Verisk Analytics, Inc. · NASDAQ:VRSK
Verisk Analytics — William Blair & Company's 2016 Growth Stock Conference
19 slides from Verisk Analytics's conference presentation, Jun 14, 2016
Slide 1: Verisk Analytics
Verisk Analytics Scott Stephenson Chairman, President, and CEO
Slide 2: Forward Looking Statements, Safe Harbor & Non-GAAP Financial Measures
Forward Looking Statements, Safe Harbor & Non-GAAP Financial Measures Forward-Looking Statements This presentation contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors th
Slide 3: Verisk is a Leading Vertical Data Analytics Provider
Verisk is a Leading Vertical Data Analytics Provider The Verisk Way – Distinctives Verticals We Serve Financial Natural Insurance Resources Services Unique Deep Domain Data Assets Expertise Analytics Digital Insight via Global IT/Data Proprietary/ Framework Platforms Center Infrastructure Unstructur
Slide 4: History of Growth and Innovation
History of Growth and Innovation 1971 1980–1996 1997 2002–2008 2009 Today For-profit Verisk Analytics Scalable data and Not-for-profit Significant AIR Worldwide corporation formed and IPO analytic solutions offered advisory and enhancement of and Xactware transition completed to vertical markets rat
Slide 5: Attractive Business Model
Attractive Business Model • Recurring revenue stream and high barriers to entry − 80%+ (1) of total revenue is subscription and long-term contracts − Extremely high customer retention − Majority of revenue is prepaid quarterly or annually − Long-standing and deep relationships with our customers − D
Slide 6: Diverse, High Recurring Revenue Sources
Diverse, High Recurring Revenue Sources 1Q2016 Revenue Distribution (1) 1Q2016 Subscription Base (1) Energy & Financial Specialized Services 23% 6% Transaction Revenue 18% Risk Assessment Subscription DA 36% Revenue Insurance 82% 35% Decision Analytics 64% Notes: 1. From continuing operations which
Slide 7: Verisk's Differentiated Financial Model
Verisk’s Differentiated Financial Model Fiscal Year Strong, Stable Revenue Growth (1)… and Leading Margins Power EPS (1,2) ($ millions),(organic revenue growth) (% EBITDA/Revenue),($ Earnings per Share) 51.9% 55.0% 50.9% 2,000 1,761 19.0% 1,800 50.0% $4.10 1,431 1,600 17.0% 45.0% 1,400 $3.60 $2.87 1
Slide 8: Our People
Our People • High performers characterized by – respect for the individual – integrity – passion – persistence – confidence/humility – excellence – teamwork • Specialists in predictive analytics, actuarial science, chemistry, physics, economics, engineering, meteorology, and GIS mapping • Our 6,000+
Slide 9: Unique/Valuable Data Assets are the Foundation for Our Solutions
Unique/Valuable Data Assets are the Foundation for Our Solutions 19B+ More than 19 billion records in commercial and personal lines • More than 1,800 insurers provide data 100 Models covering natural hazards in 100 countries • Almost 3 billion records processed each year 35 35 years of VIN auto info
Slide 10: Global Platform
SERVE | ADD VALUE | INNOVATE Global Platform Edinburgh x Guildford BR London Minneapolis Uxbridge Copenhagen Montreal Dublin {Munich Seocuae Calgary /_ Chicago J é \ Boston San Francisco - Fleet Se New York Lehi Y/ Astana “_Vienna Beijing vA Seoul Kathmandu. 4 Tokyo Jersey City Tel Aviv Gurgaon \ ¢
Slide 11: Core Capabilities
Core Capabilities Multitier, Large-Scale Multispectral Data Integration Data Capture Visualization of Data and Predictive Analytics Analytics 7
Slide 12: How We Do Business
How We Do Business Focus on customers and their Reimagine the market space success with meaningful and innovate with new offerings exchanges and heart Continuously improve on value, Innovate in partnership with efficiency, and cycle time customers to create industry- leading solutions Be responsible
Slide 13: The Verisk Formula
The Verisk Formula Steadily Growing Increasing Financial Newly Acquired Businesses Powered Capacity Businesses at by Innovation, with Reasonable Prices Expanding Margins with Similar and Low Capital Characteristics Intensity Stronger and Larger Company We can continue to drive leading organic growth
Slide 14: Multiple Paths to Growth
Multiple Paths to Growth • Strong Track Record of BOTH Organic Revenue Increases and Effective M&A − 8% Historical Organic Revenue Growth − 16% Average Acquisition Revenue Growth • Opportunities Remain Large and Growing − Working to Execute on Both Organic and Acquisitions to drive growth • Share Re
Slide 15: Strong Capital Structure to Support Growth
Strong Capital Structure to Support Growth as of 3/31/2016 Investment Grade Ratings ($ millions) S&P: BBB- Bonds $2,300 Moody’s: Baa3 Revolver Drawn 0,705 Fitch: BBB+ Total Debt $3,005 Revolver expanded to Debt/ EBITDA (1) 2.7x 1,045 $1,750M, due May 2020 Covenant level (2) 3.75x 900 705 450 350 350
Slide 16: Verisk: Disciplined Capital Allocation
Verisk: Disciplined Capital Allocation Acquisitions and earn-outs Share Repurchase ($ millions) 2012 2013 2014 2015 (1) 1Q2016 Share Repurchase 163 279 778 20 116 Acquisitions and earn-outs 808 1 35 2,856 0 Cumulative Capital Allocation, $ billions (2) $1.4B, $3.7B, 27% 73% Notes: 1. 2015 acquisitio
Slide 17: Conclusion
Conclusion The best benchmark for Verisk is Verisk. Average organic revenue growth over the past ten years has been high single-digits • Our business is even better now than it was before • We should be able to grow over time and on average in a way that is consistent with the past We have expanded
Slide 18: The Verisk Way guides how we serve customers
The Verisk Way guides how we serve customers and what we should expect of ourselves. www.verisk.com/veriskway 3
Slide 19: Verisk Analytics
Verisk Analytics Scott Stephenson Chairman, President, and CEO Contact Investor Relations david.e.cohen@verisk.com
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