Moody's Corporation · NYSE:MCO
Moody's — Investor Presentation (March 2020)
60 slides from Moody's's investor presentation, Mar 3, 2020
Slide 1: Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Ag Webinar: March 3, 2020 | Doug Johnson
Slide 2: Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Join Doug Johnson from Moody’s Analytics and Mike Pearson from the Zaner Group and Co-Host Of Ag News Daily as they discuss: Educating Your Producer On How To Seize Opportunities In Our 2020 Ag Commodity Markets Pro
Slide 3: Agenda
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Agenda • Introductions • Market Outlook & Key Drivers • Trade Agreements • Global • United States • Moving the Needle • Value of Your Time • Tractor Drivers • Business Mindset • Action Plans
Slide 4: Ag Lenders: Help Your Producers Seize Opportunities
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets
Slide 5: Ag Peer Benchmarking
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Ag Peer Benchmarking • Create Value • Eliminate Excuses • Create Opportunities • Drive Results
Slide 6: Ag Scorecard
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Your Bank Risk Rating Moody’s Ag Scorecard Ag Scorecard • 4 Models • Crop • Livestock Moody’s can help • New: Feedlot predict Probability • New: Dairy of Default (PD) and identify • Compare Internally potential Risk
Slide 7: Presenters
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Presenters Mike Pearson Zaner Group & Co-Host of “Ag News Daily” Doug Johnson Director – Ag. Strategist Moody’s Analytics Lending Cloud
Slide 8: Trade Agreements & Partnership
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Trade Agreements & Partnership
Slide 9: Phase One China Trade Deal
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Phase One China Trade Deal
Slide 10: Coronavirus (COVID-19) New Threat to Ag?
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Coronavirus (COVID-19) New Threat to Ag?
Slide 11: Global Outlook & Key Drivers
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Global Outlook & Key Drivers
Slide 12: US Dollar Strength Continues
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets US Dollar Strength Continues
Slide 13: Global Production continues to increase
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Global Production continues to increase
Slide 14: Changing Asian Labor Market
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Changing Asian Labor Market
Slide 15: US Outlook & Key Drivers
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets US Outlook & Key Drivers
Slide 16: US Demands and Trends
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets US Demands and Trends
Slide 17: Corn Markets
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Corn Markets
Slide 18: Weather
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Weather
Slide 19: CBOT May, December Corn Contract
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets CBOT May, December Corn Contract
Slide 20: Corn Commitment of Traders Report
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Corn Commitment of Traders Report
Slide 21: Soybean Markets
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Soybean Markets
Slide 22: May, November Soybean Contract
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets May, November Soybean Contract
Slide 23: Slow Exports Continue
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Slow Exports Continue
Slide 24: Wheat Markets
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Wheat Markets
Slide 25: May 2020 Chicago Wheat
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets May 2020 Chicago Wheat
Slide 26: Livestock Markets
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Livestock Markets
Slide 27: Beef Demand
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Beef Demand
Slide 28: April 2020 Live Cattle
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets April 2020 Live Cattle
Slide 29: Cattle on Feed
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Cattle on Feed
Slide 30: April 2020 Feeder Cattle
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets April 2020 Feeder Cattle
Slide 31: Dairy Markets
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Dairy Markets
Slide 32: Class III Milk Outlook
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Class III Milk Outlook
Slide 33: Pork Markets
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Pork Markets
Slide 34: April 2020 Lean Hogs
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets April 2020 Lean Hogs
Slide 35: Farm Bill Updates
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Farm Bill Updates
Slide 36: Moving Producers to Managers: Where to Focus
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Moving Producers to Managers: Where to Focus
Slide 37: The Answers aren't in the Financial Statements, The Questions are
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets The Answers aren’t in the Financial Statements The Questions are
Slide 38: Don't Tell Me What You Value, Show Me Your Budget
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets “Don’t Tell Me What You Value, Show Me Your Budget. If You Show Me Your Budget, I’ll Tell You What You Value”* *Source: Farm Journal’s AGPRO article with quote from Curt Covington December 5, 2019
Slide 39: Moving the Needle: Producer to Manager
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Moving the Needle: Producer to Manager Future of Ag: I believe… 10% of Producers always “find a way” to lose money
Slide 40: Moving the Needle
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Moving the Needle Producer to Manager Mindset Value-Add discussions OR Value Are you just talking? Do they have a Growth Plan Future Mindset Do they have a Succession Plan Do they have a Marketing Plan Business Mind
Slide 41: Weeding out of Marginal Producers and Managers
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets During the 1980’s we had a weeding out of Marginal Producers Today’s we’re experiencing a weeding out of Marginal Managers
Slide 42: Your Time vs. Your Value
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Your Time vs. Your Value If you don’t take care of the good borrowers, you’ll only be left with the bad
Slide 43: Dr. Kohl's Business IQ Management
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Customer Checklist Green (3-4 points*) Yellow (2 points) Red (1 point) 1. Knows cost of production Written In head No idea 2. Knows cost of production by enterprise Written In head No idea 3. Goals- business, family
Slide 44: Marketing Skills: Walk Through The Story
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Marketing Skills: Walk Through The Story 1. <10% Farmers have & execute on Marketing Plans 2. Historically majority sells crop at bottom 1/3 of markets 3. Stored grain should not be the Checkbook 4. Home Run Mentali
Slide 45: Silos of Agriculture
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Silos of Agriculture P R L O E C D N A O U D M G N C E A R S E S R R O U R C E K N L O E E O T O D T M A P E I N R S T T
Slide 46: Bridging the Silos Together
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Bridging the Silos Together
Slide 47: Showing more than numbers & trends
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Showing more than numbers & trends • Refi “Lifestyles” or “Farm Losses” • If Refi’d already • What’s the next step • How far are should we go
Slide 48: Assemble the Puzzle
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Assemble the Puzzle • Basic Education • Explains Why • Provide Options • Create Value
Slide 49: 60 Second Stress Test
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets 60 Second Stress Test
Slide 50: Breakeven Analysis
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Breakeven Analysis
Slide 51: Earned Equity Analysis
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Earned Equity Analysis
Slide 52: Directional Accrual
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Directional Accrual
Slide 53: FFSC Ratios
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Education: Share your analysis FFSC Help Borrower understand Risk Ratios
Slide 54: Ag Lenders: Help Your Producers Seize Opportunities
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets
Slide 55: Assemble the Puzzle
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Assemble the Puzzle • Basic Education • Explains Why • Provide Options • Create Value
Slide 56: Points to Remember
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Points to Remember Time: #1 Commodity Driving a Business: Data Driven or Tractor Driver Trust: Trust But Verify Collaboration: Finding Partners Attitude: Owns or Excuses Succession Plan Innovation: Is There A Plan T
Slide 57: Action Items
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Action Items • Define your Value-Add goals Future of Ag: I believe… • Top Producer Needs • Bottom Producer Needs • Leverage Business IQ worksheet • Lender do on Producer • Producer do on Producer • Discuss strengths
Slide 58: Remember… Never Confuse Self-Worth With Net-Worth
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Remember…. Future of Ag: I believe… Never Confuse Self-Worth With Net-Worth
Slide 59: Thank You for supporting our Ag Webinars
Ag Lenders: Help Your Producers Seize Opportunities In The 2020 Ag Commodity Markets Keeping Farmers Farming & Ag Lenders Lending Thank You for supporting our Ag Webinars
Slide 60: Moody's legal disclaimer
© 2020 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not (collectively, “MOODY’S”). All rights reserved. l