Slide 1: 3Q2023 Earnings Presentation
3Q2023 Earnings Presentation November 1, 2023 ©Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
3Q2023 Earnings Presentation Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures Forward-Looking Statements This release contains forward-looking statements about Verisk’s future performance, including those related to our financial guidance. These statements relate to future ev
Slide 3: Business and Financial Highlights
3Q2023 Earnings Presentation Business and Financial Highlights • Organic constant currency (OCC) revenue grew 9.4%, comprised of 8.3% growth in Underwriting and 12.2% growth in Claims. • OCC subscription revenue grew 9.3%, demonstrating broad-based growth across most of our subscription businesses w
Slide 4: 3Q23 Financial Results
3Q23 Financial Results ©Verisk Analytics, Inc. All rights reserved. 4
Slide 5: Financial Summary – Continuing Ops
3Q2023 Earnings Presentation Financial Summary – Continuing Ops1 Three Months ended Sept 30 2023 2022 % change Subscription/Long-Term Revenue Revenue $677.6M $610.1M 11.1% Net income 187.4 189.4 (1.1) Adjusted net income 221.2 189.1 17.0 80% 81% 3Q2023 3Q2022 Adjusted EBITDA 366.0 325.5 12.5 Adjuste
Slide 6: Subscription vs. Non-subscription Growth – Insurance Only
3Q2023 Earnings Presentation Subscription vs. Non-subscription Growth – Insurance Only Organic Constant Currency (OCC) Non- 3Q23 Highlights OCC Growth Subscription Total subscription • Subscription revenue growth of 9.3% reflects strong contribution from: FY21 7.1% 6.0% 6.9% – forms, rules, and loss
Slide 7: Underwriting – Revenue
3Q2023 Earnings Presentation Underwriting – Revenue Industry-leading data analytics and insights Underwriting Solutions Extreme Event Solutions Life Specialty Business Marketing International (incl. Forms, Rules, and Loss Costs Catastrophe and extreme Power for simplified Solutions Identity resoluti
Slide 8: Claims – Revenue
3Q2023 Earnings Presentation Claims – Revenue Industry-leading data analytics and insights Property Estimating Solutions Anti-Fraud Solutions Casualty Solutions International Loss quantification and repair cost Broad claims compliance solutions and A growing, global array of data and Unmatched indus
Slide 9: Insurance Performance - Pro Forma
3Q2023 Earnings Presentation Insurance Performance1 - Pro Forma Revenue (Pro Forma) FY Revenue & Adjusted EBITDA (Pro Forma) 9.8% 9.8% 9.4% 8.1% OCC Revenue growth 6.9% OCC Revenue growth 6.5% 6.1% 6.4% 5.3% OCC Adj. EBITDA growth 5.7% OCC Adj. EBITDA growth 8.0% Adj. EBITDA Margin 52.5% Adj. EBITDA
Slide 10: Cash Flow and Capital
Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 10
Slide 11: Cash Flow Utilization
3Q2023 Earnings Presentation Cash Flow Utilization (in $ millions) 2020 2021 2022 3Q22 3Q23 Net cash provided by operating activities1,2 $1,068M $1,156M $1,059M $280M $250M Capital expenditures (247)M (268)M (275)M (66)M (54)M Free cash flow (FCF) 821M 888M 784M 214M 196M Acquisitions (net of cash a
Slide 12: Capital Structure
3Q2023 Earnings Presentation Capital Structure as of (in $ millions) Sep. 2023 Bonds $2,850 1,000 Term Loan - 900 Bilateral Revolver - Revolver Drawn - 600 Total Debt 1 $2,850 500 500 Debt/EBITDA 2 2.0x 350 Investment Grade Ratings S&P BBB Moody’s Baa2 2023 2024 2025 2026 2027 2028 2029 2030 2031 20
Slide 13: Capital Expenditures – Insurance Only
3Q2023 Earnings Presentation Capital Expenditures – Insurance Only $57M $58M $55M $54M $52M $48M $44M 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 ©Verisk Analytics, Inc. All rights reserved. 13
Slide 14: Capital Return
3Q2023 Earnings Presentation Capital Return Dividend per Share Share Repurchases $3,000 7.3% 7.0% 8.0% CAGR $1.36 $2,500 5.3% $2,550 5.0% $1.24 $1.16 $2,000 $1.08 3.0% $1.00 1.3% 1.3% 1.5% $1,663 $1,500 1.0% $1,000 -1.0% $500 -3.0% $475 $300 $349 $- -5.0% 2019 2020 2021 2022 YTD23 1 2019 2020 2021 2
Slide 15: 2023 Outlook
3Q2023 Earnings Presentation 2023 Outlook 2023 Metric Guidance Total Revenue $2.63 – $2.66B Adjusted EBITDA $1.39 – $1.43B Adjusted EBITDA margin 53.0% – 54.0% Diluted Adjusted EPS $5.50 – $5.70 Tax rate 23% – 25% Capex $220 - $240M Fixed asset D&A $175 – $195M Intangible amortization $70M Q4 Divide
Slide 16: Capital Management Philosophy
3Q2023 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
3Q2023 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
3Q2023 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 3Q23 3Q22 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $677.6M — — $610.1M —M —M Revenues from acquisitions and dispositions (7.
Slide 20: Non-GAAP Reconciliations: 2021 and 2022 Pro Forma Revenues and EBITDA
3Q2023 Earnings Presentation Non-GAAP Reconciliations 2021 and 2022 Pro Forma Revenues and EBITDA 2023 2022 2021 1Q 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Revenues (Insurance) $652M $586M $610M $610M $630M $2,437M $536M $550M $558M $563M $2,207M Revenues from acquisitions 23 (20) (28) (28) (28) (105) (1) - (
Slide 21: Non-GAAP Reconciliations
3Q2023 Earnings Presentation Non-GAAP Reconciliations Adjusted Net Income/EPS and Free Cash Flow | Current and Prior-Year Period Adjusted Net Income and EPS FY22 FY21 3Q23 3Q22 Net income $1,042.1M $607.1M $187.4M $189.5M Income from discontinued operations, net of tax expense — — — 23.7 Income from
Slide 22: Non-GAAP Reconciliations
3Q2023 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and FY22 FY21 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $2,437.0M $22.4M $37.6M $2,206.9M $112.8M $142.8M Revenues from acquisiti
Slide 23: ©Verisk ©Verisk Analytics, Analytics, Inc.
©Verisk ©Verisk Analytics, Analytics, Inc. Inc. All All rights rights reserved. reserved. 23