Revenue and Issuance Analysis

1. 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

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