Slide 1: 1Q 2021 Investor Presentation
1Q 2021 Investor Presentation May 13, 2021
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. ESG Solutions 7. Appendix Moody’s | Better decisions 1Q 2021 Investor Presentation 3
Slide 4: Moody's Overview
1 Moody’s Overview
Slide 5: Company Overview
Company Overview Global integrated risk assessment Independent provider of firm, providing credit rating Provides financial intelligence credit rating opinions and opinions, insight and tools for risk and analytical tools related information for over measurement and management supporting our custome
Slide 6: Moody's Has Evolved Over the Last 15 Years
2006 – 2016 Expanded beyond the rating agency Moody’s Has » Established Moody’s Analytics Evolved Over » » Built the ERS business (e.g., Fermat, B&H) Expanded ratings to China (i.e., CCXI) the Last 2017 – 2020 Built-out substantial data and analytics capabilities 15 Years » Complemented ERS business
Slide 7: Moody's as an Integrated Risk Assessment Business
Moody’s as an Integrated Risk Assessment Business Supply chain management $35B+ Helping customers make Transfer pricing & trade credit Total Addressable Market BETTER DECISIONS Fixed income CURATED DATA2 investing Commercial lending Securities Entities ~400 million $70+ trillion public & private ent
Slide 8: Key Strategic Investments To Drive Further Growth
Key Strategic Investments To Drive Further Growth COMMERCIAL REAL ESTATE KYC AND COMPLIANCE CHINA AND LATIN AMERICA Develop new analytic tools to serve Deepen curated data sets, nurture Build out local talent and enhance diverse CRE market, accelerate data the development of new use cases domain-spe
Slide 9: Financial Overview
2 Financial Overview
Slide 10: Moody's Corporation Financial Profile
Moody’s Corporation Financial Profile 1Q 2021 TTM Revenue: $5.7 billion MIS Other1 Recurring Transaction U.S. Non-U.S. 1% PPIF 9% 46% 45% FIG RD&A MIS 10% 28% SFG MA 7% ERS CFG 10% 54% 55% 35% Full Year 2021 Guidance as of April 28, 20212 Revenue » Increase in the high-single-digit % range Effective
Slide 11: Macro Assumptions Underpinning Our Outlook
1 Macro Assumptions Underpinning Our Outlook 2021 GDP Benchmark interest rates remain low; U.S. high-yield 6.0% – 7.0% United States spreads below 450 bps 3.5% – 4.5% Euro area 5.5% – 6.5% Global U.S. unemployment rate Global high yield default rate of 5% - 6% by year-end falls to 3% - 4% by year en
Slide 12: Financial Performance
Financial Performance1 Revenue2 Adjusted Diluted EPS3 $ Billions $ Per Share MIS Revenue MA Revenue $12.00 $11.00 - $11.30 High-single-digit $7.0 % growth $11.00 $6.0 $5.4 $10.00 $4.8 $9.00 $5.0 $4.2 $4.4 $3.6 $8.00 $4.0 $2.1 $2.0 $7.00 $1.4 $1.7 $3.0 $1.2 $6.00 $10.15 $5.00 $8.29 $2.0 $7.39 $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: Prudent Approach to Capital Allocation
Prudent Approach to Capital Allocation 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 repurchases a BBB+ rating financial flexibility nece
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, 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 16: Key Takeaways
Key Takeaways Growth Company Operational Excellence Disciplined Capital Allocation » Long-term financial expectations » Strategic initiatives generate » Emphasis on returning excess remain robust cost efficiencies, enabling capital to stockholders through » Balanced revenue model reinvestment and ma
Slide 17: Capital Markets Overview
3 Capital Markets Overview
Slide 18: Leveraged Loans and High Yield Bonds Led the Strongest First Quarter Issuance in a Decade
Leveraged Loans and High Yield Bonds Led the Strongest First Quarter Issuance in a Decade MIS Rated Issuance – Historical First Quarters 1Q 2021 Issuance Year-Over-Year Growth 2,000 Leveraged Loans 94% 1,500 $~1,300 High Yield Bonds 85% $ Billions 1,000 Structured Finance 67% 500 Financial Instituti
Slide 19: Improving Default Outlook and Tight Spreads Create Supportive Issuance Environment
Improving Default Outlook and Tight Spreads Create Supportive Issuance Environment High Yield Bond Spreads2 Default Rates for Speculative-Grade Corporate Rated Issuance1 U.S. 10 Year Treasury U.S. HY Yield (%) U.S. HY Spread (%) 12% Hundreds Global U.S. Europe 10% 16% 8% 6% 14% 4% 4.8% U.S. HY Sprea
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 $ Billions 311 maturing in North America $387 205 Speculative Grade Bank Loans $252 86 Speculative Grade
Slide 22: 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 Interest Coverage 5.5x 6.0x 6.0x 5.1x 5.2x 5.3x 5.5x 5.4x 4.6x 4.6x 4.7x 4.5x 4.4x 4.6x 4.9x 4.3x 4.0x 2.9x 2.6x 2.7x 2.9x 3.0x 3.0x
Slide 23: Leveraged Finance Issuance Driven by Refinancing and M&A Activity in 1Q 2021
Leveraged Finance Issuance Driven by Refinancing and M&A Activity in 1Q 2021 Uses of Funds from USD High Yield Bonds and Bank Loans1 20212 Issuance Drivers: Debt Refinancing M&A Capital Spending Shareholder Payments Liquidity / Working Capital 100% 5% 9% 8% 8% 7% 9% 10% Opportunistic refinancing dri
Slide 24: Disintermediation of Credit is an Ongoing Trend in the Global Capital Markets
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 €8,000 $11,000 €7,000 $10,000 $9,000 €6,000 $8,000 47% €5,000 $7,000 $
Slide 25: Debt Capital Market Penetration Continues
Debt Capital Market Penetration Continues Emerging Developed Size of bubble reflects 2020 GDP Developed Western Europe North America Other M.E. & Asia Asia Africa ASEAN India CEE/CIS Latin America China 0% 20% 40% 60% 80% 100% 120% 2020 Private Sector Capital Market Debt Securities (International &
Slide 26: Moody's Investors Service
4 Moody’s Investors Service
Slide 27: Moody's Investors Service Financial Profile
Moody’s Investors Service Financial Profile 1Q 2021 TTM Revenue: $3.5 billion » 23% recurring revenue U.S. Recurring » 31% recurring revenue Non-U.S. Transaction MIS Other1 1% 37% Corporate Public, Project, Finance & Infrastructure 68% 57% Finance 15% Financial 63% Institutions 16% 32% Structured »
Slide 28: MIS 2021 Guidance: Transactional Orientation Benefits Revenue
MIS 2021 Guidance: Transactional Orientation Benefits Revenue FY 2021 Issuance Guidance1,2 Revenue1 Adjusted Operating Margin1 Total Issuance Decline in the low-single- digit % range Approximately Mid-single-digit % increase 59.7% 61% $3.3B Investment Grade (~30%) High Yield Bonds Approximately flat
Slide 29: 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 30: Illustrative Value of a Moody's Rating
Illustrative Value of a Moody’s Rating Example: 10 year $500 million corporate bond Not Rated by Moody’s Rated by Moody’s $500,000,000 Bond $500,000,000 x 2.5% Interest rate x 2.1% = $12,500,000 Annual interest payments = $10,500,000 x 10 years Tenor x 10 years = $125,000,000 Lifetime interest expen
Slide 31: MIS Facts and Figures: Full Year 2020
MIS Facts and Figures: $70+ PEOPLE 11,400+ trillion Full Year 2020 Total rated debt MCO employees 1,000+ Analysts 35,000+ 40+ Rated Organizations and Structured Deals AMERICAS EMEA ASIA PACIFIC Countries/Regions TOTAL RATED DEBT 5,000+ 3,600+ $37.8+ trillion $19.8+ trillion $11.7+ trillion EVENTS No
Slide 32: Managing Ratings in Turbulent Times
Managing Ratings1 in Turbulent Times 1. Non-Financial Corporates as of 1Q 2021. Moody’s | Better decisions 1Q 2021 Investor Presentation 32
Slide 33: 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 South Africa $411M National Scale Ratings Brazil Other Emerging Markets Mexico Argentina China Peru Egypt $700M
Slide 34: Moody's in Greater China
Moody’s in Greater China 2nd Largest Onshore Bond Market at $17 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 180 $169 50 5% 160 140 $ Trillions $ Millions 40 120 100
Slide 35: Moody's Analytics
5 Moody’s Analytics
Slide 36: Moody's Analytics Financial Profile
Moody’s Analytics Financial Profile 1Q 2021 TTM Revenue: $2.1 billion » 95% recurring revenue » 94% retention rate1 U.S. Recurring Non-U.S. Transaction 9% Research, Data 57% and Analytics 73% 91% Enterprise Risk 43% Solutions 27% » 81% recurring revenue » 93% retention rate1 1. TTM as of March 31, 2
Slide 37: MA 2021 Guidance: Revenue Growth and Reinvestment to Drive Future Expansion
MA 2021 Guidance: Revenue Growth and Reinvestment to Drive Future Expansion Revenue1 Adjusted Operating Margin1 Low-double-digit % increase Approximately 30% $2.1B 29.4% 2020 2021F 2020 2021F Key drivers of MA FY 2021 outlook1 » ~93% recurring revenue » ERS: Strong growth in recurring revenue due to
Slide 38: Moody's Analytics: Consistent Execution Drives Long-Term Growth
Moody’s Analytics: Consistent Execution Drives Long-Term Growth Revenue has more than tripled since inception » Moody’s Analytics » Continued to develop and enhance » Commercial real estate (REIS » Acquired RiskFirst to Moody’s founded Moodys.com and Catylist) – extended reach extend ALM franchise i
Slide 39: High Sales Retention Provides Solid Base for Growth
High Sales Retention Provides Solid Base for Growth Moody’s Analytics 2020 renewable sales and growth1 7% 9% growth growth Upgrades2 & Price New Sales2 93% Retained Base + + = 109% Business Base RD&A 94% RD&A 8% RD&A 9% ERS 92% ERS 6% ERS 7% 1. Constant currency. 2. Upgrades reflect amendments to ex
Slide 40: Healthy Growth in MA's Recurring Revenue Supports Long-Term Margin Expansion
Healthy Growth in MA’s Recurring Revenue Supports Long-Term Margin Expansion Amidst Investment MA's strategic shift towards subscriptions and SaaS-based products 100% 90% MA ADJUSTED OPERATING MARGIN 2 EXPANSION MA Renewable Revenue Share 78% 29.4% 27.8% 26.4% 50% 24.6% 0% 2017 2018 2019 2020 2017 2
Slide 41: Curated Data Combined with Analytics are the Foundation of our Integrated Risk Assessment Strategy
Curated Data Combined with Analytics are the Foundation of our Integrated Risk Assessment Strategy Domain Expertise Curated Data Best in Class Analytics Portfolio News Monitoring Climate CRE Economic Modeling MA’s approach to deepening Proprietary data assets Risk available data sets and Financials
Slide 42: Diverse Product and Customer Base Enables Growth Across Sectors
Diverse Product and Customer Base Enables Growth Across Sectors Customers 1,500+ 2,900+ Asset Managers Commercial Banks 3,100+ 225+ Corporations Securities Dealers and Investment Banks 675+ 4,000+ Insurance Companies Governments & Other Entities grid 300+ Real Estate Entities Note: Trees are in size
Slide 43: Moody's Software Serves as a Chassis for Integrated Risk Assessment
Moody’s Software Serves as a Chassis for Integrated Risk Assessment Lending use case highlights synergies across segments Deal Initiation ERS solutions RD&A data & insights Digitizing data Portfolio Research Accounting Integrating risk Onboarding Opinions and insights that Monitoring Impairments: ex
Slide 44: KYC and Compliance Use Cases
RD&A KYC and Compliance Use Cases Customer Analyze Identify all Review Use AI to Generate onboarding corporate directors against reduce false alerts structure and owners GRID risk positives ORBIS profiles Global coverage of ~400M companies Continuous monitoring for new risks and changes Corporate hi
Slide 45: RD&A Enables Better Decisions through Data and Insights
RD&A RD&A Enables Better Decisions through Data and Insights Our business solutions Our customers Research Data Insurers Opinions and insights Public and private that explain ratings, company information1 methodologies and markets MIS Ratings Banks Corporates Customers Economics Commercial Real Esta
Slide 46: 2020 RD&A Growth Driven by KYC and Compliance, Research and Data Feeds
RD&A 2020 RD&A Growth Driven by KYC and Compliance, Research and Data Feeds Subscription Sales Growth (constant currency) 110% Full Year 94% 8% 9% 2020 Expansion of ratings coverage Retained Base Upgrades and Price New Sales Business Base (including BvD) (including BvD) Production of insightful cred
Slide 47: 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 48: ERS: ~80% Recurring Revenue; Mid-Teens Subscription CAGR
ERS ERS: ~80% Recurring Revenue; Mid-Teens Subscription CAGR ERS Revenue: Recurring1 vs. Non-recurring Recurring Revenue CAGR2 = 14% » ERS recurring revenue has grown by more than $500 $230 million since 2015 81% » Emphasis on subscription products supports $400 scalability, drives operating leverag
Slide 49: Global Banking Regulatory and Accounting Landscape
ERS Global Banking Regulatory and Accounting Landscape EMEA BoE/ PRA Output floor ST BoE/ PRA BES Incorporate ESG risks into Revised SA supervisory process CVA review operational risk FRTB Updated HLA requirement Leverage Ratio Revised IRB approach CR Revised SA Revised minimum market risk Revised c
Slide 50: ESG Solutions
6 ESG Solutions
Slide 51: ESG Market Overview
ESG Market Overview Market Trends » Multiple drivers and stakeholders supporting the growth of ESG, with Sustainable bonds set for Spend on ESG data & increasing relevance to corporates, banks, insurers, investors, record volumes1 metrics growing rapidly2 governments and consumers 1,000 Annual Spend
Slide 52: Priorities for Strategic Growth: ESG Integrated Across All Platforms
Priorities for Strategic Growth: ESG Integrated Across All Platforms, Driving Growth and Enhanced Relevance MIS Integration MA Integration Moody’s ESG Solutions Real Estate Moodys.com ESG Measures Climate Solutions Solutions Credit Ratings & ESG Credit Scores Research Risk Analytics & regulatory rep
Slide 53: MIS: Four Components to MIS Integration of ESG
MIS: Four Components to MIS Integration of ESG New ESG scores will assist in transparently and systematically demonstrating the impact of ESG on credit ratings Credit Ratings & Research ESG Credit Scores ESG Classification Heat Maps How is ESG integrated into How is a specific issuer What is ESG? Is
Slide 54: MA: ESG Integrated into Multiple Offerings
MA: ESG Integrated into Multiple Offerings » ESG & Physical Climate Risk Scores » All of Moody’s data on a centralized platform » ESG Company and Sector Reports » ESG, climate risk and controversy data » MIS Sector Heatmaps & classifications » MIS Entity CTA & CGA scores1 ESG Score Predictor MA Clim
Slide 55: Moody's ESG Solutions Group
Moody’s ESG Solutions Group A leader in ESG: providing a range of risk management, equity and credit market solutions SME Solutions » Brings together over 30 years of ESG expertise Climate Index to meet rapidly Solutions Solutions evolving needs » Delivers data, analytics and insight to further ESG
Slide 56: MESG Current Solution Suite
MESG Current Solution Suite ESG Measures Index Solutions » Data, Scores & Benchmarks » ~90 Indices (Equity & Fixed » Assessments & Research Income) » Controversy Monitoring & Alerts » 10+ Partnerships » Positive / Negative Screening » Benchmarking Data » Regulatory Datasets » ETFs, Listed & OTC Deri
Slide 57: Moody's ESG Snapshot
Moody’s ESG Snapshot1 30+ 5,000+ 10 Million + Years of dedicated ESG experience ESG assessments Climate Risk Scores Pioneering ESG analysis since 19832 Covering 273 unique ESG data points Spanning countries, counties, cities, companies & real estate assets globally ~2,200 100,000+ 25+ MIS research r
Slide 58: Appendix
7 Appendix
Slide 59: Corporate Finance: Revenue and Issuance
Corporate Finance: Revenue and Issuance1 Issuance4: Mix by Quarter Revenue2: Mix by Quarter Global Non-Financial Investment-Grade Bonds Global Non-Financial Speculative-Grade Bonds Other 3 Investment Grade Speculative Grade Bank Loans U.S. Speculative-Grade Bank Loans Non-U.S. Speculative-Grade Bank
Slide 60: 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% 25% 20% 30% 29% 28% 31% 29% 30% 80% 68% 62% 66% 62% 65% 67% 68% 68% 69% 72% 70% 60% 60% 40% 40% 75% 80% 7
Slide 61: 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 $44 $ Millions $1 $250 $ Billions $1 $1 $49 $100 $1 $1 $57 $31 $43 $32 $1 $0 $38 $200 $39 $41 $0 $38 $33 $80 $35
Slide 62: 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% 80% 39% 42% 44% 45% 43% 48% 49% 43% 61% 62% 56% 61% 56% 59% 59% 57% 53% 52% 64% 64% 63% 64% 60% 60% 40% 40% 56% 61%
Slide 63: 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 $160 $500 $2 $8 $2 $30 $140 $3 $3 $8 $3 $36 $3 $3
Slide 64: 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% 40% 42% 45% 42% 42% 44% 47% 47% 48% 49% 53% 80% 46% 44% 51% 54% 55% 52% 50% 52% 50% 59% 58% 60% 60% 40% 40% 60%
Slide 65: 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 $200 $250 $150 $200 $ Millions $ Bi
Slide 66: 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% 34% 32% 30% 80% 80% 41% 37% 61% 61% 55% 65% 64% 64% 63% 62% 65% 62% 63% 60% 60%
Slide 67: 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% 8% $2,000 $500 $31 $151 $145 28% 26% 27% 27% 27% 26% $159 $565 $43
Slide 68: 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 $7,000 9% 7.8% +120bps 8% $6,000 7% 6.5% +100bps $ Millions $5,000
Slide 69: 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% 3.3% 600 4.2% 3.3% 300 3.5% 3.9% 4.0% 500 881 3.0% 3.4% 3.4% 400 250 2.4% 300 330 588 600 2.5% 2.1% 500 500 500 2.4% 200 400 400 400
Slide 70: Drivers of Sustainable Corporate Value
ENVIRONMENTAL Drivers of Sustainable Corporate Value SOCIAL Sustainability disclosures in our public filings GOVERNANCE ENVIRONMENTAL » Focused on reducing greenhouse gas emissions » Moody’s and its subsidiaries engages with a with science-based targets1 on our path to net-zero multitude of Sustaina
Slide 71: Drivers of Sustainable Corporate Value
ENVIRONMENTAL Drivers of Sustainable Corporate Value SOCIAL Sustainability disclosures in our public filings GOVERNANCE SOCIAL GOVERNANCE » Support a diverse, equitable and inclusive workplace » Professional integrity » Launched DE&I portal » Systematic risk management » Active global community and
Slide 72: 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 73: 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 74: 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 Reconciliation1 Moody's Corporation Net Debt Reconciliation TTM (in $ millions) 2015 2016 2017 2018 2019 2020 1Q 2021 (in $ millions) 2015 2016 2017 2018 2019 2020 1
Slide 75: 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 2021F1 Projected Operating Margin – U.S. GAAP Approximately 46% Depreciation & Amortization Approximately 4% Restructuring Negligible Projected Adjusted Operating Margin Ap
Slide 76: 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 2015 2016 2017 2018 2019 2020 2021F1 Diluted EPS – U.S. GAAP $4.63 $1.36 $5.15 $6.74 $7.42 $9.39 $10.40 – $10.70 Legacy Tax (0.03) - - - - - - Impact of Litigation Settlement - $3.59 - -
Slide 77: Investor Relations
Investor Relations ir.moodys.com ir@moodys.com moodys.com
Slide 78: Moody's | Better decisions
© 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