Slide 1: 2Q2023 Earnings Presentation
2Q2023 Earnings Presentation August 2, 2023 ©Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures
2Q2023 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
2Q2023 Earnings Presentation Business and Financial Highlights • Organic constant currency (OCC) revenue grew 9.8%, comprised of 9.3% growth in Underwriting & Rating and 11.2% growth in Claims. • OCC subscription revenue grew 9.1%, demonstrating broad-based growth across most of our subscription bus
Slide 4: 2Q23 Financial Results
2Q23 Financial Results ©Verisk Analytics, Inc. All rights reserved. 4
Slide 5: Financial Summary – Continuing Ops
2Q2023 Earnings Presentation Financial Summary – Continuing Ops1 Three Months ended June 30 2023 2022 % change Subscription/Long-Term Revenue Revenue $675.0M $612.8M 10.1% Net income 196.8 197.8 (0.5) Adjusted net income 219.8 202.5 8.5 79% 80% 2Q2023 2Q2022 Adjusted EBITDA 365.2 321.9 13.5 Adjusted
Slide 6: Subscription vs. Non-subscription Growth – Insurance Only
2Q2023 Earnings Presentation Subscription vs. Non-subscription Growth – Insurance Only Organic Constant Currency (OCC) Non 2Q23 Highlights OCC Growth Subscription Total subscription • Subscription revenue growth of 9.1% reflects strong contribution from: FY21 7.1% 6.0% 6.9% – forms, rules, and loss
Slide 7: Underwriting – Revenue
2Q2023 Earnings Presentation Underwriting – Revenue Industry-leading data analytics and insights Underwriting Solutions Extreme Event Solutions Specialty Business International Life Marketing (incl. Forms, Rules, and Loss Costs Catastrophe and extreme Solutions A growing, global array of data Power
Slide 8: Claims – Revenue
2Q2023 Earnings Presentation Claims – Revenue Industry-leading data analytics and insights Property Estimating Solutions Anti-Fraud Solutions International Casualty Solutions Loss quantification and repair cost Unmatched industry data and leading A growing, global array of data and Broad claims comp
Slide 9: Insurance Performance - Pro Forma
2Q2023 Earnings Presentation Insurance Performance1 - Pro Forma Revenue (Pro Forma) FY Revenue & Adjusted EBITDA (Pro Forma) 9.8% 9.8% 8.1% OCC Revenue growth 6.9% OCC Revenue growth 6.5% 6.1% 6.4% OCC Adj. EBITDA growth 5.7% OCC Adj. EBITDA growth 8.0% 5.3% Adj. EBITDA Margin 52.5% Adj. EBITDA Marg
Slide 10: Cash Flow and Capital
Cash Flow and Capital ©Verisk Analytics, Inc. All rights reserved. 10
Slide 11: Cash Flow Utilization
2Q2023 Earnings Presentation Cash Flow Utilization (in $ millions) 2020 2021 2022 2Q22 2Q23 Net cash provided by operating activities1,2,3 $1,068M $1,156M $1,059M $130M $193M Capital expenditures (247)M (268)M (275)M (69)M (58)M Free cash flow (FCF) 821M 888M 784M 61M 135M Acquisitions (net of cash
Slide 12: Capital Structure
2Q2023 Earnings Presentation Capital Structure as of (in $ millions) June 2023 Bonds $2,850 1,000 Term Loan - 900 Bilateral Revolver - Revolver Drawn - 600 Total Debt 1 $2,850 500 500 Debt/EBITDA 2 2.1x 350 Investment Grade Ratings S&P BBB Moody’s Baa2 2023 2024 2025 2026 2027 2028 2029 2030 2031 20
Slide 13: Capital Expenditures – Insurance Only
2Q2023 Earnings Presentation Capital Expenditures – Insurance Only $58M $57M $55M $52M $48M $44M 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 ©Verisk Analytics, Inc. All rights reserved. 13
Slide 14: Capital Return
2Q2023 Earnings Presentation Capital Return Dividend per Share Share Repurchases 7.4% CAGR 7.1% $1.24 $1.16 $1.08 5.3% $1.02 $2,500 $1.00 2.3% $1,663 1.5% 1.3% 1.3% $439 $475 $300 $349 2018 2019 2020 2021 2022 YTD23 2019 2020 2021 2022 YTD23 1 Share repurchases ($M) Repurchases as % of Weighted Avg.
Slide 15: 2023 Outlook
2Q2023 Earnings Presentation 2023 Outlook 2023 2023 Metric Change Updated Guidance Original Guidance Total Revenue $2.63 – $2.66B $2.59 – $2.63B +$30 – $40M Adjusted EBITDA $1.39 – $1.43B $1.37 – $1.42B +$10 – $20M Adjusted EBITDA margin 53.0% – 54.0% 53.0% – 54.0% – Diluted Adjusted EPS $5.50 – $5.
Slide 16: Capital Management Philosophy
2Q2023 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
2Q2023 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
2Q2023 Earnings Presentation Non-GAAP Reconciliations Segment Results and EBITDA | Current and Prior-Year Period Segment Results Summary and 2Q23 2Q22 Adjusted EBITDA Reconciliation Insurance E&SM FS Insurance E&SM FS Revenues $675.0M — — $610.0M —M $2.8M Revenues from acquisitions and dispositions
Slide 20: Non-GAAP Reconciliations: 2021 and 2022 Pro Forma Revenues and EBITDA
2Q2023 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 21: Non-GAAP Reconciliations: Adjusted Net Income/EPS and Free Cash Flow
2Q2023 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 2Q23 2Q22 Net income $1,042.1M $607.1M $196.8M $197.8M Income from discontinued operations, net of tax expense — — (7.5) 24.2 Income
Slide 22: Non-GAAP Reconciliations: Segment Results and EBITDA
2Q2023 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 23: ©Verisk ©Verisk Analytics, Analytics, Inc.
©Verisk ©Verisk Analytics, Analytics, Inc. Inc. All All rights rights reserved. reserved. 23