Slide 1: Investor Overview
Investor Overview Verra Mobility Q2 2023 Investor Presentation For the Quarter Ended June 30, 2023
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward- looking statements may be identified by the use of words such as “forecast,” “intend,”
Slide 3: Verra Mobility Key Investment Themes
Verra Mobility Key Investment Themes 1 Global leader of smart mobility solutions that address mission-critical transportation needs for cities, fleets and universities 2 Well-positioned in large, growing and attractive markets with strong secular tailwinds 3 Robust free cash flow combined with disci
Slide 4: Solving Complex Transportation Challenges
Solving Complex Transportation Challenges We solve complex We make parking We save lives by payment challenges for more efficient and help changing driver behavior. shared vehicles. reduce congestion. U.S. drivers spend Vehicles in the U.S. 43,000 people died in make 5.7B+ toll trip 17 hours annuall
Slide 5: Market-leading financial profile across a range of attractive markets
Market-leading financial profile across a range of attractive markets TTM Q2 2023 Key Metrics Global Presence Total Revenue1 Re-occurring Revenue2 ~1,600 ~2,400 $780M 95% Employees Globally Customers Served Globally Adj EBITDA1 Adj. EBITDA Margin Consolidated Sales (FY22) by Geography $357M 46% 92%
Slide 6: Positioned for Continued Growth & Profitability
Positioned for Continued Growth & Profitability Commercial Services Government Solutions Parking Solutions (~44%1) (~45%1) (~11%1) Business Segment Leading technology provider of end-to-end Market leader in toll and violation Industry leader in automated traffic parking management solutions in North
Slide 7: Large, Attractive Markets Fueled by Long-Term Macro Trends
Large, Attractive Markets Fueled by Long-Term Macro Trends Connected Fleet Solutions Urban Mobility Estimated Total Global Addressable Market1,2 $14B in 2025 $26B in 2025 Key End Markets Fleet Telematics Vehicle Traffic Parking & Curbside Road Usage Administration Payments Management Management Char
Slide 8: A Customer-Centric Growth Playbook
A Customer-Centric Growth Playbook 1. Deep Customer Relationships 2. Differentiated Solutions BUILD deep meaningful relationships with CREATE new opportunities to serve based on customers based on trust service excellence and understanding of customer needs 95%+ Customer Renewal Rate1 4. Management
Slide 9: A Growth Playbook to Deliver Strong Organic Growth
A Growth Playbook to Deliver Strong Organic Growth Commercial Government Parking Services Solutions Solutions 1. Grow the Core Grow managed vehicle fleets Open new cities Add new universities & municipalities 2. Expand into Adjacent markets and offerings Scale and accelerate Bus Lane Open new market
Slide 10: Experienced and Proven Leadership
Experienced and Proven Leadership David Roberts Craig Conti Jon Keyser Jason Rivera President & CEO Chief Financial Officer Chief Legal Officer Chief Technology Officer Steve Lalla Jon Baldwin Adam Blake Mike McMillin EVP, Commercial Services EVP, Government Solutions President, T2 Systems SVP, Corp
Slide 11: Commercial Services Leading Fleet Mobility Solutions Provider
Commercial Services Leading Fleet Mobility Solutions Provider Strategic Advantages TAM Organic Growth $7B HSD L/T Strategic differentiation based on large scale and deep integrations with our customers and key partners Commercial Sales Sales Proprietary cloud applications Services Segment by Sol
Slide 12: Government Solutions Leading Global Provider Poised for L/T Growth
Government Solutions Leading Global Provider Poised for L/T Growth Strategic Advantages TAM Organic Growth Long-term relationships with state and $11B MSD L/T local governments Complete solutions reduce risk and Government Sales Sales by time to deploy Solutions Segment 1 Breakdown 2 Geography
Slide 13: T2 Systems Leading Parking Solutions Partner
T2 Systems Leading Parking Solutions Partner Strategic Advantages Total Revenue Adj. EBITDA NA TAM1 Q2 2023 TTM Financial Results $84M $14M $4B #1 market position in large universities Diversified product portfolio that scales Sales and provides end-to-end solutions Breakdown 2 Years of Renewal
Slide 14: Core Businesses Drive Strong Growth and Free Cash Flow Conversion
Core Businesses Drive Strong Growth and Free Cash Flow Conversion Total Revenue ($M) Adjusted EBITDA & Margins ($M) Adj EBITDA 46% Total Revenue 46% CAGR 17% CAGR 12% 49% 54% $742 $780 $339 $357 46% $551 $271 $449 $241 $394 $182 2019 2020 2021 2022 Q2 2023 TTM 2019 2020 2021 2022 Q2 2023 TTM Free Ca
Slide 15: Strong, Flexible Balance Sheet + Robust Cash Flow
2 0 2 1 I N V E S T O R D A Y – © B U I L D E R15S F I R S T S O U R C E Strong, Flexible Balance Sheet + Robust Cash Flow Capital Summary & Financial Highlights ($M) Net Leverage Improvement ($M) $1,157 $1,187 $1,131 $1,107 June 30, 2023 $949 Cash & Cash Equivalents $210 3.5x 3.5x 3.3x 3.3x 2.7x De
Slide 16: Demonstrated History of Disciplined Capital Allocation
Demonstrated History of Disciplined Capital Allocation 2018 – Q2 2023 Capital Deployment ($M) Capital Allocation Snapshot ($M) 1 Organic Investment Capex Share Buybacks Revenue generating capital expenditures (e.g., cameras) 13% Debt 11% Proprietary software development repayment 7% Minimal
Slide 17: Increasing 2023 Financial Guidance
Increasing 2023 Financial Guidance Previous Guidance Updated Guidance Year-over-Year Revenue and Adj. EBITDA growth of ~9% Total Revenue $780 - $800 $800 - $810 • CS driven by strong travel demand (2H 23’ TSA volume forecasted at ~99% of 2019 levels) + increased adoption Adj. EBITDA $360 - $370 Uppe
Slide 18: Appendix
Appendix 18
Slide 19: Updated Weighted Average Shares Outstanding for 2023
Updated Weighted Average Shares Outstanding for 2023 Updated fully diluted share count guidance for 2023 due to cash-exercise warrant redemption primarily in Q2 2023 Original Guidance (Q4 22 Earnings Call) Updated Guidance (Q2 23 Earnings Call) Shares Outstanding in millions Shares Outstanding in mi
Slide 20: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2020 - 2023 Unaudited ($ in millions) Full Year 2020 Full Year 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full Year 2022 Q1 2023 Q2 2023 Service revenue $336.3 $492.8 $161.1 $174.5 $180.6 $179.0 $695.2 $184.7 $196.0 Product sales 57.3 57.7 9.3 13.0 17.0 7.1 46.4 7.2 $8.4 T
Slide 21: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2020 2021 2022 Total Revenue Commercial Services $180.9 $260.9 $73.5 $84.9 $86.1 $81.6 $326.0 $85.6 $94.5 Segment
Slide 22: Free Cash Flow Reconciliation, incl. % of Adj. EBITDA
Verra Mobility Free Cash Flow Reconciliation, incl. % of Adj. EBITDA TTM Q2 ($MM) 2019 2020 2021 2022 2023 Adjusted EBITDA $ 241 $ 182 $ 271 $ 339 $357 Net cash provided by operating activities $ 134 $ 47 $ 193 $ 218 $230 Transaction and other related expenses - - - - - Transformation expenses - - -
Slide 23: Thank You
Thank You <<. VERRA A MOBILITY Safe. Smart. connected, =»?