Slide 1: 2Q2022 Earnings Presentation
2Q2022 Earnings Presentation August 2, 2022 ©Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
2Q2022 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: Business and Financial Highlights
2Q2022 Earnings Presentation Business and Financial Highlights • Organic constant currency (OCC) revenue growth of 5.3%, or 5.9% when normalized for the impact of suspension of Russian operations, was driven by solid growth in insurance and modest contributions from energy. • OCC subscription revenu
Slide 4: Financial Summary
2Q2022 Earnings Presentation Financial Summary Three months ended June 30 Subscription/Long-Term Revenue 2022 2021 % change Revenue $746M $748M -0.2% 80% 81% Net income 198 154 28.4 2Q2022 2Q2021 Adjusted net income 244 191 27.7 Adjusted EBITDA 381 371 2.7 International Revenue Adjusted EBITDA margi
Slide 5: Organic Constant Currency Growth and Adjusted EBITDA Margins
2Q2022 Earnings Presentation Organic Constant Currency Growth and Adjusted EBITDA Margins 2Q Financial Review OCC Revenue OCC Adjusted EBITDA Total Adjusted EBITDA Margin 9.8% 51.0% 49.9% 7.6% 49.4% 49.6% 49.0% 49.0% 6.3% 5.0% 5.2% 5.1% 5.2% 5.3% 5.3% 47.6% 4.7% 4.2% 4.1% 4.4% 3.3% 3.4% 46.3% 2.1% F
Slide 6: Subscription vs. Non-subscription Growth
2Q2022 Earnings Presentation Subscription vs. Non-subscription Growth Organic Constant Currency 1Q22 2Q22 1 OCC Growth Insurance E&SM Total Insurance E&SM Total Subscription revenue 7.2% 2.0% 6.2% 7.3% 1.7% 6.2% Non-subscription revenue 1.3% 1.5% 1.3% 2.7% -2.8% 1.7% Total 6.1% 1.9% 5.3% 6.4% 0.8% 5
Slide 7: Segments
Segments ©Verisk Analytics, Inc. All rights reserved. 7
Slide 8: Insurance
2Q2022 Earnings Presentation Insurance Industry-leading data analytics and insights Underwriting & Rating Solutions Claims Solutions Industry-standard insurance programs, Integrated analytics solutions for improving Underwriting Claims property-specific underwriting & rating claim outcomes and fight
Slide 9: Insurance Quarterly Performance
2Q2022 Earnings Presentation Insurance Quarterly Performance Financials Business Highlights • Underwriting and rating grew 7.1% on an OCC basis with solid growth across % change industry-standard programs, extreme events solutions, life insurance 2Q22 2Q21 Reported OCC solutions, marketing, and inte
Slide 10: Energy and Specialized Markets
2Q2022 Earnings Presentation Energy and Specialized Markets Unique insight on the world’s energy resources and intelligent compliance solutions Energy Energy and natural resources solutions across Research & Analytics and Advisory Services. Providing engaging digital platforms and tools to support o
Slide 11: Energy and Specialized Markets Quarterly Performance
2Q2022 Earnings Presentation Energy and Specialized Markets Quarterly Performance Financials Business Highlights % change • OCC revenue increased 0.8%, reflecting growth in subscription revenues offset by declines in consulting. 2Q22 2Q21 Reported OCC1 – Normalizing for the impact of suspended opera
Slide 12: Cash Flow and Capital
Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 12
Slide 13: Cash Flow Utilization
2Q2022 Earnings Presentation Cash Flow Utilization (in $ millions) 2019 2020 2021 2Q21 2Q22 Net cash provided by operating activities1 $956M $1,068M $1,156M $233M $130M Capital expenditures (217)M (247)M (268)M (63)M (69)M Free cash flow (FCF) 740M 821M 887M 171M 61M Acquisitions (net of cash acquir
Slide 14: Capital Structure
2Q2022 Earnings Presentation Capital Structure as of (in $ millions) Jun. 2022 Revolver due for renewal August 2024 Bonds $2,700 350 Term Loan $125 900 Revolver Drawn $650 Total Debt 1 $3,475 650 600 Debt/EBITDA 2 2.19x 500 125 Covenant level 3 3.50x 350 350 Investment Grade Ratings S&P BBB Moody’s
Slide 15: Capital Expenditures
2Q2022 Earnings Presentation Capital Expenditures Capex as a % of revenue to come down to mid-single-digit level over time $268M 231 247 217 183 146 138 115 105 Internally Developed Software 53 43 $23M 26 28 Hardware/Third-Party Software Non-IT 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 16: Capital Management Philosophy
2Q2022 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
Appendix: Supplemental Slides and/or Non-GAAP Reconciliations ©Verisk Analytics, Inc. All rights reserved. 17
Slide 18: Non-GAAP Reconciliations
2Q2022 Earnings Presentation Non-GAAP Reconciliations Specified Metrics We have provided certain non-GAAP financial information as supplemental information regarding our operating results. These measures are not in accordance with, or an alternative for, U.S. GAAP and may be different from non-GAAP
Slide 19: Non-GAAP Reconciliations
2Q2022 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 2Q22 2Q21 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $610.0M $133.5M $2.8M $550.0M $162.3M $35.2M Revenues from acquisitions a
Slide 20: Non-GAAP Reconciliations
2Q2022 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and FY21 FY20 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $2,206.9M $648.9M $142.8M $2,008.7M $619.2M $156.7M Revenues from acquisi
Slide 21: Non-GAAP Reconciliations
2Q2022 Earnings Presentation Non-GAAP Reconciliations Adjusted Net Income/EPS and Free Cash Flow | Current and Prior-Year Period Adjusted Net Income and EPS FY21 FY20 2Q22 2Q21 Net income $666.3M $712.7M $197.8M $151.6M plus: Amortization of intangibles 176.7 165.9 39.8 50.5 less: Income tax effect
Slide 22: Non-GAAP Reconciliations
2Q2022 Earnings Presentation Non-GAAP Reconciliations Adjusted EBITDA | Historical Full-Year Periods Segment Adjusted EBITDA Reconciliation 2021 2020 2019 Insurance Segment – EBITDA $1,265.7M $1,131.0M $824.1M Insurance Segment – Acquisition-related costs (earn-outs) 0.1 2.1 32.1 Insurance Segment –
Slide 23: ©Verisk ©Verisk Analytics, Analytics, Inc.
©Verisk ©Verisk Analytics, Analytics, Inc. Inc. All All rights rights reserved. reserved. 23