Slide 1: 1Q2021 Earnings Presentation
1Q2021 Earnings Presentation 1Q2021 Earnings Presentation May 4, 2021 © 2021 Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
1Q2021 Earnings Presentation Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures Forward-Looking Statements This release contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertai
Slide 3: 1Q2021 Business and Financial Highlights
1Q2021 Earnings Presentation 1Q2021 Business and Financial Highlights • Organic constant currency (OCC) revenue grew 3.4%, led by continued solid growth in the insurance segment. • In the 85% of our consolidated revenues that are predominantly subscription or subject to long-term contracts where we
Slide 4: Financial Summary
1Q2021 Earnings Presentation Financial Summary Three months ended March 31 Subscription/Long-Term Revenue 2021 2020 % change Revenue $726M $690M 5.3% 82% 82% Net income 169 172 (1.8) 1Q2021 1Q2020 Adjusted net income 203 194 4.6 Adjusted EBITDA 346 318 8.7 International Revenue Adjusted EBITDA margi
Slide 5: Organic Constant Currency Growth and Adjusted EBITDA Margins
1Q2021 Earnings Presentation Organic Constant Currency Growth and Adjusted EBITDA Margins 1Q Financial Review OCC Revenue OCC Adjusted EBITDA Total Adjusted EBITDA Margin 14.8% 12.4% 52.1% 51.3% 9.8% 49.4% 7.2% 7.4% 6.7% 48.2% 5.0% 5.2% 47.6% 4.9% 47.0% 3.3% 3.6% 3.5% 3.4% 46.1% 1.1% FY19 FY20 1Q20
Slide 6: Segments
1Q2021 Earnings Presentation Segments © 2021 Verisk Analytics, Inc. All rights reserved. 6
Slide 7: Insurance
1Q2021 Earnings Presentation Insurance Industry-leading data analytics and insights Underwriting & Rating Solutions Claims Solutions Industry-standard insurance programs, Integrated analytics solutions for improving property-specific underwriting & rating claim outcomes and fighting fraud at every i
Slide 8: Insurance Quarterly Performance
1Q2021 Earnings Presentation Insurance Quarterly Performance Financials Business Highlights • UW & rating grew 5.3% on an OCC basis, and was broad-based across both % change personal and commercial lines. 1Q21 1Q20 Reported OCC – Industry-standard programs, catastrophe modeling solutions, and UW & r
Slide 9: Energy and Specialized Markets
1Q2021 Earnings Presentation Energy and Specialized Markets Unique insight on the world’s energy resources and intelligent compliance solutions Energy Specialized Markets Energy and natural resources solutions across Research & Analytics and Advisory Services Providing engaging digital platforms and
Slide 10: Energy and Specialized Markets Quarterly Performance
1Q2021 Earnings Presentation Energy and Specialized Markets Quarterly Performance Financials Business Highlights • OCC revenue decreased 0.6%, reflecting modest sequential improvement as the % change end market continues to recover from the effects of the pandemic. 1Q21 1Q20 Reported OCC • Breakout
Slide 11: Financial Services
1Q2021 Earnings Presentation Financial Services Big data, predictive analytics, and insights Argus Portfolio Solutions for financial institutions, including Fraud & Credit Tools for bankruptcy management and debt Management competitive benchmarking, decisioning Risk Management collection, and soluti
Slide 12: Financial Services Quarterly Performance
1Q2021 Earnings Presentation Financial Services Quarterly Performance Financials Business Highlights % change • OCC revenue declined 12.8%, reflecting the impact of certain contract transitions, lower levels of project spending from our bank customers stemming 1Q21 1Q20 Reported OCC from COVID-19, a
Slide 13: Cash Flow and Capital
1Q2021 Earnings Presentation Cash Flow and Capital © 2021 Verisk Analytics, Inc. All rights reserved. 13
Slide 14: Cash Flow Utilization
1Q2021 Earnings Presentation Cash Flow Utilization (in $ millions) 2018 2019 2020 1Q20 1Q21 Net cash provided by operating activities $934M $956M $1,068M $363M $449M Capital expenditures (231) (217) (247) (53) (59) Free cash flow (FCF) 703 740 821 310 390 Acquisitions (net of cash acquired) and rela
Slide 15: Capital Structure
1Q2021 Earnings Presentation Capital Structure as of Mar-2021 Revolver due (in $ millions) for renewal August 2024 Bonds $3,150 Revolver Drawn $0 Total Debt 1 $3,150 Debt/EBITDA 2 2.26x Matures Covenant level 3 3.50x May 2021 994 900 Investment Grade Ratings 600 S&P BBB 500 450 Moody’s Baa2 350 350
Slide 16: Capital Management Philosophy
1Q2021 Earnings Presentation Capital Management Philosophy Focused on value creation and improving ROIC • Understand and optimize operating capital generation. • Identify internal and external investment opportunities. • Compare estimated returns on invested capital relative to risk-weighted WACC. •
Slide 17: Appendix: Supplemental Slides and/or Non-GAAP Reconciliations
1Q2021 Earnings Presentation Appendix: Supplemental Slides and/or Non-GAAP Reconciliations © 2021 Verisk Analytics, Inc. All rights reserved. 17
Slide 18: Non-GAAP Reconciliations
1Q2021 Earnings Presentation Non-GAAP Reconciliations Specified Metrics The company has provided certain non-GAAP financial information as supplemental information regarding its operating results. These measures are not in accordance with, or an alternative for, U.S. GAAP and may be different from n
Slide 19: Non-GAAP Reconciliations
1Q2021 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 1Q21 1Q20 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $535.6M $156.2M $34.3M $495.3M $154.2M $40.3M Revenues from acquisitions
Slide 20: Non-GAAP Reconciliations
1Q2021 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Prior-Years Period Segment Results Summary and FY 2020 FY 2019 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $2,008.7M $619.2M $156.7M $1,885.4M $543.7M $178.0M Revenues from acquisitions
Slide 21: Non-GAAP Reconciliations
1Q2021 Earnings Presentation Non-GAAP Reconciliations Adjusted Net Income/EPS and Free Cash Flow | Current and Prior-Year Period Adjusted Net Income and EPS FY2020 FY2019 1Q21 1Q20 Net income $712.7M $449.9M $168.0M $171.7M plus: Amortization of intangibles 165.9 138.0 45.0 41.0 less: Income tax eff
Slide 22: Non-GAAP Reconciliations
1Q2021 Earnings Presentation Non-GAAP Reconciliations Adjusted EBITDA | Historical Full-Year Periods Segment Adjusted EBITDA Reconciliation 2019 2018 2017 Insurance Segment – EBITDA $824.1M $930.7M $854.5M Insurance Segment – Acquisition-related costs (earn-outs) 32.1 (0.8) (0.2) Insurance Segment –
Slide 23: 1Q2021 Earnings Presentation
1Q2021 Earnings Presentation © 2021 Verisk Analytics, Inc. All rights reserved. 23