Moody's Corporation · NYSE:MCO
Moody's — Investor Presentation (December 2015)
20 slides from Moody's's investor presentation, Dec 17, 2015
Slide 1: Moody's Analytics: Strengthening Moody's Position in Financial Risk Management
Moody’s Analytics Strengthening Moody’s Position in Financial Risk Management DECEMBER 17, 2015
Slide 2: Disclaimer
Disclaimer Certain statements contained in this release 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. Moody’s outlook for 2015 and other forward- looking statements in thi
Slide 3: Overview of Moody's Corporation
Overview of Moody’s Corporation » Leading global provider of credit rating opinions, insight and tools for financial risk measurement and management » Revenue of $3.5 billion; operating income of $1.5 billion* » Independent provider of credit rating opinions and » Research, data and software for fin
Slide 4: Moody's Analytics Financial Profile
Moody’s Analytics Financial Profile TTM 3Q15 Revenue: $1.1 billion Recurring Transaction US Non-US » ~95% recurring revenue » 96% retention rate 26% Research, 54% Data and Analytics Enterprise 54% Risk Solutions » ~62% recurring revenue 74% 33% 46% Professional Services 13% » Combination of one-off
Slide 5: Moody's Analytics Opportunity Summary
Moody’s Analytics Opportunity Summary Research, Data & Analytics Enterprise Risk Solutions Professional Services Value Proposition • Exclusive distributor of MIS content • Domain expertise in banking & credit • Scalable offshoring model to provide • Market-leading quantitative credit risk risk manag
Slide 6: Product Offerings Relevant Across Financial Institutions
Product Offerings Relevant Across Financial Institutions Loan Markets Securities Markets Other Comm’l Consumer Investment Investment Sales & Lending Lending Management Banking Trading Risk Mgmt Treasury MIS research & data Credit market RD&A analysis & data Economic research, dat
Slide 7: Team Selling Drives Customer Focus and Business Line Results
Team Selling Drives Customer Focus and Business Line Results Territory & Relationship Managers Account Management Business Marketing Line Prof & RD&A ERS Business Product Svcs Specialists Development Customer Traditional & Proactive Service, Service & Product Support & Training Retention December 17
Slide 8: Multiple Platforms for Growth
Multiple Platforms for Growth $1,200 $1,000 2015 Year-to-Date Revenue and 2008 – 2014 CAGR $800 Professional Services $111.5m, 52% CAGR $ in millions $600 Enterprise Risk Solutions $252.5m, 22% CAGR $400 Research, Data & Analytics $200 $465.0m, 8% CAGR $0 2007 2008 2009 2010 2011 2012 2013 2014 YTD
Slide 9: Moody's Analytics' 2015 Sales Growth Tracking Well Ahead of Last Year
Moody’s Analytics’ 2015 Sales Growth Tracking Well Ahead of Last Year Full Year 2014 Total Sales Production* Year-to-Date 2015 Full Year 2013 January December Progress throughout year *Sales shown in chart on this slide exclude acquired products not integrated into MA pipeline management system (les
Slide 10: RD&A Pricing Model Limits Exposure to Customer Contraction
RD&A Pricing Model Limits Exposure to Customer Contraction 7.5 650 7.4 600 7.3 millions of jobs $ millions 7.2 550 7.1 500 7.0 6.9 450 6.8 400 6.7 6.6 350 U.S. and U.K Financial Services Employment* (L) RD&A Sales - Annualized Contract Value (R) *U.S. and U.K. financial services employment data only
Slide 11: ERS' Renewable Book Growing, but Revenue Remains Dependent on Project Timing
ERS’ Renewable Book Growing, but Revenue Remains Dependent on Project Timing Year-over-Year Revenue Growth by Quarter TTM Revenue by Type License and Services Subscriptions Maintenance 45% Revenue CAGR = 17% $400 35% Recurring Revenue $300 25% $ Millions 15% $200 5% $100 -5% $0 » ERS revenue is driv
Slide 12: ERS has an Attractive Market Opportunity
ERS has an Attractive Market Opportunity $2.6bn >$8bn $2.1bn annual spend $3.5bn ERS share 2015: 10% Core Markets Extensions Adjacent Markets Total » ~2,100 customers and » Take expertise to new » New market segments ~4,300 contracts market segments -- where Moody’s brand and » Existing software and
Slide 13: Global Banking Regulatory Radar
Global Banking Regulatory Radar EMEA TLAC2 IRRBB review Concentration & BoE/PRA ST Large Exposures BoE/PRA ST CVA review Revised SA FRTB New securitization approach CR NSFR framework IFRS 9 ECB Anacredit Leverage LCR1 Ratio Leverage TLAC2 Ratio SA-CCR3 Reg cap CCP FRTB exposures CCAR / BoE/PRA ST LC
Slide 14: ERS is Winning Significant Business from Banks Worldwide
ERS is Winning Significant Business from Banks Worldwide Year-to-Date 2015 Revenue by Region US Canada Latin America Africa Middle East EU* APAC Central / Eastern Europe *Includes 28 EU members, EEA members (Iceland, Lichtenstein, Norway), Switzerland and Monaco. December 17, 2015 14
Slide 15: ERS is Generating Margin Expansion
ERS is Generating Margin Expansion Sales » Demand is robust and customer needs are maturing -- operating leverage developing as a result Products – Product features can be shared across multiple institutions -- simplifying projects » We can be more selective about the Strategic deals we do Services
Slide 16: Professional Services Overview
Professional Services Overview Knowledge process outsourcing » Leading provider of offshore research and analytic services » 2,400 employees; 9 delivery centers » 200+ institutional clients in global financial and corporate sectors Certificates, designations & accreditations » Canada’s leading provi
Slide 17: Moody's Analytics is Recognized for Helping Capital Markets and Risk Management Professionals Worldwide
Moody’s Analytics is Recognized for Helping Capital Markets and Risk Management Professionals Worldwide December 17, 2015 17
Slide 18: Moody's Analytics: Well-Positioned to Drive Growth
Moody’s Analytics: Well-Positioned to Drive Growth » Strong operating track record – 31 consecutive quarters of year/year revenue growth – 15% revenue CAGR over 2008-2014 period – 21 quarters of double-digit growth – 2014 operating margin of 19.5% » Solid market position supporting risk management a
Slide 19: Website and Email
Website: http://ir.moodys.com Email: ir@moodys.com December 17, 2015 19
Slide 20: December 17, 2015
© 2015 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, and affiliates (collectively, “MOODY’S”). All rights reserved. licensors and suppliers