#1MOODY'S Better decisions 2Q 2020 Investor Presentation August 11, 2020#2Disclaimer Certain statements contained in this release are forward-looking statements and are based on future expectations, plans and prospects for the business and operations of Moody's Corporation (the "Company") that involve a number of risks and uncertainties. Such statements may include, among other words, "believe", "expect", "anticipate", "intend", "plan", "will", "predict", "potential", "continue", "strategy", "aspire", "target", "forecast", "project", "estimate", "should", "could", "may" and similar expressions or words and variations thereof that convey the prospective nature of events or outcomes generally indicative of forward- looking statements. The forward-looking statements and other information in this release are made as of the date hereof and the Company undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise, except as required by applicable law or regulation. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company is identifying examples of factors, risks and uncertainties that could cause actual results to differ, perhaps materially, from those indicated by these forward-looking statements. Those factors, risks and uncertainties include, but are not limited to, the impact of COVID-19 on volatility in the U.S. and world financial markets, on general economic conditions and GDP growth in the U.S. and worldwide, and on the Company's own operations and personnel. Many other factors could cause actual results to differ from Moody's outlook, including credit market disruptions or economic slowdowns, which could affect the volume of debt and other securities issued in domestic and/or global capital markets; other matters that could affect the volume of debt and other securities issued in domestic and/or global capital markets, including regulation, credit quality concerns, changes in interest rates and other volatility in the financial markets such as that due to uncertainty as companies transition away from LIBOR and Brexit; the level of merger and acquisition activity in the U.S. and abroad; the uncertain effectiveness and possible collateral consequences of U.S. and foreign government actions affecting credit markets, international trade and economic policy, including those related to tariffs and trade barriers; concerns in the marketplace affecting our credibility or otherwise affecting market perceptions of the integrity or utility of independent credit agency ratings; the introduction of competing products or technologies by other companies; pricing pressure from competitors and/or customers; the level of success of new product development and global expansion; the impact of regulation as an NRSRO, the potential for new U.S., state and local legislation and regulations, including provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank") and regulations resulting from Dodd-Frank; the potential for increased competition and regulation in the EU and other foreign jurisdictions; exposure to litigation related to Moody's Investors Service's rating opinions, as well as any other litigation, government and regulatory proceedings, investigations and inquiries to which the Company may be subject from time to time; provisions in the Dodd-Frank legislation modifying the pleading standards, and EU regulations modifying the liability standards, applicable to credit rating agencies in a manner adverse to credit rating agencies; provisions of EU regulations imposing additional procedural and substantive requirements on the pricing of services and the expansion of supervisory remit to include non-EU ratings used for regulatory purposes; the possible loss of key employees; failures or malfunctions of our operations and infrastructure; any vulnerabilities to cyber threats or other cybersecurity concerns; the outcome of any review by controlling tax authorities of the Company's global tax planning initiatives; exposure to potential criminal sanctions or civil remedies if the Company fails to comply with foreign and U.S. laws and regulations that are applicable in the jurisdictions in which the Company operates, including data protection and privacy laws, sanctions laws, anti-corruption laws, and local laws prohibiting corrupt payments to government officials; the impact of mergers, acquisitions or other business combinations and the ability of the Company to successfully integrate such acquired businesses; currency and foreign exchange volatility; the level of future cash flows; the levels of capital investments; and a decline in the demand for credit risk management tools by financial institutions. These factors, risks and uncertainties as well as other risks and uncertainties that could cause Moody's actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements are currently, or in the future could be, amplified by the COVID-19 outbreak and are described in greater detail under "Risk Factors" in Part I, Item 1A of the Company's annual report on Form 10-K for the year ended December 31, 2019, its quarterly report on Form 10-Q for the quarter ended March 31, 2020, and in other filings made by the Company from time to time with the SEC or in materials incorporated herein or therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause the Company's actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements, which could have a material and adverse effect on the Company's business, results of operations and financial condition. New factors may emerge from time to time, and it is not possible for the Company to predict new factors, nor can the Company assess the potential effect of any new factors on it. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 2#3MOODY'S 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. Appendix 2Q 2020 Investor Presentation - August 11, 2020 3#41 Moody's Overview#5Company Overview MOODY'S MOODY'S INVESTORS SERVICE CE Independent provider of credit rating opinions and related information for over 100 years Proven ratings accuracy and deeply experienced analysts Leading global provider of credit rating opinions, insight and tools for financial risk measurement and management Revenue of $5.2 billion Adjusted Operating Income of $2.6 billion MOODY'S ANALYTICS Provides financial intelligence and analytical tools supporting our customers' growth, efficiency and risk management objectives Solutions address diverse needs and customers Expanded sales and marketing activities in Commercial group Note: Financial data for the trailing twelve months ended June 30, 2020. MOODY'S MIS MA 62% 38% MIS MA 78% 22% Adjusted Operating Margin MA MIS 60.5% 28.2% Extending brand into new markets and deepening customer relationship 2Q 2020 Investor Presentation - August 11, 2020 5#6Moody's Priorities for Strategic Growth Enhance technology infrastructure to enable automation, innovation and efficiency Foster employee engagement and creative solutions through our diverse workforce and inclusive environment Global Integrated Risk Assessments Credit Data MOODY'S eel STANDARDS, SOLUTIONS & INSIGHTS لس Moody's Core Strengths اس . Expand into New Geographies and Strategic Adjacencies REGIONAL EXPANSION Trusted brand Proprietary data and integrated analytics EMEA Asia Pacific Latin America >>> >>> BUSINESS ADJACENCIES Analytics Business-credit products Extended global customer base Commercial Real Estate Know Your Customer ESG 2Q 2020 Investor Presentation - August 11, 2020 6#7Enhanced ESG Solutions ESG & climate offerings Data Index Partnerships >>> Partnered with Euronext on a new ESG index powered by Vigeo Eiris' (VE) data: the Euronext ESG80 Agreements to provide ESG data in support of the creation of new ESG products and indices with The Stock Exchange of Thailand and Solactive ESG Integration into Analytics, Risk Measurement and CRE tools ESG Integration into Credit Ratings & Research Index Partnerships Lá ESG Assessments MOODY'S ANALYTICS Integration of Analytics, Risk Measurement and CRE tools >>> VE and 427 content integrating into multiple platforms within MA, including moodys.com and the REIS commercial real estate portal Working with asset managers, banks, regulators to develop climate-based stress testing solutions Note: For more information please refer to https://esg.moodys.io/solutions. MOODY'S Climate Risk Solutions ESG & CLIMATE RISK Sustainability Ratings Second Party Opinions (SPOs) Second Party Opinions (SPOs) » >>> » VE launched an enhanced SPO service for sustainable bonds featuring an updated impact assessment and a more intuitive, impactful format Includes Green Bonds, Social Bonds, Sustainability linked bonds and loan assessments VE'S SPO offering provides an independent assessment of green, social and sustainability bond frameworks MOODY'S 427 vigeqiris 2Q 2020 Investor Presentation - August 11, 2020 7#82 Financial Overview#9Moody's Corporation Financial Profile 2Q 2020 TTM Revenue: $5.2 billion Revenue Operating Expenses ■Recurring Transaction ■U.S. ■Non-U.S. 45% 55% MIS Other 1% PPIF 9% 45% FIG RD&A¹ 28% MIS 10% MA SFG 7% ERS 55% CFG 34% 11% Full Year 2020 Guidance as of July 30, 20202 >> Increase in the low-single-digit % range >> approximately flat Effective Tax Rate Diluted EPS » 19.5% 21.5% » $8.15 $8.55 Adjusted Diluted EPS3 » $8.80 $9.20 Operating Margin >> 43% -44% Adjusted Operating Margin³ >> 48% - 49% 1. Includes trailing twelve months of professional services revenue. Excludes MAKS. Subsequent to the divestiture of MAKS in 2019, revenue from the Moody's Analytics Learning Solutions ("MALS") unit, which previous to 2020 was reported in the Professional Services line of business ("LOB"), will now be reported as part of the RD&A LOB. 2. See press release titled "Moody's Corporation Reports Results for Second Quarter 2020" from July 30, 2020 for Moody's full 2020 guidance. 3. These metrics are adjusted measures. See Appendix for reconciliations from adjusted financial measures to U.S. GAAP. Note: The revenue reclassifications of REITs to Corporate Finance from Structured Finance and the FACT product from RD&A to ERS are reflected in the full year (FY) calculations. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 9#10Long-Term Growth Opportunities Three Levers to Achieve EPS Growth REVENUE Issuance Volume & Mix High Single Digit % Growth Range¹ Coverage Moody's Analytics Pricing Initiatives ADJ. OPERATING MARGIN High-40s % Range¹ Cost Discipline Process Re-Engineering + Technology Enablement CAPITAL ALLOCATION Reinvestment Acquisitions EPS Investing for future growth Dividend Growth & Share Count Reduction² Dividends Low Teens % Growth Range 1,2 1. Assumes no material change in effective tax rate, foreign exchange rates, leverage profile and/or capital allocation policy. Subject to market conditions and other ongoing capital allocation decisions. 2. Note: Long-term growth opportunities presented on this slide are on average over time. MOODY'S Share Repurchases 2Q 2020 Investor Presentation - August 11, 2020 10#11Macro Assumptions Underpinning Our Outlook¹ Base Case Expect continuing economic recovery in 2H 2020 Developments since April 30th ACCELERATE 2020 GDP -6% United States -9% Euro Zone -5% Global Benchmark interest rates remain low; high-yield spreads peak above 650 bps rall 眉 Continued global fiscal support and monetary stimulus actions Surge of investment grade capital raising for liquidity purposes Rebound in high yield bond issuance amid tighter spreads Robust equity markets and sharp U.S. unemployment rate of ~10% by year-end High yield default rate rising to -9%2 1. All assumptions and guidance as of July 30, 2020. 2. By the end of 2020. decline in VIX index Signs of global economic recovery DECELERATE Х COVID-19 cases continued to increase at rapid pace in the U.S., with some states rolling back re-opening measures Sources: "June 2020 Default Report" and "Global Macro Outlook 2020-2021 (June 2020 Update)" from Moody's Investors Service. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 11#12Financial Performance1 Revenue1 $ Billions ■MIS Revenue ■MA Revenue 2015-2019 CAGR 8% Low-single-digit % $4.8 $4.2 $4.4 growth $3.5 $3.6 $2.0 $1.4 $1.7 $1.2 $1.2 $2.3 $2.4 $2.8 $2.7 $2.9 2015 Operating Margin4 ■Operating Margin Adj. Operating Margin³ 42.8% 2015 46.0% 18.1% 45.9% 2016 2017 2018 2019 2020F2 43.3% 47.6% 42.0% 47.6% 41.4% 47.4% ---- 43% -44% 48% -49% 2 2016 2017 2018 2019 2020F 1. Totals may not sum due to rounding. 2. Guidance as of July 30, 2020. 3. These figures are adjusted measures. See appendix for reconciliations from adjusted financial measures to U.S. GAAP. 4. 2015-2017 operating and adjusted operating margins have been restated to conform to the new presentation for pension expenses. 5. Includes approximately $700 million in net payments pursuant to a settlement charge. MOODY'S $ Millions Adjusted Diluted EPS3 $ Per Share 2015 2015-2019 CAGR 15% $8.29 $7.39 $6.07 $4.71 $4.94 Free Cash Flow³ 2016 2 2017 2018 2019 2020F $1,606 $1,370 $1,500 $1,700 $1,109 $1,144 2015 2016 $664 20175 2018 2019 2020F2 2Q 2020 Investor Presentation - August 11, 2020 12 $8.80 - $9.20#13Capital Allocation Strategy Prudent approach in uncertain times Capital allocation goals Capital allocation levers INVESTING IN GROWTH OPPORTUNITIES C Reinvestment Acquisitions 999 Anchored around a BBB+ rating خيرة Ensure adequate financial flexibility 999 Provide necessary capital to pursue growth opportunities Meet return thresholds and create long-term value for shareholders MOODY'S Lá RETURN OF CAPITAL Dividends 0000 Share repurchase Considerations around share repurchase program COVID-19 uncertainty Manage risk Economic indicators Market volatility Free cash flow 2Q 2020 Investor Presentation - August 11, 2020 13#143 Capital Markets Overview#152Q 2020 Credit Market Update COVID-19 disrupts real economy, credit markets buoyed by stimulus - NO ON NC Real Economy COVID-19 Pandemic >> New cases of COVID-19 increased in the U.S., while declining in Europe and parts of Asia » Optimism around vaccine success due to positive early data » Policy responses: some U.S. states rolled back re-opening measures Geopolitical Impact >> U.S. - China frictions escalated >> U.S. election season in focus >> New international travel restrictions » Oil price recovery Macroeconomic Response >> IMF: Worldwide 2020 GDP revised lower by 190 bps to -4.9% in June >> U.S. Fed committed to purchasing up to $750 billion of corporate debt >> Ongoing dovish monetary policy by U.S. Fed and other central banks >> Fiscal stimulus in the E.U. ONI ☐ N 骨 Credit Markets Investment Grade Bonds >> Record 2Q 2020 issuance volumes1 >> Continued liquidity-driven capital raising >> Limited M&A pipeline High Yield Bonds » Strength throughout 2Q 2020 >> Significant spread tightening >> Increased appetites for risk assets evidenced by strong equity market performance Leveraged Loans >> Market re-opened but remained weak » Leveraged M&A limited » Continued fund outflows » Less demand for floating rate 1. MIS rated issuance. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 15#16Record 2Q 2020 Issuance, Mix Shift Investment grade bond High yield bond Bank loan - CFG transactional revenue growth Y/Y Issuance volume growth Y/Y $660 85% 65% $264 -7% $256 -3% $278 41% 40% 37% 25% $358 37% 36% 66444 -12% $170 -12% $138 $135 $114 $103 $101 $186 $135 $113 $119 $210 $171 $103 1Q19 Note: MIS rated issuance. Issuance figures displayed in billions. MOODY'S 2Q19 3Q19 4Q19 1Q20 2Q20 2Q 2020 Investor Presentation - August 11, 2020 16#17$ Billions Refunding Needs Have Grown Steadily Over Time Next Four Years North America and EMEA Total Refunding Needs¹ as of: $3,400 $3,100 $2,800 $2,500 $2,200 $1,900 $1,600 $1,300 $1,000 $1,972 2012 2013 2014 CAGR = 7% $3,466 2015 2016 2017 2018 2019 2020 1. Amount reflects total maturities identified below. Source: Moody's Investors Service. U.S. and EMEA refunding needs reports January 2012 January 2020. Note: Data represents U.S., Canadian and European MIS rated non-financial corporate bonds & loans. Canada data not available before 2015. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 17#18% of Mentions Liquidity and Refinancing Prominent Drivers of Issuance in 1H 2020, While M&A Declined Uses of Funds from USD High Yield Bonds and Bank Loans¹ Debt Refinancing M&A ■Capital Spending ■Shareholder Payments Liquidity/Working Capital 5% 9% 8% 8% 8% 15% 16% 13% 15% 13% 17% I 5% 5% 5% 7% 6% 28% 39% 35% 54% 41% 49% 71% 68% 64% 62% 54% 2015 Source: Moody's Analytics. MOODY'S 2016 2017 2018 2019 72% 1H20 1. Percent of mentions for each respective period in bond issue or bank loan program tranche documents. Excludes issues of less than $25 million and general corporate purposes. An issue can have multiple purposes and, as a result, percentages do not sum to 100%. 2Q 2020 Investor Presentation - August 11, 2020 18#19Debt Leverage and Interest Coverage in North America and Europe Credit Metrics: North American Speculative Grade Companies Interest Coverage Debt/ EBITDA EBITDA / Interest Expense 5.7x 6.0x 5.1x 5.1x 5.3x 5.4x 5.3x 5.4x 4.6x 4.6x 4.8x 4.8x 5.0x 4.5x 4.4x 4.5x 4.6x 4.0x 3.0x 2.9x 2.9x 3.1x 3.0x 2.9x 3.0x 2.9x 3.0x 3.0x 2.8x 2.7x 2.8x 2.6x 2.7x 2.4x 2.0x 1.0x 0.0x 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20201 Credit Metrics: European Speculative Grade Companies Debt/ EBITDA EBITDA / Interest Expense Interest Coverage 5.6x 6.0x 5.2x 5.3x 5.0x 4.8x 4.6x 4.4x 4.6x 4.5x 4.6x 4.5x 5.0x 4.1x 4.2x 4.1x 4.2x 4.0x 3.5x 3.7x 3.5x 3.5x 3.4x 3.4x 3.2x 3.0x 2.9x 2.9x 3.0x 3.2x 3.1x 3.1x 3.2x 2.7x 2.0x 1.0x 0.0x 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20201 1. Trailing twelve months ended June 30, 2020. Source: Moody's Investors Service. Note: Historical figures may change due to timing differences in issuer reporting deadlines. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 19#20Default Rate Forecast Rises in Wake of Unprecedented Turmoil Default Rates for Speculative-Grade Corporate Rated Issuance¹ -Global -U.S. Europe Speculative-Grade Covenant Quality Indicators² -U.S. Bonds -European Bonds Weakening -U.S. Loans 5.0 4.54x 4.23x 3.91x 4.5 12% 16% 14% 12% 10% 8% 6% 4% 2% 0% 4.0 9% MOODY'S 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 4.1% global 3.5 historic average1 6% 3.0 2.5 2.0 2019 1Q20 2. 1. Moody's rated corporate global speculative grade default historical average of 4.1% from 1983 through June 30,2020. 2020 forecast for TTM ended December 31, 2020. Covenant data for European bonds represent a three quarter rolling average, North American loans and bonds represent a two quarter rolling and a three month rolling average, respectively. Source: Moody's Investors Service. 2Q20 2020F 2012 2013 2014 2015 2016 2017 2018 2019 1Q 2020 Improving 2Q 2020 Investor Presentation - August 11, 2020 20 20#21€ Billions Disintermediation of Credit is an Ongoing Trend in the Global Capital Markets European Non-Financial Corporate Bonds vs. Bank Loans Outstanding U.S. Non-Financial Corporate Bonds vs. Bank Loans Outstanding Bonds €7,000 €6,000 €5,000 €4,000 €3,000 €2,000 €1,000 €0 MOODY'S May-06 May-08 May-10 May-12 Loans May-14 May-16 May-18 May-20 26% 74% $9,000 Bonds $7,500 Loans $ Billions $6,000 $4.500 $3,000 $1,500 $0 Jun-06 Jun-08 Jun-10 Jun-12 Jun-14 Jun-16 Jun-18 Jun-20 Sources: ECB, Federal Reserve, BarCap Indices. Europe bank loan data includes Eurozone and UK bank loans. Europe bond data includes euro and sterling denominated bonds. European data is through May 2020 and U.S. data is through June 2020. 2Q 2020 Investor Presentation - August 11, 2020 21 50% 50%#224 Moody's Investors Service#23Moody's Investors Service Financial Profile 2Q 2020 TTM Revenue: $3.2 billion Recurring Transaction U.S. Non-U.S. 38% 66% Corporate Finance 56% 62% 34% >> 25% recurring revenue >> 32% recurring revenue MIS Other 1% Public, Project, & Infrastructure Finance 15% Structured Finance 12% Financial Institutions 16% >> 52% recurring revenue >> 48% recurring revenue Note: The revenue reclassification of REITs to Corporate Finance from Structured Finance is reflected in the full year 2019 calculations. Percentages have been rounded and may not total to 100%. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 223 23#24MIS Guidance: Strong 1H 2020 Driving Improved Outlook1 FY 2020 Issuance Guidance1 $2.9B Adjusted Operating Margin¹ Revenue Low-single-digit % increase 58.0% Approximately 58% Investment Grade +50% High Yield Bonds +5% Bank Loans -20% Structured Total Issuance² -40% Low-double-digit % increase 2019 2020F1 2019 2020F¹ Key drivers of MIS FY 2020 outlook¹ Issuance² expected to grow in the low-double-digit percent range from $4.6T in 2019 » Approximately 550 first time mandates » Refinancing and liquidity driven issuance, reduced M&A activity » Recurring revenue provides stable support - Expecting issuance to slow down in 2H 2020, reflecting a mid-teens decline >>> Shift in issuance mix Higher expectation for incentive compensation, though still lower year-over-year 1. Guidance as of July 30, 2020. Refer to Table 12 - "2020 Outlook" in the press release for a complete list of guidance and a reconciliation between adjusted measures to GAAP as well as assumptions used by the Company with respect to its guidance. 2. MIS rated issuance. Total issuance includes CFG, SFG, FIG and PPIF. Excludes sovereign debt. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 24#25The Benefits of a Moody's Rating Investors seek our opinions and particularly value the knowledge of our analysts and the depth of our research. $ b € Wider access to capital Moody's opinions on credit are broadly used by institutional investors throughout the world, making an issuer's debt more attractive to a wider range of potential buyers Al Tangible financing benefits The credibility of Moody's ratings may allow rated issuers to enter the capital markets more economically through a lower cost of capital می شه Planning and budgeting Helps issuers formulate internal capital plans and funding strategies Transparency, credit comparison and market stability Signals a willingness by issuers to be transparent and provides issuers with an independent assessment against which to compare their own creditworthiness Bm Responsive to investor demand Moody's ratings are the most used by investors, (when multiple agencies are used), who have acknowledged our track record of accuracy MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 25#26Managing Ratings in Turbulent Times Transparency and relevance of credit ratings through the cycle Order sectors by degree of exposure Top 10 sectors most affected by COVID-191 010 SECTOR Order issuers by vulnerability within each sector Transportation: Consumer Hotel, Gaming & Leisure Automotive Retail Reassess all ratings in the most vulnerable sectors Mar 1 June 30, 2020 á Reassess ratings of the most vulnerable issuers in the moderately vulnerable sectors % DOWNGRADED WITHIN SECTOR 88 78 Monitor credit profiles associated with all other ratings and reassess those with special situations that merit prompt reconsideration * Coordinate analytical views and sequencing of rating actions Global corporate default rates ended June 20202 ။။။။ Take account of government policy measures designed to soften the effects of coronavirus Aaa 0.0% 44) Аа 0.0% 41 A 0.0% 36 Baa 0.1% 36 Ba 0.3% B 2.4% 33 Caa_C % 33 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Services: Consumer Energy: Oil & Gas Advertising, Printing & Publishing 33 Consumer goods: Durable Aerospace & Defense A Services: Business wwww29 1. Includes all publicly-rated nonfinancial corporate entities; excludes subsidiaries and project finance-related corporations. 2. Trailing twelve months; Source: Moody's Investors Service. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 26#27Illustrative Value of a Moody's Rating Example: 10 year $500 million corporate bond Unrated Rated by Moody's $500,000,000 x 4.3% Bond Interest rate $500,000,000 x 4.0% = = $21,500,000 Annual interest payments x 10 years == = $215,000,000 Tenor Lifetime interest expense = = $20,000,000 x 10 years = $200,000,000 $15 million in total interest expense VS. lifetime cost of a rating Note: Illustrative spread differential based on feedback from syndicate desks and FBR & Co. research on Moody's Corporation (January 2014) which stated that obtaining a Moody's rating typically saves approximately 30 basis points per year for investment grade issuers. Many factors go into the pricing of a bond. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 27#28Broad Coverage Serves Global Needs 1. Americas EMEA ~15 Years Lead/Senior Analyst tenure APAC 2,200+ rated companies and structured deals Institutional Investor #1 Global Credit Rating Agency 20191 #1 U.S. Credit Rating Agency 2012-20181 >>> 29,600+ rated companies and structured deals » 4,700+ rated companies and structured deals » » $35+ trillion total debt rated » $20+ trillion total debt rated » $13+ trillion total debt rated » 16,800 research publications » 6,700 research publications » 4,100 research publications Offices in 10 cities* >>> Offices in 13 cities* >>> Offices in 10 cities* Institutional Investor Survey. Source: Moody's Investors Service. Note: All data as of January 20, 2020, except Research Data covers the period January 1, 2019 - December 31, 2019. All numbers are rounded other than those marked *. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 28#29Strongly Positioned in Emerging Markets Emerging Markets - Domestic TAM South Africa Argentina Brazil Others Mexico MERIS Middle East Rating & Investors Service ICR M ICR Chile AN AFFILIATE OF HOODY'S INVESTORS SERVICE Peru Egypt Chile Israel Midroog A SUBSIDIARY OF MOODY'S $700 M Size of domestic CRA markets South Korea Korea Investors Service AN AFFILIATE OF MOODY'S INVESTORS SERVICE India ICRA A MOODY'S INVESTORS SERVICE COMPANY MIS Affiliate (majority) MIS Affiliate (minority) Moody's Local National Scale Ratings Other Emerging Markets China 中诚信国际 CCXI $94M MIS Emerging Markets Revenue¹ CAGR 14% $342M 2009 2019 ■Emerging Asia ■Latin America ■Middle East ■CEE/CIS Africa Note: Size of pie represents the estimated total CRA revenue from domestic markets ($700 million). 1. Includes revenue from cross border issuance. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 29 29#30Moody's in Greater China 2nd Largest Onshore Bond Market at $15 Trillion Total debt securities outstanding 2012-20191 2019 Revenue and Attributable Income from China² ■MIS Cross Border Revenue Total MA Revenue Attributable Income from CCXI $176 2012 2019 50 40 30 20 10 52322 o 3% 20% -2% 1% 1% US China Japan UK France Estimated China Ratings Market Size: Domestic and Cross Border³ » Moody's participates directly in the cross border China issuance market through MIS and in the domestic market through a 30% interest in CCXI >> Long-term growth prospects enabled by participation in the ongoing development of China's domestic credit markets » Continuing to foster constructive relationships and partnerships with issuers, regulators and other market participants $ Millions MIS Cross Border and Total MA Cross Border Market ~$290M³ 37% 63% $17 Attributable Income from CCXI Domestic Market ~$280M 42% 58% ■Rest of Market Moody's Share Rest of Market ■CCXI's Share 1. 2. Percentage growth numbers are rounded compound annual growth calculations. Source: Bank for International Settlements' latest data available as of 4Q19. Greater China: Mainland, Hong Kong and Macau. 3. Revenue as of full year 2019; USD 1 = RMB 6.92 RMB exchange rate as of December 31, 2019 is used for conversion for domestic CRAS' estimated revenue. Note: These are high level estimates based on MIS & CCXI full year 2019 revenue/market coverage in domestic market; in cross border, market share is coverage/sum of coverage for three major CRAS. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 30#31Moody's ESG: Driving Standards Beyond Credit Market Trends >> Moody's forecasts global green, social and sustainability bond issuance to be $275 to $325 billion in 20201 >> Coronavirus crisis expected to accelerate credit-relevant ESG trends with increased impact to credit² COVID-19 ::: Greater institutional preparedness for high-impact global risks Heightened focus on healthcare and social inequality Key Stats² 38,000+ Credit ratings ESG assessments integrated into Moody's Investors Services (MIS) credit ratings 6,000+ Climate risk scores Spanning countries, counties, cities, companies & real estate assets globally 5,000+ ESG assessments Covering 266 unique ESG data points 250+ Global Sustainable bonds Green, Social, Sustainability Bonds and Sustainability- linked loans and bonds PA OUTREACH » Over 500 media engagements in 1H 2020 driven by Moody's Events and research » Strategic relationships with industry organizations and influencers across sustainable finance » Moody's ESG & Climate Risk hub: A one stop- shop for everything ESG at Moody's (moodys.com/esg) Shift to multi- stakeholder Capproach to Moody's ESG Solutions corporate strategy 30+ Years of ESG experience Our affiliate Vigeo Eiris has been a pioneer in ESG analysis since the 1990s 1000+ MIS research reports Related to ESG considerations in 1H 2020, 70% COVID-related research 25+ ESG related events ESG & Climate Sustainable ESG in Credit Measures Finance Solutions Ratings and Research ESG in Risk Management Delivered in 1H 2020 through Moody's global event program Solutions Sustainable decision Moody's and ESG: Advancing Global Standards 38,000+ 5.000+ Themes 1. 2. Moody's Investors Service "Sector in-depth: Sustainable Finance - Global - Coronavirus fallout dampens 1Q 2020 green bond volumes while spurring social bonds", May 5, 2020. As of June 30, 2020; combined for all Moody's entities including affiliates. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 31#325 Moody's Analytics#33Moody's Analytics Financial Profile 2Q 2020 TTM Revenue: $2.0 billion Recurring Transaction ■U.S. ■Non-U.S. 12% 88% 57% 43% Research, Data and Analytics¹ 72% 1. Includes trailing twelve months of professional services revenue, excluding MAKS. 2. 3. Recurring revenue for RD&A as reported, including MALS for 1H20. It does not include MALS or other professional services revenue prior to 1H20. 2Q 2020 TTM includes Bureau van Dijk. >> 97% recurring revenue² 95% retention rate³ » Enterprise Risk Solutions 28% >> 77% recurring revenue >> 92% retention rate Note: The revenue reclassification of the FACT product from RD&A to ERS, MALS to RD&A and the MAKS sale is reflected in the trailing twelve month calculations. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 33 33#34Diverse Product Solutions Continuous improvement of content and user experience provides tools for customer to make better decisions, faster Integrated Experience: Ease of Use 2,800+ Enhanced Content & Coverage: More Value 1,290+ Asset Managers Commercial Banks Onboard customers Confirm KYC, AML, Ownership tree Gather financials ΟΞ علي Create credit statistics Analyze credit and transaction Run credit scores and consider portfolio Consider risks holistically Climate change, cyber, macro-economic Compliance modules Leverage BvD, RDC data Spreading tools Prepopulate and digitize financials World class credit analytics Early warning, and credit scoring Understand ESG impact of customer's business 2,300+ Corporations 700+ Insurance Companies 220+ Securities Dealers and Investment Banks 3,300+ Governments & Other Entities Multichannel Delivery: MOODY'S Web Excel add-in Mobile Third party platforms 200+ Real Estate Entities 2Q 2020 Investor Presentation - August 11, 2020 34#35$ Millions Moody's Analytics has Several Platforms for Growth Revenue Has More Than Tripled Since Inception $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 CAGR 12% $600 $400 $200 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 MOODY'S Moody's Analytics 2019 Revenue: $1,954m 2008 2019 CAGR: +12% (~60% organic) Enterprise Risk Solutions 2019 Revenue: $522m 2008 2019 CAGR: +14% (~68% organic) Professional Services¹ 2019 Revenue: $159m Research, Data & Analytics 2019 Revenue: $1,273m 2008 2019 CAGR: +11% (~62% organic) 1. Subsequent to the divestiture of MAKS in 2019, revenue from the Moody's Analytics Learning Solutions ("MALS") unit, which previous to 2020 was reported in the Professional Services line of business ("LOB"), will now be reported as part of the RD&A LOB. Prior periods have not been reclassified as the amounts were not material. Note: Individual line of business revenues may not add up to total Moody's Analytics revenue due to rounding. 2Q 2020 Investor Presentation - August 11, 2020 35#36MA Guidance¹: Top-line Growth and Margin Improvement Remain on Track Revenue Adjusted Operating Margin¹ Mid-single-digit % increase $2.0B 27.8% 2019 Key drivers of MA FY 2020 outlook¹ 2020F1 2019 Approximately 30% 2020F 1 >>> Strong recurring revenue mitigates COVID-19 impact >>> MAKS divestiture weighs on revenue growth, partially offset by RiskFirst, ABS Suite and RDC acquisitions >>> FY revenue guidance includes an unfavorable 2% - 3% impact from inorganic activity and FX >>> RD&A growth driven by strong demand for KYC and compliance solutions, followed by research and data feeds ERS: Strength in software and analytics sales supports steady growth; modest impact from delays of IFRS 17 and CECL implementations >>> Margin improvement primarily driven by operating leverage and cost management initiatives 1. Guidance as of July 30, 2020. Refer to Table 12 - "2020 Outlook" in the press release for a complete list of guidance and a reconciliation between adjusted measures to GAAP as well as assumptions used by the Company with respect to its guidance. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 36#37MA Sales Outlook¹ Resilient Amid COVID-19 Disruption Retention remains strong 94.6% 2012 -96% Research³ 94.1% 2Q 20202 Stable YTD 2020 ACTUALS ~91% ERS ~90% BvD Improving Current Outlook No change Prior Outlook Existing contractual obligations being met by MA and customers Renewal yield outlook better than prior expectations Renewal yield4 might be affected Adapting to virtual sales environment; in person meetings resuming in certain countries Social distancing preventing face to face selling efforts » Customer engagement is high through virtual interactions » Valuable content and insights support strong retention » Elevated usage of credit and economic research persists >> Sales grew in 2Q 2020; pipeline outlook is improving » Face-to-face interactions resuming in some parts of the world » Continue to expect longer sales cycles than 9-12 month historical average 1. All assumptions and guidance as of July 30, 2020. 2. Trailing twelve months; includes BvD from 2019 onward. 3. Reflects RD&A excluding BvD. 4. Incorporates retention and pricing components of recurring business growth. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 37#38RD&A: Subscription Growth Driven by Retention, Upgrades and Pricing & New Sales Subscription Sales Growth (constant currency) First Half 2020 Full Year 2017 Full Year 2018 Full Year 2019 95.6% 8.2% 4.7% 108.5% Retained Base Upgrades and Price New Sales Business Base 5.4% 96.2% 9.0% 110.6% Retained Base Upgrades and Price New Sales Business Base 95.8% 9.1% 4.8% 109.7% Retained Base Upgrades and Price New Sales Business Base 95.5% 8.2% 5.7% 109.4% GE O Expansion of ratings coverage Production of insightful credit analysis New customers in geographies with developing debt capital markets ☑ Expansion of data sets and delivery options Strong customer retention Retained Base Upgrades and Price New Sales Business Base Note: The sales growth attributions presented on this slide are related to RD&A subscription sales on a constant currency basis includes Reis and excludes Bureau van Dijk and ABS Suite. Upgrades reflect amendments to existing customer contracts. New Sales reflect new contracts with new and existing customers. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 38#39ERS Empowers Customers' Success With Analytics Technology with a purpose - Enabling better, faster decisions Our business solutions Our customers Accounting Impairments, IFRS-17 Credit decisioning & lending Credit modeling, scoring & spreading MOODY'S Balance sheet management Portfolio, valuation & ALM RegTech Regulatory reporting יווו Banks 0000 Pension Funds A |= 2 Customers Insurers Corporates Asset Managers 2Q 2020 Investor Presentation - August 11, 2020 39#40$ Millions 123 2. 3. 4. ERS: Recurring 80% of Revenue with Mid-teens CAGR $500 $400 $300 61% $200 $100 ERS Revenue: Recurring¹ vs. Non-recurring Recurring Revenue CAGR² = 16% 100% 77% 80% 60% 40% % Recurring >>> >>> >>> >>> ERS recurring revenue has grown by approximately $200 million since 2015 Emphasis on subscription products supports scalability, drives operating leverage and margin Ease of use and lower cost of ownership shifting. customer demand to SaaS Next gen products enhance customer experience, improve adoption rates and shorten sales cycles TTM³ sales as of 2Q 2020: Subscriptions (recurring)4 +13% >>> 20% $0 0% 2015 2016 2017 2018 2019 TTM32Q20 One-Time (L) Recurring (L)1 -% Recurring (R) Recurring revenue includes maintenance and subscription. Compound Annual Growth Rate, 2015-2019. Trailing twelve months ended June 30, 2020. Subscriptions / recurring sales include maintenance. Excluding maintenance, TTM subscription / recurring sales would be +21%. MOODY'S - One-time (non-recurring) +14% 2Q 2020 Investor Presentation - August 11, 2020 40 40#41Global Regulatory and Accounting Drivers for the ERS Business EMEA ASIA PACIFIC HLA FRTB* Incorporate ESG risks into supervisory process Revised minimum capital requirements for MR* Output floor* O Output floor2023 requirement CVA review* Revised minimum capital requirements for MR* Revised SA operational risk* Revised SA updateetriskerage Ratio* Revised IRB approach CR* Revised standardized approach CR* FRTB* Revised G-SIB assessment* Credit Risk Management* Revised IRB approach CR* 2022 BOE/ PRA ST EU-wide ST* 2021 BOE/ PRA BES (Climate-related element) Interest Rate Revised SA operational risk* Interest Rate Benchmark Reform Benchmark Reform 2020 BOE/ PRA ST Revised G-SIB assessment* EU Investment Firms Directive and Regulation NSFR CVA review* BOE/ PRA ST EU Sustainability taxonomy Revised SA Updated Leverage market risk* Ratio* HLA requirement Revised standardized approach CR* 2022 CVA review HLA requirement Output floor* CCAR/ DFAST FRTB* Revised standardized approach CR* Revised G-SIB assessment* CCAR / DFAST AMERICAS Revised SA operational risk Climate Change ST SFTR regulatory technical standards EU "Banking Package" CRR2, CRD5, BRRD2 EU MLD5 and SRMR2* TLAC New securitization framework EBA Guidelines on 2021 ECCAR / DFAST CCAR/ DFAST IRRBB review SCCL for large banks* Revised SA market risk* Updated Leverage Ratio* FBO SO 202 Interest Rate Benchmark Reform CCAR/ DFAST CECL TLAC Outsourcing Agreements New securitization framework Minimum Leverage Ratio Vickers reform DNB Climate ST TLAC SEC Liquidity rules (ETF, mutual funds) Supervisory rating system for LFIs ⭑NSFR* NCUA RBC rule for large credit unions Revised minimum capital requirements for MR* Revised IRB approach CR* 2023 and beyond Source: Moody's Analytics market research as of July 2020. 2022 2021 2020 2019 2020 2021 2022 2023 and beyond Note: *Regulation has been delayed/ cancelled to allow banks to focus their resources on navigating the coronavirus pandemic - please see below for details OSFI has delayed the Net Stable Funding Ratio Return (DT1) - formal reporting from Q3 2020 to Q1 2021. The FED has extended by 18 months the initial compliance dates under the single-counterparty credit limit (SCCL) rule, for bank holding companies and foreign banking organizations. The EBA communicated new deadlines within which it plans to implement certain elements of the Capital Requirements Directive and Regulation (CRD 5 and CRR 2) and the amended Bank Recovery and Resolution Directive (BRRD 2). This pushes out Integrated Reporting and ALMM elements of the package to 2021, but leaves many elements still to happen in 2020. Delays noted in last quarters report; Basel IV, G-SIB, EU-wide Stress Test and APRA delays APS 220 on credit risk management MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 41#42Bureau van Dijk Collects and Enhances Information to Deliver High Value Solutions... ☑ High Value Customer Solutions KYC, compliance and financial crime Conduct on-boarding and anti-money laundering research with extensive corporate structure and beneficial ownership data combined with information on politically exposed persons (PEPs), sanctions and adverse news. $ Corporate finance and M&A Find targets/sellers, perform M&A/deal analysis and conduct due diligence using detailed deal and company data in a standardized format. MOODY'S Transfer pricing Find comparable companies and conduct peer analysis for tax compliance. Supplier risk and procurement Increased demand to lower risk within the supply chain and for companies to have a better understanding of who they are doing business with. Moody's recently launched a Beta of the Know Your Supplier tool helping healthcare providers research PPE suppliers for criminal histories and negative media mentions. Business development Improve efficiency of sales and marketing efforts by using Orbis data to enrich and refresh CRM systems, research new markets and improve customer targeting. Credit and financial risk Assess customers, partners or suppliers using globally comparable financial strength metrics and standardized financial statements. Data management Combine multiple data sources into single entity views using unique identifiers and matching, de-duplication and data enhancement services. 2Q 2020 Investor Presentation - August 11, 2020 42#43for a Diverse Client Base and Broad Range of Use Cases BvD Customer Mix by industry1 Financial Institutions, 29% Government and Education, 22% Professional Services, 20% Corporates, 29% 1. For full year 2019. Source: Moody's Analytics. MOODY'S YoY Growth (2019 vs. 2018) 45% 40% 35% 30% 25% 20% Research (Economic/Library) Use Case Growth Rates 12% Avg Growth of Other Use Cases Trade Credit Data management Tax/Transfer pricing 15% Business development 10% Bank credit risk 5% Corporate finance and M&A 0% 0% 5% 10% 15% 20% Percent of Total Sales1 38% Growth of Compliance Use Case Compliance 25% 30% 35% 2Q 2020 Investor Presentation - August 11, 2020 43#44BvD + RDC Makes Us a Leading Global Player in KYC Improved accuracy and streamlined decisions » Bureau van Dijk accelerating growth with Moody's. BvD post acquisition revenue growth of ~16% and adjusted operating margin² of ~52% >> BVD + RDC creates a leading provider of data for compliance-related use cases >> The KYC space is a $900M market with ~18% 5-yr CAGR³ >> 2019 pro forma combined compliance product sales of ~$150M4 Expect combined sales to more than double by 20235 » Complementary assets: RDC's Global Risk Information Database (GRID): over 12 million profiles of risk-related organizations and individuals Worldwide entity and ultimate ownership data from BvD's Orbis database and Compliance Catalyst tool BvD 375M+ PUBLIC & PRIVATE ENTITIES RDC 12.5M+ 195M+ 188M ACTIVE OWNERSHIP SHAREHOLDERS LINKS + 1.7M+ 1,000 RISK PROFILES MONITORED LISTS POLITICALLY EXPOSED PEOPLE 1. 2. 2019 revenue growth. 2018 revenue includes the impact of $17M of revenue reductions relating to previous adjustments to deferred revenue recorded as part of acquisition accounting. Direct adjusted operating margin for Bureau van Dijk for full year 2019. Excludes the allocation of corporate overhead expenses. 3. Source: Burton-Taylor, "AML/KYC Data & Services Global Sizing 2019", November 2019; Moody's Analytics estimates. 4. Pro forma estimate assuming RDC owned for full year 2019. 5. Guidance as of February 12, 2020. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 44#456 Appendix#46Corporate Finance: Revenue and Issuance Revenue¹: Mix by Quarter $ Millions 2 ■ Other ■Investment Grade ■Speculative Grade ■Bank Loans $600 $500 $400 Issuance³: Mix by Quarter ■Global Non-Financial Investment-Grade Bonds Global Non-Financial Speculative-Grade Bonds ■U.S. Speculative-Grade Bank Loans ■Non-U.S. Speculative-Grade Bank Loans $43 $1,200 $99 $18 $1,000 $89 $44 $121 $83 $89 $800 $164 $300 $73 $68 $50 $75 $43 $55 $78 $70 $59 $57 $69 $57 $291 $75 $600 $72 $26 $25 $108 $119 $200 $39 $19 $144 $210 $39 $111 $72 $55 $57 $97 $96 $106 $100 $105 $162 $134 $80 $400 $28 $105 $94 $123 $105 $120 $732 $100 $64 $103 $139 $135 $145 $128 $140 $140 $139 $145 $139 $200 $33 $305 $329 $236 $314 $370 $406 $433 $221 $0 $0 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Revenue¹: Mix by Year ■ Other 2 ■Investment Grade ■Speculative Grade ■Bank Loans $1,600 $1,400 Issuance³: Mix by Year ■Non-U.S. Speculative-Grade Bank Loans ■U.S. Speculative-Grade Bank Loans ■Global Non-Financial Speculative-Grade Bonds Global Non-Financial Investment-Grade Bonds $313 $3,000 $ Millions $1,200 2 $1,000 $800 $349 $379 $2,500 $144 $247 $258 $242 $204 $254 $212 $254 $175 $155 $183 $219 $181 $379 $229 $271 $600 $120 $194 $301 $230 $305 $ Billions $120 $2,000 $638 $204 $425 $504 $353 $425 $354 $414 $601 $492 $1,500 $426 $329 $262 $411 $120 $193 $400 $1,000 $273 $330 $405 $329 $311 $304 $197 $137 $293 $250 $200 $275 $312 $363 $420 $421 $425 $488 $554 $547 $500 $1,125 $1,073 $1,043 $1,120 $1,192 $1,271 $1,419 $1,074 $641 $750 $0 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1. 2. 3. Historical data has been adjusted to conform with current information and excludes intercompany revenue. The revenue reclassification of REITs to Corporate Finance from Structured Finance is reflected starting from 1Q 2018. Other includes: monitoring, commercial paper, medium term notes, and ICRA. Sources: Moody's Analytics, Dealogic. U.S. and Non-U.S. Speculative-Grade Bank Loans represent only Moody's rated speculative-grade bank loans. Non-U.S. Speculative-Grade Bank Loan Origination data available starting 2016. Note: Debt issuance categories do not directly correspond to Moody's revenue categorization. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 46#47Corporate Finance: Revenue Diversification Revenue¹: Distribution by Geography Non-U.S. ■U.S. Revenue¹: Distribution by Recurring vs. Transaction 100% ■Transaction Recurring 100% 80% 27% 35% 31% 30% 29% 28% 31% 29% 25% 20% 80% 38% 65% 63% 64% 65% 63% 68% 66% 62% 65% 69% 72% 60% T 60% 40% T 40% 73% 65% 62% 70% 69% 71% 72% 71% 69% 75% 80% 35% 37% 36% 35% 32% 20% T 0% 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 37% 34% 38% 35% 31% 28% 20% 0% 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 Revenue¹: Distribution by Product Other 2 Investment Grade ■Speculative Grade ■Bank Loans 100% 8% 20% 22% 31% 26% 24% 23% 19% 21% 20% 28% 17% 80% 7% 16% 18% 15% 21% 17% 17% 13% 13% 60% 15% 19% 18% 20% 27% 25% 27% 22% 25% 32% 51% 19% 40% 50% 20% 44% 40% 35% 36% 36% 36% 38% 37% 32% 24% 0% 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 1. 2. Historical data has been adjusted to conform with current information and excludes intercompany revenue. The revenue reclassification of REITs from Corporate Finance to Structured Finance is reflected starting from 1Q 2018. Other includes: monitoring, commercial paper, medium term notes, and ICRA. Note: Percentages have been rounded and may not total to 100%. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 47#48$ Millions $ Millions Structured Finance: Revenue and Issuance Revenue¹: Mix by Quarter Issuance²: Mix by Quarter ABS RMBS ■CMBS ■Structured Credit Other ■ ABS ■RMBS ■ CMBS ■Structured Credit $160 $140 $350 $300 $1 $120 $0 $44 $1 $1 $250 $49 $100 $1 $1 $49 $55 $47 $1 $64 $1 $57 $51 $41 $32 $200 $36 $39 $51 $38 $80 $35 $40 $29 $1 $27 $34 $25 $21 $150 $26 $70 $60 $18 $24 $15 $18 $20 $25 $21 $85 $31 $87 $18 $17 $74 $13 $16 $63 $64 $100 $65 $40 $27 $3 $24 $24 $24 $24 $22 $26 $48 $27 $23 $4 $20 $50 $115 $89 $79 $90 $91 $103 $16 $28 $25 $26 $23 $26 $25 $25 $22 $23 $65 $66 $43 $0 $0 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Revenue¹: Mix by Year ABS ■RMBS ■CMBS Structured Credit Other $600 $2 $2 $2 $0 $2 $4 $400 $165 $0 $0 $135 $137 $122 $196 $91 $96 $148 $95 $116 $122 $140 $133 $143 $78 $81 $200 $85 $73 $76 $81 $85 $90 $98 $95 $110 $98 $92 $91 $94 $97 $107 $99 $0 T 2012 2013 2014 2015 2016 2017 2018 2019 MOODY'S $ Billions Issuance²: Mix by Year ABS ■RMBS CMBS ■Structured Credit $1,400 $1,200 $1,000 $800 $39 $73 $200 $153 $65 $159 $136 $36 $94 $132 $115 $600 $114 $116 $120 $145 $120 $371 $117 $94 $270 $400 $231 $189 $238 $254 $283 $200 $204 $200 $319 $335 $317 $319 $292 $298 $337 $384 $348 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2. 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. The revenue reclassification of REITs to Corporate Finance from Structured Finance is reflected starting from 1Q 2018. Sources: AB Alert, CM Alert, Moody's Corporation. Debt issuance categories do not directly correspond to Moody's revenue categorization. Notes: ABS (Asset Backed Securitization) includes asset-backed commercial paper and long-term asset-backed securities. RMBS (Residential Mortgage Backed Securitization) includes covered bonds. CMBS includes commercial mortgage- backed securities and commercial real estate CDOs. Structured Credit includes CLOS and CDOS. 2Q 2020 Investor Presentation - August 11, 2020 48#49Structured Finance: Revenue Diversification Revenue¹: Distribution by Geography Non U.S. ■U.S. Revenue¹: Distribution by Recurring vs. Transaction ■Transaction ■Recurring 100% 100% 80% 33% 63% 62% 63% 63% 61% 64% 56% 80% 36% 37% 36% 64% 62% 63% 64% 44% 39% 45% 43% 42% 48% 57% 60% 60% 40% 40% 67% 64% 63% 64% 20% 44% 56% 61% 55% 57% 58% 37% 38% 37% 37% 39% 36% 36% 38% 37% 36% 52% 20% 43% 0% 0% 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q10 FY19 1Q20 2Q20 Revenue¹: Distribution by Product ABS RMBS CMBS Structured Credit Other 100% 1% 0% 0% 0% 1% 1% 1% 1% 1% 1% 1% 29% 30% 26% 80% 43% 39% 41% 35% 37% 38% 35% 44% 16% 60% 23% 18% 18% 19% 18% 17% 14% 13% 20% 16% 28% 40% 23% 21% 21% 19% 20% 21% 21% 24% 28% 22% 20% 28% 22% 22% 21% 22% 23% 23% 24% 23% 23% 23% 0% 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. The revenue reclassification of REITS to Corporate Finance from Structured Finance is reflected starting from 1Q 2018. Notes: ABS (Asset Backed Securitization) includes asset-backed commercial paper and long-term asset-backed securities. RMBS (Residential Mortgage Backed Securitization) includes covered bonds. CMBS includes commercial mortgage- backed securities and commercial real estate CDOS. Structured Credit includes CLOS and CDOs. Percentages have been rounded and may not total to 100%. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 49#50$ Millions Financial Institutions: Revenue and Issuance Revenue¹: Mix by Quarter ■Banking ■Insurance ■Managed Investments ■ Other Issuance²: Mix by Quarter ■Global Speculative Grade Financial Corporate Bonds ■Global Investment Grade Financial Corporate Bonds $160 $140 $2 $500 $3 $3 $8 $3 $3 $3 $29 $3 $3 $120 $7 $6 $10 $6 $36 $4 $7 $400 $5 $44 $24 $100 $33 $3 $38 $29 $28 $30 $20 $18 $31 $18 $31 $34 $80 $6 $300 $27 $15 $60 $200 $4 $396 $396 $40 $77 $73 $80 $84 $80 $86 $88 $339 $327 $76 $315 $63 $279 $309 $333 $20 $100 $170 $0 $0 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q 19 4Q19 1Q20 2Q20 Revenue¹: Mix by Year ■Banking ■Insurance ■Managed Investments ■ Other $500 $12 Issuance²: Mix by Year ■Global Speculative Grade Financial Corporate Bonds ■Global Investment Grade Financial Corporate Bonds $450 $13 $13 $25 $2,000 $22 $25 $400 $2 $9 $10 $0 $119 $ Millions $350 $0 $19 $16 $17 $102 $114 $1,600 $0 $16 $300 $19 $17 $89 $92 $96 $102 $79 $250 $73 $200 $ Billions $79 $137 $74 $197 $183 $108 $136 $1,200 $112 $161 $150 $300 $320 $800 $290 $100 $205 $228 $234 $242 $244 $240 $1,312 $1,266 $1,247 $1,194 $1,187 $1,232 $1,248 $1,298 $1,072 $400 $50 $0 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019 2. 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Sources: Moody's Analytics, Dealogic. Note: Debt issuance categories do not directly correspond to Moody's revenue categorization. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 50 50#51Financial Institutions: Revenue Diversification Revenue¹: Distribution by Geography Non U.S. ■U.S. Revenue¹: Distribution by Recurring vs. Transaction ■Transaction ■Recurring 100% 100% 80% 37% 45% 44% 40% 42% 45% 42% 42% 50% 48% 49% 80% 53% 53% 51% 58% 59% 54% 58% 55% 52% 46% 60% 72% 60% 40% 40% 63% 55% 50% 56% 60% 58% 55% 58% 58% 52% 51% 20% 47% 20% 47% 42% 49% 46% 41% 42% 45% 48% 54% 28% 0% 0% 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 Revenue¹: Distribution by Product ■Banking Insurance ■Managed Investments Other 3% 3% 2% 2% 3% 3% 2% 1% 100% 5% 3% 8% 5% 4% 5% 5% 6% 80% 25% 26% 22% 26% 27% 25% 24% 31% 60% 40% 66% 69% 68% 66% 66% 67% 69% 62% 20% 0% FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Note: Percentages have been rounded and may not total to 100%. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 51#52$ Millions $ Millions Public, Project and Infrastructure: Revenue and Issuance Issuance2: Mix by Quarter Revenue¹: Mix by Quarter ■■Public Finance and Sovereign ■ Project & Infrastructure Finance ■ Other $150 Long-Term Rated U.S. Muni Bonds ■Rated Global Project & Infrastructure Finance Bonds $250 $100 $60 $69 $62 $56 $55 $52 $54 $49 $47 $ Billions $200 $150 $52 $114 $75 $67 $50 $100 $57 $64 $64 $39 $51 $52 $45 $42 $46 $53 $58 $65 $57 $64 $129 $50 $82 $78 $74 $71 $79 $95 $95 $76 $0 $0 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Revenue¹: Mix by Year ■Public Finance and Sovereign ■Project & Infrastructure Finance ■ Other Issuance²: Mix by Year ■Long-Term Rated U.S. Muni Bonds ■Rated Global Project & Infrastructure Finance Bonds $500 $900 $450 $800 $400 $700 $350 $188 $213 $224 $300 $174 $206 $250 $142 $167 $181 $ Billions $600 $500 $121 $200 $400 $207 $266 $243 $220 $150 $300 $100 $156 $181 $202 $225 $218 $222 $200 $408 $174 $177 $185 $364 $384 $374 $313 $302 $307 $292 $50 $100 $248 $0 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019 1. 2. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Global Rated Project & Infrastructure Finance available starting in 2016 and represents Moody's rated issuance. Sources: Thomson SDC, Moody's Corporation. Note: Debt issuance categories do not directly correspond to Moody's revenue categorization. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 52#53Public, Project and Infrastructure: Revenue Diversification Revenue¹: Distribution by Geography ■Non-U.S. ■U.S. Revenue¹: Distribution by Recurring vs. Transaction ■Transaction ■Recurring 100% 100% 28% 80% 80% 36% 39% 42% 39% 41% 34% 31% 33% 35% 37% 57% 60% 60% 59% 65% 64% 61% 64% 63% 62% 65% 60% T 60% 40% 40% 64% 61% 58% 61% 59% 66% 69% 72% 67% 65% 63% 20% 43% 40% 40% 41% 35% 36% 39% 36% 37% 38% 20% 35% 0% 0% 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 Revenue¹: Distribution by Product ■Public Finance and Sovereign ■Project & Infrastructure Finance ■ Other 100% 80% 52% 54% 55% 53% 51% 51% 52% 48% 50% 48% 52% 60% 40% 48% 46% 45% 47% 49% 49% 48% 52% 50% 52% 48% 20% 0% 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Note: Percentages have been rounded and may not total to 100%. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 53 53#54$ Millions Moody's Analytics: Financial Overview ■■■ Professional Services Revenue¹: Mix by Quarter ■Enterprise Risk Solutions Revenue¹: Distribution by Line of Business ■Research, Data and Analytics Revenue¹: Mix by Year $600 $2,400 100% $500 $400 $37 $40 $110 $115 $44 $42 $43 $124 $122 $117 $133 $43 $31 $149 80% $138 $131 9% 9% 9% 9% 9% 9% 9% 6% 8% 26% 26% 27% 26% 26% 25% 27% 29% 27% $2,000 28% 26% $159 $1,600 $159 $522 60% $300 $200 $100 40% $276 $280 $297 $308 $315 $318 $333 $358 $366 65% 64% 64% 65% 65% 66% 64% 65% 65% 72% 74% $ Millions $149 $451 $1,200 $147 $150 $168 $449 $800 $62 $108 $119 $374 $419 $329 20% $196 $243 $263 $1,273 $400 $1,121 $833 $445 $483 $520 $572 $626 $668 $0 0% $0 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 Revenue¹: Distribution by Geography Non-U.S. ■U.S. 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenue¹: Distribution by Recurring vs. Transaction ■Transaction ■Recurring 100% 100% 80% 41% 40% 42% 41% 43% 42% 42% 42% 42% 43% 44% 80% 60% 60% 84% 84% 83% 84% 85% 85% 84% 86% 85% 90% 92% 40% 40% 59% 60% 58% 59% 57% 58% 58% 58% 58% 57% 56% 20% 20% 16% 16% 17% 16% 15% 15% 16% 14% 15% 10% 8% 0% 0% 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 MOODY'S 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Research, Data and Analytics includes Bureau van Dijk revenue beginning from the acquisition close date, August 10, 2017. The revenue reclassification of the FACT product from RD&A to ERS is reflected starting from 1Q 2018. Subsequent to the divestiture of MAKS in 2019, revenue from the Moody's Analytics Learning Solutions ("MALS") unit, which previous to 2020 was reported in the Professional Services line of business ("LOB"), will now be reported as part of the RD&A LOB. Note: Percentages have been rounded and may not total to 100%. 2Q 2020 Investor Presentation - August 11, 2020 54#55$ Millions Historically, Moody's Revenue and Interest Rates Have Not Been Strongly Correlated MCO Revenue and Interest Rates $6,000 7.8% $5,000 MIS Revenue (L) MIS Revenue Guidance MA Revenue (L) MA Revenue Guidance IMCO Revenue (L) 10-yr U.S. Treasury Yield (R)1 $4,000 5.8% $3,000 +200bps 4.7% $2,000 $1,000 $0 40 1992 1993 1994 +180bps Note: Gray bars reflect periods of significant increases in the 10-year Treasury Yield. 1. 10-yr U.S. Treasury Yields are represented by the rate at the end-of-period. 2. Guidance as of July 30, 2020. Source: www.treasury.gov. MOODY'S 6.5% +100bps 3.3% 3.0% 2.3% 1.8% 2011 +120bps 9% 8% 7% 6% 5% 4% 3% 2% 1.9% 1% 2019 2020F² +0% 2Q 2020 Investor Presentation - August 11, 2020 55#56Proactive Capital and Liquidity Management Bond portfolio WAC1 Balanced maturity schedule 5,6 $ in millions $500 million 40 year maturity bond issued at 2.55% on August 4th, 2020 4.7% 4.3% 4.3% 3.9% 3.5% 3.3% 4.2% 3.9% 4.0% 3.4% 250 3.4% 3.4% 330 700 562 500 500 2.1% 400 2.2% 842 600 500 400 300 250 170 2014 2015 WAC With Hedges 2016 2017 2018 2019 2020 WAC Excluding Hedges 2022 2023 2024 2025 2026 2027 2028 2029 2030 ■USD Fixed ■Commercial Paper EUR Fixed Annualized Dividend Per Share 2044 2048 2050 EUR Floating 2060 » Strong liquidity with $2.2B in cash and short-term investments, and a $1.0B revolving credit facility² 1.6x net debt to adjusted operating income³ » Leverage well below maximum 4.5x net debt/EBITDA covenant4 $2.24 $2.00 $1.76 $1.48 $1.52 $1.36 2. 1. WAC = Weighted Average Coupon. As of year-end. 2020 data as of June 30, 2020. As of June 30, 2020. 2015 2016 2017 2018 2019 2020F2 5. 6. Pro forma $500M 40 year maturity bond issued at 2.55% on August 4, 2020 and the prepayment of $500M of senior notes maturing in of December 2021. MOODY'S 3. Trailing twelve months adjusted operating income. Amounts are adjusted measures, see Appendix for reconciliations from adjusted financial measures to U.S. GAAP and gross debt to net debt. 4. Total Debt (gross debt less $100M of cash and equivalents) to EBITDA ratio threshold is normally 4.0x, but elevated to 4.5x for three quarters after an acquisition >$500 million. Certain USD denominated debt has been synthetically converted to EUR via cross-currency swaps. EUR converted to USD as of June 30, 2020. 2Q 2020 Investor Presentation - August 11, 2020 56#57Drivers of Sustainable Corporate Value Introduced Sustainability Disclosures in our Public Filings °. ENVIRONMENTAL >>> Measurement of carbon emissions and identification of opportunities to reduce indirect GHG emissions » Expansion of ESG products and services >>> CDP1 participation » Verifiably carbon neutral in 2019 .. SOCIAL » Support a diverse and inclusive workplace » Active global community and philanthropic involvement >>> Robust data security and privacy practices » Fair compensation practices and benefits packages » Recognized by Working Mother's list of 100 Best Companies 1. Carbon Disclosure Project. 0. 1000 ESG 0000 GOVERNANCE >>> Professional integrity » Systematic risk management >>> Diverse Board membership and skill sets » Separate CEO and Chairman positions >>> Active stockholder engagement Executive compensation metrics include²: >> Moody's Corporation EPS and operating income >> MIS operating income and ratings performance » MA operating income and sales » Strategic & operational³ 2. While the Company reports its financial results in accordance with GAAP, financial performance targets and results under the Company's incentive plans are based on adjusted financial measures. These metrics and the related performance targets are relevant only to Moody's executive compensation program and should not be used or applied in other contexts. 3. This measure is a qualitative assessment of strategic and operational metrics tied to key non-financial business objectives certified by the Compensation & Human Resources Committee at the beginning of the performance period. The Committee assessed the achievement of the metric by evaluating performance against the following objectives: (i) new sources of growth; (ii) quality assurance and controls; (iii) operating effectiveness and efficiency; (iv) people and culture; (v) risk management; and (vi) enabling technologies and capabilities. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 57#58Ongoing Corporate Social Responsibility Commitment Employees >> Employee safety and wellbeing remains our primary priority Aligning return-to-office plans with guidance from relevant local authorities » Adapting best practices and feedback from work-from-home experience to design our future organizational model >> Focusing on equality, diversity and inclusion: - Anti-racism awareness and training campaigns Named to DiversityInc's "Top 50 Companies for Diversity" Communities >> Over $10M of in-kind contributions through free access to products and services » Committing $1M to promote equal justice and advancement of the Black community Empowering Black-owned businesses and developing employment opportunities. Customers and Policymakers » Increased engagement with customers to understand their needs » Ongoing dialogue with governments to provide data and insights relevant to stimulus and economic recovery measures >> Tools and information provided to increase market transparency and empower decision makers Environmental Sustainability Program Enhancements¹ Carbon Neutrality >> Committed to remaining carbon neutral on an annual basis » Offsetting greenhouse gas (GHG) emissions retroactively to September 20002 Renewable Energy >> Beginning 2020: procure 100% renewable electricity Science-based Targets >> Validated by the Science Based Targets initiative³ 1. 2. 3. Please see Moody's press release "Moody's Announces Environmental Sustainability Commitments" published on July 28, 2020 for more details. To be completed by 2040 through the purchase of verified carbon offsets. The Science Based Targets initiative is a collaboration between CDP, UNGC, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), that is seeking to reduce corporate GHG emissions. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 58#59Technology: Innovating with Purpose Next Gen Tech is a Defining Element of our Culture, Setting Stage for Growth 사 Enhance Data & Analytics » Incorporating alternative data sources to augment SME credit scoring accuracy » QuantCube pilot program to synthesize unstructured data to enhance financial analysis » CompStak's use of crowd-sourced data on CRE leases and sales m Improve Decisions >> NLP based early warning and monitoring tools for MIS analysts and MA customers » Al tailored credit training for MA customers - Credit Coach » Faster loan approvals with Al powered lending decisions - CreditLens Si Deliver Efficiencies >> ML and deep learning tools to automate financial data spreading at both MA and MIS >> Al and NLP used to generate credit reports on 6,000 municipal issuers >> RPA of manual, repeatable tasks within MIS Increase Adaptability » SaaS accelerating product development and improving customer experience » Leveraging PaaS to experiment with application of tools and techniques -- blockchain and big data >> Moody's IT moving to laaS to expand capabilities and lower costs Note: Al: Artificial Intelligence; ML: Machine learning; NLP: Natural language processing; RPA: Robotic process automation; laaS: Infrastructure-as-a-service; SaaS: Software-as-a-service; PaaS: Platform-as-a-service. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 59 59#60MIS: Robust IG Issuance Drove Results Issuance1 $ Millions MIS Revenue YoY Change $938 27% $10 $739 $133 23% $6 $142 14% $108 $81 (28%) $125 $112 47% $572 $388 $ Millions $ Billions 60.1% 53% 1,168 2Q19 1,785 2Q20 MIS Adjusted Operating Income and Margin +390bps $201 $464 (42) 64.0% $623 2Q19 2Q20 CFG ■ SFG ■FIG ■PPIF ■MIS Other >>> CFG benefitted from liquidity-driven issuance and attractive refinancing rates, leading to record supply in 2Q 2020 » SFG remains weak: lack of asset supply constraining CLO and CMBS formation 2Q19 MIS Adjusted Operating Income MIS Revenue Increase 2 MIS Expense Increase 2 2Q20 MIS Adjusted Operating Income PPIF issuance was very strong, but contributed to the less. favorable issuance mix in the quarter Revenue growth outpaced personnel expense to drive 390 bps increase in adjusted operating margin 1. 2. MIS rated issuance, excludes sovereign debt issuance. Includes intercompany revenue and expenses. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 60#61MA: Strong Organic Revenue Growth and Margin Expansion $ Millions $475 $43 $117 MA Revenue¹ $497 YOY Change 5% $131 12% $366 $315 16% 2Q19 2Q20 RD&A ERS ■ PS MA revenue grew 8%, excluding the impact of the MAKS divestiture, acquisitions and FX Driven by KYC and compliance solutions, research and data feeds $ Millions MA Adjusted Operating Income and Margin 28.2% +50bps 28.7% $135 $21 ($13) $143 2Q19 MA Adjusted Operating Income MA Revenue MA Expense Increase 2 Increase² 2Q20 MA Adjusted Operating Income » Year-over-year margin expansion enabled by: - Top-line growth generating operating leverage - Reduced marketing, travel and entertainment expense Subsequent to the divestiture of MAKS in 2019, revenue from the Moody's Analytics Learning Solutions ("MALS") unit, which previous to 2020 was reported in the Professional Services line of business ("LOB"), is now being reported as part of the RD&A LOB. Prior periods have not been reclassified as the amounts were not material. 1. 2. Includes intercompany revenue and expenses. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 61#621. 2. 2020 Moody's Global Presence 4,052 U.S. employees + 7,227 non-U.S. employees 11,279 total employees¹ As of June 30, 2020. Reflects acquisition of RDC, VE, Four Twenty Seven, Risk First, ABS Suite and divestiture of MAKS. As of June 30, 2019. MOODY'S 2019 3,903 U.S. employees Americas Argentina Brazil Canada Chile Costa Rica Mexico Panama Peru United States Europe, Middle East & Africa Austria Poland Belgium Cyprus Portugal Russia Czech Republic Saudi Arabia Denmark Slovak Republic France South Africa Germany Spain Israel Sweden Italy Switzerland Lithuania United Arab Emirates Morocco United Kingdom Netherlands Asia-Pacific Australia China Hong Kong India Japan Nepal Singapore South Korea Thailand Sri Lanka + 9,319 13,222 non-U.S. employees total employees² 2Q 2020 Investor Presentation - August 11, 2020 62#63Reconciliation of Adjusted Financial Measures to GAAP Adjusted Operating Income and Adjusted Operating Margin Reconciliation1 TTM (in $ millions) 2015 2016 2017 2018 2019 2Q 2020 Moody's Corporation Net Debt Reconciliation Operating Income Operating Margin $1,491 $651 $1,821 42.8% 18.1% 43.3% $1,868 $1,998 42.0% 41.4% $2,355 45.3% Add Adjustment: (in $ millions) 2015 2016 2017 2018 Depreciation & Amortization 114 127 158 192 200 205 Gross debt 1Q 2020 2Q 2020 $3,381 $3,363 $5,540 $5,676 $5,581 $6,788 $6,333 2019 Acquisition-Related - 23 8 3 0 Less: Cash, cash Expenses equivalents and short- 2,232 2,225 1,183 1,818 1,930 2,231 2,199 Restructuring Captive insurance company settlement Settlement Charge 12 49 60 -2 term investments 16 16 Net debt $1,148 $1,138 $4,357 $3,858 $3,651 $4,557 $4,134 864 Loss pursuant to the 14 14 divestiture of MAKS Adjusted Operating Income $1,605 Adjusted Operating Margin 46.0% $1,654 $2,002 $2,117 $2,291 $2,588 45.9% 47.6% 47.6% 47.4% 49.8% 1. 2014-2017 operating and adjusted operating income have been restated to conform to the new presentation of pension accounting. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 63#64Reconciliation of Adjusted Financial Measures to GAAP (cont.) Moody's Corporation Operating Margin Guidance Reconciliation Projected Operating Margin - GAAP Depreciation & Amortization Restructuring Loss pursuant to the divestiture of MAKS Projected Adjusted Operating Margin Free Cash Flow Reconciliation 2020F1 43% -44% Approximately 4.5% Approximately 0.5% Negligible 48%-49% (in $ millions) 2015 2016 2017 2018 2019 2020F1 Net cash flows from operating activities Less: Capital expenditures $1,198 $1,259 $755 $1,461 89 115 91 Free Cash Flow $1,109 $1,144 $664 91 $1,370 $1,675 69 $1,600 $1,800 ~100 $1,606 $1,500 $1,700 1. Guidance as of July 30, 2020. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 64#65Reconciliation of Adjusted Financial Measures to GAAP (cont.) Moody's Corporation Diluted EPS Reconciliation 2015 2016 2017 2018 2019 2020F1 Diluted EPS - GAAP $4.63 $1.36 $5.15 $6.74 $7.42 $8.15 $8.55 Legacy Tax (0.03) Impact of Litigation Settlement $3.59 Captive insurance company settlement $0.06 ICRA Gain FX gain on liquidation of a subsidiary ($0.18) Restructuring $0.04 $0.19 $0.23 ~ $0.10 CCXI Gain ($0.31) Acquisition-Related Expenses $0.10 $0.03 $0.02 Purchase Price Hedge Gain ($0.37) Acquisition-Related Intangible Amortization Expenses $0.11 $0.13 $0.23 $0.40 $0.42 Loss pursuant to the divestiture of MAKS $0.07 ~ $0.50 $0.05 Impact of U.S. tax reform $1.28 ($0.30) Net Impact of U.S./European tax change on deferred taxes ($0.01) Increase to non-U.S. UTPS $0.33 Tax charge pursuant to the divestiture of MAKS Adjusted Diluted EPS $0.07 $4.71 $4.94 $6.07 $7.39 $8.29 $8.80 - $9.20 1. Guidance as of July 30, 2020. Note: Table may not sum to total due to rounding. MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 65#66MOODY'S Better decisions Investor Relations ir.moodys.com [email protected] moodys.com#67© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. 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MOODY'S 2Q 2020 Investor Presentation - August 11, 2020 67