
Slide 26: Insurance Customer Spotlight: Integrating Data, Analytics and Software
Insurance Customer Spotlight: Integrating Data, Analytics and Software to Deliver Workflow Solutions Case study: Leading Global Insurer 2 Underwriting $30M 82% » Risk Selection » Risk Pricing » Portfolio Risk Exposure Management Decision Solutions USE CASES Risk & Capital Management » Balance Sheet
Slide 27: Delivering Award-Winning Solutions for Insurance Customers
Delivering Award-Winning Solutions for Insurance Customers with Significant Expansion Opportunity from Cross-Selling Average number of MA product families1 used by 900+2 Insurance customers Top 10 Customers Following 90 6-7 Customers Product Bottom 800+ Families Customers 4-5 Product Families 1-2 Pr
Slide 28: KYC: Land & Expand Strategy in Action
KYC: Land & Expand Strategy in Action Unparalleled Value Proposition ARR1 Mix by Customer Segment2 Moody’s SaaS Platform ~13% Gov’t & Education Workflow Capabilities Enabled by Software & APIs ~44% ~43% Financial Corporate Analytics Enabled by AI Land: Driving New Business New customer ARR1 attribut
Slide 29: RMS: Driving Strong Results Through Innovation and Integration
RMS: Driving Strong Results Through Innovation and Integration Continued Focus on P&C Expanding via Cross-sell to Expanding Climate Capabilities Delivering New Synergistic Insurance Market Existing Customers to New Markets Solutions » Announced Open Modeling Engine and » RMS capabilities enhanced va
Slide 30: Moody's Investors Service
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Slide 31: Moody's Investors Service Financial Profile
Moody’s Investors Service Financial Profile FY 2023 Revenue: $2.86 billion MIS Other1 37% recurring revenue 1% 37% recurring revenue U.S. Recurring Non-U.S. Transaction Public, Project, & Infrastructure 39% Finance 57% 17% 53% recurring revenue Corporate Finance Financial 49% Institutions 61% 19% 43
Slide 32: MIS: Macroeconomic Assumptions Underpinning our Full Year 2024 Outlook
MIS: Macroeconomic Assumptions Underpinning our Full Year 2024 Outlook Macroeconomic Assumptions1 Tailwinds Real GDP2 U.S.: 1.0% - 2.0%; Euro area: 0.5% - 1.5%; Most central banks expected to cut rates as inflation eases Global: 2.0% - 3.0% ~$4.4T of refinancing needs between 2024 and 2027 Global be
Slide 33: Expecting Improved Issuance Growth in 2024
Expecting Improved Issuance Growth in 20241 Macro Assumptions Informing Guidance FY2024 Issuance Guidance Macroeconomics & Policy Total Issuance ~Mid-to-high-single-digits% » Global growth prospects » Geopolitical risks » Energy, trade, climate, and regulatory policies Investment Grade ~Mid-single-d
Slide 34: MIS' Full Year 2024 Forecast
MIS’ Full Year 2024 Forecast Total MIS-rated Issuance1,2 Revenue1 Adjusted Operating Margin1 Increase in the mid- Increase in the high- to-high-single-digit single to low-double- percentage range digit percentage range 55.5% - 57.5% 54.5% $4.4T $2.9B 2023 2024F 2023 2024F 2023 2024F 1. Guidance as o
Slide 35: MIS Long-term Revenue Growth Drivers Intact
MIS Long-term Revenue Growth Drivers Intact Long-term Growth Building Blocks Economic Expansion1 Value Proposition Developing Capital Markets » GDP growth drives demand for debt capital to » Proven rating accuracy and deeply experienced » Bank system capacity remains constrained fund business invest
Slide 36: The Benefits of a Moody's Rating
The Benefits of a Moody’s Access to capital Transparency, credit Responsive to investor Rating comparison and market stability demand Investors seek Moody’s » Moody’s opinions on credit are used by institutional investors throughout » Signals a willingness by issuers to be transparent and provides »
Slide 37: 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 38: Facts & Figures: ~$74 trillion Total Rated Debt
Facts & Figures ~$74 trillion Full Year 2023 Total rated debt Americas EMEA Asia Pacific 33,200+ Total Rated Debt1 $42+ trillion $19+ trillion $9+ trillion Rated Organizations and Structured Deals Rated Organizations and Structured Deals 26,600+ 4,500+ 2,100+ 4,800+ 2,300+ 980+ Non-Financial Financi
Slide 39: Capital Markets Overview
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Slide 40: Default Rates Expected to Decline by Year-end
Default Rates Expected to Decline by Year-end1 Default Rates for Global Speculative-Grade Speculative-Grade Corporate Default Rates by Corporate Rated Issuance Region2 Baseline Optimistic Moderately Pessimistic Severely Pessimistic Global US Europe 14% 10% 11.8% 12% 8% 10% 8% 6% 7.4% 6% 4.1% global
Slide 41: Sustained Refinancing Demand Post Outsized 2020/2021 Issuance Surge
Sustained Refinancing Demand Post Outsized 2020/2021 Issuance Surge Four-Year U.S. and EMEA Non-Financial Corporate Refinancing Walls1 Withdrawn Russian Debt 2 $Trillions ~$4.0 ~$4.4 ~$2.0 Jan '13 Jan '14 Jan '15 Jan '16 Jan '17 Jan '18 Jan '19 Jan '20 Sep '20 Sep '21 2 Sep '22 Sep '23 MIS-Rated Q4
Slide 42: Refunding Needs Support MIS Long-term Fundamentals
Refunding Needs1 Support MIS Long-term Fundamentals Debt Maturities: U.S. Non-Financial Corporate Bonds and Loans ($B)2 » Refinancing needs up from ~$4T to ~$4.4T over the next $688 $690 four years $534 276 299 168 Speculative Grade Bank Loans » U.S. refunding needs remain $293 86 134 58 142 Specula
Slide 43: Spotlight on 5-Year U.S. Refunding Wall
Spotlight on 5-Year U.S. Refunding Wall ~27% Growth in U.S. Speculative Grade Refinancing Needs1,2 Investment Grade Speculative Grade $3,123 ~21% $2,476 $2,537 $2,585 $2,241 $2,019 $2,099 $1,867 $ billions ~27% $1,412 $1,448 $1,466 $1,044 $1,185 $987 $1,054 $1,055 $1,064 $1,088 $1,118 ~12% $1,256 $1
Slide 44: Issuers are Navigating Rate Environment with Shorter-term Bonds
Issuers are Navigating Rate Environment with Shorter-term Bonds Annual Average Issuance Maturity1 U.S. IG Bond U.S. HY Bond 14.7 13.6 13.1 12.0 12.4 11.1 8.6 8.4 8.3 8.3 7.8 (years) (years) 6.5 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 1. Data represents tenors on MIS-rated debt in
Slide 45: 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 5.7x 6.0x 5.0x 5.1x 5.1x 5.2x 5.2x 5.3x 5.3x 5.2x 5.2x 4.8x Coverage 4.5x 4.3x 4.4x 4.6x 4.0x 2.9x 3.0x 3.0x 3.0x 3.0x 2.9x 3.0x 3.0x 2.
Slide 46: Debt Capital Market Penetration
Debt Capital Market Penetration 2023 Private Sector Capital Market Debt Securities (International & Domestic) Outstanding / GDP (%) Size of bubble reflects 2023 GDP Emerging Developed Developed North America6 Other Asia3 Asia7 CEE/CIS2 ASEAN1 India Latin M.E. & Western Africa5 America4 China Europe8
Slide 47: Private Credit Sector
Private Credit Sector Issuance Factors Overview » Constitutes loans, bonds, and other credit instruments ~$1.7 Trillion1 AUM issued by private companies or in private offerings » Market has grown significantly since the 2007 – 2008 Global Financial Crisis Large Direct Loans » Most direct loans are s
Slide 48: Innovation
6 Innovation
Slide 49: Accelerating Organic Investments in Three Key Areas
Accelerating Organic Investments in Three Key Areas to Deliver on Medium Term Targets Gen AI New Products & Platforming Enhanced Offerings & Modernizing » External: deliver market- » Develop products that » Platform our data and ~$60M leading suite of Gen AI- serve new use cases, engineering capabil
Slide 50: Modernizing our Internal Data & Technology
DevOps Modernizing our » Continuing our DevOps journey within MIS and MA to promote high quality, secure solutions with optimal speed to market » MIS quadrupled its releases by significantly reducing release times, greatly increasing productivity Internal Data Integration Management Office & Technol
Slide 51: Moody's Platform Architecture
Moody’s Platform Architecture Front Door Single Sign-On User experience Entitlements Applications Quota Platform Elements Workflows Logging Metering APIs Data Shared Components CICD Develop Test Deploy Operate Note: CICD = Continuous Integration and Continuous Delivery – a software development pract
Slide 52: Appendix
7 Appendix
Slide 53: Corporate Finance: Issuance and Revenue
Corporate Finance: Issuance1 and Revenue Global Issuance2: Mix by Quarter MIS Revenue3: Mix by Year Global Non-Financial Speculative-Grade Bonds Other34 Investment Grade Speculative Grade Bank Loans Global Non-Financial Investment-Grade Bonds $2,500 $400 $2,000 $287 $606 $ Millions $1,500 $313 $352
Slide 54: Corporate Finance: Revenue
Corporate Finance: Revenue MIS Revenue1: Distribution by Geography MIS Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 23% 30% 38% 39% 35% 35% 38% 39% 37% 45% 50% 66% 66% 65% 68% 63% 66% 69% 65% 67% 68% 70% 77% 70% 62% 61% 65% 65% 62% 61% 63% 55% 50% 34% 34% 3
Slide 55: Financial Institutions: Issuance and Revenue
Financial Institutions: Issuance1 and Revenue Global Issuance2: Mix by Quarter MIS Revenue3: Mix by Year Global Speculative Grade Financial Corporate Bonds Banking Insurance Managed Investments Other Global Investment Grade Financial Corporate Bonds $600 $750 $10 $18 $12 $10 $36 $12 $13 $32 $ Millio
Slide 56: Financial Institutions: Revenue
Financial Institutions: Revenue MIS Revenue1: Distribution by Geography MIS Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 48% 41% 43% 47% 45% 44% 41% 46% 47% 50% 50% 49% 53% 55% 51% 50% 55% 53% 62% 58% 57% 59% 52% 59% 57% 53% 55% 56% 59% 54% 53% 50% 50% 51%
Slide 57: Infrastructure Issuance; Public, Project & Infrastructure Revenue
Infrastructure Issuance1; Public, Project & Infrastructure Revenue Global Issuance2: Mix by Quarter MIS Revenue3: Mix by Year Global Infrastructure Finance Speculative-Grade Bonds Public Finance and Sovereign Project & Infrastructure Finance Global Infrastructure Finance Investment-Grade Bonds $100
Slide 58: Public, Project and Infrastructure: Revenue
Public, Project and Infrastructure: Revenue MIS Revenue1: Distribution by Geography MIS Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 32% 36% 33% 33% 35% 38% 37% 45% 39% 42% 46% 58% 61% 64% 62% 60% 62% 59% 60% 61% 61% 65% 68% 64% 67% 67% 65% 62% 63% 55% 61%
Slide 59: Structured Finance: Revenue
Structured Finance: Revenue MIS Revenue1: Mix by Year MIS Revenue1: Mix by Quarter ABS RMBS CMBS Structured Credit Other ABS RMBS CMBS Structured Credit Other $600 $200 $2 $2 $2 $1 $450 $215 $ Millions $4 $150 $ Millions $3 $140 $196 $2 $67 $39 $148 $1 $129 $300 $105 $36 $102 $100 $1 $1 $1 $98 $1 $7
Slide 60: Structured Finance: Revenue
Structured Finance: Revenue MIS Revenue1: Distribution by Geography MIS Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 35% 35% 41% 50% 43% 52% 55% 52% 53% 53% 53% 65% 63% 62% 59% 64% 65% 62% 67% 67% 68% 67% 65% 65% 59% 50% 57% 48% 45% 48% 47% 47% 47% 35% 37%
Slide 61: 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 $900 $3,200 $200 $205 26% 26% 25% 26% 26% 26% $789 $196 27% 26% 26% $180 $188 $600 $178 $176 $2,400
Slide 62: Moody's in Greater China
Moody’s in Greater China Domestic and Cross Border1 Revenue and Attributable Income from China4 MIS Cross Border Revenue Total MA Revenue Attributable Income from CCXI $118 37% 45% $ Millions FY 2023 Cross FY 2023 Border Market Domestic Market Rated Issuance Rated Issuance Volume Volume $42B2 ~$1.0T
Slide 63: Moody's Revenue and Interest Rates Over Time
Moody’s Revenue and Interest Rates1 Over Time 1 MIS Revenue (L) MIS Revenue Guidance (L) MA Revenue (L) MA Revenue Guidance (L) MCO Revenue (L) 10-yr U.S. Treasury Yield (R) $7,000 9% +240bps 7.8% 8% $6,000 7% $ Millions 6.5% $5,000 +100bps +120bps 6% 5.8% $4,000 5% 4.0% 4.7% $3,000 4% 3.3% +200bps
Slide 64: Maintaining Financial Flexibility through Proactive Management
Maintaining Financial Bond portfolio WAC1 WAC With Hedges WAC Excluding Hedges Flexibility through 5.1% 4.6% 4.7% 4.3% 4.3% 3.9% 4.1% Proactive Management 3.6% 3.1% 4.2% 3.9% 4.0% 3.5% 3.3% 3.3% 3.1% 3.3% 3.6% 3.4% 3.4% 2.6% 3.0% 3.2% 2.1% 2.1% 2.4% 2.4% 1.6% » Well-laddered maturities; attractive l
Slide 65: Disciplined Approach to Capital Management
Disciplined Approach to Capital Management Capital Allocation Priorities Increasing Dividends Through Market Cycles COVID-19 $3.50 Recession INVESTING FOR GROWTH $3.00 $2.50 CAGR Great Reinvestment Accelerating organic growth $2.00 2001 $1.50 Recession Recession 17% $1.00 Acquisitions $0.50 Advance
Slide 66: Market-leading ESG & Climate Capabilities
Moody’s Market-leading » Our deep ESG & Climate domain expertise and trusted insights ESG are integrated across our business and capabilities & Climate » We enable customers to obtain a holistic view of their ESG & Climate risk that considers both Capabilities financial and stakeholder impact » Mood
Slide 67: Workflow-Driven ESG & Climate Solutions
Workflow-Driven ESG & Climate Solutions Moody’s adaptable solutions help customers address evolving business needs F O U N D A T I O N A L A N A L Y S I S Conduct foundational, company & sector-level ESG risk analysis & benchmarking across all workflows Lending Underwriting Investing Disclosure Supp
Slide 68: 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 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 Moody's Corporation Diluted EPS Reconciliation Adjusted Operating Margin Reconciliation (in $ millions) 2023 2024F1 Operating Income $2,137 Diluted EPS – U.S. GAAP $9.45 to $10.20 Operating M
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 Free Cash Flow Reconciliation Reconciliation 2024F1 (in $ millions) 2024F1 Projected Operating Margin – U.S. GAAP 37% to 39% Net cash flows from operating activities $2.3 billion to $2.5
Slide 71: 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 72: 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 73: Moody's Decode risk. Unlock opportunity.
© 2024 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit
Slide 74: 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