Slide 1: 3Q2021 Earnings Presentation
3Q2021 Earnings Presentation 3Q2021 Earnings Presentation November 2, 2021 © 2021 Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
3Q2021 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: 3Q2021 Business and Financial Highlights
3Q2021 Earnings Presentation 3Q2021 Business and Financial Highlights • Organic constant currency (OCC) revenue grew 5.1%, led by continued growth in the insurance segment. • In the 85% of our consolidated revenues that are predominantly subscription, OCC revenue growth was approximately 5.6%, demon
Slide 4: Financial Summary
3Q2021 Earnings Presentation Financial Summary Three months ended September 30 Subscription/Long-Term Revenue 2021 2020 % change Revenue $759M $703M 8.0% 81% 82% Net income 202 186 8.6 3Q2021 3Q2020 Adjusted net income 234 218 7.4 Adjusted EBITDA 379 366 3.5 International Revenue Adjusted EBITDA mar
Slide 5: Organic Constant Currency Growth and Adjusted EBITDA Margins
3Q2021 Earnings Presentation Organic Constant Currency Growth and Adjusted EBITDA Margins 3Q Financial Review OCC Revenue OCC Adjusted EBITDA Total Adjusted EBITDA Margin 14.8% 52.1% 9.8% 49.9% 49.1% 49.6% 49.4% 6.3% 48.2% 4.9% 4.9% 5.2% 5.1% 47.6% 3.8% 4.2% 3.3% 3.6% 3.5% 3.4% 2.1% FY20 YTD21 3Q20
Slide 6: Segments
3Q2021 Earnings Presentation Segments © 2021 Verisk Analytics, Inc. All rights reserved. 6
Slide 7: Insurance
3Q2021 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
3Q2021 Earnings Presentation Insurance Quarterly Performance Financials Business Highlights • UW & rating grew 7.0% on an OCC basis and was broad-based across personal % change and commercial lines. 3Q21 3Q20 Reported OCC – Industry-standard programs, catastrophe modeling solutions, life insurance U
Slide 9: Energy and Specialized Markets
3Q2021 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
3Q2021 Earnings Presentation Energy and Specialized Markets Quarterly Performance Financials Business Highlights • OCC revenue increased 2.5%, reflecting modest growth in subscription revenues % change and strong recovery growth in consulting and project-based transactional 3Q21 3Q20 Reported OCC re
Slide 11: Financial Services
3Q2021 Earnings Presentation Financial Services Big data, predictive analytics, and insights Argus Portfolio Solutions for financial institutions, including Fraud & Credit Tools for bankruptcy management and debt Management competitive benchmarking, decisioning Risk Management collection, and soluti
Slide 12: Financial Services Quarterly Performance
3Q2021 Earnings Presentation Financial Services Quarterly Performance Financials Business Highlights % change • OCC revenue declined 13.5%, as strong recovery growth in spend-informed analytics was more than offset by the negative impact of certain contract 3Q21 3Q20 Reported OCC transitions and low
Slide 13: Cash Flow and Capital
3Q2021 Earnings Presentation Cash Flow and Capital © 2021 Verisk Analytics, Inc. All rights reserved. 13
Slide 14: Cash Flow Utilization
3Q2021 Earnings Presentation Cash Flow Utilization (in $ millions) 2019 2020 YTD21 3Q20 3Q21 Net cash provided by operating activities $956M $1,068M $967M $207M $285M Capital expenditures (217) (247) (183) (65) (61) Free cash flow (FCF) 740 821 784 142 224 Acquisitions (net of cash acquired) and rel
Slide 15: Capital Structure
3Q2021 Earnings Presentation Capital Structure Revolver due for renewal as of August 2024 (in $ millions) Sept.-2021 Bonds $2,700 Revolver Drawn $405 Total Debt 1 $3,105 595 Debt/EBITDA 2 2.37x Covenant level 3 3.50x 900 Investment Grade Ratings 600 S&P BBB 500 350 405 350 Moody’s Baa2 Fitch BBB+ 20
Slide 16: Capital Management Philosophy
3Q2021 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. •
Slide 17: Appendix: Supplemental Slides and/or Non-GAAP Reconciliations
3Q2021 Earnings Presentation Appendix: Supplemental Slides and/or Non-GAAP Reconciliations © 2021 Verisk Analytics, Inc. All rights reserved. 17
Slide 18: Non-GAAP Reconciliations
3Q2021 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 19: Non-GAAP Reconciliations
3Q2021 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 3Q21 3Q20 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $557.9M $165.9M $35.2M $504.3M $158.1M $40.3M Revenues from acquisitions
Slide 20: Non-GAAP Reconciliations
3Q2021 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and YTD21 YTD20 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $1,643.5M $484.4M $104.7M $1,491.8M $460.8M $118.6M Revenues from acqui
Slide 21: Non-GAAP Reconciliations
3Q2021 Earnings Presentation Non-GAAP Reconciliations Adjusted Net Income/EPS and Free Cash Flow | Current and Prior-Year Period Adjusted Net Income and EPS YTD21 YTD20 3Q21 3Q20 Net income $524.5M $536.5M $204.9M $185.8M plus: Amortization of intangibles 133.1 123.6 37.6 41.5 less: Income tax effec
Slide 22: Non-GAAP Reconciliations
3Q2021 Earnings Presentation Non-GAAP Reconciliations Adjusted EBITDA | Historical Full-Year Periods Segment Adjusted EBITDA Reconciliation 2020 2019 2018 Insurance Segment – EBITDA $1,131.0M $824.1M $930.7M Insurance Segment – Acquisition-related costs (earn-outs) 2.1 32.1 (0.8) Insurance Segment –
Slide 23: 3Q2021 Earnings Presentation
3Q2021 Earnings Presentation © 2021 Verisk Analytics, Inc. All rights reserved. 23