1Q 2021 Investor Presentation slide image

1Q 2021 Investor Presentation

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 (in $ millions) 2015 2016 2017 2018 2019 2020 TTM 1Q 2021 (in $ millions) 2015 2016 2017 Gross debt 2018 1Q 2021 $3,381 $3,363 $5,540 $5,676 $5,581 $6,422 $6,340 2019 2020 Operating Income $1,491 Operating Margin 42.8% $651 18.1% $1,821 $1,868 $1,998 $2,388 $2,649 43.3% 42.0% 41.4% 44.5% 46.6% Add Adjustment: Depreciation & Less: Cash, cash equivalents and short- term investments Net debt 2,232 2,225 1,183 1,818 1,930 2,696 2,865 $1,148 $1,138 $4,357 $3,858 $3,651 $3,726 $3,475 114 127 158 192 200 220 230 Amortization Acquisition-Related 23 3 Expenses Restructuring 12 49 6 60 50 Captive insurance 50 53 16 company settlement Settlement Charge 864 Loss pursuant to the 14 9 divestiture of MAKS Adjusted Operating Income $1,605 $1,654 $2,002 $2,117 $2,291 $2,667 $2,932 Adjusted Operating Margin 46.0% 45.9% 47.6% 47.6% 47.4% 49.7% 51.6% Note: Some numbers may not foot due to rounding. 1. 2015-2017 operating and adjusted operating income have been restated to conform to the new presentation of pension accounting. Moody's | Better decisions 1Q 2021 Investor Presentation 74
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