Huron Consulting Group Inc. · NASDAQ:HURN

Huron Consulting — Investor Presentation (May 2023)

36 slides from Huron Consulting's investor presentation, May 2, 2023

  1. Slide 1: Huron Consulting Group Inc. Investor Presentation

    H U R O N I 1 © 2023 Huron Consulting Group Inc. and affiliates.huronco sul ggroup.com2 0 2 3 Huron Consulting Group Inc. Investor Presentation

  2. Slide 2: Forward-Looking Statements

    H U R O N I 2 © 2023 Huron Consulting Group Inc. and affiliates. Forward-Looking Statements Statements in this presentation that are not historical in nature, including those concerning the company’s current expectations about its future results, are “forward-looking” statements as defined in Sectio

  3. Slide 3: Use of non-GAAP financial measures

    H U R O N I 3 © 2023 Huron Consulting Group Inc. and affiliates. Use of non-GAAP financial measures In evaluating the company’s financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income, adjusted diluted earnings per

  4. Slide 4: Our Business

    H U R O N I 4 © 2023 Huron Consulting Group Inc. and affiliates. Our Business 2 H U R O N I 4

  5. Slide 5: Huron is a global professional services firm

    H U R O N I 5 © 2023 Huron Consulting Group Inc. and affiliates. Huron is a global professional services firm that partners with clients to develop growth strategies, optimize operations and accelerate digital transformation using an enterprise portfolio of technology, data and analytics solutions t

  6. Slide 6: Our strategy for driving increased shareholder value

    H U R O N I 6 © 2023 Huron Consulting Group Inc. and affiliates. Our strategy for driving increased shareholder value Medium Term Financial Targets:​ ------------------------------- • Low double-digit annual revenue growth • Mid-teen % adjusted EBITDA margins by 2025 • High teen % annual EPS growth

  7. Slide 7: Capabilities mix: compelling mix of industry-differentiated offerings

    H U R O N I 7 © 2023 Huron Consulting Group Inc. and affiliates. Digital 44% Consulting and Managed Services 56% Capabilities Mix 2022 Revenue Compelling mix of industry-differentiated offerings Digital Helping organizations: (i) design and execute technology, data and analytic strategies that accel

  8. Slide 8: Our global enterprise platform and client-centric approach

    H U R O N I 8 © 2023 Huron Consulting Group Inc. and affiliates. Our global enterprise platform is designed to provide a client-centric approach and bring the full breadth of Huron’s offerings to our industries of focus Healthcare Industry Education Industry Financial Services Industry Energy & Util

  9. Slide 9: Five key ESG commitments

    © 2023 Huron Consulting Group Inc. and affiliates. H U R O N I 9 Driving our vision and unlocking value for all stakeholders through our five key ESG commitments We are committed to investing in our people and fostering a diverse and inclusive culture We serve clients in industries that have a signi

  10. Slide 10: Our Market Opportunity and Growth Initiatives

    H U R O N I 1 0 © 2023 Huron Consulting Group Inc. and affiliates. Our Market Opportunity and Growth Initiatives

  11. Slide 11: Healthcare industry overview

    © 2023 Huron Consulting Group Inc. and affiliates. H U R O N I 1 1 Providing Proven and Innovative Solutions to Address Key Industry Challenges • Increased economic challenges driven by strained cost structures and worsening payor mix • Clinical delivery shifting from inpatient to outpatient setting

  12. Slide 12: Driving future growth in Healthcare

    H U R O N I 1 2 © 2023 Huron Consulting Group Inc. and affiliates. Driving future growth in Healthcare STRONG MOMENTUM TO DATE • Grew total Healthcare segment revenues 20% in 2022 as compared to 2021 • Grew Healthcare industry Digital revenues 44% in 2022 as compared to 2021 • Grew revenue cycle man

  13. Slide 13: Education industry overview

    © 2023 Huron Consulting Group Inc. and affiliates. H U R O N I 1 3 Providing Proven and Innovative Solutions to Address Key Industry Challenges • Value of higher education and long- term sustainability continue to be in question • Disruption in the workforce and the war for talent is increasing • En

  14. Slide 14: Driving future growth in Education

    H U R O N I 1 4 © 2023 Huron Consulting Group Inc. and affiliates. Driving future growth in Education STRONG MOMENTUM TO DATE • Grew total Education segment revenues 48% in 2022 as compared to 2021 • Grew Education industry Digital revenues 51% in 2022 as compared to 2021 • Grew research managed ser

  15. Slide 15: Commercial industry overview

    H U R O N I 1 5 © 2023 Huron Consulting Group Inc. and affiliates. Commercial industry overview Personas of Focus: • CEO • CFO • Chief Strategy Officer • CHRO • COO • Organizational advisors, including lenders and law firms Commercial Digital revenues grew 30% in 2022 as compared to 2021 Providing P

  16. Slide 16: Driving future growth in Commercial

    H U R O N I 1 6 © 2023 Huron Consulting Group Inc. and affiliates. Driving future growth in Commercial STRONG MOMENTUM TO DATE • Grew total Commercial segment revenues 18%(1) in 2022 as compared to 2021 • Grew Commercial industry Digital revenues 41% in 2022 as compared to 2021 • Acquired AIMDATA to

  17. Slide 17: Our Proven Results

    H U R O N I 1 7 © 2023 Huron Consulting Group Inc. and affiliates. Our Proven Results 2 H U R O N I 1 7

  18. Slide 18: Delivering proven results for our clients: Virginia Hospital Center

    H U R O N I 1 8 © 2023 Huron Consulting Group Inc. and affiliates. Delivering proven results for our clients Illustrative case studies Huron partnered with Virginia Hospital Center (VHC) had successfully completed several internal initiatives to prepare for the future but wanted to realize further g

  19. Slide 19: Delivering proven results for our clients: Williams Companies

    H U R O N I 1 9 © 2023 Huron Consulting Group Inc. and affiliates. Delivering proven results for our clients Illustrative case studies Huron partnered with The Williams Companies Inc., one of the largest energy infrastructure companies in the United States, to help it reduce its compliance cost, inc

  20. Slide 20: Our Digital Capability

    H U R O N I 2 0 © 2023 Huron Consulting Group Inc. and affiliates. Our Digital Capability 2 H U R O N I 2 0

  21. Slide 21: Investing organically and inorganically to advance Digital capability

    H U R O N I 2 1 © 2023 Huron Consulting Group Inc. and affiliates. Investing organically and inorganically to advance our rapidly growing global Digital capability 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 • Acquired Blue Stone International (EPM) • 11% of total company revenue generated by

  22. Slide 22: Grew a nearly $500M Digital platform since 2010

    H U R O N I 2 2 © 2023 Huron Consulting Group Inc. and affiliates. Grew a nearly $500M Digital platform since 2010 through organic investments and $200M+ in deployed capital Enterprise Resource Planning (ERP) and Enterprise Performance Management (EPM) • Utilized organic and inorganic investments to

  23. Slide 23: Digital capability revenue by industry and key challenges

    H U R O N I 2 3 © 2023 Huron Consulting Group Inc. and affiliates. Education 39% Healthcare 32% Commercial 30% Digital Capability Revenue 2022 Deeply integrating our industry focus with our Digital capabilities to strengthen our competitive advantage and accelerate growth $495 million Providing Prov

  24. Slide 24: Our Financial Outlook

    H U R O N I 2 4 © 2023 Huron Consulting Group Inc. and affiliates. Our Financial Outlook 2 H U R O N I 2 4

  25. Slide 25: Strong 2022 performance demonstrates consistent revenue growth and margin expansion

    H U R O N I 2 5 © 2023 Huron Consulting Group Inc. and affiliates. Strong 2022 performance demonstrates commitment to consistent revenue growth and margin expansion 20% Healthcare segment revenue growth year-over-year 48% Education segment revenue growth year-over-year 41% Digital capability revenue

  26. Slide 26: Building on primary revenue drivers to achieve consistent revenue growth

    H U R O N I 2 6 © 2023 Huron Consulting Group Inc. and affiliates. Building on our primary revenue drivers to achieve consistent revenue growth $844 $906 $1,132 2020 2021 2022 2023 Guidance 2024 2025 Revenue ($ in millions) Low double-digit annual growth Low double-digit annual growth target from 20

  27. Slide 27: Foundation of recurring revenue to drive consistent growth

    H U R O N I 2 7 © 2023 Huron Consulting Group Inc. and affiliates. Building on our primary revenue drivers, including our foundation of recurring revenue, to drive consistent growth Other recurring revenue models generated approx. 3% of total company revenues in 2022 Multi-year strategic and digital

  28. Slide 28: Adjusted EBITDA margin trajectory to mid-teen % in 2025

    H U R O N I 2 8 © 2023 Huron Consulting Group Inc. and affiliates. Adjusted EBITDA margin % is on a trajectory to achieve mid-teen % in 2025 10.3% 10.8% 11.6% 2020 2021 2022 2023 Guidance Utilization Improvement Pricing Enhancement SG&A Scaling Business Mix Shift Investments for Growth, including M&

  29. Slide 29: Rapidly growing global delivery platform

    © 2023 Huron Consulting Group Inc. and affiliates. H U R O N I 2 9 Rapidly growing global delivery platform enables Huron to accelerate growth and expand margins 300+ 410+ 550+ 840+ 1570+ 2018 2019 2020 2021 2022 India Headcount Growth Digital 58%Managed Services 26% Corporate 16% India Headcount 5-

  30. Slide 30: Healthy balance sheet and strong cash flows

    H U R O N I 3 0 © 2023 Huron Consulting Group Inc. and affiliates. Healthy balance sheet and strong cash flows create flexibility to return capital to shareholders and drive future growth $109 $120 $21 $61 $95 - $120 7.0% 9.3% 1.9% 4.1% 0% 5% 10% 15% 20% $- $40 $80 $120 2019 2020 2021 2022 2023 Guid

  31. Slide 31: Disciplined approach to M&A

    H U R O N I 3 1 © 2023 Huron Consulting Group Inc. and affiliates. Disciplined approach to M&A will continue to provide opportunities to accelerate growth Criteria used to evaluate acquisition opportunities 1. Aligns with our business strategy • Expands our capabilities into adjacent offerings • Str

  32. Slide 32: Disciplined and balanced capital allocation framework

    H U R O N I 3 2 © 2023 Huron Consulting Group Inc. and affiliates. Disciplined and balanced capital allocation framework underscores commitment to growth and returning capital to shareholders Operating in a large, growing professional services industry with core end markets facing significant disrup

  33. Slide 33: Appendix

    H U R O N I 3 3 © 2023 Huron Consulting Group Inc. and affiliates. Appendix

  34. Slide 34: Reconciliation of net income to adjusted EBITDA

    H U R O N I 3 4 © 2023 Huron Consulting Group Inc. and affiliates. Reconciliations of non-GAAP measures Reconciliation of net income (loss) from continuing operations to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) (in millions) 2018 2019 2020 2021 2022 Revenues $

  35. Slide 35: Reconciliation of net income to adjusted net income

    H U R O N I 3 5 © 2023 Huron Consulting Group Inc. and affiliates. Reconciliations of non-GAAP measures Reconciliation of net income (loss) from continuing operations to adjusted net income from continuing operations (in millions, except earnings per share) 2018 2019 2020 2021 2022 Net income (loss)

  36. Slide 36: Reconciliation of operating cash flow to free cash flow

    H U R O N I 3 6 © 2023 Huron Consulting Group Inc. and affiliates. Reconciliations of non-GAAP measures Reconciliation of cash from operating activities to free cash flow (in millions) 2018 2019 2020 2021 2022 Cash from operating activities $ 102 $ 132 $ 137 $ 18 $ 85 Less: Capital expenditures (15)

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