#1MOODY'S Better decisions 3Q 2020 Investor Presentation November 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 Brexit and uncertainty as companies transition away from LIBOR; 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 3Q 2020 Investor Presentation - November 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 3Q 2020 Investor Presentation - November 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 Leading global provider of credit rating opinions, insight and tools for financial risk measurement and management Revenue of $5.3 billion Adjusted Operating Income of $2.7 billion MOODY'S ANALYTICS Provides financial intelligence and analytical tools supporting our customers' growth, efficiency and risk management objectives Proven ratings accuracy and deeply experienced analysts Expanded sales and marketing activities in Commercial group Note: Financial data for the trailing twelve months ended September 30, 2020. MOODY'S MIS MA 62% 38% Adjusted Operating Margin MA MIS 61.6% 28.8% MIS MA 78% 22% Solutions address diverse needs and customers Extending brand into new markets and deepening customer relationship 3Q 2020 Investor Presentation - November 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 >>> >>> Analytics Business-credit products Extended global customer base BUSINESS ADJACENCIES Commercial Real Estate Know Your Customer ESG 3Q 2020 Investor Presentation - November 11, 2020 6#7Priorities for Strategic Growth: Investing with Intent Recent investments accelerate strategic growth priorities BUSINESS ADJACENCIES Know Your Customer ESG Acquire Media >>> Enhances KYC business Curated news and workflow solutions enable the creation of early warning and real-time insights ESG Solutions Group >> Brings together Moody's portfolio of premier ESG assets >>> Creates unified solutions and accelerates innovation to drive new products and research MOODY'S REGIONAL EXPANSION Asia Pacific >>> » MARC: Minority investment in a Malaysian domestic rating agency Created the Commercial Strategies Group in China to focus on growth opportunities for MA Facilitates development of new products and insights Better align with market opportunities, as well as local regulatory requirements Mio Tech: Minority investment in China based ESG and KYC data provider Expansion of Moody's Local in Uruguay and Argentina >>> Latin America 3Q 2020 Investor Presentation - November 11, 2020 7#8Priorities for Strategic Growth: ESG Integrated Across All Platforms, Driving Growth and Enhanced Relevance V.E VIGEO EIRIS, ANATUAT OF MOODY'S + ESG & CLIMATE RISK 427 MIS Integration DOO ויןוי A MA Integration Stand-alone ESG & Climate Solutions Lá Climate Risk Solutions ESG Assessments Carbon Transition Assessment ESG & Climate Risk Impact on Credit Real Estate Solutions Moodys.com Corporate Governance Assessment Thematic Reports APIs, Data Feeds Lending Solutions and Tools and Other Subscriptions MOODY'S ESG Data (Indices) Second Party Opinions (Green Bonds) Sustainability Ratings 3Q 2020 Investor Presentation - November 11, 2020 8#92 Financial Overview#10Moody's Corporation Financial Profile 3Q 2020 TTM Revenue: $5.3 billion ■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 10% 55% CFG 35% Revenue Operating Expenses Effective Tax Rate Full Year 2020 Guidance as of October 29, 2020² >> Increase in the high-single-digit % range » 19.5% 21.5% >> Increase in the low-single-digit % range » Approximately 45% >> Approximately 50% Diluted EPS Adjusted Diluted EPS³ Share Repurchases » $9.30 $9.50 » $9.95 $10.15 » Approximately $500 million 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. Operating Margin Adjusted Operating Margin³ 1. 2. See press release titled "Moody's Corporation Reports Results for Third Quarter 2020" from October 29, 2020 for Moody's complete full year 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 3Q 2020 Investor Presentation - November 11, 2020 10#11Macro Assumptions Underpinning Our Outlook Macro assumptions underpinning our guidance¹ 2020 GDP -6% United States -9% Euro area -5% Global Benchmark interest rates remain low; U.S. high-yield spreads of ~500 bps rall U.S. unemployment rate of ~8% by year-end High yield default rate rising to ~8%2 1. Sources: "September 2020 Default Report" and "Global Macro Outlook 2020-2021 (August 2020 Update)" from Moody's Investors Service. Assumptions underpinning guidance that was issued on October 29, 2020. 2. Global high yield default rate by the end of 2020. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 11#122015 Financial Performance1 Revenue1 $ Billions ■MIS Revenue ■MA Revenue 2015 2019 CAGR 8% $4.8 $4.4 $4.2 $3.5 $3.6 $1.4 $1.7 $2.0 $1.2 $1.2 $2.3 $2.4 $2.8 $2.7 $2.9 2015 Operating Margin4 ■Operating Margin Adj. Operating Margin 3 42.8% 46.0% 18.1% 45.9% 43.3% 47.6% 2016 2017 2018 2019 2020F2 42.0% 47.6% 41.4% 2 2016 2017 2018 2019 2020F 47.4% Approx. 45% Approx. 50% High-single-digit % growth Adjusted Diluted EPS3 $ Per Share 2015-2019 CAGR 15% $9.95 $10.15 $8.29 $7.39 $6.07 $4.71 $4.94 2015 2016 2017 2018 2019 2020F2 Free Cash Flow³ $ Millions 1. Totals may not sum due to rounding. 2. Guidance as of October 29, 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 3Q 2020 Investor Presentation - November 11, 2020 12 $1,606 $1,370 $1,109 $1,144 2015 2016 $664 20175 2018 2019 2020F2 Approximately $1,800#13Long-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 3Q 2020 Investor Presentation - November 11, 2020 13#14Capital Allocation Strategy Prudent approach in uncertain times Capital allocation goals 999 Capital allocation levers INVESTING IN GROWTH OPPORTUNITIES G Reinvestment S C Acquisitions Anchored around a BBB+ rating MA Ensure adequate financial flexibility 999 Provide necessary capital to pursue growth opportunities Meet return thresholds and create long-term value for shareholders MOODY'S Manage risk RETURN OF CAPITAL Dividends Share repurchase 3Q 2020 Investor Presentation - November 11, 2020 14#15Investment Criteria and Post Acquisition Review 14,40 11.25 24.00 31.012 45 20.556 448 0 Clear Industrial Logic Strategic fit is the most important factor and the first screen La » Complementary ratings, content, data, analytics, risk management, etc., in existing and/or high growth markets >> Financial services and adjacent client base that can leverage Moody's brand, distribution, core credit expertise and analytic capabilities >> Preference for recurring or "repeat" revenue and low capital intensity Disciplined Financial Targets Long held, clear financial framework for external (and internal) investments » IRR at above Moody's cost of capital >> >10% annual cash return yield within 3-5 years » Cash payback within 7-9 years >> GAAP EPS accretive by year 3 (where applicable) >> Transactions evaluated on an unlevered basis Post-Acquisition Review Disciplined and rigorous monitoring post close » Clear accountability with regular reporting to senior management and board » Integrate within acquiring. business unit while maintaining unique and / or entrepreneurial characteristics » Acquisition tracking for minimum of 3 years after close for transactions >$10 million MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 15#16Key Takeaways Growth Company Operational Excellence Disciplined Capital Allocation >> Long-term financial expectations remain positive >> Balanced revenue model maximizes growth potential while ensuring resilience >> Strong free cash flow generation » Strategic initiatives generate cost efficiencies, enabling reinvestment and margin improvement >> Continued MA margin expansion >> Investment in innovation creates sustainable value >> Emphasis on returning excess capital to stockholders through dividends and share repurchases >> Strong track record of investment success exemplified by Bureau van Dijk >> Efficient balance sheet management MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 16#173 Capital Markets Overview#183Q 2020 Credit Market Update Buoyant credit markets despite ongoing real economy disruption from COVID-19 ONC FER Real Economy COVID-19 Pandemic >> New cases of COVID-19 increased in the U.S. and Europe >> Policy responses: some U.S. states and European countries rolled back re-opening measures » Vaccine / treatment timing unclear; optimism for 1H 2021 Geopolitical Impact >> U.S. China frictions remained elevated >> U.S. election season in heightened focus >> Continued international travel restrictions >> Oil prices recovered from lows but subdued Macroeconomic Response >> U.S. Fed and other central bank actions are accommodative >> Fiscal stimulus measures in the E.U. >> Additional fiscal stimulus in the U.S. delayed >> Many businesses have fully utilized PPP funding >> Some industries resuming furloughs (travel, entertainment, etc.) 1. MIS rated issuance. MOODY'S INI NN O N☐ 骨 Credit Markets Investment Grade Bonds >> Record issuance volumes¹ » Liquidity-driven capital raising >> Opportunistic refinancing driven by effective yields lower than pre-pandemic for many issuers >> M&A pipeline limited, though indications of improvement High Yield Bonds » Continued strength >> Significant spread tightening from March, with spreads now approximately in line with historical averages (U.S. HY ~500 bps) » Appetite for risk assets evidenced by continued equity market strength Leveraged Loans » Improving, but relatively weak >> Demand for floating rate debt limited >> Modest M&A pipeline 3Q 2020 Investor Presentation - November 11, 2020 18#19CFG Spotlight: Issuance-driven Revenue Growth Issuance by Line of Business CFG Issuance Volume and Transaction Revenue ($ Billions) 85% 10% 12% 10% 7% 4% 7% 14% 16% 20% 14% 15% 20% 14% 18% $103 65% 37% $171 40% 41% 37% 31% 24% 34% 29% 24% 30% 25% 36% $133 25% $210 23% $170 $138 $135 $119 10% -3% $135 -7% $103 $660 $151 -12% -12% 51% $101 $114 42% 43% 46% 47% 49% $113 43% $358 $322 $264 $256 $278 $186 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 ■Corporate Finance ■Public, Proj. & Infra. Fin. ■Financial Institutions Bank Loans High Yield Bonds ■Structured Finance Investment Grade Bonds CFG Y/Y Issuance Growth CFG Transaction Revenue Y/Y Growth % Note: MIS rated issuance. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 19#20$ Billions Refunding Needs Continue to Build Next Four Years North America and EMEA Total Refunding Needs¹ as of: $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,972 CAGR = ~8% 10% $3,806 $3,466 $1,000 Jan '12 Jan '13 Jan '14 Jan '15 Jan '16 Jan '17 Jan '18 Jan '19 Jan '20 Sep '20 1. Amount reflects total maturities as defined in Moody's Investors Service's U.S., Canada and EMEA refunding needs reports January 2012 - October 2020. Note: Data represents U.S., Canadian and European MIS rated non-financial corporate bonds & loans. Canadian data not available before 2015. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 20 20#21Refunding Needs¹ Support MIS Long-term Fundamentals Debt Maturities: North America Moody's-Rated Corporate Bonds and Loans² $624 311 ■Speculative Grade Bank Loans ■Speculative Grade Bonds $532 $387 205 $252 23 86 71 105 127 38 230 191 222 186 2021 2022 2023 2024 Debt Maturities: EMEA Moody's-Rated Corporate Bonds and Loans³ ■Investment Grade >>> Approximately $1.8 trillion of non-financial corporate debt maturing in North America through 2024, up ~8%4 >>> North America speculative grade bank loans refinancing needs up $180 billion, or ~40%4 $554 $521 $495 $442 84 79 62 53 74 34 119 77 ■Speculative Grade Bank Loans ■Speculative Grade Bonds ■Investment Grade >>> 346 363 363 358 2021 2022 2023 2024 1. 2. 3. 4. Non-financial corporates. Source: Moody's Investors Service, October 2020. Data represents U.S. & Canadian MIS rated corporate bonds & loans. Source: Moody's Investors Service, October 2020. Data represents EMEA Investment-Grade & EMEA Speculative-Grade. Comparison to previously provided refinancing needs data for the upcoming four years from 1Q 2020 Investor Presentation. Prior data: Moody's Investors Service. U.S. & Canadian MIS rated corporate bonds & loans for North America as of January 2020 & EMEA as of July 2019. MOODY'S Four-year debt maturities for EMEA non-financial corporates exceed $2 trillion, up ~$200 billion, or 11%4 3Q 2020 Investor Presentation - November 11, 2020 21#22Increased Issuance Volume Offsets Impact of Longer Average Maturities 1-2 years 3-5 years 6-10 years 11-30 years Long term U.S. Investment Grade Bond Issuance by Maturity Length ($ Billions) U.S. High Yield Bond Issuance by Maturity Length ($ Billions) $341 $264 $230 $184 $176 $166 $130 $119 $108 $167 $165 $98 $101 $74 $36 $28 $27 $12 $16 $16 $19 $10 $1 $15 $19 $3 $2 FY 2018 FY 2019 YTD 20201 FY 2018 FY 2019 YTD 20201 TOTAL ISSUANCE ($B) $462 $561 $880 $128 $212 $287 AVG. MATURITY2 12.0 12.4 14.5 8.6 8.4 7.5 1. YTD through September 30, 2020. | 2. Proxy calculation uses weighted average years of tenor. | Source: Moody's Investors Service. | Note: Data represents tenors on Moody's rated debt in U.S. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 22#23Debt Leverage and Interest Coverage in North America and Europe Credit Metrics: North American Speculative Grade Companies Interest Coverage Debt/ EBITDA EBITDA / Interest Expense 8.0x 6.2x 6.0x 4.9x 5.1x 5.2x 5.3x 5.5x 5.4x 5.5x 4.6x 4.6x 4.7x 4.5x 4.3x 4.4x 4.6x 4.0x 2.9x 2.6x 2.7x 2.9x 3.0x 3.0x 3.0x 3.0x 2.9x 2.9x 2.9x 2.7x 2.6x 2.5x 2.4x 2.0x T 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 5.5x 5.3x 5.3x 6.0x 4.8x Interest Coverage 5.0x 4.6x 4.8x 4.5x 4.6x 4.6x 4.6x 4.6x 5.0x 4.2x 4.3x 4.1x 4.0x 3.7x 3.5x 3.4x 3.5x 3.5x 3.3x 3.1x 3.0x 3.0x 3.0x 3.1x 3.0x 2.9x 2.9x 2.8x 2.6x 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 September 30, 2020. Source: Moody's Investors Service. Note: Historical figures may change due to timing differences in issuer reporting deadlines. 3Q 2020 Investor Presentation - November 11, 2020 MOODY'S 23#2416% 14% 12% 10% 8% 6% 4% 2% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Global trailing twelve month speculative-grade default rate at 6.4% as of September 30, 2020; expected to increase to 7.2% by December 2020 and peak at 8.1% by March 2021, before declining to 6.3% by September 2021 1. Moody's rated corporate global speculative grade default historical average of 4.1% from 1983 through September 30,2020. 2020 forecast for TTM ended December 31, 2020 and March 31, 2021 from Moody's Investor Service "October 2020 Default Report", published November 10, 2020. 2. 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. MOODY'S 2018 2019 3Q20 2020F 2012 2013 2014 2015 3Q 2020 Investor Presentation - November 11, 2020 24 2016 2017 -U.S. Loans -U.S. Bonds European Bonds Weakening 5.0 4.51x 4.5 4.22x 4.1% global 4.0 3.91x 10% historic average¹ 3.5 7% 5% 3.0 2.5 2.0 Improving Default Rate Forecast Reflects COVID-19 Impacts; Expected to Peak in 1Q 2021 Default Rates for Speculative-Grade Corporate Rated Issuance¹ -Global -U.S. Europe Speculative-Grade Covenant Quality Indicators² 2018 2019 2Q20#25% of Mentions Liquidity and Refinancing Prominent Drivers of Issuance YTD 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 YTD 2020² Issuance Drivers: 9% 8% 8% 8% 17% 13% 15% 13% Opportunistic refinancing driven by lower effective yields 17% 5% 5% 7% 6% 9% 4% 39% 35% 25% 41% 49% Liquidity and working capital Lower M&A related issuance 72% 71% 68% 64% 62% 2016 2017 2018 2019 YTD 3Q20 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%. 1. 2. YTD through September 30, 2020. Source: Moody's Analytics. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 25#26€ 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 Aug-06 Aug-08 Aug-10 Aug-12 Loans Aug-14 Aug-16 Aug-18 Aug-20 27% 73% $9.000 Bonds $7,500 Loans Billions $6,000 $4,500 $ $3,000 $1,500 $0 Sep-06 Sep-08 Sep-10 Sep-12 Sep-14 Sep-16 Sep-18 Sep-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 August 2020 and U.S. data is through September 2020. 3Q 2020 Investor Presentation - November 11, 2020 26 50% 50%#274 Moody's Investors Service#28Moody's Investors Service Financial Profile 3Q 2020 TTM Revenue: $3.3 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% >> 51% recurring revenue >> 50% recurring revenue Note: The revenue reclassification of REITs to Corporate Finance from Structured Finance is reflected in 2019's calculations. Percentages have been rounded and may not total to 100%. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 28#29MIS Guidance: Robust YTD Driving Improved Outlook1 FY 2020 Issuance Guidance 1,2 60% 25% Adjusted Operating Margin¹ Revenue Low-double-digit % increase 58.0% $2.9B Approximately 60% High-teens % range 400 200 52.000 $1,800 2019 2020F¹ 2019 2020F¹ -10% -42% Investment High Yield Bank Grade Bonds Loans -35% Structured Finance Total Issuance 3 Key drivers of MIS FY 2020 outlook¹ >>> Strong YTD results driving increased full-year outlook >>> Issuance² expected to grow in the high-teens percent range from $4.6T in 2019 - Pace of issuance likely to moderate in 4Q 2020 Favorable issuance mix >>> Approximately 600-700 first time mandates » >>> Refinancing and liquidity driven issuance, limited M&A activity Higher expectation for incentive compensation, though in-line with full year 2019 1. 2. Guidance as of October 29, 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. MIS rated issuance. 3. Total issuance includes CFG, SFG, FIG and PPIF. Excludes sovereign debt. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 29#30The 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 30 3Q 2020 Investor Presentation - November 11, 2020 30#31Managing Ratings in Turbulent Times Transparency and relevance of credit ratings through the cycle Order sectors by degree of exposure SECTOR Order issuers by vulnerability within each sector Top 10 sectors most affected by COVID-191 Hotel, Gaming & Leisure Advertising, Printing & Publishing Transportation: Consumer Reassess all ratings in the most vulnerable sectors Lá Reassess ratings of the most vulnerable issuers in the moderately vulnerable sectors March 1 September 30, 2020 % DOWNGRADED WITHIN SECTOR 63 56 54 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 Take account of government policy measures designed to soften the effects of coronavirus Global corporate default rates ended September 20202 Automotive P Energy: Oil & Gas 38 Consumer goods: Durable 36 35 Retail Services: Consumer Aerospace & Defense D Media: Diversified & Production 32 mmm 31 29 43. 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 Aaa 0.0% Aa - 0.0% A 0.0% Baa 0.1% Ba 0.4% B 3.5% Caa_C 11.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 3Q 2020 Investor Presentation - November 11, 2020 31#32Illustrative 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 3Q 2020 Investor Presentation - November 11, 2020 32#33Broad Coverage Serves Global Needs $70+ trillion of Total Rated Debt 4,700 Rated Non-Financial Corporates 3,500 Rated Financial Institutions 16,100 Rated Public Finance Issuers 9,200 Rated Structured Finance Deals 罩 145 Rated Sovereigns* S 1,050 Rated Infrastructure & Project Finance Issuers 199** 47 Rated Supranational 目 Rating Methodologies* Institutions* 448 Rated Sub-Sovereigns* Moody's Investors Service has been globally and locally acknowledged for award-winning ~15 Years Lead/Senior Analyst tenure expertise in credit ratings, research and risk analysis. For more information, visit awards.moodys.io Source: Moody's Investors Service as at 30 June 2020. **As at 5 August 2020. Research and Events data covers the 6-month period 1 January to 30 June 2020. All numbers are rounded other than those marked ***As at 30 September 2020. ~11,400+ 1,000+ MCO employees*** 33 Analysts Offices* EVENTS 39,000+ Global Participants 385 Global Events, including: Conferences Teleconferences Roundtables 雪 +27,500 Research Publications PUBLICATIONS 13,800 Issuer Research 3,100 Sector Research 10,600 Other Research Americas 29,000+ Rated Companies and Structured Deals $36.4+ trillion Total Debt Rated 14,000 Research Publications United States Canada EMEA 4,700+ Rated Companies and Structured Deals $20.3+ trillion Total Debt Rated 8,800 Research Publications MOODY'S INVESTORS SERVICE OFFICES Asia Pacific 2,100+ Rated Companies and Structured Deals $12.3+ trillion Total Debt Rated 2,800 Research Publications Cyprus Russia Czech Rep. Saudi Arabia Australia China Japan Korea DIFC South Africa Hong Kong Singapore France Spain India Germany Sweden UK Argentina Brazil Mexico Italy Poland PUBLICATIONS BY SEGMENT 7,800 Non-Financial Corporates 2,900 Financial Institutions 880 Sovereign & Sub-Sovereign 4,700 U.S. Public Finance 4,900 Structured Finance 1,000 Infrastructure & Project Finance 3,400 Cross Sector ©2020 Moody's Investors Service and/or its licensors and affiliates. All rights reserved.#34Strongly Positioned in Emerging Markets Emerging Markets - Domestic TAM ICR Chile ICR South Africa Brazil Others MARC AN AFFILIATE OF MOODY'S MALAYSIAN RATING CORPORATION BERHAD INVESTORS SERVICE Chile Malaysia MIS Affiliate (majority) MIS Affiliate (minority) Moody's Local National Scale Ratings Other Emerging Markets MIS Emerging Markets Revenue¹ MERIS Middle East Rating & Investors Service Midroog VM A SUBSIDIARY OF MOODY'S O Mexico Argentina Peru Egypt $700M Israel Size of domestic CRA markets South Korea Korea Investors Service AN AFFILIATE OF MOODY'S INVESTORS SERVICE ICRA India A MOODY'S INVESTORS SERVICE COMPANY China |中诚信国际 CCXI $94M 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) as of June 30, 2020. 1. Includes revenue from cross border issuance. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 34#3550 4% 40 Moody's in Greater China 2nd Largest Onshore Bond Market at $15 Trillion Total debt securities outstanding 2012-20201 ■2012 ■2020 Revenue and Attributable Income from China² ■MIS Cross Border Revenue Total MA Revenue Attributable Income from CCXI $176 30 20 • ON WA 10 21% -2% 0% 0% US China Japan UK France $ Millions $17 MIS Cross Border and Total MA Attributable Income from CCXI 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 Cross Border Market ~$270M³ 43% 57% 1. 2. Percentage growth numbers are rounded compound annual growth calculations. Source: Bank for International Settlements' latest data available as of 1Q 2020. Greater China: Mainland, Hong Kong and Macau. Revenue and attributable income data for full year 2019. Domestic Market ~$310M 42% 58% ■Rest of Market Moody's Share ■Rest of Market ■CCXI's Share 3. Revenue as of 3Q 2020; USD 1 = RMB 6.79 RMB exchange rate as of September 30, 2020 is used for conversion for domestic CRAS' estimated revenue. Note: These are high level estimates based on MIS & CCXI 3Q 2020 revenue/market coverage in domestic market; in cross border, market share is coverage/sum of coverage for three major CRAS. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 35#36Moody's ESG: Driving Standards Beyond Credit Market Trends » Moody's forecasts global green, social and sustainability bond issuance to be $325 to $375 billion in 20201 >> Coronavirus crisis expected to accelerate credit-relevant ESG trends with increased impact to credit² COVID-19 :: Key Stats² 30+ Years of ESG experience Our affiliate VE has been a pioneer in ESG analysis since the 1990s 5,000+ ESG assessments Covering 273 unique ESG data points Greater institutional preparedness for high-impact global risks Heightened focus on healthcare and social inequality Shift to multi- stakeholder approach to corporate strategy 100% Systematic integration of ESG considerations into credit ratings A detailed discussion is now required in all rating committees 260+ 6,000+ Climate risk scores Spanning countries, counties, cities, companies and real estate assets globally Outreach >> Over 700 media engagements from January to September 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) 51% Green Bonds ■19% Sustainability Bonds Sustainable decisions Mantong the f Moody's ESG Solutions Global sustainable bonds and loans Green, social, sustainability SPOS Product Type ■13% CBI Verified 3 IIII ({: bonds and sustainability- ■11% Social Bonds linked loans and bonds ESG & Climate Sustainable Measures ESG & Risk ■6% Sustainability Linked Loans and Bonds Finance Solutions Credit 1. 2. 3. Management Solutions Moody's Investors Service "Sector in-depth: Sustainable Finance - Global - Record sustainable bond issuance in second quarter as social bonds surge", August 17, 2020. As of September 30, 2020; combined for all Moody's entities including affiliates. Includes 3% for sustainability/green bonds and Climate Bond Initiative verification. MOODY'S Moody's and ESG: Advancing Global Standards 38,000+ 3Q 2020 Investor Presentation - November 11, 2020 36#37Enhanced ESG Solutions ESG & climate offerings Data Index Partnerships » >>> Partnered with Euronext on a new ESG index powered by 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 Credit Ratings & Research ESG Integration into Analytics, Risk Measurement and CRE tools 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 VE VIDEO.EIRIS, HALT: at caus 427 3Q 2020 Investor Presentation - November 11, 2020 37#385 Moody's Analytics#39Moody's Analytics Financial Profile 3Q 2020 TTM Revenue: $2.0 billion Recurring Transaction ■U.S. ■Non-U.S. 11% 89% 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 YTD 2020. It does not include MALS or other professional services revenue prior to 2020. 3Q 2020 TTM. Includes Bureau van Dijk. 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 >> 96% recurring revenue² >> 94% retention rate³ Enterprise Risk Solutions 28% >> 77% recurring revenue >> 93% retention rate 3Q 2020 Investor Presentation - November 11, 2020 39#40MA Guidance: Recurring Revenue Creates Stability1 Revenue Mid-single-digit % increase $2.0B 2019 2020F¹ Key drivers of MA FY 2020 outlook¹ Adjusted Operating Margin¹ 27.8% 2019 Approximately 30% 2020F1 1. » Strong recurring revenue mitigates COVID-19 impact » MAKS divestiture weighs on revenue growth, partially offset by RDC, RiskFirst, ABS Suite and Acquire Media acquisitions FY revenue guidance includes an approximately 2% unfavorable 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 lending 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 Guidance as of October 29, 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 3Q 2020 Investor Presentation - November 11, 2020 40#41Subscription Sales Resilient Through COVID-19 Disruption Continued demand for insights and analytics 2020 OUTLOOK Retention Positive Retention holding at 94% despite initial concerns YTD 2020 RETENTION ~96% Research1 -94% Total MA ~92% ERS ~90% BvD » Strong retention » Softer demand for lower margin, one-time sales » Robust subscriptions sales growth expected to continue 1. Reflects RD&A excluding BvD. | 2. Incorporates retention and pricing components of recurring business growth. MOODY'S Subscription Sales Growth Positive Renewal yield² outlook better than prior expectations 2021 OUTLOOK Positive Retention expected to remain stable Positive Renewal yields² expected to remain at existing levels Pipeline Stable Social distancing challenged sales efforts, but strong pipeline execution COVID-19 Related Impact Healthy new renewable sales pipeline Softness in one-time project sales pipeline 3Q 2020 Investor Presentation - November 11, 2020 41#42$ 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 Note: Individual line of business revenues may not add up to total Moody's Analytics revenue due to rounding. 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) Research, Data & Analytics¹ 2019 Revenue²: $1,432M 2008 2019 CAGR³: +11% (-62% organic) Includes Professional Services line of business ("LOB"). 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 LOB, will now be reported as part of the RD&A LOB. 1. 2. RD&A reported revenue in 2019, excluding Professional Services, was $1,273M. 3. RD&A CAGR calculation excludes professional services. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 42#43Diverse Product Solutions Continuous improvement of content and user experience provides tools for customer to make better decisions, faster Integrated Experience: Ease of Use 2,900+ Enhanced Content & Coverage: More Value 1,400+ 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 780+ Insurance Companies 240+ Securities Dealers and Investment Banks 3,370+ Governments & Other Entities Multichannel Delivery: Note: Data as of September 30, 2020. MOODY'S Web Excel add-in Mobile Third party platforms 300+ Real Estate Entities 3Q 2020 Investor Presentation - November 11, 2020 43#44Newly Integrated Capabilities Help Customers Make Better Decisions Leveraging interoperability to create new solutions CUSTOMER NEEDS Early warning tools to identify credit deterioration Incorporating ESG and climate information to enhance understanding of credit MOODY'S 圇 ☑ 3 CAPABILITIES & DATA Credit Sentiment Score CreditEdge RiskCalc moodys.com VE Four Twenty Seven NEW INTEGRATED SOLUTIONS Credit Sentiment Score and Al powered news feed added to CreditEdge and RiskCalc solutions CreditView users can access ESG and climate resources from affiliates VE and Four Twenty Seven 3Q 2020 Investor Presentation - November 11, 2020 44#45RD&A: Subscription Growth Driven by Retention, Upgrades and Pricing & New Sales Subscription Sales Growth (constant currency) RD&A 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 3Q 2020 Investor Presentation - November 11, 2020 45#46Bureau 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. RD&A 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. 3Q 2020 Investor Presentation - November 11, 2020 46#47BvD Acquisition - Growth Synergies Are Coming Through Leveraging Moody's financial stability and scale 1. Excludes FACT. 2. Excludes RDC. MOODY'S Pre-Moody's 2017 Revenue Approx. $300m 1 Strong tailwinds in Compliance, RDC acquisition Sales playbook - segment expertise and team selling Significant investment in coverage and product enhancement Today 1,2 TTM 2020 Q3 Approx. $400m ~33% growth in Rev Investment in revenue producing FTE's Operational efficiencies and modernization RD&A 3Q 2020 Investor Presentation - November 11, 2020 47#48BvD: Diverse Client Base and Broad Range of Use Cases RD&A 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% 3Q 2020 Investor Presentation - November 11, 2020 48#49BvD + 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 12.7+ million profiles of risk-related organizations and individuals Worldwide entity and ultimate ownership data from BvD's Orbis database and Compliance Catalyst tool BvD 381M+ PUBLIC & PRIVATE ENTITIES RDC 12.7M+ RISK PROFILES 198M+ 155M ACTIVE OWNERSHIP BENEFICIAL LINKS6 + 1,100 OWNERSHIP7 1.8M MONITORED LISTS POLITICALLY EXPOSED PEOPLE RD&A 1. 2019 revenue growth. 2018 revenue includes the impact of $17M of revenue reductions relating to previous adjustments to deferred revenue recorded as part of acquisition accounting. 2. Direct adjusted operating margin for Bureau van Dijk for full year 2019. Excludes the allocation of corporate overhead expenses. 4597 4. Pro forma estimate assuming RDC owned for full year 2019. Guidance as of February 12, 2020. 6. As of October 15, 2020. 7. 3. Source: Burton-Taylor, "AML/KYC Data & Services Global Sizing 2019", November 2019; Moody's Analytics estimates. Beneficial owner is any individual or individuals who ultimately own or control an entity. Beneficial ownership calculated based on ownership links: 5% threshold at all levels. As of September 30, 2020. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 49#50ERS Empowers Customers' Success With Analytics Technology with a purpose - Enabling better, faster decisions Our business solutions Our customers ERS Accounting Impairments, IFRS-17 Credit decisioning & lending Credit modeling, scoring and spreading 1. Asset and liability management. MOODY'S Balance sheet management Portfolio, valuation and ALM1 RegTech Regulatory reporting יווו Banks 俞 0000 Pension Funds A |= 2 Insurers Corporates Customers Asset Managers 3Q 2020 Investor Presentation - November 11, 2020 50 50#51$ Millions ERS: Recurring ~80% of Revenue with Mid-teens CAGR $500 $400 $300 61% $200 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 revenue as of 3Q 2020: $100 $0 2015 2016 One-Time (L) 20% - Subscriptions (recurring) 4 +12% - 0% One-time (non-recurring) +19% 2017 2018 2019 TTM 3Q20³ Recurring (L)1 -% Recurring (R) ERS 1. 2. Recurring revenue includes maintenance and subscription. Compound Annual Growth Rate, 2015-2019. 3. Trailing twelve months ended September 30, 2020. 4. Subscriptions / recurring revenue include maintenance. Excluding maintenance, TTM subscription / recurring revenue would be +16%. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 51#52Global Regulatory and Accounting Drivers for the ERS Business EMEA ERS MOODY'S 2023 Output floor ASIA PACIFIC HLA requirement CVA review Revised minimum capital requirements for MR Revised SA operational risk Revised SA market risk Updated Leverage Ratio Revised IRB Revised G-SIB assessment FRTB Revised SA operational risk CVA review Incorporate ESG risks into supervisory process BOE/ PRA ST Revised SA market risk Revised minimum HLA requirement capital requirements for MR Output floor Revised IRB approach CR BOE/ PRA ST EU-wide ST 2022 2021 BOE/ PRA BES (Climate-related element) Interest Rate Benchmark Reform Interest Rate Benchmark Reform 2020 Revised G-SIB assessment EU Investment Firms Directive and Regulation NSFR Updated Leverage Ratio Revised standardized approach CR 2021 2022 2023 CECL* CVA review HLA requirement Output floor CCAR / DFAST FRTB Revised standardized approach CR Revised G-SIB assessment BOE/ PRA ST EU Sustainability taxonomy Climate Change ST SFTR regulatory technical standards EU "Banking Package" CRR2, CRD5, BRRD2 and SRMR2 EU MLD5 New securitization framework EBA Guidelines on Outsourcing 2020 CCAR/ DFAST CCAR/ DFAST IRRBB review AMERICAS CCAR/ DFAST Revised SA operational risk SCCL for large banks FBO ST Agreements TLAC Vickers reform ECCAR/ DFAST New securitization framework Minimum Leverage Ratio DNB Climate ST TLAC Interest Rate Benchmark Reform TLAC SEC Liquidity rules (ETF, mutual funds) Supervisory rating NSFR system for LFIs 2020 2019 2020 2021 2022 approach CR Credit Risk Management Revised standardized approach CR FRTB 2023 and beyond 2022 2021 NCUA RBC rule for large credit unions Revised SA market risk Updated Leverage Ratio Revised minimum capital requirements for MR Revised IRB approach CR 2023 and beyond * Regulation has been delayed/ cancelled to allow banks to focus their resources on navigating the coronavirus pandemic (the FED has implemented a transition rule that provides a two-years delay period to eligible institutions, followed by a three-year transition period (the pre-existing 2020 CECL transition period)) Pandemic related delays noted in last quarters report; OSFI NSFR; FED SCCL; EBA CRD 5, CRR 2 and BRRD 2 Source: Moody's Analytics market research as of October 2020. 3Q 2020 Investor Presentation - November 11, 2020 52#5300 6 Appendix#54Corporate Finance: Revenue and Issuance1 Revenue²: Mix by Quarter $ Millions 2 ■ Other ■Investment Grade ■Speculative Grade ■Bank Loans $600 $500 $400 Issuance4: 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 $73 $44 $83 $90 $300 $73 $68 $75 $101 $78 $70 $69 $56 $291 $57 $75 $200 $39 $19 $144 $141 $55 $97 $96 $106 $ Billions $800 $164 $50 $43 $55 $28 $600 $26 $25 $108 $119 $88 $39 $111 $100 $105 $162 $134 $80 $28 $161 $400 $105 $123 $105 $120 $732 $100 $64 $103 $135 $145 $128 $140 $140 $139 $145 $139 $146 $200 $33 $329 $314 $370 $406 $433 $378 $236 $221 $0 $0 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Revenue²: Mix by Year ■ Other 2 ■Investment Grade ■Speculative Grade ■Bank Loans $1,600 $1,400 Issuance4: 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 $262 $329 $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. Total estimated market issuance unless otherwise noted. 2. 3. 4. 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 3Q 2020 Investor Presentation - November 11, 2020 54#55Corporate Finance: Revenue Diversification Revenue¹: Distribution by Geography Non U.S. ■U.S. 100% Revenue¹: Distribution by Recurring vs. Transaction ■Transaction Recurring 100% 80% 80% 35% 31% 30% 29% 28% 31% 29% 25% 20% 25% 38% 63% 64% 65% 68% 63% 66% 62% 65% 69% 67% 72% 60% T 60% 40% T 40% 80% 65% 69% 70% 71% 72% 71% 69% 75% 75% 62% 37% 36% 35% 37% 32% 20% T 0% 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 34% 38% 35% 31% 28% 33% 20% 0% 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 Revenue¹: Distribution by Product Other 2 Investment Grade ■Speculative Grade ■Bank Loans 100% 8% 26% 24% 20% 22% 23% 19% 21% 20% 16% 28% 17% 80% 7% 16% 18% 15% 21% 17% 17% 22% 13% 13% 60% 19% 18% 20% 27% 25% 27% 22% 25% 51% 32% 31% 40% 50% 20% 44% 40% 36% 36% 36% 38% 37% 32% 32% 24% 0% 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 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 3Q 2020 Investor Presentation - November 11, 2020 55#56$ Millions $ Millions Structured Finance: Revenue and Issuance1 Revenue²: Mix by Quarter Issuance³: Mix by Quarter ABS ■RMBS ■CMBS ■Structured Credit Other ■ ABS ■RMBS ■ CMBS ■Structured Credit $160 $140 $350 $300 $120 $0 $44 $1 $1 $250 $49 $100 $1 $1 $49 $47 $1 $31 $51 $41 $32 $1 $0 $200 $36 $39 $57 $51 $38 $80 $35 $40 $29 $1 $24 $34 $25 $22 $22 $21 $150 $26 $70 $60 $24 $15 $18 $20 $25 $21 $85 $31 $87 $18 $17 $15 $13 $16 $63 $13 $66 $100 $64 $65 $40 $24 $24 $24 $24 $21 $26 $27 $23 $24 $48 $40 $20 $50 $115 $79 $90 $91 $103 $25 $26 $23 $26 $25 $25 $22 $23 $25 $65 $66 $74 $89 $0 $0 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 $600 ABS ■RMBS Revenue²: Mix by Year ■CMBS ■Structured Credit ■ Other $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 $ Billions Issuance³: Mix by Year ■ ABS ■RMBS ■CMBS ■Structured Credit $1,400 $1,200 $1,000 $200 $153 $800 $39 $65 $159 $136 $36 $94 $132 $115 $600 $73 $116 $114 $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 1. Total estimated market issuance unless otherwise noted. 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. 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. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 56#57Structured Finance: Revenue Diversification Revenue¹: Distribution by Geography Non-U.S. ■U.S. Revenue¹: Distribution by Recurring vs. Transaction ■Transaction Recurring 100% 100% 80% 56% 62% 63% 63% 61% 64% 62% 64% 63% 64% 61% 80% 36% 37% 36% 44% 39% 45% 43% 42% 48% 57% 53% 60% 60% 40% 40% 64% 63% 64% 61% 20% 38% 37% 37% 39% 44% 56% 55% 57% 58% 36% 36% 38% 37% 36% 39% 52% 20% 43% 47% 0% 0% 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q10 FY19 1Q20 2Q20 3Q20 Revenue¹: Distribution by Product ABS RMBS CMBS Structured Credit Other 0% 0% 0% 1% 1% 1% 1% 1% 1% 1% 0% 29% 30% 26% 27% 39% 41% 35% 37% 38% 35% 44% 16% 17% 23% 18% 18% 18% 17% 19% 13% 20% 16% 28% 27% 21% 19% 20% 23% 21% 21% 24% 22% 28% 22% 21% 22% 23% 23% 24% 23% 23% 23% 28% 28% 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 3Q 2020 Investor Presentation - November 11, 2020 57#58$ Millions $ Millions Financial Institutions: Revenue and Issuance¹ Revenue²: Mix by Quarter ■Banking ■Insurance ■Managed Investments ■ Other Issuance³: Mix by Quarter ■Global Speculative Grade Financial Corporate Bonds ■Global Investment Grade Financial Corporate Bonds $160 $140 $2 $2 $500 $3 $3 $8 $3 $3 $3 $6 $29 $120 $3 $6 $10 $6 $4 $6 $400 $36 $5 $44 $31 $100 $3 $38 $29 $28 $30 $20 $18 $31 $18 $31 $34 $80 $6 $300 $27 $15 $29 $60 $200 $4 $396 $396 $40 $73 $80 $84 $80 $86 $88 $95 $327 $76 $315 $309 $333 $63 $279 $235 $20 $100 $170 $0 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 $0 3Q18 4Q18 1Q19 2Q19 3Q 19 4Q19 1Q20 2Q20 3Q20 Revenue²: Mix by Year ■Banking Insurance Managed Investments Other Issuance³: Mix by Year ■Global Speculative Grade Financial Corporate Bonds ■Global Investment Grade Financial Corporate Bonds $500 $12 $13 $13 $25 $2,000 $22 $25 $400 T $2 $9 $10 $0 $119 $0 $19 $16 $17 $102 $114 $1,600 $0 $16 $19 $300 $17 $89 $92 $96 $102 $79 $73 $200 $ Billions $79 $137 $74 $197 $183 $108 $136 $1,200 $112 $161 $320 $800 $300 $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 $0 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019 1. Total estimated market issuance unless otherwise noted. 2. Historical data has been adjusted to conform with current information and excludes intercompany revenue. MOODY'S 3. Sources: Moody's Analytics, Dealogic. Note: Debt issuance categories do not directly correspond to Moody's revenue categorization. 3Q 2020 Investor Presentation - November 11, 2020 58#59Financial Institutions: Revenue Diversification Revenue¹: Distribution by Geography Non U.S. ■U.S. Revenue¹: Distribution by Recurring vs. Transaction ■Transaction ■Recurring 100% 100% 80% 37% 44% 50% 40% 42% 45% 42% 42% 48% 44% 49% 80% 53% 51% 58% 59% 54% 52% 46% 50% 58% 55% 60% 72% 60% 40% 40% 63% 56% 60% 58% 55% 58% 58% 50% 52% 51% 56% 20% 47% 49% 20% 42% 41% 46% 42% 45% 48% 54% 50% 28% 0% 0% 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 Revenue¹: Distribution by Product ■Banking Insurance ■Managed Investments Other 3% 3% 2% 3% 3% 3% 2% 1% 1% 100% 5% 3% 8% 5% 4% 5% 5% 6% 4% 80% 25% 26% 22% 26% 27% 25% 24% 23% 31% 60% 40% 66% 69% 68% 67% 66% 67% 69% 71% 62% 20% 0% FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Note: Percentages have been rounded and may not total to 100%. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 59 59#60$ Millions $ Millions Public, Project and Infrastructure: Revenue and Issuance1 Revenue²: Mix by Quarter ■Public Finance and Sovereign ■Project and Infrastructure Finance ■ Other $150 Issuance³: Mix by Quarter ■Long-Term Rated U.S. Muni Bonds Rated Global Project and Infrastructure Finance Bonds $250 $100 $60 $69 $62 $62 $55 $52 $54 $49 $47 $ Billions $200 $84 $150 $52 $114 $75 $50 $100 $57 $64 $64 $39 $51 $45 $42 $46 $53 $58 $65 $57 $64 $71 $129 $132 $50 $95 $95 $78 $74 $71 $79 $76 60 $0 $0 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 ■Public Finance and Sovereign Revenue²: Mix by Year ■Project and Infrastructure Finance ■Other Issuance³: Mix by Year ■Long-Term Rated U.S. Muni Bonds Rated Global Project and Infrastructure Finance Bonds $500 $700 $400 $600 $188 $213 $224 $300 $174 $206 $142 $167 $181 $ Billions $500 $400 $207 $266 $243 $220 $121 $200 $300 $200 $100 $202 $225 $364 $408 $384 $374 $218 $222 $313 $156 $181 $174 $177 $185 $302 $307 $292 $100 $248 $0 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019 1. Total estimated market issuance unless otherwise noted. 2. Historical data has been adjusted to conform with current information and excludes intercompany revenue. 3. Global Rated Project & Infrastructure Finance available starting in 2016 and represents Moody's rated issuance. Sources: Thomson SDC, Moody's Corporation. Note: Debt issuance categories do not directly correspond to Moody's revenue categorization. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 60#61Public, Project and Infrastructure: Revenue Diversification Revenue¹: Distribution by Geography ■Non-U.S. ■U.S. Revenue¹: Distribution by Recurring vs. Transaction ■Transaction ■Recurring 100% 100% 34% 31% 28% 33% 80% 80% 39% 35% 31% 39% 42% 37% 41% 60% 60% 59% 65% 64% 61% 64% 63% 62% 65% 62% 60% 60% 40% T 40% 72% 66% 69% 67% 65% 69% 61% 58% 61% 59% 63% 20% 40% 40% 41% 35% 36% 39% 36% 37% 38% 35% 38% 20% 0% 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 0% 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 Revenue¹: Distribution by Product ■Public Finance and Sovereign ■Project and Infrastructure Finance ■ Other 100% 80% 54% 55% 53% 51% 51% 52% 48% 50% 48% 52% 47% 60% 40% 46% 45% 47% 49% 49% 48% 52% 50% 52% 48% 53% 20% 0% 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Note: Percentages have been rounded and may not total to 100%. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 61#62$ 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 Revenue: Mix by Year $600 $2,400 100% $500 $31 $43 $42 $44 $400 $40 $43 $124 $122 $117 $134 $145 80% $138 $131 9% 9% 9% 9% 9% 9% 6% 8% 26% 27% 26% 26% 25% 27% 29% 27% $2,000 28% 26% 27% $159 $149 $1,600 $159 $522 $115 60% $300 40% $200 $280 $297 $308 $315 $317 $333 $358 $366 $386 64% 64% 65% 65% 66% 64% 65% 65% 72% 74% 73% $ Millions $149 $451 $1,200 $147 $150 $168 $449 $800 $62 $108 $119 $374 $419 $329 $100 20% $196 $243 $263 $1,273 $400 $1,121 $833 $445 $483 $520 $572 $626 $668 $0 0% $0 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 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% 40% 42% 41% 43% 42% 42% 42% 42% 43% 44% 42% 80% 60% 60% 84% 83% 84% 85% 85% 84% 86% 85% 90% 92% 90% 40% 40% 60% 58% 59% 57% 58% 58% 58% 58% 57% 56% 58% 20% 20% 16% 17% 16% 16% 14% 0% 0% 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 3Q18 4Q18 FY18 15% 15% 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 15% 10% 8% 10% 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%. 3Q 2020 Investor Presentation - November 11, 2020 62#63MOODY'S $ Millions Historically, Moody's Revenue and Interest Rates Have Not Been Strongly Correlated MCO Revenue and Interest Rates $6,000 7.8% $5,000 $4,000 MIS Revenue (L) MIS Revenue Guidance MA Revenue (L) MA Revenue Guidance MCO Revenue (L) 10-yr U.S. Treasury Yield (R)1 5.8% $3,000 +200bps 4.7% $2,000 $1,000 $0 90 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 October 29, 2020. Source: www.treasury.gov. 6.5% 2002 2003 +100bps +120bps 3.3% 2.3% 1.8% 3.0% 2017 2018 2019 1.9% 2020F 3Q 2020 Investor Presentation - November 11, 2020 63 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%#64Proactive Capital and Liquidity Management Bond portfolio WAC1 Balanced maturity schedule5 $ in millions 4.7% 4.3% 4.3% 3.9% 3.5% 3.3% 4.2% 3.9% 4.0% 3.3% 300 3.4% 3.4% 250 330 586 2.1% 2.4% 500 500 400 400 250 170 2014 2015 2016 2017 2018 2019 2020 WAC With Hedges WAC Excluding Hedges » Strong liquidity with $2.6B in cash and short-term investments, and a $1.0B revolving credit facility² >> 1.4x net debt to adjusted operating income³ » Leverage well below maximum 4.5x net debt/EBITDA covenant4 879 600 500 400 300 Н # 2044 2048 2050 2060 EUR Fixed EUR Floating 2022 2023 2024 2025 2026 2027 2028 2029 2030 ■USD Fixed ■USD Floating Annualized Dividend Per Share $2.24 $2.00 $1.76 $1.48 $1.52 $1.36 1. WAC = Weighted Average Coupon. 2014-2019 data as of year-end. 2020 data as of September 30, 2020. 2. As of September 30, 2020. 2015 2016 2017 2018 2019 2020F2 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. 5. Certain USD denominated debt has been synthetically converted to EUR via cross-currency swaps. EUR converted to USD as of September 30, 2020. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 64#65MIS 3Q 2020: Favorable Revenue Mix Issuance1 $ Millions MIS Revenue 11% $825 YoY Change $746 $9 $9 $133 11% $120 $134 12% $120 $88 (16%) $105 18% $461 $392 $ Millions $ Billions 60.1% $469 1,189 3Q19 4% 1,242 3Q20 MIS Adjusted Operating Income and Margin +410bps $82 64.2% $554 3Q19 ■ CFG ■ SFG ■FIG ■PPIF 3Q20 ■MIS Other » CFG: Opportunistic refinancing, liquidity driven issuance and speculative grade strength contributed to favorable mix » FIG: Revenue growth on active participation from infrequent issuers 3Q19 MIS Adjusted Operating Income MIS Revenue Increase 2 MIS Expense Decrease² 3Q20 MIS Adjusted Operating Income » SFG: Slightly improved, but remains weak overall due to preference for fixed rate instruments » Stronger than expected first time mandates YTD: ~540 » Revenue growth and accompanying expense discipline drove 410 bps increase in adjusted operating margin 1. 2. MIS rated issuance, excludes sovereign debt issuance. Includes intercompany revenue and expenses. Changes in expenses include the impact of adjusting items. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 65#66$494 $43 $134 MA 3Q 2020: 8%1 Organic Constant Currency Revenue Growth MA Revenue² 7% YOY $531 Change MA Adjusted Operating Income and Margin +220bps 31.4% $ Millions $145 8% $386 22% $317 $ Millions 29.2% $36 $145 ($14) $167 3Q19 3Q20 RD&A ERS ■PS » MA revenue grew 8%, excluding the impact of divestiture, acquisitions and FX1 1. 2. 3. - RD&A: Driven by KYC and compliance solutions, research and data feeds ERS: Growth from credit assessment and origination solutions, as well as insurance products MA organic constant currency growth as defined in the reconciliation tables in the Appendix. 3Q19 MA Adjusted Operating Income MA Revenue MA Expense Increase 3 Increase³ 3Q20 MA Adjusted Operating Income » Year-over-year margin expansion enabled by: - Scalable top-line growth generating operating leverage Continued savings from reduced marketing, travel and entertainment expenses Subsequent to the divestiture of MAKS in 2019, revenue from the Moody's Analytics Learning Solutions ("MALS") unit that 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. Includes intercompany revenue and expenses. Changes in expenses include the impact of adjusting items. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 66#67Drivers of Sustainable Corporate Value Introduced Sustainability Disclosures in our Public Filings ENVIRONMENTAL >>> Focused on reducing greenhouse gas emissions with science-based targets¹ on our path to net-zero Committed to remaining carbon neutral on an annual basis and retroactively since September 20002 » Expansion of ESG products and services » CDP3 participation » Procuring 100% renewable electricity °. 0000 GOVERNANCE » Professional integrity » Systematic risk management » Diverse Board membership and skill sets » Separate CEO and Chairman positions >>> Active stockholder engagement .. SOCIAL °. 1. » 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 ESG DOOD Executive compensation metrics include4: » Moody's Corporation EPS and operating income » MIS operating income and ratings performance » MA operating income and sales » Strategic & operational5 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. 2. To be completed by 2040 through the purchase of verified carbon offsets. Carbon Disclosure Project. 3. 4. 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. 5. 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) business focus and innovation and growth; (ii) people and culture; (iii) operating effectiveness and efficiency; and (iv) quality and risk management. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 67#68Technology: 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 3Q 2020 Investor Presentation - November 11, 2020 68#691. 2. 2020 Moody's Global Presence 4,087 U.S. employees + 7,310 non-U.S. employees 11,397 total employees¹ 2019 As of September 30, 2020. Reflects acquisition of RDC, VE, Four Twenty Seven, Risk First, ABS Suite and divestiture of MAKS. As of September 30, 2019. 3,875 U.S. employees MOODY'S 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 + 9,850 non-U.S. employees 13,725 total employees² 3Q 2020 Investor Presentation - November 11, 2020 69#702015 2016 2017 2018 2019 Operating Margin $1,491 $651 $1,821 42.8% 18.1% 43.3% $1,868 $1,998 42.0% 41.4% Reconciliation of Adjusted Financial Measures to GAAP Adjusted Operating Income and Adjusted Operating Margin Reconciliation1 (in $ millions) Operating Income TTM 3Q 2020 Moody's Corporation Net Debt Reconciliation $2,448 46.1% Add Adjustment: Depreciation & Amortization 114 127 158 192 200 213 Acquisition-Related - 23 8 3 0 (in $ millions) Gross debt Less: Cash, cash 2015 2016 2017 2018 2019 1Q 2020 2Q 2020 3Q 2020 $3,381 $3,363 $5,540 $5,676 $5,581 $6,788 $6,333 $6,363 Expenses equivalents and Restructuring Captive insurance company settlement Settlement Charge 12 49 60 22 2,232 2,225 1,183 1,818 1,930 2,231 2,199 2,588 short-term investments 16 Net debt $1,148 $1,138 $4,357 $3,858 $3,651 $4,557 $4,134 $3,775 864 Loss pursuant to the 14 12 divestiture of MAKS Adjusted Operating Income Adjusted Operating Margin $1,605 46.0% $1,654 $2,002 $2,117 $2,291 $2,695 45.9% 47.6% 47.6% 47.4% 50.7% 1. 2014-2017 operating and adjusted operating income have been restated to conform to the new presentation of pension accounting. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 70 70#71Reconciliation 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 Approximately 45% Approximately 4.5% Approximately 0.5% Negligible Approximately 50% (in $ millions) 2015 2016 2017 2018 2019 Net cash flows from operating activities $1,198 $1,259 $755 $1,461 Less: Capital expenditures 89 115 91 Free Cash Flow $1,109 $1,144 $664 91 $1,370 $1,675 69 $1,606 2020F1 Approximately $1.9 billion ~100 Approximately $1.8 billion 1. Guidance as of October 29, 2020. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 71#72Reconciliation 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 $9.30 $9.50 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 ~ $0.12 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 ~ $0.48 $0.05 Impact of U.S. tax reform $1.28 ($0.30) Net Impact of U.S./European tax change on deferred ($0.01) taxes 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 $9.95 $10.15 1. Guidance as of October 29, 2020. Note: Table may not sum to total due to rounding. MOODY'S 3Q 2020 Investor Presentation - November 11, 2020 72#73MOODY'S Better decisions Investor Relations ir.moodys.com [email protected] moodys.com#74© 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 3Q 2020 Investor Presentation - November 11, 2020 74