Slide 1: Investor Overview
Investor Overview Verra Mobility Q3 2023 Investor Presentation For the Quarter Ended September 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 Q3 2023 Key Metrics Global Presence Total Revenue1 Re-occurring Revenue2 ~1,600 ~2,400 $792M 96% Employees Globally Customers Served Globally Adj EBITDA1 Adj. EBITDA Margin Consolidated Sales (FY22) by Geography $364M 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 Steve Lalla Jon Baldwin President & CEO Chief Financial Officer Chief Legal Officer EVP, Commercial Services EVP, Government Solutions Adam Blake Jason Rivera Mike McMillin Katrina Sevier President, T2 Systems Chief Technology Of
Slide 11: Our People Make the Difference
Our People Make the Difference 77 PURPOSE 2023 Engagement Score Enriching lives by making mobility safer & easier VISION To be the global leader in smart mobility by serving our customers at their ~80% highest point of need, with the best people doing their best work Retention1 Strategic Pillars DRI
Slide 12: ESG and Responsible Growth
ESG and Responsible Growth Health & Safety Environmental Sustainability Corporate Social Responsibility Our products and services save lives Committed to recruiting and nurturing a Our products and services are at the global, diverse and skilled workforce ESG We use dynamic compliance framew
Slide 13: 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 14: 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 15: T2 Systems: Leading Parking Solutions Partner
T2 Systems Leading Parking Solutions Partner Strategic Advantages Total Revenue Adj. EBITDA NA TAM1 Q3 2023 TTM Financial Results $84M $14M $4B #1 market position in large universities Diversified product portfolio that scales Sales and provides end-to-end solutions Breakdown 2 Years of Renewal
Slide 16: Core Businesses Drive Strong Growth and Free Cash Flow Conversion
Core Businesses Drive Strong Growth and Free Cash Flow Conversion Total Revenue ($M) Adjusted EBITDA & Margins ($M) Adj EBITDA 46% Total Revenue CAGR 12% 46% CAGR 16% 49% 54% $742 $792 $364 $339 46% $551 $271 $449 $241 $394 $182 2019 2020 2021 2022 Q3 2023 TTM 2019 2020 2021 2022 Q3 2023 TTM Free Ca
Slide 17: Strong, Flexible Balance Sheet + Robust Cash Flow
2 0 2 1 I N V E S T O R D A Y – © B U I L D E R17S F I R S T S O U R C E Strong, Flexible Balance Sheet + Robust Cash Flow Capital Summary & Financial Highlights ($M) Net Leverage Improvement ($M) $1,187 $1,131 $1,107 September 30, 2023 $949 $942 Cash & Cash Equivalents $114 3.5x 3.3x 3.2x 2.7x 2.6x
Slide 18: Demonstrated History of Disciplined Capital Allocation
Demonstrated History of Disciplined Capital Allocation 2018 – Q3 2023 Capital Deployment ($M) Capital Allocation Snapshot ($M) 1 Organic Investment Capex Share Buybacks Revenue generating capital expenditures (e.g., cameras) Debt 10% 17% Proprietary software development repayment Minimal mai
Slide 19: Increasing 2023 Financial Guidance
Increasing 2023 Financial Guidance Previous Guidance Updated Guidance Year-over-Year Revenue and Adj. EBITDA growth of ~9% Total Revenue $800 - $810 Upper-end of prior range • CS driven by strong travel demand + increased adoption • GS driven by strong backlog generating Adj. EBITDA $365 to $370 Upp
Slide 20: Appendix
Appendix 20
Slide 21: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2020 - 2023 Unaudited ($ in millions) Full Year 2020 Full Year 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full Year 2022 Q1 2023 Q2 2023 Q3 2023 Service revenue $336.3 $492.8 $161.1 $174.5 $180.6 $179.0 $695.2 $184.7 $196.0 $201.0 Product sales 57.3 57.7 9.3 13.0 17.0 7.1
Slide 22: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 2020 2021 2022 Total Revenue Commercial Services $180.9 $260.9 $73.5 $84.9 $86.1 $81.6 $326.0 $85.6 $94.5
Slide 23: Free Cash Flow Reconciliation, incl. % of Adj. EBITDA
Verra Mobility Free Cash Flow Reconciliation, incl. % of Adj. EBITDA TTM Q3 ($MM) 2019 2020 2021 2022 2023 Adjusted EBITDA $ 241 $ 182 $ 271 $ 339 $364 Net cash provided by operating activities $ 134 $ 47 $ 193 $ 218 $240 Transaction and other related expenses - - - - - Transformation expenses - - -
Slide 24: Thank You
Thank You <<. VERRA A MOBILITY Safe. Smart. connected, =»?