Moody's Corporation · NYSE:MCO
Moody's — Q3 2022 Earnings Presentation
76 slides from Moody's's earnings presentation, Nov 10, 2022
Slide 1: 3Q 2022 Investor Presentation
3Q 2022 Investor Presentation November 10, 2022
Slide 2: 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
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 & Climate Solutions 7. Appendix 3Q 2022 Investor Presentation 3
Slide 4: Moody's Overview
1 Moody’s Overview
Slide 5: Company Overview
Company Overview Global integrated risk assessment firm providing credit rating opinions, analytical Independent provider of solutions and insights that empower Provider of financial intelligence credit rating opinions and organizations to make better, faster decisions and analytical tools supportin
Slide 6: Moody's as an Integrated Risk Assessment Business
Moody’s as an Integrated Risk Assessment Business Selection of Use Cases Addressable by Moody’s Solutions $40B+ Current Addressable Helping customers make Weather and natural Market BETTER DECISIONS disaster analysis Transfer pricing Supply chain management CURATED DATA1 and trade credit Entities Se
Slide 7: Financial Overview
2 Financial Overview
Slide 8: Moody's Corporation Financial Profile
Moody’s Corporation Financial Profile 3Q 2022 TTM Revenue: $5.7 billion Recurring Transaction U.S. Non-U.S. MIS Other1 <1% PPIF DS 35% 8% 48% 22% FIG MIS2 9% R&I MA2 SFG 13% 9% D&I 65% 13% 52% CFG 26% Full Year 2022 Guidance as of October 25, 20223 Revenue » Decline in the low-double-digit percent r
Slide 9: Macro Assumptions Underpinning Our Outlook
Macro Assumptions Underpinning Our Outlook1 Macroeconomic Assumptions1 GDP Growth2 Credit Spreads Inflation & Unemployment Default Rates FX Rates 1.0% - 2.0% United States Benchmark rates to rise; U.S. Global inflation levels to remain elevated Global high yield default $1.12 and $0.98 for the 1.5%
Slide 10: Financial Performance
Financial Performance1 Revenue2 Adjusted Diluted EPS3 $ Billions $ Per Share $14.00 MIS Revenue MA Revenue $13.50 $13.00 $12.0 $12.50 $12.00 $11.50 $11.00 $10.0 Decline in the $10.50 $10.00 $8.20 - $8.50 $8.0 low-double-digit $9.50 $9.00 $6.2 $8.50 percent range $8.00 $6.0 $4.8 $5.4 $7.50 $4.4 $7.00
Slide 11: 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 Allow for Provide Meet return Manage risk Share repurchases a BBB+ rating adequate necessary capital thres
Slide 12: 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 13: Track Record of Successful M&A Delivery
Track Record of Successful M&A Delivery Pre- Post- Capabilities Ann’t Acquisition Acquisition Target Performance Acquired Date Growth1 Growth2 ON TRACK Incremental $150M revenue Climate & Natural Projecting MSD sales growth in 2022 by 2025 Disaster Risk Aug 2021 LSD% HSD - LDD% Modelling (RMS) AHEAD
Slide 14: Capital Markets Overview
3 Capital Markets Overview
Slide 15: Default Rates Expected to Rise; High Yield Spreads Fluctuate Around Historical Average
Default Rates Expected to Rise; High Yield Spreads Fluctuate Around Historical Average Default Rates for Global Speculative-Grade Corporate Rated Issuance1 U.S. HY Bond Spreads2 Baseline Optimistic Moderately Pessimistic Severely Pessimistic U.S. HY Bond Spreads Avg U.S. HY Bond Spread 12.5% 1,000 1
Slide 16: Refunding Walls Continue to Build
Refunding Walls Continue to Build Next four years U.S. and EMEA total refunding needs1 as of: Withdrawn Russian Debt 2 $4.5 ~$4.0 $4.0 <$0.2 $3.5 ~$3.9 $3.0 $Trillions $2.5 $2.0 ~$2.0 $1.5 $1.0 $0.5 $0.0 2 Jan '12 Jan '13 Jan '14 Jan '15 Jan '16 Jan '17 Jan '18 Jan '19 Jan '20 Sep '20 Sep '21 Sep '2
Slide 17: Refunding Needs Support MIS Long-term Fundamentals
Refunding Needs1 Support MIS Long-term Fundamentals Debt Maturities: U.S. Non-Financial Corporate Bonds and Loans ($B)2 $666 $610 291 $412 246 Speculative Grade Bank Loans $255 160 Speculative Grade Bonds 113 140 39 39 Investment Grade » Refinancing needs remain approximately 28 187 214 251 234 flat
Slide 18: 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 8.0x Interest Coverage 5.6x 5.9x 5.5x 6.0x 5.1x 5.1x 5.3x 5.4x 5.4x 5.4x 4.6x 4.5x 4.5x 4.6x 4.9x 4.3x 4.0x 2.9x 3.0x 3.0x 3.0x 3.0x 2.9
Slide 19: Favorable Market Conditions in 2020 and 2021 Led to Outsized Opportunistic Issuance
Favorable Market Conditions in 2020 and 2021 Led to Outsized Opportunistic Issuance MIS-Rated Investment Grade (IG) Bond Issuance MIS-Rated High Yield (HY) Bond Issuance IG Bonds IG Bond Avg U.S. 10YR Treasury Avg U.S. CPI Avg HY Bonds HY Bond Average U.S. HY Spread U.S. CPI Avg $1,600 9% $1,600 9%
Slide 20: 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 $12 €7 $10 €6 49% $8 €5 € Trillions $ Trillions 4 72% 4 €4 8 $6 8 %
Slide 21: Debt Capital Market Penetration
Debt Capital Market Penetration Size of bubble reflects 2021 GDP Emerging Developed Developed North America6 Western Europe8 Other Asia3 Asia7 CEE/CIS2 ASEAN1 India Latin M.E. & Africa5 America4 China 0% 20% 40% 60% 80% 100% 120% 2021 Private Sector Capital Market Debt Securities (International & Do
Slide 22: Overview of Private Credit Markets
~$1.2 Trillion1 Overview of Private Credit Markets1,2 ~$50B Large Direct Loans ($300M+) SIZE » Most direct loans are small and unrated Small Direct Loans » ~$50B of direct loans executed in 2021 were $300M+ ~$460B – Estimated to potentially double in size in 2022 to ~$90-$100B2 due to disruption in
Slide 23: Moody's Investors Service
4 Moody’s Investors Service
Slide 24: Moody's Investors Service Financial Profile
Moody’s Investors Service Financial Profile 3Q 2022 TTM Revenue: $3.0 billion » 34% recurring revenue » 36% recurring revenue U.S. Recurring Non-U.S. Transaction MIS Other1 2% Public, Project, & Infrastructure 39% Finance 15% 61% Corporate Financial » 55% recurring revenue Finance Institutions 49% 1
Slide 25: MIS: Revised Outlook Reflects Adverse Macroeconomic Conditions
MIS: Revised Outlook Reflects Adverse Macroeconomic Conditions1 Revenue1 Adjusted Operating Margin1 FY 2022 Issuance Guidance1,2 $3.8B As of October 25, 2022 As of July 26, 2022 62.2% Total Issuance (Mid-30s%) Approximately Approximately 30% decline 51% Investment Grade (~35%) High Yield Bonds (~75%
Slide 26: 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 27: 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 28: Full Year 2021 Facts & Figures
PEOPLE $73+ trillion 12,000+ MCO employees FACTS & FIGURES Total rated debt Full Year 2021 1,500+ Analysts AMERICAS EMEA ASIA PACIFIC 40+ Countries/Regions 35,000+ TOTAL RATED DEBT 1 Rated Organizations and Structured Deals $39+ trillion $20+ trillion $10+ trillion EVENTS 5,300+ 3,500+ RATED ORGANIZ
Slide 29: How we Participate in Global Domestic Markets
How we Participate in Global Domestic Markets MIS affiliate (majority) Chile Others MIS affiliate (minority) Nigeria Malaysia Moody’s Local South Africa Other Emerging Markets MIS Emerging Markets Revenue1 Mexico Argentina $346M Brazil Peru Egypt Israel $700$700 million million China Size of domesti
Slide 30: Moody's in Greater China
Moody’s in Greater China 2nd Largest Onshore Bond Market at $22 Trillion Revenue and Attributable Income from China2 Total debt securities outstanding 2012 – 20221 MIS Cross Border Revenue Total MA Revenue Attributable Income from CCXI 2012 5% $160 2022 $170 $50 $150 $ Trillions $130 $ Millions $40
Slide 31: Moody's Analytics
5 Moody’s Analytics
Slide 32: Moody's Analytics at a Glance
Moody’s Analytics at a Glance Strong Financial Profile $2.7B $30B+ » Operating in large markets with significant Revenue TTM 3Q 2022 2021 Current Addressable Market1 opportunity for top-line growth » Expanding revenue organically and 14% 90%+ Revenue Growth 3Q 2022 Retention Rate2 3Q 2022 through st
Slide 33: Helping Customers Navigate Increasing Global Risks
Helping Customers Navigate Increasing Global Risks MA PROVIDES… Evolving Heightened regulatory Proprietary data with models, software and environment operational and reputational risks 1 expertise that empower customers to better measure, monitor and manage various types of risk Climate change GLOBA
Slide 34: Diverse Customer Base Across Multiple Sectors
Diverse Customer Base Across Multiple Sectors1 5,300+ 900+ 70% 52% Governments & Other Entities Insurance Companies of the Fortune 1002 of the Forbes 1,0003 2,300+ 800+ Real Estate Entities ~15,000 Commercial Banks Customers 3,600+ 200+ Corporates Securities Dealers 155+ and Investment Banks Countri
Slide 35: Compelling Value Proposition
Compelling Value Proposition High-quality franchise » Tech-enabled solutions deeply embedded in customers’ workflows » Proprietary databases » Long-term and strong customer relationships with retention rates in the mid-90’s % range » Resilient recurring subscription business with profitable growth M
Slide 36: Assembling and Integrating Capabilities
Assembling and Integrating Capabilities Underwriting Lending & ESG & Climate Origination Assessment Portfolio Mgmt. Regulatory Investment Compliance Analysis KYC Decision Data & Solutions Research & Information Economic Insights Other Forecasts Proprietary & Models Data Models & Private & Analytics
Slide 37: Data & Information Snapshot
D&I Data & Information Snapshot Raw ingredients for unique insights $712M REVENUE » Create and aggregate extensive data from multiple sources » Standardize, cleanse and curate data » Distribute through cloud-based platforms, APIs and other web interfaces 9% DATA SETS INCLUDE ARR GROWTH1 Data feeds f
Slide 38: Research & Insights Snapshot
R&I Research & Insights Snapshot Generating actionable insights $726M REVENUE » Model and measure risks related to credit, financial, climate, operational, cyber and others » Forecast and benchmark micro and macroeconomic implications » Provide valuable insights and opinions that inform global decis
Slide 39: Decision Solutions Snapshot
DS Decision Solutions Snapshot Integrating best-in-class data and analytics $1,285M REVENUE » Integrate and connect data, research and analytics for enriching customer applications » Build and support software for specific customer workflows » Embedded components in external ecosystems 10% SOLUTIONS
Slide 40: Operating in Growing Markets
Operating in Growing Markets 3Q 2022 TTM Revenue Top Growing Drivers by Line of Business Decision 30% 47% Solutions 87% recurring revenue 25% 3Q22 -TTM Organic C$ Recurring 93% retention rate1 KYC & Compliance 20% Revenue Growth Research & Data Applications Data & Information Decision Solutions 27%
Slide 41: Strong Execution Enables Consistent Revenue Growth
Strong Execution Enables Consistent Revenue Growth Exceptional value creation - revenue has more than tripled since inception $2,500 2021 Revenue: 2008 – 2021 CAGR: $2,406M +12% (~62% organic) $2,000 CAGR 12% $ Millions $1,500 $1,000 $500 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 42: Recurring Revenue Growth Drives Margin Expansion
Recurring Revenue Growth Drives Margin Expansion TTM Recurring And Transaction Revenue Adjusted Operating Margin1 Recurring Transaction Recurring % ~16% ~30.0% Recurring Revenue CAGR +~540bps 94% 93% 24.6% 89% 84% 82% 3Q18 3Q19 3Q20 3Q21 3Q22 2017 2022F 1. Guidance as of October 25, 2022. Refer to T
Slide 43: Building on a Foundation of Strong Customer Retention
Building on a Foundation of Strong Customer Retention 94% 7% 8% 109% First Half 2022 Retained Base 1 Upgrades and Price New Sales Business Base 95% 7% 9% 111% Full Year 2021 Retained Base Upgrades and Price New Sales Business Base 93% 7% 10% 110% Full Year 2020 Retained Base Upgrades and Price New S
Slide 44: MA: Full Year 2022 Guidance
MA: Full Year 2022 Guidance1 Continued focus on profitable revenue growth and reinvestment to fuel future expansion » ARR acceleration supported by new product pipeline and expansion of sales capacity KEY DRIVERS OF » Retention rates2 and the proportion of recurring revenue both remain robust in the
Slide 45: Accelerating Revenue Growth
Accelerating Revenue Growth Medium-Term Revenue Target Drivers Strong Customer Retention Rates New Product Development Within 5 years1 Cross-selling, Upgrades & Pricing Low-to-mid-teens % Total Revenue CAGR Increased Distribution Capacity Continued SaaS Transition Note: SaaS = Software as a Service.
Slide 46: KYC: Best-in-Class Compliance Solutions
DS KYC: Best-in-Class Compliance Solutions Well-positioned to deliver differentiated solutions in a growing market INDUSTRY TRENDS KYC SOLUTIONS Complex Sophisticated D ATA 445+ Companies regulatory crime tactics World’s preeminent and comprehensive database on: million and entities environment » En
Slide 47: RMS: Expanding Mission-Critical Role to Other Industries
DS RMS: Expanding Mission-Critical Role to Other Industries » Cross-trained sales forces to offer » Deepening relationships with P&C » Embedding climate-related breadth of combined product suite customers by providing Moody’s financial loss estimates across holistic suite of products and multiple us
Slide 48: Awards & Accolades
Awards & Accolades Recognition for our industry-leading solutions: data, research, analytics and software 3Q 2022 Investor Presentation 48
Slide 49: ESG & Climate Solutions
6 ESG & Climate Solutions
Slide 50: Helping Customers Decode ESG Risks
Helping Customers Decode ESG Risks ESG & Climate Customer Key Market Use Cases Outputs Risk Expertise segments Banks & Insurers Engagement Based ESG in Portfolio Identification Credit Management ESG Opinions Companies & Organizations Supply Chain INTEGRATED Regulatory Risk RISK Reporting ASSESSMENT
Slide 51: Comprehensive ESG & Climate Offerings
Comprehensive ESG & Climate Offerings MA Data Hub ESG SOLUTIONS CLIMATE SOLUTIONS SUSTAINABLE FINANCE » ESG Assessments » Physical and Transition data » Second Party Opinions: Green, Social and Sustainable Bonds API / Web- » Modeled or Analyst-verified » Macroeconomic Scenarios ESG Scores » Second P
Slide 52: Integration of ESG & Climate in Credit Ratings
Integration of ESG & Climate in Credit Ratings MIS ESG credit scores will assist in transparently and systematically demonstrating the impact of ESG on credit ratings CREDIT RATINGS & RESEARCH ESG CLASSIFICATION How is ESG integrated into What is ESG? credit ratings? Our classification reports descr
Slide 53: Identifying and Quantifying ESG & Climate Risk
Identifying and Moodys.com » Physical climate risk exposure scores and Moody’s Analytics Climate Risk » RMS catastrophe models provide ESG performance scores physical risk data and analysis on a Quantifying » ESG company and sector reports wide range of perils » Economic climate risk impact » MIS se
Slide 54: Appendix
sl Appendix
Slide 55: 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 3 Investment Grade Speculative Grade Bank Loans U.S. Speculative-Grade Bank Loans Non-U.S. Speculative-Grade Bank
Slide 56: Corporate Finance: Revenue
Corporate Finance: Revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 25% 25% 20% 22% 25% 23% 30% 28% 30% 38% 45% 67% 68% 70% 68% 63% 68% 66% 66% 66% 65% 68% 75% 75% 80% 78% 75% 77% 70% 72% 70% 62% 55% 33% 32% 30% 32% 3
Slide 57: Financial Institutions: Revenue and Issuance
Financial Institutions: Revenue and Issuance1 Issuance3: Mix by Quarter Revenue2: Mix by Quarter Global Investment Grade Financial Corporate Bonds Banking Insurance Managed Investments Other Global Speculative Grade Financial Corporate Bonds $200 $600 $20 $2 $500 $3 $2 $8 $3 $32 $ Billions $150 $2 $
Slide 58: Financial Institutions: Revenue
Financial Institutions: Revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 44% 47% 47% 46% 46% 46% 48% 41% 43% 50% 50% 44% 47% 46% 50% 47% 53% 50% 52% 53% 55% 62% 56% 53% 53% 54% 54% 54% 52% 59% 57% 50% 50% 56% 53% 54%
Slide 59: 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 & Infrastructure Finance Long-Term Rated U.S. Muni Bonds Rated Global Project & Infrastructure Finance Bonds $200 $250 $150 $200 $ Billions $ Millions $84
Slide 60: Public, Project and Infrastructure: Revenue
Public, Project and Infrastructure: Revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 31% 34% 32% 30% 32% 32% 34% 32% 36% 33% 46% 62% 61% 55% 61% 58% 60% 58% 61% 62% 63% 64% 69% 66% 68% 70% 68% 68% 66% 68% 64% 67% 54%
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 $500 ABS RMBS CMBS Structured Credit $200 $1 $400 $150 $0 $0 $97 $0 $ Millions $ Billions $1 $67 $39 $1 $300 $57 $70 $53 $0 $59 $31 $100 $0 $36 $60 $52 $0 $38 $43 $44 $5
Slide 62: Structured Finance: Revenue
Structured Finance: Revenue Revenue1: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction Non-U.S. U.S. Transaction Recurring 34% 35% 31% 35% 35% 43% 41% 61% 56% 59% 59% 53% 49% 52% 50% 63% 69% 68% 65% 67% 67% 68% 66% 65% 69% 65% 65% 57% 59% 44% 41% 41% 47% 51% 48% 50% 39%
Slide 63: 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 $800 $700 $3,000 $2,406 $600 $178 $178 $176 28% 25% 30% 31% 29% 27% 26% 26% 26% $2,500 $159 $180 $2
Slide 64: Moody's Revenue and Interest Rates Over Time
Moody’s Revenue and Interest Rates1 Over Time 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% 8% $6,000 +100bps +120bps 7% 6.5% $ Millions $5,000 6% 5.8% $4,000 5% 4.7% $3,000 4% 3.3% +200bps +180bps 3.0% 3% $2,000
Slide 65: Proactive Capital and Liquidity Management
Proactive Capital and Liquidity Management Bond portfolio WAC1 Balanced maturity schedule5 $ in millions 5.0% 4.7% 4.3% 4.3% 4.5% 3.9% 300 4.0% 4.2% 3.5% 3.3% 3.3% 4.0% 3.3% 300 3.5% 3.9% 3.1% 3.0% 3.4% 3.4% 735 500 250 600 2.5% 3.1% 500 490 500 300 500 500 500 400 400 2.0% 2.4% 300 300 2.1% 2.4% 25
Slide 66: ESG & Climate at Moody's
ESG & Climate at Moody’s Snapshot1 35+ 6,500+ 300M+ 10K+ Years of ESG experience ESG Credit Impact Scores Companies scored via a Moody’s Climate physical risk Pioneers of ESG analysis for over (CIS) and Issuer Profile combination of analyst-verified scores three decades, while providing Scores (IPS)
Slide 67: 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 » Published our pay equity analysis for global gender » Launched several new solutions that provide greater f
Slide 68: Modernizing our Internal Data & Technology Infrastructure
Modernizing our Internal Data & Technology Infrastructure to Further Enhance Business Capabilities Cloud and Platform DevOps » Progressing on our cloud infrastructure journey to » Continuing our DevOps journey within MIS and allow “always on”; majority of MA workloads are in MA to promote high quali
Slide 69: Innovation Enabled by Artificial Intelligence (AI)
Innovation Enabled by Artificial Intelligence (AI) Utilizing natural language processing (NLP) and machine learning (ML) across Moody’s external products and solutions mlfabric™ MA Products » Extensible modular ML framework to accelerate & » QUIQspread: product capable of automating scale ML across
Slide 70: Addressing the Needs of the Greater China Market
Addressing the Needs of the Greater China Market1 25+ 8,000+ International Investors Domestic Investors years Research reports Covering and serving Related to Asia Pacific, » MIS credit ratings on cross-border » CCXI provides market-leading rating Chinese markets attracting 800,000+ market issuance
Slide 71: 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 Reconciliation Moody's Corporation Net Debt Reconciliation TTM 1Q 2Q 3Q (in $ millions) 2018 2019 2020 2021 (in $ millions) 2018 2019 2020 2021 3Q 2022 2022 2022 202
Slide 72: 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 2022F1 Projected Operating Margin – U.S. GAAP 34% to 35% Depreciation & Amortization Approximately 6% Restructuring Approximately 1.5% Projected Adjusted Operating Margin A
Slide 73: 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 2018 2019 2020 2021 2022F1 Diluted EPS – U.S. GAAP $6.74 $7.42 $9.39 $11.78 $6.90 to $7.20 Acquisition-Related Intangible Amortization Expenses $0.40 $0.42 $0.51 $0.65 ~$0.85 Acquisition
Slide 74: 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 75: Investor Relations
Investor Relations ir.moodys.com [email protected] moodys.com
Slide 76: Legal notices
© 2022 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