Slide 1: 4Q2021 Earnings Presentation
4Q2021 Earnings Presentation February 22, 2022 ©Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
4Q2021 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
4Q2021 Earnings Presentation Business and Financial Highlights • Reported organic constant currency (OCC) revenue growth of 5.2%, driven by continued strength in insurance and sequential improvements in energy and financial services. • Delivered OCC adjusted EBITDA growth of 7.6%, reflecting core op
Slide 4: Financial Summary
4Q2021 Earnings Presentation Financial Summary Three months ended December 31 Subscription/Long-Term Revenue 2021 2020 % change Revenue $766M $713M 7.4% 82% 82% Net income 142 176 -19.5 4Q2021 4Q2020 Adjusted net income 240 209 14.8 Adjusted EBITDA 375 344 9.0 International Revenue Adjusted EBITDA m
Slide 5: Organic Constant Currency Growth and Adjusted EBITDA Margins
4Q2021 Earnings Presentation Organic Constant Currency Growth and Adjusted EBITDA Margins 4Q Financial Review OCC Revenue OCC Adjusted EBITDA Total Adjusted EBITDA Margin 9.8% 49.9% 49.4% 49.6% 7.6% 49.0% 49.0% 6.3% 48.2% 5.0% 5.2% 47.6% 4.9% 5.2% 5.1% 4.7% 4.2% 3.3% 3.5% 3.4% 2.1% FY20 FY21 4Q20 1Q
Slide 6: Segments
Segments ©Verisk Analytics, Inc. All rights reserved. 6
Slide 7: Insurance
4Q2021 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
4Q2021 Earnings Presentation Insurance Quarterly Performance Financials Business Highlights • UW & rating grew 7.2% on an OCC basis with solid growth across industry- % change standard programs, extreme events solutions, life insurance software 4Q21 4Q20 Reported OCC solutions, and international sof
Slide 9: Energy and Specialized Markets
4Q2021 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
4Q2021 Earnings Presentation Energy and Specialized Markets Quarterly Performance Financials Business Highlights % change • OCC revenue increased 2.8%, reflecting accelerating growth in subscription revenues. 4Q21 4Q20 Reported OCC – Growth was led by strong double-digit growth in energy transition
Slide 11: Financial Services
4Q2021 Earnings Presentation Financial Services Big data, predictive analytics, and insights Argus Portfolio Solutions for financial institutions, including Fraud & Credit Risk Tools for bankruptcy management and debt Management competitive benchmarking, decisioning Management collection, and soluti
Slide 12: Financial Services Quarterly Performance
4Q2021 Earnings Presentation Financial Services Quarterly Performance Financials Business Highlights % change • OCC revenue increased 0.1% primarily due to double-digit growth in combined 4Q21 4Q20 Reported OCC spend-informed analytics and portfolio management, offset by continued weakness primarily
Slide 13: Cash Flow and Capital
Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 13
Slide 14: Cash Flow Utilization
4Q2021 Earnings Presentation Cash Flow Utilization (in $ millions) 2019 2020 2021 4Q20 4Q21 Net cash provided by operating activities $956M $1,068M $1,156M $249M $189M Capital expenditures (217)M (247)M (268)M (72)M (85)M Free cash flow (FCF) 740M 821M 887M 177M 103M Acquisitions (net of cash acquir
Slide 15: Capital Structure
4Q2021 Earnings Presentation Capital Structure as of Revolver due (in $ millions) Dec. 2021 for renewal August 2024 Bonds $2,700 Revolver Drawn $610 390 Total Debt 1 $3,310 Debt/EBITDA 2 2.39x Covenant level 3 3.50x 900 610 600 Investment Grade Ratings 500 350 350 S&P BBB Moody’s Baa2 2022 2023 2024
Slide 16: Capital Expenditures
4Q2021 Earnings Presentation Capital Expenditures Capex as a % of revenue to come down $268M 231 247 to mid-single-digit level over time 217 183 146 Internally Developed Software 138 115 Internally Developed Software 105 Hardware/Third-Party Software 53 43 $23M 26 28 Non-IT Hardware/Third-Party Soft
Slide 17: Capital Management Philosophy
4Q2021 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 • Co
Slide 18: Appendix: Supplemental Slides and/or Non-GAAP Reconciliations
Appendix: Supplemental Slides and/or Non-GAAP Reconciliations ©Verisk Analytics, Inc. All rights reserved. 18
Slide 19: Non-GAAP Reconciliations
4Q2021 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 20: Non-GAAP Reconciliations
4Q2021 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 4Q21 4Q20 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $563.4M $164.5M $38.1M $516.9M $158.3M $38.1M Revenues from acquisitions
Slide 21: Non-GAAP Reconciliations
4Q2021 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 22: Non-GAAP Reconciliations
4Q2021 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 4Q21 4Q20 Net income $666.3M $712.7M $141.8M $176.2M plus: Amortization of intangibles 176.7 165.9 43.6 42.3 less: Income tax effect
Slide 23: Non-GAAP Reconciliations
4Q2021 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 24: Thank you
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