Slide 1: 1Q2023 Earnings Presentation
1Q2023 Earnings Presentation May 3, 2023 ©Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
1Q2023 Earnings Presentation Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures Forward-Looking Statements This release contains forward-looking statements about Verisk’s future performance, including those related to our financial guidance. These statements relate to future ev
Slide 3: Business and Financial Highlights
1Q2023 Earnings Presentation Business and Financial Highlights • Organic constant currency (OCC) revenue grew 9.8%, comprised of 9.1% growth in Underwriting & Rating and 11.4% growth in Claims. • OCC subscription revenue grew 8.7% and OCC non-subscription grew 14.4%, demonstrating broad-based growth
Slide 4: 1Q23 Financial Results
1Q23 Financial Results ©Verisk Analytics, Inc. All rights reserved. 4
Slide 5: Financial Summary – Continuing Ops
1Q2023 Earnings Presentation Financial Summary – Continuing Ops1 Three Months ended March 31 2023 2022 % change Subscription/Long-Term Revenue Revenue $651.6M $643.6M 1.2% Net income 194.4 487.0 (60.1) Adjusted net income 196.4 179.5 9.4 80% 82% 1Q2023 1Q2022 Adjusted EBITDA 340.3 305.1 11.5 Adjuste
Slide 6: Subscription vs. Non-subscription Growth – Insurance Only
1Q2023 Earnings Presentation Subscription vs. Non-subscription Growth – Insurance Only Organic Constant Currency (OCC) Non 1Q23 Highlights OCC Growth Subscription Total • Subscription revenue growth of 8.7% reflects strong subscription sequential improvement versus the fourth quarter. FY21 7.1% 6.0%
Slide 7: Underwriting and Rating – Revenue
1Q2023 Earnings Presentation Underwriting and Rating – Revenue Industry-leading data analytics and insights Underwriting Solutions Extreme Event Solutions Specialty Business International Life Marketing Industry-standard Catastrophe and extreme Solutions A growing, global array of Power for simplifi
Slide 8: Claims – Revenue
1Q2023 Earnings Presentation Claims – Revenue Industry-leading data analytics and insights Property Estimating Anti-Fraud International Casualty Loss quantification and repair cost Unmatched industry data and leading A growing, global array of data and Broad claims compliance solutions and estimatin
Slide 9: Insurance Quarterly Performance - 2021 and 2022 Pro Forma
1Q2023 Earnings Presentation Insurance Quarterly Performance1 - 2021 and 2022 Pro Forma Revenue (Pro Forma) FY Revenue & Adjusted EBITDA (Pro Forma) 7.8% 7.4% 8.1% 9.8% OCC Revenue growth 6.9% OCC Revenue growth 6.5% 6.0% 6.4% 6.1% 6.4% OCC Adj. EBITDA growth 5.7% OCC Adj. EBITDA growth 8.0% 5.3% Ad
Slide 10: Cash Flow and Capital
Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 10
Slide 11: Cash Flow Utilization
1Q2023 Earnings Presentation Cash Flow Utilization (in $ millions) 2020 2021 2022 1Q22 1Q23 Net cash provided by operating activities1,2 $1,068M $1,156M $1,059M $400M $365M Capital expenditures (247)M (268)M (275)M (60)M (61)M Free cash flow (FCF) 821M 888M 784M 340M 304M Acquisitions (net of cash a
Slide 12: Capital Structure
Capital Structure Revolver amended in April 2023 to as of extend maturity to Mar. 2023 April 2028 (in $ millions) Bonds $2,850 1,000 Term Loan - 900 Bilateral Revolver - Revolver Drawn - Total Debt 1 $2,850 600 500 500 Debt/EBITDA 2 2.17x Covenant level 3 3.50x 350 Investment Grade Ratings S&P BBB M
Slide 13: Capital Expenditures – Insurance Only
1Q2023 Earnings Presentation Capital Expenditures – Insurance Only $200M 181 184 172 152 141 110 104 106 $95 Internally Developed Software Hardware/Third-Party Software Non-IT 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Capex as a % of revenue 8.2% 8.8% 7.8% 7.5% 9.1% 10.6% 8.1% 8.6% 8.3% 8.2%
Slide 14: Capital Return
1Q2023 Earnings Presentation Capital Return Dividend per Share Share Repurchases $3,500 7.4% CAGR 7.1% 8.0% $1.24 $3,000 $1.16 $1.08 $2,500 6.0% 5.3% $1.00 $2,500 $2,000 4.0% $1,500 $1,663 $0.68 1.3% 1.5% 2.0% 1.3% $1,000 0.0% $500 $475 $300 $349 $- -2.0% 2019 2020 2021 2022 YTD23 1 2019 2020 2021 2
Slide 15: 2023 Outlook
1Q2023 Earnings Presentation 2023 Outlook 2023 2022 Metric Annual Guidance Pro Forma1 Total Revenue $2.59 – $2.63B $2,437M Adjusted EBITDA $1.37 – $1.42B $1,266M Adjusted EBITDA margin 53.0% – 54.0% 52.0% Diluted Adjusted EPS $5.20 – $5.50 $4.932 Tax rate 23% – 25% 17.4% Capex $200 – $230M $200M Fix
Slide 16: Capital Management Philosophy
1Q2023 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
Appendix: Supplemental Slides and/or Non-GAAP Reconciliations ©Verisk Analytics, Inc. All rights reserved. 17
Slide 18: Non-GAAP Reconciliations
4Q2022 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: Segment Results and EBITDA
1Q2023 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 1Q23 1Q22 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $651.6M — — $586.4M $22.4M $34.8M Revenues from acquisitions and disposit
Slide 20: Non-GAAP Reconciliations: Segment Results and EBITDA
1Q2023 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and FY22 FY21 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $2,437.0M $22.4M $37.6M $2,206.9M $112.8M $142.8M Revenues from acquisiti
Slide 21: Non-GAAP Reconciliations: Adjusted Net Income/EPS and Free Cash Flow
1Q2023 Earnings Presentation Non-GAAP Reconciliations Adjusted Net Income/EPS and Free Cash Flow | Current and Prior-Year Period Adjusted Net Income and EPS FY22 FY21 1Q23 1Q22 Net income $1,042.1M $607.1M $56.4M $505.8M Income from discontinued operations, net of tax expense — — (138.0) 18.8 Income
Slide 22: Non-GAAP Reconciliations: 2021 and 2022 Pro Forma Revenues and EBITDA
1Q2023 Earnings Presentation Non-GAAP Reconciliations 2021 and 2022 Pro Forma Revenues and EBITDA 2023 2022 2021 1Q 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Revenues (Insurance) $652M $586M $610M $610M $630M $2,437M $536M $550M $558M $563M $2,207M Revenues from acquisitions 23 (20) (28) (28) (28) (105) (1) - (
Slide 23: ©Verisk ©Verisk Analytics, Analytics, Inc.
©Verisk ©Verisk Analytics, Analytics, Inc. Inc. All All rights rights reserved. reserved. 23