MSCI : William Blair 40th Annual Growth Stock Conference

MSCI INC.

BAER PETTIT

PRESIDENT AND CHIEF OPERATING OFFICER

June 10, 2020

© 2020 MSCI Inc. All rights reserved.

Forward-Looking statements

• This investor presentation containsforward-looking statements within the meaning of the Private
  Securities Litigation Reform Act of 1995, including without limitation, MSCI's long-term targets. These forward-looking statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential" or "continue," or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond MSCI's control and that could materially affect actual results, levels of activity, performance or achievements.
• Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in MSCI's Annual Report on Form10-K for the fiscal year ended December 31, 2019 filed with the Securities and Exchange Commission ("SEC") on February 18,
  2020 and in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC, including, without limitation, the risk factor under "Risk Factors-TheCOVID-19 pandemic, or other widespread health crises, could have a material adverse effect on our business, financial condition or results of operations" as set forth in the quarterly report for the quarter ended March 31, 2020, which we filed with the SEC on April 29, 2020. If any of these risks or uncertainties materialize, or if MSCI's underlying assumptions prove to be incorrect, actual results may vary significantly from what MSCI projected. Any forward-looking statement in this investor presentation reflects MSCI's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MSCI's operations, results of operations, growth strategy and liquidity. MSCI assumes no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise, except as required by law.

2

Other information

•

•

Percentage changes and totals in this investor presentation may not sum due to rounding. Percentage changes refer to the comparable period in 2019, unless otherwise noted.

• Foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period. While operating revenues adjusted for the impact of foreign currency fluctuations includesasset-based fees that have been adjusted for the impact of foreign currency fluctuations, the underlying assets under management ("AUM"), which is the primary component of asset-based fees, is not adjusted for foreign currency fluctuations. Approximately two-thirds of the AUM are invested in securities denominated in currencies other than the U.S. dollar, and accordingly, any such impact is excluded from the disclosed foreign currency adjusted variances.

3

MSCI at a glance

WHO

WE

ARE

7,7001blue-chip clients in 85+ countries as of 1Q20

• Across investment and trading spectrum
• World's most sophisticated investors use our products and services

Must have products and services

• Across asset classes for performance and risk
• $1.6B+ run rate as of March 31, 2020
• 10% YoY organic subscription Run Rate growth in 1Q20

Strong performance and inclusive culture

• Global,multi-cultural workforce
• Driving innovation for industry- leading solutions2

3,459 talented employees globally as of 1Q20

• 35 MSCI locations in 22 countries
• 63% and 37% of employees located in emerging market and developed market locations respectively
• Extensive knowledge of the investment process

WHAT WE DO

Provide products and services that global investors can use to build better portfoliosfor a better world

1Number of clients based on the shipping address of the ultimate customer utilizing the product which counts affiliates, user

locations, or business units within a single organization as separate clients; 2Unless otherwise noted, solutions throughout this4presentation refers to the usage of our products and / or services by our clients to help them achieve their objectives.

COVID-19 response -

supporting our people, clients and business

Our	•Almost 100% of our workforce is operating remotely across 35 locations in 22
People &	countries. Health and safety is a top priority
Business	•Key data production and technology services have an uptime of over 99.9%.
	Multiple data centers globally
	•Crisis Management Team across functional areas of MSCI meets frequently

Our	•Enhanced client outreach & research/content to help clients, including
Clients	upgrading fixed income liquidity modeling tools to operate bi-weekly vs monthly
	•Select free trials to daily index data for index product subscribers currently on a
	monthly delivery cycle, and on ESG Metrics data & certain Real Estate data sets
	•Access to multi-asset class model portfolio stress testing to simulate outcomes
	across equity, credit, oil, FX and commodity shocks

Our

Capital

• In May 2020, issued $1 billion of debt at 3.875%; in June 2020, using proceeds to redeem all $800 million of 5.750% notes due 2025 (results in temporary duplicate interest expense)
• Investing cash to minimize risk & earn a return; however, interest income has been impacted by lower interest rates and is likely to be several million dollars lower on a quarterly basis versus 1Q20
• Continuing to strategically manage working capital

5

Clients across the investment process turn to MSCI's tools to support their investment needs

Client investment process

Asset	Portfolio	Performance
and Risk
Allocation	Construction
Management

MSCI tools to support:

•Defining investable universes

•Allocating assets sustainably

•Creating investment programs/products

•Benchmarking performance

•Understanding and managing risk and performance

•Reporting to constituents

•Complying with regulations

•Measuring climate related risks and opportunities

Solutions for the most critical investment activities

6

Ongoing tailwinds from secular market trends

Increasing mandate for sustainable returns and

ESG integration

Ongoing shift from active management to index-enabledinvesting

From manager selection to internal management

Long-term shift from

Home country Bias to Global

Increasing demands on institutional investors to be more efficient and differentiated

Continued allocation to private assetclasses

7

Track record of growth through new markets with attractive future opportunity set

8

Underpinned by momentum in areas targeted for growth

(US$ in millions)

Firmwide ESG Run Rate1	Futures & Options Linked to
ESG Content		MSCI Indexes Run Rate
ESG Indexes
+35.7%	$156
	$52	+175.6%	$49.1
$115
$31

$104

$17.8

$84

1Q19

1Q20

1Q19

1Q20

1Firmwide ESG Run Rate includes ESG Research and Content Run Rate, reported in the All Other segment, and ESG-related Index	9
subscription and asset-based fees Run Rate reported in the Index segment.

Delivering growth across key metrics

Financial discipline and rigor underpinned by culture of performance and accountability

		Revenue ($m)		10%			Adjusted EBITDA ($m)	15%
				CAGR			CAGR
		$1,434	$1,558	$1,603		$772	$850	$882
$1,075	$1,151	$1,274							$660
							$569
									$482

2015	2016	2017	2018	2019	TTM	2015	2016	2017	2018	2019	TTM
					3/31/2020						3/31/2020

Adjusted Earnings Per Share	29%			Free Cash Flow ($m)	24%
	CAGR			CAGR
$6.44	$6.79				$656	$678
					$564
$5.35
$3.98					$400	$355
$3.03					$272
$2.32
2015 2016 2017 2018 2019	Cumulative(1)	2015 2016 2017 2018 2019		TTM
TTM 3/31/2020			3/31/2020

Note: Compound annual growth rate calculations represent beginning figures in 2015 and ending figures in trailing twelve months ended

March 31, 2020 ("TTM 3/31/2020").101Represents sum of Adjusted Earnings per Share recorded in each quarterly period between April 1, 2019 through March 31, 2020.

Disciplined and thoughtful capital allocation approach

Reinvest for

Growth

Mergers,

Partnerships &

Acquisitions

Disciplined

Return of

Excess Capital

Triple-Crown framework

to evaluate and fund internal high return and strategic organic opportunities and mergers, partnerships and acquisitions (MP&A)

Opportunistic repurchase of shares driven by availability of cash and market volatility

Meaningful & sustainable dividend per share: Target of 40%-50% of Adjusted EPS

Capital Return

110
					97
								92	90	86		86
													$172
$88			$97
													$925
						$759															$58
	$671
															$221
					$121
																$357
					$137
														$102
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019		YTD
																	4/24/2020
					Weighted Average Diluted Shares
					Outstanding (in millions)
					Value of Shares Repurchased
					Dividends

$3.7B of Capital Returned Since 2015

11

Long-term targets

Index

Analytics

ESG

Real Estate

Revenue	Adj. EBITDA
Growth Rate	Expense
(ex. ABF)	Growth Rate
Low Double	High Single
Digit	Digit
High Single	Mid to High
Digit to Low
Single Digit
Double Digit
Mid
Twenties	Low to Mid
Mid	Teens
Teens

Adj. EBITDA	Adj. EBITDA
Growth Rate	Margin %

MSCI

Low Double	High Single	Mid	Mid to High
Digit	Digit	Teens	50s

12

MSCI thriving in a transforming industry

Favorable Secular Tailwinds

Growth in index-enabled investing, use of factors, increasing need for performance attribution/risk reporting, integration of ESG into the mainstream of the investment process

Compelling Business Model

Strong track record of revenue growth

97% of revenue is recurring1/retention rate 95% (1Q20) High margin business

Strong cash generation and balance sheet

Empowered Culture

Focus on consistent, quality growth/strong accountability

Solid stewardship of capital/focus on shareholder value creation

Strong governance

1As of trailing twelve months ended March 31, 2020. Recurring revenues include recurring subscription and asset-based13fees revenues.

Use of Non-GAAP financial measures

• MSCI has presented supplementalnon-GAAP financial measures as part of this investor presentation. Reconciliations are provided in slides 16-19 that reconcile each non-GAAP financial measure with the most comparable GAAP measure. The non-GAAP financial measures presented in this investor presentation should not be considered as alternative measures for the most directly comparable GAAP financial measures. The non-GAAP financial measures presented in this investor presentation are used by management to monitor the financial performance of the business, inform business decision-making and forecast future results.
• "Adjusted EBITDA" is defined as net income before (1) provision for income taxes, (2) other expense (income), net, (3) depreciation and amortization of property, equipment and leasehold improvements, (4) amortization of intangible assets and, at times, (5) certain other transactions or adjustments, including the impact related to the vesting of themulti-year restricted stock units subject to performance payout adjustments granted in 2016 (the "Multi-Year PSUs").
• "Adjusted EBITDA expenses" is defined as operating expenses less depreciation and amortization of property, equipment and leasehold improvements and amortization of intangible assets and, at times, certain other transactions or adjustments, including the impact related to the vesting of theMulti-Year PSUs.
• "Adjusted net income" and "adjusted EPS" are defined as net income and diluted EPS, respectively, before theafter-tax impact of the amortization of acquired intangible assets, the impact of debt extinguishment costs, the impact of divestitures, the impact of adjustments for the Tax Cuts and Jobs Act that was enacted on December 22, 2017 ("Tax Reform"), except for amounts associated with active tax planning implemented as a result of Tax Reform, and, at times, certain other transactions or adjustments, including the impact related to the vesting of the Multi-Year PSUs.
• "Adjusted tax rate" is defined as the effective tax rate excluding the impact of Tax Reform adjustments (except for amounts associated with active tax planning implemented as a result of Tax Reform) and the impact related to the vesting of theMulti-Year PSUs.
• "Capex" is defined as capital expenditures plus capitalized software development costs.
• "Free cash flow" is defined as net cash provided by operating activities, less Capex.
• "Organic operating revenue growth" is defined as operating revenue growth compared to the prior year period excluding the impact of acquired businesses, divested businesses and foreign currency exchange rate fluctuations.
• Asset-basedfees ex-FX does not adjust for the impact from foreign currency exchange rate fluctuations on the underlying AUM.
• We believe adjusted EBITDA and adjusted EBITDA expenses are meaningful measures of the operating performance of MSCI because they adjust for significantone-time, unusual or non-recurring items as well as eliminate the accounting effects of certain capital spending and acquisitions that do not directly affect what management considers to be our core operating performance in the period.
• We believe adjusted net income and adjusted EPS are meaningful measures of the performance of MSCI because they adjust for theafter-tax impact of significant one-time, unusual or non-recurring items as well as eliminate the impact of any transactions that do not directly affect what management considers to be our core performance in the period.
• We believe that adjusted tax rate is useful to investors because it increases the comparability ofperiod-to-period results by adjusting for the estimated net impact of Tax Reform and the impact related to the vesting of the Multi-Year PSUs.
• We believe that free cash flow is useful to investors because it relates the operating cash flow of MSCI to the capital that is spent to continue and improve business operations, such as investment in MSCI's existing products. Further, free cash flow indicates our ability to strengthen MSCI's balance sheet, repay our debt obligations, pay cash dividends and repurchase shares of our common stock.
• We believe organic operating revenue growth is a meaningful measure of the operating performance of MSCI because it adjusts for the impact of foreign currency exchange rate fluctuations and excludes the impact of operating revenues attributable to acquired and divested businesses for the comparable prior year period, providing insight into our core operating performance for the period(s) presented.
• We believe that thenon-GAAP financial measures presented in this investor presentation facilitate meaningful period-to-period comparisons and provide a baseline for the evaluation of future results.
• Adjusted EBITDA expenses, adjusted EBITDA, adjusted net income, adjusted EPS, adjusted tax rate, Capex, free cash flow and organic operating revenue growth are not defined in the same manner by all companies and may not be comparable tosimilarly-titlednon-GAAP financial measures of other companies. These measures can differ significantly from company to company depending on, among other things, long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. Accordingly, the Company's computation of these measures may not be comparable to similarly titled measures computed by other companies.

14

Use of operating metrics

• MSCI has presented supplemental key operating metrics as part of this investor presentation, including Retention Rate, Run Rate, subscription sales, subscription cancellations andnon-recurring sales.
• Retention Rate is an important metric because subscription cancellations decrease our Run Rate and ultimately our operating revenues over time. The annual Retention Rate represents the retained subscription Run Rate (subscription Run Rate at the beginning of the fiscal year less actual cancels during the year) as a percentage of the subscription Run Rate at the beginning of the fiscal year. The Retention Rate for anon-annual period is calculated by annualizing the cancellations for which we have received a notice of termination or for which we believe there is an intention not to renew during the non-annual period, and we believe that such notice or intention evidences the client's final decision to terminate or not renew the applicable agreement, even though such notice is not effective until a later date. This annualized cancellation figure is then divided by the subscription Run Rate at the beginning of the fiscal year to calculate a cancellation rate. This cancellation rate is then subtracted from 100% to derive the annualized Retention Rate for the period. Retention Rate is computed by operating segment on a product/service-by-product/service basis. In general, if a client reduces the number of products or services to which it subscribes within a segment, or switches between products or services within a segment, we treat it as a cancellation for purposes of calculating our Retention Rate except in the case of a product or service switch that management considers to be a replacement product or service. In those replacement cases, only the net change to the client subscription, if a decrease, is reported as a cancel. In the Analytics and the ESG segments, substantially all product or service switches are treated as replacement products or services and netted in this manner, while in our Index and Real Estate segments, product or service switches that are treated as replacement products or services and receive netting treatment occur only in certain limited instances. In addition, we treat any reduction in fees resulting from a down-sale of the same product or service as a cancellation to the extent of the reduction. We do not calculate Retention Rate for that portion of our Run Rate attributable to assets in index-linked investment products or futures and options contracts, in each case, linked to our indexes.
• Run Rate estimates at a particular point in time the annualized value of the recurring revenues under our client license agreements ("Client Contracts") for the next 12 months, assuming all Client Contracts that come up for renewal are renewed and assumingthen-current currency exchange rates, subject to the adjustments and exclusions described below. For any Client Contract where fees are linked to an investment product's assets or trading volume/fees, the Run Rate calculation reflects, for ETFs, the market value on the last trading day of the period, for futures and options, the most recent quarterly volumes and/or reported exchange fees, and for other non-ETF products, the most recent client-reported assets. Run Rate does not include fees associated with "one-time" and other non-recurring transactions. In addition, we add to Run Rate the annualized fee value of recurring new sales, whether to existing or new clients, when we execute Client Contracts, even though the license start date, and associated revenue recognition, may not be effective until a later date. We remove from Run Rate the annualized fee value associated with products or services under any Client Contract with respect to which we have received a notice of termination or non- renewal during the period and have determined that such notice evidences the client's final decision to terminate or not renew the applicable products or services, even though such notice is not effective until a later date.
• "Organic subscription Run Rate growth" is defined as the period over period Run Rate growth, excluding the impact of changes in foreign currency and the first year impact of any acquisitions. It is also adjusted for divestitures. Changes in foreign currency are calculated by applying the currency exchange rate from the comparable prior period to current period foreign currency denominated Run Rate.
• Sales represents the annualized value of products and services clients commit to purchase from MSCI and will result in additional operating revenues. Non- recurring sales represent the actual value of the customer agreements entered into during the period and are not a component of Run Rate. New recurring subscription sales represent additional selling activities, such as new customer agreements, additions to existing agreements or increases in price that occurred during the period and are additions to Run Rate. Subscription cancellations reflect client activities during the period, such as discontinuing products and services and/or reductions in price, resulting in reductions to Run Rate. Net new recurring subscription sales represent the amount of new recurring subscription sales net of subscription cancellations during the period, which reflects the net impact to Run Rate during the period.
• Total gross sales represent the sum of new recurring subscription sales andnon-recurring sales. Total net sales represent the total gross sales net of the impact from subscription cancellations.

15

		Consolidated adjusted EBITDA		220,207
		Multi-Year PSU payroll tax expense		-
		Amortization of intangible assets		13,243
		Depreciation and amortization of property,
		equipment and leasehold improvements		7,535
		Operating income		199,429
(UNAUDITED)		52,896
		Other expense (income), net
		Provision for income taxes		23,750
		Net income	$	122,783

Year Ended

Income

				Dec. 31,			Dec. 31,			Dec. 31,						Dec. 31,		Dec. 31,
In thousands		2019					2018					2017								2016			2015
Index adjusted EBITDA	$	670,188			$	607,853		$	522,241						$	431,478		$	392,987
Analytics adjusted EBITDA		152,113					143,645					125,624								128,507			95,468
All Other adjusted EBITDA		28,198					20,935					11,892								9,472			(6,758)
Consolidated adjusted EBITDA		850,499					772,433					659,757								569,457			481,697
Multi-Year PSU payroll tax expense		15,389					-				-						-		-
Amortization of intangible assets		49,410					54,189					44,547								47,033			46,910
Depreciation and amortization of property,
	equipment and leasehold improvements		29,999					31,346					35,440								34,320			30,889
Operating income		755,701					686,898					579,770								488,104			403,898
Other expense (income), net		152,383					57,002					112,871								102,166			54,344
Provision for income taxes		39,670					122,011					162,927								125,083			119,516
Net income	$	563,648			$	507,885		$	303,972						$	260,855		$	223,648
													Trailing Twelve
													Year Ended
				Three Months Ended			Months Ended
				Dec. 31,			Dec. 31,				Dec. 31,						Dec. 31,		Dec. 31,
	In thousands		Mar. 31,			Mar. 31,				Mar. 31,						2016			2015
		2019					2018					2017
	In thousands		2020					2019					2020
	Index adjusted EBITDA		$	670,188				$	607,853				$	522,241						$	431,478		$	392,987
	Index adjusted EBITDA	$	183,587		$	152,211	$	701,564			128,507			95,468
	Analytics adjusted EBITDA		152,113					143,645					125,624
	Analytics adjusted EBITDA		36,317				36,398				152,032
	All Other adjusted EBITDA		28,198					20,935					11,892							9,472			(6,758)
	All Other adjusted EBITDA		9,323				9,098				28,423
	Consolidated adjusted EBITDA			850,499					772,433					659,757							569,457			481,697
	Consolidated adjusted EBITDA		229,227				197,707				882,019
	Multi-Year PSU payroll tax expense			15,389					-				-	-			-		-
	Multi-Year PSU payroll tax expense		-			15,389
	Amortization of intangible assets		49,410					54,189					44,547							47,033			46,910
	Amortization of intangible assets		13,776				11,793				51,393
	Depreciation and amortization of property,
	Depreciation and amortization of property,
	ent		29,999					31,346					35,440							34,320			30,889
	equipment andleaseholdimprovements			7,567				7,850				29,716
	Operating income		755,701					686,898					579,770							488,104			403,898
		207,884				162,675				800,910
	Other expense (iincome),net		152,38345,035				57,00234,383				112,871163,035			102,166			54,344
	Provision for income taxes			39,67014,724				122,011(49,900)				162,927104,294			125,083			119,516
	Net income	$ $	563,648148,125		$	507,885178,192	$$	303,972533,581	$	260,855		$	223,648

16

Reconciliation of Net Income to Adjusted Net

Income(UNAUDITED)

							Year Ended
			Dec. 31,		Dec. 31,		Dec. 31,		Dec. 31,		Dec. 31,
	In thousands		2019		2018		2017		2016		2015
	Net income	$ 563,648	$ 507,885	$ 303,972	$ 260,855	$ 223,648
	Less: Income (loss) from discontinued operations,
	net of income taxes		-		-		-		-		(6,390)
	Income from continuing operations	563,648	507,885	303,972	260,855	230,038
	Plus: Amortization of acquired intangible assets	34,773	43,981	39,157	47,033	46,910
	Plus: Multi-Year PSU payroll tax expense	15,389		-		-		-		-
	Less: Discrete excess tax benefit related
	to Multi-Year PSU vesting	(66,581)		-		-		-		-
	Plus: Debt extinguishment costs associated with the 2024
	Senior Notes Redemption	16,794		-		-		-		-
	Less: Gain on sale of Alacra (not tax-effected)		-		-	(771)		-	(6,300)
	Less: Gain on sale of FEA (not tax-effected)		-	(10,646)		-		-		-
	Less: Gain on sale of InvestorForce		-	(46,595)		-		-		-
	Less: Valuation allowance released related to
	InvestorForce disposition		-	(7,758)		-		-		-
	Less: Tax Reform adjustments		-	(8,272)	34,500		-		-
	Less: Income tax effect		(13,226)		1,678		(10,772)		(15,243)		(16,039)
	Adjusted net income		$ 550,797		$ 480,273		$ 366,086		$ 292,645		$ 254,609
			Three Months Ended
			Mar. 31,		Mar. 31,
	In thousands		2020		2019
	Net income	$ 148,125	$ 178,192
	Plus: Amortization of acquired intangible assets	8,778	8,716
	Plus: Multi-Year PSU payroll tax expense		-	15,389
	Less: Discrete excess tax benefit related
	to Multi-Year PSU vesting		-	(66,581)
	Plus: Debt extinguishment costs associated with the 2024
	Senior Notes Redemption	9,966		-
	Less: Tax Reform adjustments	(759)		-
	Less: Income tax effect		(3,396)		(3,134)
	Adjusted net income	$ 162,714	$ 132,582

17

Reconciliation of Diluted EPS to Adjusted EPS

(UNAUDITED)

							Year Ended
	Dec. 31,		Dec. 31,		Dec. 31,		Dec. 31,		Dec. 31,
		2019			2018			2017			2016			2015
Diluted EPS	$	6.59	$	5.66	$	3.31	$	2.70	$	2.03
Less: Earnings per diluted common share from
discontinued operations		-			-			-			-			(0.06)
Earnings per diluted common share from
continuing operations	$	6.59	$	5.66	$	3.31	$	2.70	$	2.09
Plus: Amortization of acquired intangible assets		0.41			0.49			0.43			0.49			0.43
Plus: Multi-Year PSU payroll tax expense		0.18			-			-			-			-
Less: Discrete excess tax benefit related
to Multi-Year PSU vesting		(0.78)			-			-			-			-
Plus: Debt extinguishment costs associated with the 2024
Senior Notes Redemption		0.20			-			-			-			-
Less: Gain on sale of Alacra (not tax-effected)		-			-			(0.01)			-			(0.06)
Less: Gain on sale of FEA (not tax-effected)		-			(0.12)			-			-			-
Less: Gain on sale of InvestorForce		-			(0.52)			-			-			-
Less: Valuation allowance released related to
InvestorForce disposition		-			(0.09)			-			-			-
Plus: Tax Reform adjustments		-			(0.09)			0.38			-			-
Less: Income tax effect		(0.16)			0.02			(0.13)			(0.16)			(0.14)
Adjusted EPS	$	6.44	$	5.35	$	3.98	$	3.03	$	2.32
		Three Months Ended
	Mar. 31,		Mar. 31,
		2020			2019
Diluted EPS	$	1.73	$	2.08
Plus: Amortization of acquired intangible assets		0.10			0.10
Plus: Multi-Year PSU payroll tax expense		-			0.18
Less: Discrete excess tax benefit related
to Multi-Year PSU vesting		-			(0.78)
Plus: Debt extinguishment costs associated with the 2024
Senior Notes Redemption		0.12			-
Less: Tax Reform adjustments		(0.01)			-
Less: Income tax effect		(0.04)			(0.03)
Adjusted EPS	$	1.90	$	1.55

18

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (UNAUDITED)

				Three Months Ended	Twelve Months Ended
	In thousands					Dec. 31, 2019		2018			Dec. 31, 2017		Dec. 31, 2016			Dec. 31, 2015
	Net cash provided by operating activities	$			243,643	612,762			$	404,158		$	442,363	$	321,247
	Capital expenditures						(11,900)	(30,257)						(33,177)			(32,284)				(40,652)
	Capitalized software development costs						(6,568)(	18,704)						(15,640)			(10,344)				(8,500)
	Capex						(18,468)(	48,961)						(48,817)			(42,628)				(49,152)
	Free cash flow	$		225,175	563,801			$	355,341		$	399,735	$	272,095
	Net Income	$		122,783	507,885			$	303,972		$	260,855	$	223,648
	Net cash provided by operating activities	$			243,643	612,762			$	404,158		$	442,363	$	321,247
															Trailing Twelve
÷	÷Net Income	$			122,783	507,885			$	303,972		$	260,855	$	223,648
						Three Months	Ended			Months Ended
	Operating cash flow conversion %					Mar. 31,	198%	121%						133%			170%				144%
									Mar. 31,				Mar. 31,
	In thousands					2020				2019						2020
									563,801				$	355,341		$	399,735	$	272,095
	Free cash flow		$	$		225,175
	Net cash provided by operating activities				112,770		$	87,875			$	734,418
÷	÷Net Income	$			122,783	507,885			$	303,972		$	260,855	$	223,648
	Capital expenditures					(3,613)			(3,156)				(29,573)	153%				122%
	Free cash flow conversion %						183%	111%						117%
	Capitalized software development costs					(7,203)			(4,990)				(26,867)
	Capex					(10,816)			(8,146)				(56,440)
	Free cash flow				$	101,954		$	79,729			$	677,978

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