#1MOODY'S 3Q 2019 Investor Presentation November 4, 2019#2Disclaimer Certain statements contained in this release are forward-looking statements and are based on future expectations, plans and prospects for the Company's business and operations 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 (except where noted otherwise), 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, 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 the U.K.'s pending withdrawal from the EU; 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 our rating opinions, as well as any other litigation, government and regulatory proceedings, investigations and inquires 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 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, 2018, 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 November 4, 2019 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 November 4, 2019 3#41 Moody's Overview#5Company Overview MOODY'S MOODY'S INVESTORS SERVICE 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 $4.7 billion Adjusted Operating Income of $2.2 billion Proven ratings accuracy and deeply experienced analysts Expanded sales and MIS MA 59% 41% MIS MA 76% 24% marketing activities in Commercial group Adjusted Operating Margin MOODY'S ANALYTICS Provides financial intelligence and analytical tools supporting our clients' growth, efficiency and risk management objectives Solutions address diverse needs and customers Extending brand into new markets and deepening customer relationship Note: Financial data for the trailing twelve months ended September 30, 2019. MOODY'S MIS 57.9% 28.3% MA November 4, 2019 5 ST#6Moody's Strategic Core Mission Trusted insights and standards Vision Informed decisions that promote progress Purpose Clarity, knowledge and fairness MOODY'S November 4, 2019 6#7Moody's Strategic Priorities Credit Pyramid Deeper in Corporate Credit Large Entities Emerging Markets Smaller Public Companies w/ Public Bonds Private Co. Data / SMES Extension into New Markets & New Products Regional Expansion EMEA Asia- Pacific Latin America Business Adjacencies AЯ Commercial 店 Real Estate ESG Cyber Risk م GND Enhance technology infrastructure to enable automation, innovation and efficiency Foster employee engagement and creative solutions through our diverse workforce and inclusive environment MOODY'S November 4, 2019 7#8Enhancing Regional Presence... China 牙醫 >>> position in the domestic ratings market, Latin America MOODY'S LOCAL Launched Moody's Local, a new platform that provides domestic ratings and research in Peru, Panama and Bolivia¹ MOODY'S LOCAL EN ES Locations Contacts v CCXI 程遭规资者 >> CCXI maintains its leadership with 1,700 rated customers and ~40% issuance coverage >> We are continuing to collaborate with CCXI on opportunities to leverage and enhance CCXI's strong domestic market position and thought leadership S 商道融綠 SynTao Green Finance » Minority investment in Syn Tao Green Finance, a leading provider of ESG data, tools and solutions based in, and serving, China Moody's Local is a domestic ratings platform focused on serving the needs of local capital markets Moody's Local strives to offer the highest level of integrity, transparency and consistency in its credit rating process Moody's Local provides domestic credit ratings, based on methodologies that capture the risks and dynamics of each country, assigned by a team of experienced credit analysts 1. Regional domestic market expansion continues Subject to regulatory approvals. Moody's Local ratings represent forward-looking rank-orderings of creditworthiness within the domestic market of a specific country. They are not comparable between countries, and are distinct from and independent of the opinions of MIS and its global ratings. MOODY'S November 4, 2019 8#9... and Adding New Product Capabilities BUREAU VAN DIJK A Moody's Analytics Company compliance catalyst² >> Complete rebuild of popular risk platform >> Streamlines know-your-customer, anti-money laundering, and anti-bribery and corruption research ABS Suite™ » Software platform used by issuers and trustees for administering and reporting on asset-backed and mortgage-backed securities programs MOODY'S INVESTORS SERVICE 427 Four Twenty Seven Climate Solutions » Used data and analytics from Four Twenty Seven to analyze U.S. local government heat stress exposure and credit risk RiskFirst » Award-winning PFaroe platform: a leading solution for asset managers and pension plan sponsors, supporting over 3,000 plans and more than $1.4 trillion in assets MOODY'S November 4, 2019 9#10MOODY'S Why Invest in Moody's? We strive to be the world's most respected authority serving risk-sensitive financial markets We have had strong revenue and earnings growth, as well as cash flow conversion ༥ We are committed to returning capital to our stockholders We will selectively invest in strategic growth opportunities November 4, 2019 10#11ESG Drives Sustained Corporate Value Introduced ESG 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 20 SOCIAL » Support a diverse and inclusive workplace » Active global community >>> and philanthropic involvement Robust data security and privacy practices GOVERNANCE » Professional integrity Systematic risk management » >>> Diverse Board membership and skill sets Separate CEO and Chairman positions >>> Active shareholder engagement » » Fair compensation practices and benefits packages Recognized by Working Mother's list of 100 Best Companies 1. Carbon Disclosure Project. 2. TOT ESG Executive compensation metrics include²: >> Moody's Corporation EPS, operating income and EBITDA » MIS operating income and ratings accuracy » MA operating income and sales » Strategic & operational³ 3. 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. 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 November 4, 2019 11#12Furthering our Commitment to a Sustainable Future SUSTAINA ACCOUNTING SASB TANDARDS BOARD TM >>> >> Highlighting sections of the 2018 CSR Report and Moody's other public disclosures that include information consistent with SASB's objectives » Our inaugural SASB Index is now available at moodys.com/csr Senior management participated in UN Global Compact events related to ESG GENERAL ASSEMBLY CLIMATE WEEK NYC >> MIS, in partnership with the Climate Bond Initiative, hosted a briefing on carbon transition and the financial tools deployed to facilitate it with a keynote by CEO and President of Ceres ESG Conference Spotlight on Credit as ESG Accelerates >>> Hosted ESG Conference in London together with Vigeo Eiris and Four Twenty Seven, where key industry figures will share their insights on important ESG themes and the impact on global credit markets FTSE4Good » FTSE Russell confirms that Moody's has, for the first time, been independently assessed according to the FTSE4Good criteria Satisfied the requirements to become a constituent of the FTSE4Good Index Series PATHWAY TO PROSPERITY BY MOODY'S >>> Announced Pathway to Prosperity, a financial empowerment initiative for the nation's largest small business assistance network, America's Small Business Development Centers (SBDCs) MOODY'S November 4, 2019 12#132 Financial Overview#14Long-Term Growth Opportunities Three Levers to Achieve EPS Growth REVENUE High Single Digit % Growth Range¹ Issuance Volume & Mix + Coverage + Moody's Analytics + Pricing Initiatives High-40s % Range ADJ. OPERATING MARGIN Cost Discipline + Process Re-Engineering + Technology Enablement CAPITAL ALLOCATION Dividend Growth & Share Count Reduction² Reinvestment EPS Acquisitions Dividends Share Repurchases Low Teens % Growth Range¹ 1,2 Note: Long-term growth opportunities presented on this slide are on average over time. 1. Assumes no material change in effective tax rate, foreign exchange rates, leverage profile and/or capital allocation policy. 2. Subject to market conditions and other ongoing capital allocation decisions. MOODY'S November 4, 2019 14#15Financial Performance Revenue $ Billions Adjusted Diluted EPS2 $8.05 to $8.20 $8.00 $6.0 $5.0 2014 2018 CAGR 7% High-single-digit % growth $7.00 2014 2018 CAGR 14% $4.2 $4.4 $4.0 $3.5 $3.6 $6.00 $3.3 $1.4 $1.7 $3.0 $1.1 $1.2 $1.2 $5.00 $7.39 $2.0 $4.00 $6.07 $1.0 $2.3 $2.3 $2.4 $2.8 $2.7 $3.00 $4.31 $4.71 $4.94 $0.0 $2.00 2014 2015 2016 2017 2018 2019F1 2014 2015 2016 2017 2018 2019F¹ ■MIS Revenue ■MA Revenue Operating Margin³ Free Cash Flow² $ Millions $1,600 $1,700 60% 50% 40% 30% 43.5% 20% 46.3% 42.8% 46.0% 18.1% 45.9% 43.3% 47.6% 42.1% 47.7% $1,371 42% $1,109 $1,144 $1,003 10% $664 0% 2014 2015 2016 2017 2018 2019F 2014 2015 2016 20174 2018 2019F¹ Operating Margin ■Adj. Operating Margin 2 1. Guidance as of October 30, 2019. 2. 3. 4. These figures are adjusted measures. See appendix for reconciliations from adjusted financial measures to U.S. GAAP. 2014-2017 operating and adjusted operating margins have been restated to conform to the new presentation for pension expenses. Reflects reduction by $701 million net of tax settlement charge. MOODY'S November 4, 2019 15#16Moody's Corporation Financial Profile 3Q 2019 TTM Revenue: $4.7 billion Recurring Transaction ■U.S. ■Non-U.S. 43% 47% 57% 53% MIS Other 1% PPIF RD&A 9% 27% MIS FIG MA 9% ERS SFG 11% 9% CFG 31% 3% Revenue Full Year 2019 Guidance as of October 30, 20191 Operating Expenses² Operating Margin • . Adjusted Operating Margin³ • increase in the high-single-digit % range increase in the high-single-digit % range approximately 42% approximately 48% Effective Tax Rate Diluted EPS Adjusted Diluted EPS³ • - 21.5% 22.5% • $7.20-$7.35 $8.05 - $8.20 1. 2. 3. See press release titled "Moody's Corporation Reports Results for Third Quarter 2019" from October 30, 2019 for Moody's full 2019 guidance. Includes depreciation and amortization, restructuring charges, captive insurance company settlement, impairment pursuant to the planned divestiture of MAKS and Acquisition-Related Expenses. 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 trailing twelve month (TTM) calculations. MOODY'S November 4, 2019 16#17Millions of Shares Disciplined Approach to Capital Allocation Investing in Growth Opportunities G Reinvestment Invest in existing businesses to support organic growth Acquisitions Evaluate carefully to make sure aligned with strategy and market evolution Share Repurchases and Dividends Paid Share Repurchases (R) Shares Outstanding (L) Dividends Paid (R) $1,600 Return of Capital Dividends Grow dividend in line with earnings; target 25%-30% payout¹ IIII Share Repurchase Follow reinvestment, dividends and acquisitions in capital allocation prioritization Annualized Dividend Per Share 230 $1,457 $1,370 $236 210 $272 25%-30% payout¹ $1,024 $285 $1,200 190 - $800 $1,221 $490 $540 $1,000 $ Millions CAGR = 12% $2.00 $1.76 $1.48 $1.52 $1.36 $1.12 $1,098 170 T $739 $290 $337 $400 $200 $203 150 $0 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 3Q192 1. Dividend payout ratio is defined as total dividends paid/adjusted net income. 2. Annualized dividend total, based on 2019 year-to-date dividends of $0.50 declared on February 15, April 16, July 9 and October 21, 2019. MOODY'S November 4, 2019 17#183 Capital Markets Overview#19Q3 Issuance Activity Receptive Market Conditions Overcame Geopolitical and Macro Headwinds United States Rest of World >>> Trade disputes Geopolitical Headwinds >>> Political turmoil » Trade disputes >> Brexit uncertainty >>> Hong Kong protests >>> 2.0%, down 30 bps >>> China: 5.7%, down 30 bps Negative 2020 » GDP Revisions¹ >>> >>> Central Bank 25 bps rate cuts in July and September >>> Actions >>> Money market liquidity provision >>> Sharp decline (50+ bps) Euro Zone: 1.0%, down 40 bps Germany: 0.6%, down 60 bps UK: 0.9%, down 10 bps ECB cut rates and restarted bond purchasing program Falling 10-Year Benchmark Rates MIS Rated Issuance 2 Growth to average 1.8%; still high among developed economies » Up 18% >>> Sub-zero benchmarks enabled negative-rate investment grade corporate borrowing in Europe and Japan Up 2% Organization for Economic Co-operation and Development September 2019 Interim Projection; revised from May 2019. Excludes sovereign debt issuance. 1. 2. MOODY'S November 4, 2019 19#20Interest Coverage Debt Leverage and Interest Coverage Remain Stable in North America and Europe Credit Metrics: North American Speculative Grade Companies 5.4x 6.0x 4.6x 4.6x 4.7x 4.6x 4.8x 5.0x 5.1x 5.2x 5.2x 5.2x 4.5x 4.3x 4.4x 5.0x 4.0x 3.0x 2.9x 3.0x 3.1x 3.0x 3.0x 3.0x 2.9x 3.0x 3.0x 2.8x 2.9x 2.6x 2.7x 2.4x 2.0x 1.0x 0.0x 2006 2007 2008 2009 2010 2011 Debt/ EBITDA 2012 2013 2014 2015 2016 2017 2018 20191 EBITDA / Interest Expense Credit Metrics: European Speculative Grade Companies Interest Coverage 5.1x 6.0x 4.7x 4.8x 4.6x 4.5x 5.0x 4.2x 4.4x 4.5x 4.5x 4.5x 4.1x 4.1x 4.0x 4.0x 4.0x 3.6x 3.8x 3.6x 3.7x 3.4x 3.4x 3.2x 3.0x 3.0x 3.0x 3.1x 3.1x 3.2x 3.3x 2.9x 2.0x 1.0x 0.0x 2006 2007 2008 2009 2010 2011 2012 2013 Debt/EBITDA 2014 2015 2016 EBITDA / Interest Expense 2017 2018 20191 MOODY'S 1. Trailing twelve months as of September 30, 2019. Note: Historical figures may change due to timing differences in issuer reporting deadlines. Source: Moody's Investors Service. November 4, 2019 20#21MOODY'S Global Default Rates Remain Under Historic Average; Continue to Monitor Covenant Quality Default Rates for Speculative- Grade Corporate Rated Issuance1 Speculative-Grade Covenant Quality Indicators U.S. Loans 5.00 Global U.S. Europe 16.0% 14.0% 4.50 12.0% 4.00 10.0% 8.0% 6.0% 4.1% global historic average¹ 3.50 4.0% -3.7% 3.00 3.7% 2.0% 3.6% 2.50 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q19 3Q20F U.S. Bonds -European Bonds Weakening 4.51x 3.88x 3.75x Improving 2.00 2012 2013 2014 2015 2016 2017 2018 3Q192 » Global speculative-grade default rate at 2.4% as of September 30, 2019; expected to increase to 3.6% by September 2020 1. 2. Recent strengthening in U.S. loan covenants reflects weakening investor demand, while U.S. bond covenants weaken simultaneously with pickup in issuance activity Moody's rated corporate global speculative grade default historical average of 4.2% from 1983 through 2018. 2020 forecast for trailing twelve months ended September 30, 2020. As of the trailing twelve months ended September 30, 2019. Source: Moody's Investors Service. November 4, 2019 21#22Baa-Credit Concentration Has Grown, with Mitigating Factors Rated Debt of Baa U.S. Nonfinancial Companies Has Almost Tripled Since 2007 2018 Baa-rated Debt Accounted for More than One-third of The Total Rated Debt of U.S. Nonfinancial Companies $2,500 2.4x $2,000 $ Billions $1,500 $1,000 $744 $500 $0 2007 3.0x 40% 3.0x $2,040 30% 2.0x 20% 1.0x 10% 0.0x 0% Aaa Aa A ■ 2007 Baa ■ 2018 Ba B Caa-C 2008 2009 2010 2011 2012 2013 2014 2015 Debt/ EBITDA 2016 2017 2018 Face Value of Rated Debt 2018 Potential Fallen Angels¹ Accounted for $0.1 Trillion of the $2 Trillion of U.S. Baa-Rated Nonfinancial Debt Outstanding $0.1 ■ Potential Fallen Angels $1.9 Ratio of Potential Fallen Angels¹ to Potential Rising Stars¹ Trends Downward Globally 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Q4-2013 Q2-2014 Q4-2014 Q2-2015 Q4-2015 Q2-2016 Q4-2016 Q2-2017 Q4-2017 Q2-2018 Q4-2018 Q2-2019 1. $ Trillions Q2-2012 Q4-2012 Q2-2013 As compared to 2007, 2018 representative median companies generated more revenue ($4.7B to $7.1B), with improved EBITDA margins (20% to 24%) and EBITDA / Interest Expense ratios (7.0x to 8.2x) Source: Moody's Investors Service. Fallen Angels and Rising Stars fall within the "The Crossover Zone" which refers to the ratings closest to the line between speculative grade and investment grade. Companies in the zone are rated Baa3 or Ba1. To be considered in the zone, companies rated Baa3 must be on review for downgrade or have a negative outlook, while companies rated Ba1 must be on review for upgrade or have a positive outlook. MOODY'S November 4, 2019 22#23North America and EMEA Non-Financial Corporates Have Significant Refunding Needs1 Debt Maturities: North America Moody's-Rated Corporate Bonds and Loans $ Billions » $700 $624 $600 $566 $500 $444 189 266 $400 $341 97 $300 47 93 146 153 68 >>> $200 $100 226 205 $0 2020 254 2021 ■Investment Grade ■Speculative Grade Bonds Source: Moody's Investors Service, January 2019. 231 2023 2022 ■Speculative Grade Bank Loans Four-year debt maturities for North America non-financial investment-grade corporates approaching $1 trillion Four-year U.S. speculative grade bank loans refinancing needs up $44 billion, or 8%, from a year ago Note: Data represents U.S. & Canadian MIS rated corporate bonds & loans. Debt Maturities: EMEA Moody's-Rated Corporate Bonds and Loans $ Billions $504 64 $490 $412 69 46 84 72 39 $600 $500 $405 $400 $300 $200 338 327 $100 $0 356 349 Four-year debt maturities for EMEA non-financial corporates exceed $1.8 trillion, up more than $370 billion, or 26%, from the prior year 2020 2021 ■Speculative Grade Bonds 2022 ■Speculative Grade Bank Loans 2023 ■Investment Grade Source: Moody's Investors Service, July 2019. 1. Amount reflects total maturities identified in the above sources. MOODY'S November 4, 2019 23#24$ Billions Refunding Needs Have Grown Strongly Over Time Next Four Years U.S. and EMEA Total Refunding Needs¹ as of: $3,100 $2,800 $2,500 $2,200 $1,900 $1,972 $1,600 $1,300 $1,000 CAGR = 6% 2012 2013 2014 2015 2016 2017 2018 2019 1. Amount reflects total maturities identified below. - Source: Moody's Investors Service. U.S. and EMEA refunding needs reports January 2012 January 2019. Note: Data represents U.S. and European MIS rated corporate bonds & loans. MOODY'S $2,948 November 4, 2019 24#25Debt Refinancing and M&A are Most Frequently Stated Uses of Proceeds Uses of Funds from USD High Yield Bonds and Bank Loans¹ ■Debt Refinancing M&A Capital Spending Shareholder Payments % of Mentions 12% 9% 4% 18% 17% 18% 11% 22% 20% 16% 13% 17% 14% 9% 8% 22% 17% 5% 5% 6% 7% 8% 8% 6% 7% 8% 19% 25% 39% 37% 31% 30% 31% 41% 48% 41% 54% 63% 53% 52% 62% 83% 78% 71% 74% 71% 71% 66% 65% 64% 63% 54% I 1999 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 3Q 2019 MOODY'S 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%. Source: Moody's Analytics. November 4, 2019 25#26€ Billions MOODY'S Disintermediation of Credit is an Ongoing Trend in the Global Capital Markets European Non-Financial Corporate Bonds vs. Bank Loans Outstanding Bonds Loans €7,000 €6,000 €5,000 €4,000 €3,000 €2,000 €1,000 €0 Aug-05 Aug-07 Aug-09 Aug-11 Aug-13 Aug-15 Aug-17 Aug-19 U.S. Non-Financial Corporate Bonds vs. Bank Loans Outstanding Bonds Loans $9,000 $7,500 75% Billions $6,000 $4,500 $ $3,000 25% $1,500 $0 Sep-05 Sep-07 Sep-09 Sep-11 Sep-13 Sep-15 Sep-17 Sep-19 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 2019 and U.S. data is through September 2019. November 4, 2019 26 50% 50%#27New Rating Mandates Provide Recurring Revenue1 Growth Global New Rating Mandates² ■EMEA United States Rest of World 1,200 # of New Mandates 800 400 990 771 738 0 2014 2015 2016 1,044 1,046 ~900 2017 2018 691 3 2019F » In 3Q19, Moody's new rating mandates increased by 232; in line with 3Q18 » Expect ~900 new mandates in 20193 » MIS recurring revenue growth driven by increased volume of monitoring fees from recent new mandates, as well as pricing initiatives MIS recurring revenue is typically billed annually and recognized ratably over 12 months. Recurring revenue can also be billed upfront and recognized over the life of the security. Rated by Moody's Investors Service. 1. 2. 3. New mandates estimate as of October 30, 2019. MOODY'S November 4, 2019 27#284 Moody's Investors Service#29Moody's Investors Service Financial Profile 3Q 2019 TTM Revenue: $2.8 billion Recurring Transaction ■U.S. ■Non-U.S. 62% 40% Corporate Finance 52% 60% 38% MIS Other 1% Public, Project, & Infrastructure Finance 15% >> 31% recurring revenue >> 37% recurring revenue Financial Institutions 16% >> 58% recurring revenue Structured Finance 16% >> 41% recurring revenue Global Full Year 2019 Guidance as of October 30, 2019 U.S. increase in the mid-single-digit % range • increase in the mid-single-digit % range Increase in the low-single-digit % range Non-U.S. Adjusted Operating Margin approximately 58% Note: The revenue reclassification of REITs to Corporate Finance from Structured Finance is reflected in the trailing twelve month (TTM) calculations. MOODY'S November 4, 2019 29#30The Benefits of a Moody's Rating WIDER ACCESS TO CAPITAL TANGIBLE FINANCING BENEFITS Investors seek our opinions and particularly value the knowledge of our analysts and the depth of our research RESPONSIVE TO INVESTOR Q DEMAND MOODY'S O!!! INCREASED MARKET STABILITY DE TRANSPARENCY AND CREDIT COMPARISON PLANNING & BUDGETING November 4, 2019 30#31Rating Performance Drives Investor Confidence Ten-Year Default Rates by Rating for 2009- 2018 Cohort: Non-Financial Corporates¹ 9% Ten-Year Cumulative 1993-2018 CLO Impairments² 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% $ ཅཱ ཙྪི ལྕ ༥?? Baa1 Baa2 8% 8% 88% 87% 7% 6% 5% 63% 5% 44% 4% 32% 3% 2% 26% 19% 2% 16% 6% 7% 1% 2% 0% 0% Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Aaa Aa A Baa Ba B >> We remain focused on analytical expertise and our credit methodologies to provide predictive, predictable and transparent ratings » Accuracy reinforces investor demand pull 1 2 Source: Moody's Investors Service. The data in the chart above shows the ten-year cumulative default rates by rating from January 2009, through January 2018 of fundamental Moody's rated universe globally. Rating category is based on senior unsecured rating (or equivalent) of the issuer. Source: Moody's Investors Service: Global multi-year cumulative WR-adjusted impairment rates by original rating, 1993-2018. MOODY'S November 4, 2019 31#32Illustrative Value of a Moody's Rating Example: 10 year $500 million corporate bond Unrated $500,000,000 Bond Rated by Moody's $500,000,000 x 4.3% Interest rate x 4.0% == $21,500,000 Annual interest payments = $20,000,000 × 10 years Tenor = = $215,000,000 Lifetime interest expense = × 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 November 4, 2019 32#33Broad Coverage Serves Global Needs 1. » Americas 30,400+ rated companies and EMEA 4,700+ rated companies and structured deals ~15 Years Lead/Senior Analyst tenure APAC 2,100+ rated companies and structured deals Institutional Investor #1 U.S. Credit Rating Agency 2012-20181 structured deals >>> $34+ trillion total $21+ trillion total >>> $14+ trillion total debt rated debt rated debt rated >>> 18,600 research >>> 6,700 research >>> 3,500 research publications publications » Offices in 10 cities* >>> Offices in 13 cities* publications Offices in 10 cities* Institutional Investor Survey. Source: Moody's Investors Service. All data as of January, 28 2019, except Research Data covers the period January 1, 2018 - December 31, 2018. All numbers are rounded other than those marked * MOODY'S November 4, 2019 33#34Continue to Invest in Key International Markets Revenue in Emerging Markets CAGR 14% CCXI $313M 種盈投资者 Korea Investors Service AN AFFILIATE OF MOODY'S INVESTORS SERVICE ICRA A MOODY'S INVESTORS SERVICE COMPANY Asia Pacific >> China: Successful joint venture with CCXI, leading rating agency in China's ~$270M domestic single-rating bond market¹ ~$310M cross-border multi-rating bond market rated from MIS Hong Kong office1 >> South Korea: Full ownership of KIS subsidiary, a leading provider of domestic credit ratings in South Korea >> India: Majority stake in ICRA serves growing domestic Indian bond market $84M 2008 MOODY'S LOCAL ICR Chile AN AFFILIATE OF MOODY'S INVESTORS SERVICE Latin America >> Launched Moody's Local, a new platform that will provide domestic credit ratings and research in Peru, Panama and Bolivia² » Minority investment in ICR Chile deepens Moody's presence in dynamic and expanding market ICR 2018 ■ Emerging Asia ■CEE/CIS Latin America ■Middle East ■Africa EMEA EMEA » Opened Moody's offices in Saudi Arabia and Lithuania 1. Forecast for full year 2019. 2. Subject to regulatory approvals. Moody's Local ratings represent forward-looking rank-orderings of creditworthiness within the domestic market of a specific country. They are not comparable between countries, and are distinct from and independent of the opinions of MIS and its global ratings. MOODY'S November 4, 2019 34#35MIS ESG Opportunity: Driving Expansion Beyond Credit W Analysis » Moody's forecasts global green bond issuance to exceed $200 billion in 2019, a projected increase of 20% over 20181 » Moody's Green Bond Assessment ("GBA") portfolio is expected to save an estimated 2.6 million metric tons of annual carbon emissions² » Majority acquisition of Four Twenty Seven complements majority stake in Vigeo Eiris underscoring work to advance global standards 10 for assessing environmental and climate risk factors Research >> In 2018, Moody's published 200+ research reports focused on ESG risks and opportunities, up ~170% from 2017 Annual Moody's Assessments 21 18 Total Combined Assessments³ -260 Outreach » Organized or participated at 100+ global ESG events in 2018, attracting 5,500+ market participants » Strategic relationships with industry organizations and influencers across sustainable finance ESG Conference Spotlight on Credit as ESG Accelerates 2016 2017 2018 ■ MOODY'S vigeqeiris 1. Forecast as of January 31, 2019. 2. Based on preliminary 2018 data. Sources: Climate Bonds Initiative, Moody's Investors Service. 3. Year-to-date as of September 30, 2019. Includes approximately 60 Moody's GBAs and 200 Vigeo Eiris Second Party Opinions on green, sustainability and social bonds. MOODY'S November 4, 2019 35#365 Moody's Analytics#37Moody's Analytics Financial Profile ■Recurring Transaction ■U.S. Non-U.S. 3Q 2019 TTM Revenue: $1.9 billion >> 99% recurring revenue >> 96% retention rate1 16% 84% 58% Research, Data and Analytics 65% Enterprise Risk Solutions 26% >> 78% recurring revenue 42% Professional Services 9% >> Combination of one-off contracts and semi-recurring revenue Full Year 2019 Guidance as of October 30, 2019 1. Global U.S. Non-U.S. Adjusted Operating Margin Excludes Bureau van Dijk. increase in the low-double-digit % range increase in the mid-teens % range increase in the high-single-digit % range 28% -29% Note: The revenue reclassification of the FACT product from RD&A to ERS is reflected in the trailing twelve month (TTM) calculations. MOODY'S November 4, 2019 37#38$ Millions Moody's Analytics has Several Platforms for Growth Revenue More Than Tripled Since Inception $2,000 $1,800 $1,600 $1,400 $1,200 CAGR 12% $1,000 $800 $600 $400 $200 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Note: Individual line of business revenues may not add up to total Moody's Analytics revenue due to rounding. MOODY'S Moody's Analytics 2018 Revenue: $1,730m 2008 2018 CAGR: +12% (~55% organic) Professional Services 2018 Revenue: $159m 2008 2018 CAGR: +30% (~18% organic) Enterprise Risk Solutions 2018 Revenue: $437m 2008 2018 CAGR: +14% (~66% organic) Research, Data & Analytics 2018 Revenue: $1,134m 2008 2018 CAGR: +11% (~57% organic) November 4, 2019 38#39Full Year 2016 Full Year 2017 MOODY'S Full Year 2018 RD&A: Subscription Growth Driven by Retention, Upgrades and Pricing & New Sales Subscription Sales Growth (constant currency) 1H 2019 96.2% 9.4% 5.7% 111.3% Expansion of ratings coverage 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 5.7% 95.5% 8.2% 109.4% Retained Base Upgrades and Price New Sales Business Base 95.4% 8.0% 6.8% 110.2% 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 and excludes Bureau van Dijk and Reis. Upgrades reflect amendments to existing customer contracts. New Sales reflect new contracts with new and existing customers. November 4, 2019 39#40ERS: Driving Growth via Recurring Revenue $400 61% $300 ERS Revenue¹: Recurring vs. Non-recurring Recurring Revenue CAGR² = 16% 100% 78% 80% $ Millions $200 $100 60% 40% 20% $0 0% 3 2015 2016 2017 2018 TTM 3Q19 One-Time Recurring % Recurring % Recurring » ERS recurring revenue has grown by $160 million since 2015 » Emphasis on subscription products supports scalability, drives operating leverage 3Q19 results enhanced by one-time license delivery Sales growth driven by IFRS174 (insurance), CECL5 (U.S. banking) and CreditLens (credit decision solutions platform) product roll-out 1. Recurring revenue includes maintenance and subscription. 2345 Compound Annual Growth Rate, 2015-2018. Trailing twelve months ended September 30, 2019. International Financial Reporting Standards Foundation - Standards No. 17. Current Expected Credit Losses. MOODY'S November 4, 2019 40#41Global Regulatory and Accounting Drivers for the ERS Business EMEA Revised Concentration & Large Exposures CVA review Updated Leverage Ration Revised SA operational risk Revised minimum capital requirements for MR BOE/ PRA ST BOE/ PRA ST Restrictions use internal models for CR RWA Revised G-SIB assessment and HLA requirement Revised SA approach CR Output floor 2022 Restrictions internal models for CR RWA ASIA PACIFIC 2022 2021 Restrictions use O internal models for CR RWA Output floor Revised Concentration Large Exposures Revised G-SIB assessment and Revised SA HLA requirement approach CR Revised SA operational risk Revised minimum capital requirements for MR CVA review 2022 and beyond 2021 BOE/ PRA ST 2021 Revised G-SIB assessment and HLA requirement Revised minimum capital requirements for MR Revised SA approach CR Vickers reform 2020 2020 CCAR/ DFAST BOE/ PRA ST New securitization framework CCAR/ DFAST FRTB FRTB SCCL for large banks 2019 IFRS 9 Leverage Ratio NSFR PSD II IRRBB review Leverage Ratio TLAC² CCAR/ DFAST AMERICAS 2019 Output floor CECL TLAC² NSFR IRRBB review ECB Anacredit BOE/ PRA ST EU-wide ST TLAC2 NSFR IFRS 9 LCR1 Leverage Ratio Supplementary leverage ratio ECCAR /DFAST SEC Liquidity rules (ETF, mutual funds) FRTB New securitization framework IRRBB review IFRS 9 2020 2019 2018 SCCL large 2019 BHCS & FBO Supervisory rating system for LFIs FBO ST NCUA RBC rule for large credit unions 2020 CVA review CCAR/ DFAST Revised Concentration Large Exposures Revised SA operational risk 2022 and beyond 2021 Source: Moody's Analytics market research as of January 2019. Note: MiFID II, MiFIR and GDPR regulations are relevant to the banking sector but do not impact on Moody's Analytics products and so have not been included on the radar. 1. The implementation of the LCR in the EU was: 60% in 2015, 70% in 2016, 80% in 2017 and 100% in 2018. In the US, advanced-approach banks had to meet 80% of the LCR by January 1, 2015 and 100% of the ratio by January 1, 2017. 2. The G-SIB surcharge will expand the conservation buffer, subject to a 3 year phase in period. G-SIBS will be required to hold a minimum Total Loss-Absorbing Capacity" (TLAC) of at least 16% from 2019 and 18% by 2022. MOODY'S November 4, 2019 41#426 Appendix#43$ Millions $ Millions Corporate Finance: Revenue and Issuance Revenue: Mix by Quarter Issuance³: Mix by Quarter $400 $350 $800 $84 $89 $110 $121 $73 $300 $85 $78 $78 $68 $57 $250 $58 $70 $57 $63 $59 $64 $200 $39 $19 $96 $106 $87 $72 $57 $97 $ Billions $150 $79 $66 $55 $100 $50 $124 $126 $134 $139 $135 $145 $128 $140 $140 $0 ■Other 2 Investment Grade 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 ■Speculative Grade ■Bank Loans $44 $600 $65 $72 $26 $43 $25 $59 $138 $165 $210 $39 $111 $100 $105 $134 $400 $28 $105 $99 $112 $94 $123 $105 $120 $100 $103 $64 $33 $200 $322 $312 $269 $305 $329 $370 $314 $236 $221 $0 T 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 ■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 3Q19 $1,600 Revenue¹: Mix by Year Issuance 3: Mix by Year $1,400 $3,000 $1,200 $349 $380 $2,500 $247 $1,000 $242 $204 $254 $212 $254 $120 $175 $800 $155 $183 $219 $181 $229 $271 $600 $120 $194 $301 $305 $96 $230 $262 $ Billions $2,000 $638 $204 $504 $353 $425 $354 $414 $601 $1,500 $426 $329 $411 $120 $193 $1,000 $273 $330 $405 $311 $329 $304 $400 $143 $197 $250 $137 $293 $109 $200 $216 $275 $363 $312 $420 $421 $425 $488 $553 $500 $1,125 $1,073 $1,043 $1,120 $1,192 $1,271 $1,074 $641 $750 $0 $0 T T 2010 2011 2012 2013 2010 ■ Other 2 ■Investment Grade 2014 2015 2016 2017 2018 ■Speculative Grade ■ Bank Loans 2011 2012 2013 2014 2015 2016 2017 2018 ■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 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. 1. 2. Other includes: monitoring, commercial paper, medium term notes, and ICRA. 3. 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 November 4, 2019 43#44Corporate Finance: Revenue Diversification Revenue: Distribution by Geography Revenue¹: Distribution by Recurring vs. Transaction 100% 100% 80% 30% 31% 32% 27% 27% 27% 80% 35% 38% 31% 30% 29% 28% T 62% 68% 68% 65% 66% 65% 63% 64% 65% 68% 63% 66% 60% 60% 40% 40% 70% 69% 68% 73% 73% 73% 65% 62% 69% 70% 71% 72% 20% 20% 38% 32% 32% 35% 34% 35% 37% 36% 35% 32% 37% 34% 0% 0% FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 ■Non-U.S. ■U.S. ■Transaction ■Recurring Revenue¹: Distribution by Product 100% 22% 18% 23% 26% 28% 31% 26% 24% 28% 20% 22% 23% 80% 16% 7% 16% 20% 16% 18% 15% 13% 18% 15% 13% 15% 60% 19% 27% 18% 21% 23% 20% 27% 25% 27% 22% 22% 19% 40% 50% 20% 38% 39% 38% 44% 34% 34% 35% 40% 36% 36% 36% 0% FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 ■Other2 ■Investment Grade ■Speculative Grade ■Bank Loans 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. 2. Other includes: monitoring, commercial paper, medium term notes, and ICRA. Percentages have been rounded and may not total to 100%. MOODY'S November 4, 2019 44#45$ Millions $ Millions $160 Structured Finance: Revenue and Issuance Revenue: Mix by Quarter Issuance 2: Mix by Quarter $140 $300 $1 $1 $120 $50 $1 $0 $1 $250 $48 $49 $49 $46 $100 $55 $1 $64 $43 $48 $51 $41 $80 $35 $40 $46 $60 $38 $21 $18 $24 $20 $15 $18 $18 $ Billions $200 $41 $36 $36 $39 $51 $38 $42 $26 $27 $34 $150 $26 $34 $73 $70 $62 $21 $87 $74 $16 $63 $64 $40 $25 $24 $27 $100 $59 $22 $24 $23 $24 $24 $48 $22 $20 $50 $107 $102 $115 $89 $23 $27 $28 $28 $25 $26 $23 $26 $25 $67 $79 $90 $91 $65 $0 $0 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 3Q17 ■ ABS 4Q17 1Q18 2Q18 3Q18 RMBS ■ CMBS 4Q18 1Q19 2Q19 3Q19 ■Structured Credit $600 ABS RMBS CMBS Structured Credit Other Revenue: Mix by Year Issuance 2: Mix by Year $1,400 $2 $2 $1,200 $2 $0 $2 $400 $165 $0 $0 $0 $137 $135 $122 $196 $1,000 $59 $39 $65 $91 $36 $96 $78 $0 $82 $70 $95 $116 $122 $140 $133 $143 $78 $200 $53 $ Billions $800 $24 $200 $73 $159 $136 $94 $115 $132 $116 $600 $114 $120 $120 $371 $117 $94 $270 $90 $85 $98 $65 $73 $76 $81 $85 $90 $400 $396 $231 $189 $238 $254 $200 $204 $200 $91 $107 $110 $98 $92 $91 $94 $97 $106 $319 $335 $220 $317 $319 $292 $298 $337 $384 $0 T T T T T $0 T 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 ABS ■RMBS ■CMBS 2013 2014 2015 2016 2017 ■Structured Credit 2018 ABS RMBS CMBS Structured Credit Other 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. 2. 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 November 4, 2019 45#46Structured Finance: Revenue Diversification Revenue: Distribution by Geography 100% Revenue¹: Distribution by Recurring vs. Transaction 100% 80% 80% 38% 36% 38% 35% 37% 33% 36% 37% 36% 43% 39% 45% 66% 69% 67% 69% 63% 63% 62% 63% 63% 62% 64% 64% 60% 60% 40% 40% 62% 64% 62% 65% 63% 67% 64% 63% 64% 57% 61% 55% 20% 34% 31% 33% 31% 37% 37% 38% 37% 37% 38% 36% 36% 20% 0% 0% FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 Non-U.S. ■U.S. ■Transaction ■Recurring Revenue¹: Distribution by Product 100% 0% 0% 0% 1% 1% 0% 0% 0% 1% 1% 1% 32% 31% 33% 80% 37% 43% 39% 35% 44% 41% 37% 38% 60% 28% 31% 29% 18% 18% 18% 14% 13% 20% 16% 17% 40% 21% 23% 18% 21% 21% 20% 19% 21% 21% 18% 18% 20% 22% 20% 19% 24% 22% 22% 21% 22% 23% 23% 24% 0% FY14 FY15 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 ■RMBS CMBS Structured Credit Other ■ABS 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 November 4, 2019 46#47$ Millions $ Millions Financial Institutions: Revenue and Issuance Revenue¹: Mix by Quarter Issuance²: Mix by Quarter $140 $3 $500 $3 $3 $3 $3 $120 $3 $3 $4 $6 $7 $10 $6 $7 $6 $4 $400 $100 $5 $30 $28 $33 $3 $28 $38 $29 $31 $80 $24 $6 $15 $60 $ Billions $29 $26 $24 $20 $300 $39 $18 $27 $49 $200 $411 $4 $396 $40 $80 $77 $77 $70 $73 $80 $85 $339 $80 $327 $315 $278 $279 $63 $241 $100 $20 $170 $0 $0 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 ■Banking Insurance Managed Investments Other Revenue¹: Mix by Year 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q 19 ■Global Speculative Grade Financial Corporate Bonds ■Global Investment Grade Financial Corporate Bonds Issuance2: Mix by Year $500 $450 $13 $13 $2,000 $400 $22 $24 $2 $9 $10 $0 $1,600 $350 $0 $0 $19 $16 $17 $102 $114 $87 $79 $16 $300 $0 $19 $137 $197 $74 $183 $17 $18 $79 $89 $92 $96 $102 $250 $73 $69 $200 $ Billions $1,200 $136 $112 $161 $800 $150 $300 $290 $1,340 $1,266 $1,312 $1,247 $1,194 $1,187 $1,232 $1,248 $100 $192 $205 $228 $234 $242 $244 $240 $1,072 $400 $50 $0 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 ■Banking Insurance Managed Investments Other 2010 2011 2012 2013 2014 2015 2016 2017 2018 ■Global Speculative Grade Financial Corporate Bonds ■Global Investment Grade Financial Corporate Bonds 2. 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Sources: Moody's Analytics, Dealogic. Note: Debt issuance categories do not directly correspond to Moody's revenue categorization. MOODY'S November 4, 2019 47#48Financial Institutions: Revenue Diversification Revenue¹: Distribution by Geography Revenue1: Distribution by Recurring vs. Transaction 100% 100% 80% 40% 43% 43% 43% 42% 45% 37% 50% 44% 40% 42% 45% 80% 55% 56% 53% 53% 51% 65% 63% 63% 58% 59% 54% 72% 60% 60% 40% 40% 60% 57% 57% 57% 58% 55% 63% 50% 56% 60% 58% 55% 20% 20% 35% 37% 37% 45% 44% 47% 47% 49% 42% 41% 46% 28% 0% 0% FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 Non-U.S. ■U.S. ■Transaction ■Recurring 100% 1% 3% 5% Revenue¹: Distribution by Product 3% 3% 3% 3% 3% 4% 3% 3% 4% 5% 5% 5% 6% 5% 7% 5% 3% 2% 8% 5% 2% 80% 26% 26% 28% 23% 25% 17% 25% 27% 32% 26% 22% 26% 60% 40% 72% 68% 67% 65% 69% 67% 64% 61% 66% 69% 68% 66% 20% 0% 1. FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 ■ Banking Insurance ■Managed Investments ■ Other Historical data has been adjusted to conform with current information and excludes intercompany revenue. Percentages have been rounded and may not total to 100%. MOODY'S November 4, 2019 48#49$ Millions Public, Project and Infrastructure: Revenue and Issuance Revenue: Mix by Quarter Issuance²: Mix by Quarter $140 $120 $0 $0 $0 $100 $0 $57 $0 $0 $0 $62 $80 $60 $56 $56 $46 $54 $47 A$60 $50 $40 $62 $49 $20 $47 $52 $53 $58 $45 $41 $46 $0 $250 $0 $200 $ Billions $66 $150 $86 $75 $67 $71 $57 $100 $57 $39 $57 $127 $50 $95 $80 $82 $78 $74 $59 $71 $79 $0 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 ■Public Finance and Sovereign ■ Project & Infrastructure Finance ■ Other Revenue¹: Mix by Year 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 ■Rated Global Project & Infrastructure Finance Bonds ■Long-Term Rated U.S. Muni Bonds 2Q19 3Q19 $500 $900 Issuance2: Mix by Year $450 $0 $800 $400 $0 $0 $0 $700 $350 $0 $0 $188 $213 $600 $300 $0 $174 $206 $250 $142 $167 $181 $200 $113 $121 $ Billions $500 $400 $207 $266 $220 $300 $150 $225 $100 $181 $202 $218 $159 $156 $174 $177 $185 $200 $374 $100 $408 $364 $384 $313 $302 $307 $248 $292 $50 $0 $0 I T T 2010 2010 2011 2012 2013 2014 2015 2016 2017 2018 ■Public Finance and Sovereign ■Project & Infrastructure Finance ■ Other 2011 2012 2013 2014 2015 2016 2017 2018 ■Rated Global Project & Infrastructure Finance Bonds ■Long-Term Rated U.S. Muni Bonds 1. 2. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Global Rated Project & Infrastructure Finance available starting in 2016 and represents Moody's rated issuance. Sources: Thomson SDC, Moody's Corporation. Note: Debt issuance categories do not directly correspond to Moody's revenue categorization. MOODY'S November 4, 2019 49#50Public, Project and Infrastructure: Revenue Diversification Revenue¹: Distribution by Geography Revenue¹: Distribution by Recurring vs. Transaction 100% 100% 80% 80% 42% 40% 37% 35% 36% 42% 39% 42% 39% 41% 34% 31% 63% 65% 67% 62% 57% 57% 60% 60% 59% 65% 64% 61% 60% 60% 40% 40% 58% 60% 63% 65% 58% 64% 61% 58% 61% 59% 66% 69% 20% 37% 35% 33% 38% 43% 43% 40% 40% 41% 35% 36% 39% 20% 0% 0% FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 ■Non-U.S. ■U.S. FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 ■Transaction ■Recurring 100% 0% 0% 0% Revenue1: Distribution by Product 0% 0% 0% 0% 0% 0% 0% 0% 0% 80% 46% 46% 49% 50% 51% 52% 54% 55% 53% 50% 51% 52% 60% 40% 49% 54% 54% 51% 20% 50% 48% 46% 45% 47% 50% 49% 48% 0% FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 ■Public Finance and Sovereign ■Project & Infrastructure Finance ■ Other 1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Percentages have been rounded and may not total to 100%. MOODY'S November 4, 2019 50#51$ Millions Moody's Analytics: Financial Overview $600 Revenue1: Mix by Quarter Revenue: Mix by Year $2,000 $500 $400 $40 $38 $143 $300 $38 $37 $40 $102 $110 $115 $44 $42 $42 $124 $122 $118 $133 $43 ■ Professional Services $113 $200 $258 $267 $276 $280 $297 $308 $315 $318 ■■Enterprise Risk Solutions ■Research, Data and Analytics $100 $218 $0 $ Millions 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Revenue¹: Distribution by Line of Business $1,600 $159 $149 $451 $1,200 $147 $150 $168 $449 $800 $19 $62 $108 $119 $329 $374 $419 $181 $243 $196 $263 1,120 $400 $833 $419 $445 $483 $520 $668 $572 $626 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 100% 80% 31% 33% 34% 31% 9% 16% 13% 12% 10% 9% 9% 9% 9% 9% 9% 9% 25% 26% 26% 27% 26% 26% 25% 27% 60% 40% 54% 54% 54% 58% 66% 65% 64% 64% 65% 65% 66% 64% 20% 0% FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 Revenue: Distribution by Geography Revenue¹: Distribution by Recurring vs. Transaction 100% 100% 80% 44% 46% 49% 45% 40% 41% 40% 42% 41% 43% 42% 42% 60% 80% 60% 73% 74% 75% 78% 85% 84% 84% 83% 84% 85% 85% 84% 40% 40% 56% 54% 51% 55% 60% 59% 60% 58% 59% 57% 58% 58% 20% 20% 0% 27% 26% 25% 22% 15% 16% 16% 17% 16% 15% 15% 16% 0% FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 ■Non-U.S. ■U.S. FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 ■Transaction ■Recurring 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. Percentages have been rounded and may not total to 100%. November 4, 2019 51#52Historically, Moody's Revenue and Interest Rates Have Not Been Strongly Correlated MCO Revenue and Interest Rates MIS Revenue (L) IMA Revenue Guidance IMIS Revenue Guidance MA Revenue (L) MCO Revenue (L) 10-yr U.S. Treasury Yield (R) 1 $ Millions $6,000 7.8% $5,000 6.5% $4,000 5.8% $3,000 +200bps 4.7% +180bps $2,000 $1,000 $0 40 1992 1993 1994 +120bps +100bps 3.3% 3.0% 2.7% 2.3% 1.8% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F Note: Gray bars reflect periods of significant increases in the 10-year Treasury Yield. 1. 10-yr U.S. Treasury Yields are represented by the rate at the end-of-period. Source: www.treasury.gov. MOODY'S 9% 8% 7% 6% 3% glo do do do do do do do do do - 5% 4% 2% 1% 0% November 4, 2019 52#53$ Billions Capital Management $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 2017 ($ Billions) TTM 3Q192 2.5x Adjusted Operating Income³ $2.2 Interest Expense $0.2 Capital Expenditures $0.1 Free Cash Flow³ $1.5 2.0x 1.8x Debt $5.2 Cash, Cash Equivalents & ST Investments Net Debt $1.3 $4.0 1.5x Net Debt/Adjusted Operating Income1 1.8x 1.0x 0.5x » Committed to leverage anchored around a BBB+ rating » Strong track record of de-leveraging through cash flow (e.g., de-levered within nine months of the Bureau van Dijk acquisition) » Well-laddered maturities; no significant debt maturities until September 2020 T +0.0x 2018 1Q19 2Q19 3Q19 Net Debt Net Debt/TTM Adj. Operating Income¹(R) 1. 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. 2. TTM only applies to income and cash flow statement items. 3. Amounts are adjusted measures. See Appendix for reconciliations from adjusted financial measures to U.S. GAAP and gross debt to net debt. MOODY'S November 4, 2019 53#54Technology: Innovating with Purpose Next Gen Tech is a Defining Element of our Culture, Setting Stage for Growth M 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 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 Deliver Efficiencies » ML and deep learning tools to automate financial data spreading at both MA and MIS >> AI 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: Aritificial 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 November 4, 2019 54#55Moody's Global Presence Americas Argentina Brazil Canada Mexico Panama Peru Chile United States Costa Rica Europe, Middle East & Africa Austria Belgium Poland Portugal Cyprus Russia Czech Republic Saudi Arabia Denmark France Germany Slovak Republic South Africa Spain Sri Lanka Sweden Israel Italy Lithuania Mauritius Morocco Netherlands Asia-Pacific Australia China Switzerland United Arab Emirates United Kingdom Hong Kong Malaysia Nepal Singapore South Korea Thailand 2019 2018 3,875 U.S. employees 3,743 U.S. employees + 9,850 13,725 non-U.S. employees total employees¹ India Japan 8,878 12,621 non-U.S. employees total employees² 1. As of September 30, 2019. Includes ~2,800 MAKS employees. 2. As of September 30, 2018. MOODY'S November 4, 2019 55#56Reconciliation of Adjusted Financial Measures to GAAP Adjusted Operating Income and Adjusted Operating Margin Reconciliation1 (in $ millions) 2014 2015 2016 Operating Income Operating Margin $1,449.8 43.5% $1,490.7 42.8% $650.9 2017 $1,820.8 2018 $1,868.2 TTM 3Q19 $1,870.6 18.1% 43.3% 42.1% 40.2% Add Adjustment: Depreciation & Amortization 95.6 113.5 126.7 158.3 191.9 198.2 Acquisition-Related Expenses 22.5 8.3 7.6 Restructuring 12.0 48.7 107.0 Captive insurance company settlement 15.5 Settlement Charge 863.8 Impairment pursuant to the planned divestiture of MAKS 10.7 Adjusted Operating Income Adjusted Operating Margin $1,545.4 46.3% $1,604.2 46.0% $1,653.4 45.9% $2,001.6 47.6% $2,117.1 47.7% $2,209.6 47.5% Moody's Corporation Net Debt Reconciliation (in $ millions) Gross debt Less: Cash, cash equivalents and short-term investments Net debt 2014 2015 2016 $2,532.1 $3,380.6 $3,363.0 1,677.6 2,232.2 2,224.9 $854.5 $1,148.4 $1,138.1 2017 $5,540.5 1,183.3 $4,357.2 2018 $5,676.0 3Q19 $5,238.0 1,817.5 1,273.8 $3,858.5 $3,964.2 1. 2014-2017 operating and adjusted operating income have been restated to conform to the new presentation of pension accounting. MOODY'S November 4, 2019 56#571. 2. Reconciliation of Adjusted Financial Measures to GAAP (cont.) Moody's Corporation Operating Margin Guidance Reconciliation Projected Operating Margin - GAAP 2019F1 Approximately 42% Restructuring Depreciation & Amortization Captive insurance company settlement Acquisition-Related Expenses Projected Adjusted Operating Margin Free Cash Flow Reconciliation2 Approximately 4.2% Approximately 1.2% Approximately 0.3% Impairment pursuant to the planned divestiture of MAKS Approximately 0.2% Approximately 0.1% Approximately 48% (in $ millions) 2014 Net cash flows from operating $1,077.3 activities Less: Capital expenditures Free Cash Flow 2015 $1,198.1 74.6 89.0 $1,002.7 $1,109.1 2016 2017 2018 $1,259.2 $754.6 $1,461.1 115.2 90.6 90.4 $1,144.0 $664.0 $1,370.7 $1,600.0 to $1,700.0 2019F1 $1,700.0 $1,800.0 ~100.0 Guidance as of October 30, 2019. In 2017, the Company adopted ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting" on a retrospective basis. In Q1 2018, the Company adopted ASU No. 2016- 15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)" on a retrospective basis. MOODY'S November 4, 2019 57#58Reconciliation of Adjusted Financial Measures to GAAP (cont.) Moody's Corporation Diluted EPS Reconciliation 2014 2015 2016 2017 2018 Diluted EPS - GAAP Legacy Tax $4.61 $4.63 $1.36 $5.15 $6.74 2019F1 $7.20 - $7.35 (0.03) (0.03) Impact of Litigation Settlement $3.59 Captive insurance company settlement ~0.06 ICRA Gain (0.37) FX Gain due to Subsidiary Liquidation ($0.18) Restructuring $0.04 $0.19 ~$0.23 CCXI Gain ($0.31) Acquisition-Related Expenses $0.10 $0.03 ~$0.01 Purchase Price Hedge Gain ($0.37) Acquisition-Related Intangible Amortization Expenses $0.10 $0.11 $0.13 $0.23 $0.40 ~$0.41 divestiture of MAKS Impact of U.S. tax reform Net Impact of U.S./European tax change on deferred taxes Increase to non-U.S. UTPS Tax charge associated with planned Impairment pursuant to the planned divestiture of MAKS Adjusted Diluted EPS $1.28 ($0.30) ($0.01) $0.33 ~$0.08 -$0.06 $4.31 $4.71 $4.94 $6.07 $7.39 1. Guidance as of October 30, 2019. MOODY'S Note: Table may not sum to total due to rounding. $8.05 - $8.20 November 4, 2019 58#59MOODY'S Investor Relations ir.moodys.com [email protected] moodys.com#602019 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 ITS RATINGS AFFILIATES ("MIS") ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY'S PUBLICATIONS MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY'S 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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