Slide 1: 1Q2019 Earnings Presentation
1Q2019 Earnings Presentation April 30, 2019 © 2019 Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
1Q2019 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
1Q2019 Earnings Presentation Business and Financial Highlights • Organic constant currency (OCC) revenue grew 6.7% and OCC adjusted EBITDA grew 6.8% • Revenue growth was driven by the Insurance segment combined with ongoing improvements in Energy and Specialized Markets • Adjusted EBITDA margin expa
Slide 4: Financial Summary
1Q2019 Earnings Presentation Financial Summary Three months ended March 31 Subscription/Long-Term Revenue 2019 2018 % change Revenue $625M $581M 7.5% Adjusted EBITDA 292M 270M 8.2% 81% 81% 1Q2019 1Q2018 Adjusted EBITDA margin 46.7% 46.4% 31 bps Net income 134M 133M 1.0% International Revenue Adjuste
Slide 5: Organic Constant Currency Growth and Adjusted EBITDA Margins
1Q2019 Earnings Presentation Organic Constant Currency Growth and Adjusted EBITDA Margins OCC Revenue OCC Adjusted EBITDA Total Adjusted EBITDA Margin 8.9% 7.4% 7.4% 6.8% 6.1% 7.0% 6.7% 48.3% 5.3% 5.4% 5.4% 47.9% 4.7% 4.7% 47.2% 47.4% 4.2% 47.1% 46.7% 46.4% 1.6% 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 20
Slide 6: Segments
Segments © 2019 Verisk Analytics, Inc. All rights reserved. 6
Slide 7: Insurance
1Q2019 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 info, claim outcomes and fighting fraud at e
Slide 8: Insurance Quarterly Performance
1Q2019 Earnings Presentation Insurance Quarterly Performance Financials Business Highlights % change • UW & rating growth was balanced across personal and commercial lines with solid growth across industry-standard 1Q19 1Q18 Reported Organic OCC insurance programs, property specific underwriting, an
Slide 9: Energy and Specialized Markets
1Q2019 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 Improving our understanding of the global Research & Analytics and Advisory Service
Slide 10: Energy and Specialized Markets Quarterly Performance
1Q2019 Earnings Presentation Energy and Specialized Markets Quarterly Performance Financials Business Highlights % change • Organic revenue growth driven by market and cost intelligence solutions, environmental health and safety 1Q19 1Q18 Reported Organic OCC services, and core Wood Mackenzie resear
Slide 11: Financial Services
1Q2019 Earnings Presentation Financial Services Big data, predictive analytics, and insights Portfolio Analytics, Regulatory Data Management, and Marketing Credit Risk Management, Fraud, and Abuse Solutions for financial institutions, including Risk management tools associated with competitive bench
Slide 12: Financial Services Quarterly Performance
1Q2019 Earnings Presentation Financial Services Quarterly Performance Financials Business Highlights % change • Organic constant currency revenue grew 0.7%, an improvement from 4Q, reflecting healthy growth in spend- 1Q19 1Q18 Reported Organic OCC informed analytics and portfolio management offset b
Slide 13: Segment Trends
1Q2019 Earnings Presentation Segment Trends Insurance Energy Financial Organic Constant Currency Revenue Growth Organic Constant Currency Adjusted EBITDA Growth 8.7% 14.1% 9.0% 15.0% 7.3% 7.0% 7.2% 7.2% 10.0% 10.0% 5.0% 4.9% 6.7% 7.2% 7.2% 6.5% 3.1% 5.0% 3.0% 1.9% 2.5% Axis Title Axis Title 1.4% 1.5
Slide 14: Cash Flow and Capital
Cash Flow and Capital © 2019 Verisk Analytics, Inc. All rights reserved. 14
Slide 15: Cash Flow Utilization
1Q2019 Earnings Presentation Cash Flow Utilization (in $ millions) 2016 (1) 2017 2018 1Q18 1Q19 Net cash provided by operating activities $656M $744M $934M $327M $366M Capital expenditures (146) (184) (231) (43) (45) Free cash flow (FCF) 510 560 703 284 321 Acquisitions, net of cash acquired (74) (9
Slide 16: Capital Structure
1Q2019 Earnings Presentation Capital Structure as of 3/31/2019 Revolver (in $ millions) due Bonds $2,450 May 2022 Revolver drawn 170 Total debt $2,620 Debt/EBITDA (1) 2.2x 1,330 Covenant level (2) 3.5x Investment grade ratings S&P: BBB (Jan-2019: ↑ from BBB-) Moody’s: Baa2 (May-2018: ↑ from Baa3) Fi
Slide 17: Capital Management Philosophy
1Q2019 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 © 2019 Verisk Analytics, Inc. All rights reserved. 18
Slide 19: Non-GAAP Reconciliations
1Q2019 Earnings Presentation Non-GAAP Reconciliations Specified Metrics Constant Currency Growth Our operating results reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which we transact change in value over time compare
Slide 20: Non-GAAP Reconciliations
1Q2019 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and EBITDA Reconciliation 1Q19 1Q18 Change Organic Insurance revenues $441.1M $412.1M 7.0% Organic Energy and Specialized Markets revenues 130.8M 125.5M 4.2% Organ
Slide 21: Non-GAAP Reconciliations
1Q2019 Earnings Presentation Non-GAAP Reconciliations Adjusted Net Income/EPS and Free Cash Flow | Current and Prior-Year Period Adjusted Net Income and EPS 1Q19 1Q18 Change Net income $134.4M $133.0M 1.0% plus: Amortization of intangible assets 33.2M 33.2M —M less: Tax effect on amortization of int
Slide 22: Non-GAAP Reconciliations
1Q2019 Earnings Presentation Non-GAAP Reconciliations Adjusted EBITDA – Insurance Segment | Historical Full-Year Periods Insurance Segment – Adjusted EBITDA 2018 2017 2016 Organic adjusted EBITDA $908.1M $847.4M $790.1M Adjusted EBITDA from acquisitions 6.1M (3.4)M (0.1)M Adjusted EBITDA 914.2M 844.
Slide 23: Non-GAAP Reconciliations
1Q2019 Earnings Presentation Non-GAAP Reconciliations Adjusted EBITDA – Energy and Specialized Markets Segment | Historical Full-Year Periods Energy and Specialized Markets Segment – Adjusted EBITDA 2018 2017 2016 Organic adjusted EBITDA $144.7M $132.4M $84.6M Adjusted EBITDA from acquisitions 10.7M
Slide 24: Non-GAAP Reconciliations
1Q2019 Earnings Presentation Non-GAAP Reconciliations Adjusted EBITDA – Financial Services Segment | Historical Full-Year Periods Financial Services Segment – Adjusted EBITDA 2018 2017 2016 Organic adjusted EBITDA $49.8M $54.9M $54.9M Adjusted EBITDA from acquisitions 10.8M 3.5M —M Adjusted EBITDA 6
Slide 25: © 2019 Verisk Analytics, Inc. All rights reserved.
© 2019 Verisk Analytics, Inc. All rights reserved. 25