Slide 1: 1Q2022 Earnings Presentation
1Q2022 Earnings Presentation May 3, 2022 ©Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
1Q2022 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
1Q2022 Earnings Presentation Business and Financial Highlights • Organic constant currency (OCC) revenue growth of 5.3%, or 5.7% when normalized for the impact of suspension of Russian operations, was driven by consistent growth in insurance and sequential improvement in energy. • OCC adjusted EBITD
Slide 4: Financial Summary
1Q2022 Earnings Presentation Financial Summary Three months ended March 31 Subscription/Long-Term Revenue 2022 2021 % change Revenue $775M $726M 6.8% 82% 82% Net income 506 169 199.9 1Q2022 1Q2021 Adjusted net income 217 203 7.0 Adjusted EBITDA 359 346 4.0 International Revenue Adjusted EBITDA margi
Slide 5: Organic Constant Currency Growth and Adjusted EBITDA Margins
1Q2022 Earnings Presentation Organic Constant Currency Growth and Adjusted EBITDA Margins 1Q Financial Review OCC Revenue OCC Adjusted EBITDA Total Adjusted EBITDA Margin 9.8% 49.9% 49.4% 49.6% 49.0% 49.0% 7.6% 6.3% 5.0% 5.3% 47.6% 5.2% 5.1% 5.2% 4.7% 4.2% 4.1% 3.4% 46.3% 3.3% 2.1% FY20 FY21 1Q21 2Q
Slide 6: Subscription vs. Non-subscription Growth
1Q2022 Earnings Presentation Subscription vs. Non-subscription Growth Organic Constant Currency Highlights 1Q22 Insurance Growth • Strong growth in core underwriting, claims Insurance E&SM Total analytics, extreme event modeling, life insurance solutions, and marketing solutions drove the growth. •
Slide 7: Segments
Segments ©Verisk Analytics, Inc. All rights reserved. 7
Slide 8: Insurance
1Q2022 Earnings Presentation Insurance Industry-leading data analytics and insights Underwriting & Rating Solutions Claims Solutions Industry-standard insurance programs, Integrated analytics solutions for improving Underwriting Claims property-specific underwriting & rating claim outcomes and fight
Slide 9: Insurance Quarterly Performance
1Q2022 Earnings Presentation Insurance Quarterly Performance Financials Business Highlights • Underwriting and rating grew 6.4% on an OCC basis with solid growth across % change industry-standard programs, extreme events solutions, life insurance 1Q22 1Q21 Reported OCC solutions, and international s
Slide 10: Energy and Specialized Markets
1Q2022 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 11: Energy and Specialized Markets Quarterly Performance
1Q2022 Earnings Presentation Energy and Specialized Markets Quarterly Performance Financials Business Highlights % change • OCC revenue increased 1.9%, reflecting growth in subscription and consulting revenues. 1Q22 1Q21 Reported OCC1 – Normalizing for the impact of suspended operations in Russia, E
Slide 12: Financial Services
1Q2022 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 13: Cash Flow and Capital
Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 13
Slide 14: Cash Flow Utilization
1Q2022 Earnings Presentation Cash Flow Utilization (in $ millions) 2019 2020 2021 1Q21 1Q22 Net cash provided by operating activities $956M $1,068M $1,156M $449M 400M Capital expenditures (217)M (247)M (268)M (59)M (60)M Free cash flow (FCF) 740M 821M 887M 390M 340M Acquisitions (net of cash acquire
Slide 15: Capital Structure
1Q2022 Earnings Presentation Capital Structure Revolver due as of for renewal (in $ millions) Mar-2022 August 2024 Bonds $2,700 190 Term Loan $125 900 810 Revolver Drawn $810 Total Debt 1 $3,635 600 Debt/EBITDA 2 2.31x 500 125 Covenant level 3 3.50x 350 350 Investment Grade Ratings S&P BBB Moody’s B
Slide 16: Capital Expenditures
1Q2022 Earnings Presentation Capital Expenditures Capex as a % of revenue to come down to mid-single-digit level over time $268M 231 247 217 183 146 138 115 105 Internally Developed Software 53 43 $23M 26 28 Hardware/Third-Party Software Non-IT 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 17: Capital Management Philosophy
1Q2022 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
1Q2022 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
1Q2022 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 1Q22 1Q21 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $586.4M $154.3M $34.8M $535.6M $156.2M $34.3M Revenues from acquisitions
Slide 21: Non-GAAP Reconciliations
1Q2022 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
1Q2022 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 1Q22 1Q21 Net income $666.3M $712.7M $505.8M $168.0M plus: Amortization of intangibles 176.7 165.9 44.6 45.0 less: Income tax effect
Slide 23: Non-GAAP Reconciliations
1Q2022 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
Thank you ©Verisk ©Verisk Analytics, Analytics, Inc. Inc. All All rights rights reserved. reserved. 24