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Verisk Analytics, Inc.
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Verisk Analytics
Investor Day
December 1, 2015
Verisk Analytics, Inc.
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Verisk Analytics Investor Day
December 1, 2015
Verisk Analytics, Inc.
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Strategy
Scott Stephenson, CEO
Verisk Analytics, Inc.
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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 that may cause our actual results,
levels of activity, performance, or achievements to be materially different from any future results, levels of activity,
performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can
identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “target,”
“seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other
comparable terminology. You should not place undue reliance on forward-looking statements because they involve
known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could
materially affect actual results, levels of activity, performance, or achievements. Other factors that could materially
affect actual results, levels of activity, performance, or achievements can be found in Verisk’s quarterly reports on Form
10-Q, annual reports on Form 10-K, and current reports on Form 8-K filed with the Securities and Exchange Commission.
If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may
vary significantly from what we projected. Any forward-looking statement in this presentation reflects our current views
with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our
operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise
these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.
Notes Regarding the Use of Non-GAAP Financial Measures
The company has provided certain non-GAAP financial information as supplemental information regarding its
operating results. These measures are not in accordance with, or an alternative for, GAAP and may be different from
non-GAAP measures reported by other companies. The company believes that its presentation of non-GAAP
measures, such as EBITDA, EBITDA margin and adjusted EBITDA, adjusted net income, and adjusted EPS, provides useful
information to management and investors regarding certain financial and business trends relating to its financial
condition and results of operations. In addition, the company’s management uses these measures for reviewing the
financial results of the company and for budgeting and planning purposes.
3
Forward-Looking Statements, Safe Harbor, and Non-GAAP
Financial Measures
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How Do We Achieve Leading End-Market Positions?
The Four Distinctives in The Verisk Way
Unique
Data Assets
Deep Domain
Expertise
First-Mover
Advantage
Embedded in
Customer
Workflows
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Stronger and Larger Company
5
The Verisk Formula
Steadily Growing
Businesses Powered
by Innovation, with
Expanding Margins
and Low Capital
Intensity
Newly Acquired
Businesses at
Reasonable Prices
with Similar
Characteristics
Increasing Financial
Capacity
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The Verisk Formula (continued)
We can continue to drive
strong organic growth
• Stay close to
our distinctives
• Moderate levels of
transactions and services
• Innovate effectively
• Globalize effectively
• Expand channels
Balanced
expectations
for M&A spend
Strong balance sheet
• Committed to 2.5x
leverage by end 2016
• Maintain investment
grade
Return capital to
shareholders
Verisk Analytics, Inc.
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Verisk Strength Built on P&C foundation
• Unique data sets, enhanced over time, have enabled growth into
more decision processes at our customers
− Since 1971, our P&C business has served as the industry standard
− Leveraging long-standing relationships with innovation and new
solutions has enabled strong growth: 7.2% over past 5 years
• Template for how we develop new verticals at Verisk
− First mover creates competitive advantage
− Become the “must-have” solutions for clients to make strategic
decisions about their day-to-day business
− Build once, sell many times
• Financial model for P&C solutions sets the standard
− High percentage of subscription revenue
− Limited customer concentration
− Scalable with low capex requirements
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Verisk is Stronger with WoodMac
Develop a common
database and GIS
platforms, in
partnership with the
JDE, leading to
innovative new
offerings
Repackage and
repurpose Wood
Mackenzie content
for the insurance
sector
Focus on cross-selling
of current content
between Wood
Mackenzie and
Maplecroft
Leverage Wood
Mackenzie footprint to
help internationalize
Verisk
Use of aerial imagery
to enhance analysis
across current and
new content
Combined
Growth
Opportunities
• Cross-sell
• New geographic footprint and offering opportunities
Develop integrated
supply chain solution
across Verisk
verticals
8
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Core Competencies
9
Original (ISO) Core A Different World Current and Future
Verisk Core
Actuarial analysis
Regulatory process
(insurance)
Templated data collection
and management
Circulars and
tabular output
Explosion in data volume Large-scale
data integration
Multi-tier, multi-spectral
imaging
Visualization and
consumability with
emphasis on geo-location
Stochastic methods
leading to prediction
Localization of solutions
High-speed networks
Compute power
Ubiquitous GPS
Automated interpretation
of imagery
Too much data,
too little insight
Globalization
New form competitors
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Large-Scale
Data
IntegrationM
ulti-Tier,M
ulti-
SpectralIm
agingC
onsum
ability
and
G
eo-Location
Stochastic
M
odeling
Localization
Insurance
Banking/Marketing
Effectiveness
Energy/Metals
and Mining
Healthcare
10
Competencies by Vertical
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1. Large-Scale Data Integration
11
• Geo-location represents the largest
degree of potential relatedness
• We are rethinking how we structure
our data assets
Observations
• Opportunities exist within
categories, e.g., insurance claims
• Analyzing individuals is mostly
about insurance/financial overlaps;
analyzing businesses spans all of
what we do
Domain Data Category Number of
Data Stores
Primary Unit
of Observation
Other Units of Observation
Insurance Policy Records
Claims Records
Property and Location Attributes
Behavioral/Criminal Records
Forms and Regulations
25
27
8
8
4
Policy
Claims (estimates and actual fil
i
ngs )
Property/Geo-location
Individual
Business (insurer)
Individual/Business, Property, Geo-location
Individual/Business, Property, Geo-location
Business
Geo-location, Property
Geo-location
Financial Deposit Account Attributes
Credit Account Attributes
Retail Payment/Deposit Transaction Details
2
2
3
Account
Account
Transaction
Individual, Business, Geo-location
Individual, Business, Geo-location
Individual, Merchant/Business
Oil/Gas Oil/Gas Field Attributes
Metal, Mineral, Mine Attributes
Energy Distribution Attributes
7
7
7
Field
Field/Mine
Flow
Property/Geo-location, Business
Property/Geo-location, Business
Production Geo, Businesses, Regimes
Other Catastrophic/Geopolitical Event Attributes
Weather and Climate
Materials and Safety
Telematics
9
5
3
1
Geo-location
Geo-location
Material Details
Trip (in car)
Property, Businesses, Individuals
Property, Businesses
Property/Geo-location, Business
Individual/Business, Property, Geo-location
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2. Multi-Tier, Multi-Spectral Imaging
Nature of Data Potential Use Cases
Global
25-50 cm resolution
1-month revisit
Ortho, multi-spectral
1. Addition of a swimming pool
2. Measure corn health and recommend fertilizer
Metropolitan
5-7 cm resolution
Annual revisit
Stereo oblique, visible
1. Automatically identify roofs needing repair
2. Automate the design of PV solar installations
Neighborhood
<1 cm resolution
On-demand revisit
Oblique, hyper-spectral
1. Monitor large commercial site construction
2. Monitor encroachment into utility easements
Building
<1 cm (gps limit)
On-demand revisit
Exterior & interior; multi-spectral,
thermal, laser
1. Crowdsource insurance inspections
2. Quantify and map building interiors
for remodelers
Satellite
Aerial
Drone
Interior
Sensing
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3. Consumability and Geo-Location
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Catastrophe Models Need to Simulate Thousands of
Potential Hurricanes to Provide a View of Risk
14
4. Stochastic Modeling
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5. Localization
Major steps to make Xactimate useful in Australia:
Australia Pricing Research Data
• 14 databases (~4,000 person-hours)
Local Currency and Language Support
• Tweak translations and terminology
Australia Custom Product Features (minimum viable product)
• Tendering estimates out to supply chain
• Simplification
• Appointment management
• Claim-centric approach
Process Requirements – Behave More Like an Agile Startup
• Increased responsiveness to customer requests
• Faster implementation and onboarding
• Better customer tracking and billing management
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Infrastructure Enables Competencies
Competencies
Strategies
1. Large-scale data
integration
2. Multi-tier,
multi-spectral imaging
3. Comsumability and
geo-location
4. Stochastic modeling
5. Geographic
localization
A. Technology and
infrastructure
B. Analytic environment
and resourcing
C. Regionalization
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Corporate Systems Client-Facing
Delivery Systems
Back-End Data Management
and Processing
• Systems providing general
corporatewide functionality,
e.g., HR workflow, GL, e-mail
• Will need to evaluate each
individually, but generally
the SaaS cloud model
makes most sense
• Factors to consider
− Operational efficiencies
− Economics
− BU integration
− Internal cultural bias
• Systems providing direct client
access with responses and
results back to clients
• Will need to work with BUs
to determine efficacy, but
generally the PaaS or IaaS
model will make the
most sense
• Factors to consider
− Evaluate dev/test/prod
individually
− Reliability
− Scalability
− Economics
− Internal cultural and
client bias
• Systems providing data
management, including
ingestion, ETL, prep, and staging
• Will need to work with BUs to
determine efficacy, but
generally the PaaS or IaaS
model will make the most sense
• Factors to consider
− Evaluate dev/test/prod
individually
− Reliability
− Scalability
− Economics
− Internal cultural and
client bias
A. Technology and Infrastructure
Example: Cloud Strategy
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Multivariate regression trees and
algorithms to estimate event likelihood
and cohort belonging.
Serve as industrial workhorses!
B. Analytic Environment
Verisk Use Cases:
• Claims likelihood
• Consumer response propensity
• Behavioral segmentation
• Gas price estimation
Simulated Monte Carlo experiments for
highly coupled nonlinear systems,
particularly with wide variability and
high underlying betas.
Verisk Use Cases:
• Weather events (e.g., hurricane
landfall)
• Failure rates (manufacturing)
• Bank portfolio stress test
Classical Regression & Segmentation Monte Carlo Stochastic Modeling
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B. Analytic Environment, continued
Verisk Use Cases:
• Dynamic fraud identification
• Image and facial recognition
• Voice and speech recognition
• Sentiment analysis
• Context analytics
• Multi-spectral imaging
Model high-level abstractions using
multiple processing layers and complex
structures (e.g., Bayesian networks,
deep machine learning, NLP).
Use of network and graph theory —
characterizing networked structures in
terms of nodes and the ties or edges
that connect them.
Verisk Use Cases:
• Predict influence of individuals and
communities on their networks
(customer interactions and analysis —
ads, product choices, etc.)
• Organized/multiparty financial crime
(money laundering, intelligence) and
fraud (check-kiting, insurance claims)
Social Network Analysis (SNA)Machine Learning Methods
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C. Regionalization
Example: Possible Verisk Asia Pac Organization
KPIs from Verisk for
Asia Pac
Verisk Asia Pac Chair
Shared Services
Business Unit Team Members
(Asia Pac)
M&A
e.g., Talent e.g., Facilities
Verisk Center Verisk BU
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“Big Five” Operational Priorities
21
Focused Attention on Cross-BU Opportunities
Strong Team/Talent
Robust Technical Environment
Deeper Customer Intimacy
Global Platform
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Technical Talent and Advanced Degrees Growing
22
DBA/Developer/Programmer — 79% increase
MBA — 45% increase
CAS Fellow — 71% increase
Master of Science — 55% increase
PhD — 15% increase
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Total Employees: 7,500 Q3 2015 YTD Revenue: $1.6B
Global Platform
Salt Lake City
Chicago Houston
Lima
Buenos Aires
Rio de Janeiro
Ohio
Columbia
Annapolis
Jersey City
New York
Boston
Quebec
Ontario
Edinburgh
Bath
Fleet
Tel Aviv
Abuja
Guildford
London
Copenhagen
Munich
Vienna
Moscow
Astana
Nepal
Dubai
Hyderabad
Johannesburg
Perth
Sydney
Brisbane
Jakarta
Tokyo
Beijing
Seoul
Singapore
Kuala Lumpur
Hong Kong
San Francisco
Calgary
Minneapolis
Carlsbad
Note: includes Wood Mackenzie revenue from January through September.
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Conclusion
The best benchmark for Verisk is Verisk.
Average
1
organic revenue growth over the past ten years
has been about 8%
• 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 EBITDA margins 450bps to the high 40s, an
industry leading level
• We will continue to invest in our business
• There is natural scale in what we do even at the current strong
margin levels, as our incremental margins show
1
Unweighted
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Questions
25
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Wood Mackenzie
An Introduction by Stephen Halliday, CEO
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We enrich lives by
empowering people
with unique insight on
the world’s natural
resources
Wood Mackenzie Mission Statement
27
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We have evolved over 40 years to become the leading provider
of commercial intelligence in the natural resources sector
28
“Follow the molecule”
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Wood Mackenzie is a Verisk business with matching values
Verisk Distinctives
Subscription Revenue Model
and High Customer Retention
Company-Specific Attributes
Track Record of Growth
and Innovation
First-Mover Advantage
Unique Data Assets and
Decision-Making Models
Embedded in Customer
Workflows
Deep Domain Expertise
Global
Business
Data &
Analytics
Data-Rich
Vertical
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Key Messages for Today
More than 40 years of history with a reputation for quality and
strong customer relationships built on trust
30
Industries that are perfectly suited for data and analytics
Diversified across energy, chemicals, and metals & mining
Undermarketed and undersold
Multiple avenues for growth
Verisk and Wood Mackenzie are stronger together
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Wood Mackenzie
Oil & Gas Industry—
Engine of the World Economy
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Oil & Gas Industry—Engine of the World Economy
What drives the demand for oil and gas?
Where are the oil and gas reserves?
Who are the key stakeholders?
How does the industry work?
What are the key themes of today’s environment?
What sets the oil price?
32
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Underpins the way we live today
Energy to heat
homes
Energy to
power industry
Fuel to transport
goods and
people
Raw materials
for everyday
items
One of our most fascinating, hi-tech, and vital industries
• Cosmetics
• Food
• Medicine
• Plastic
• Gasoline
• Clothing
33
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0%
1%
2%
3%
4%
5%
6%
0
1,000
2,000
3,000
4,000
5,000
6,000
Coal Oil Gas Nuclear Hydro Renew. OSF*
CAGR2015–2035
WorldTPED(Mtoe)
Global hydrocarbon fuels underpin global energy demand
World primary energy demand by fuel, 2015–2035
Source: Wood Mackenzie.
*OSF = Other Solid Fuels
Renewables:
Rapid growth from
low base
33%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Total
WorldTPED(Mtoe)
CAGR2015–2035
2015 2020 2025 2030 2035 CAGR 2015-2035
Coal overtakes
oil in 2025
34
Gas fastest-
growing
hydrocarbon
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Where are the oil and gas reserves?
Natural Gas
Oil
35Source: Wood Mackenzie
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OPEC and New Discoveries
Russia
US
Saudi
Arabia
Iran
Iraq
Canada
Qatar
Venezuela
United
Arab
Emirates
China
Rest of the
World
Total remaining oil & gas reserves
(1,535 bnboe*)
OPEC controls ~42%
OPEC members include Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya,
Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela.
36Source: Wood Mackenzie
0
10
20
30
40
50
60
2005 2007 2009 2011 2013
DiscoveredVolume(bnboe*)
South Iolotan
DW Brazil
East African gas
Discovered volumes over the last decade
*DW = Deepwater
*bnboe = Billion barrels of oil equivalent
DW* Brazil
South Yoloten
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National oil companies control reserves, only the biggest
international oil companies can compete
0
50
100
150
200
250
300
NIOC
PDVSA
SaudiAramco
QatarPet
Gazprom
Rosneft
IraqGovt
ExxonMobil
CNPC
ADNOC
Shell
Turkmengaz
Chevron
Africa Asia Europe Latin America Middle East North America Oceania Russia & Caspian
Integrated
Supply chain
Financial
institutions
Professional
services
NOCs
Small caps
Mid caps
Large caps
Bnboe*
N N
N
N
N
N
N
N N
N
Global reserves held by company, split by region
N = national oil company (NOC)
37Source: Wood Mackenzie
*Bnboe = Billion barrels of oil equivalent
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0
10
20
30
40
50
60
70
80
90
100
110
120
0
40
80
120
160
200
240
280
2014
$/bbl Brent
2012 2013
Government Take US$bn
2011201020092008200720062005
Oil Price (Brent, Nominal)
Many economies around the world are dependent on oil
and gas revenues (and price)
Saudi
Arabia
Russia
Norway
38Source: Wood Mackenzie
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What sets the price of oil?
Select events affecting global oil prices
(Average monthly – Brent $/bbl)
Supply
&
Demand
Cost
Geo-
politics
OPEC
Demand
Supply
Speculation/
Trading
Oil Price
Factors influencing oil price benchmarks
Source: Argus Media, Wood Mackenzie 39Source: Wood Mackenzie
0
20
40
60
80
100
120
140
Jan 16Jan 12Jan 08Jan 04Jan 00
Invasion
of Iraq
Global
Financial Crisis
Asia
Growth
Arab
Spring
OPEC–Market
Share
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How does the industry work? The oil and gas value chain
Exploration Production
Upstream
Refining Marketing
Downstream
Midstream
“Global market for petroleum products”
Development
$472bn(1) $154bn(1) $52bn(1)
(1) Average annual investment 2000–2013 based on IEA Energy Investment Outlook, Year 2012 US$
40
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0
10
20
30
40
50
60
70
80
90
100
GovernmentTake% Africa Asia Pacific
Europe Latin America
Middle East North America
Russia & Caspian
Gaining access to O&G blocks/licenses
• Various routes to being
awarded a block/license
– Licensing rounds
– Direct negotiations with
governments
– Invitations to tender
• Generally for exploration
acreage, sometimes for
developments
The larger and higher-quality
resources have the highest
government take
Around 50,000 active blocks around the world
41Source: Wood Mackenzie
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Exploration and Appraisal (E&A)
Only around 1 in 5 wells make a commercial discovery
42
Oil
WaterRock grains
Oil
TrapReservoir
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Development
Discovery to project sanction takes an average of 8+ years
Concept
generation
Concept
screening &
selection
Project
sanction
Concept
definition
43Source: Wood Mackenzie
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Some amazing innovation to develop
increasingly difficult reserves...
R E S E R V O I R S
Empire State Building
381m
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.56.0 6.5 7.07.5 8.0 8.5 9.0 9.5 10.
0
Maximum lateral
reach at this depth
Source: Wood Mackenzie, Shell, The Economist 44
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…which has led to a high cost base for the industry
10
11
12
13
14
15
16
17
18
19
20
2008 2010 2012 2014
Capexperboeofproduction(realterms)
Development costs per barrel
by company type (US$ real)
0
5
10
15
20
25
30
2004 2006 2008 2010 2012 2014
Upstream industry development
costs per barrel (US$ real)
NOC
IOC
0
10
20
30
40
50
60
70
80
90
100
0 100 300 600 900
Posttaxbreakevens(US$/bbl)
Pre-FID investments (US$ billion)
Deepwater
LNG
Conventional
Cost curve pre-FID capex:
(2015–2030)
45Source: Wood Mackenzie
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Production
0
50
100
150
200
250
300
350
400
450
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Brent field oil production (000 b/d)
0
500
1000
1500
2000
2500
3000
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
2051
2053
Zohr field gas production (mmcfd)
Typical production profiles
46Source: Wood Mackenzie
Production from ‘unconventionals’ is driving supply growth
90
50
110
120
60
80
70
130
100
40
0
30
20
10
+2%
Millionboed
2004 2014 20142004
Coalbed methane Heavy oil
Deepwater
Conventional shelfTight gas Tight oil
Conventional onshore
Shale gas
LNG
GTL
Shale oil
Acid/sour gas
Oil sands
19%
8%
Production
Type
Total production 2004 vs 2014 % breakdown by theme 2004 vs ‘14 OPEC oil market share
47Source: Wood Mackenzie
OPEC
Non-
OPEC
N.
America
2008
2014
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Recent oil price decline results in upstream investment cuts,
which lowers the oil supply outlook
Wood Mackenzie capex profile,
global upstream spend
0
100
200
300
400
500
600
700
2012 2014 2016 2018 2020
Capex(US$bn)
Pre oil price
decline forecast
Onstream
NA Onshore
Under Development
Probable
5
6
7
8
01/13
09/13
05/14
01/15
09/15
05/16
01/17
09/17
Millionb/d
Onshore Lower 48
Forecast end-July 15
0
2
4
6
8
10
12
2015 2020 2025
Pre-FIDProduction
(mbd)
2014 forecast
current
forecast
3 million b/d
Forecast change in supply
following investment cuts
Onshore Lower 48
Pre-FID Project (non L-48)
48Source: Wood Mackenzie
Forecast end-July 15
Current Forecast
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0
2
4
6
8
10
12
Millionb/d
75
80
85
90
95
100
Millionb/d
Ongoing demand growth and production decline — higher cost
new developments needed
2014
Demand
Supply
Gap
Demand
Growth
Existing Non-
OPEC Supply
Onstream
- Decline
Under
Develop.
Other
Sources
Pre-FID Projects
and New US
Tight Oil Drilling
Non-OPEC
Reserve
Growth +
YTF
Call on
OPEC
<$50
<$70
<$90
2014 – 20
Supply Gap
Supply gap >10m b/d develops (2014 – 2020)… …requiring a greater call on OPEC, tight oil
drilling, and conventional oil projects
Source: Wood Mackenzie. YTF = Yet-to-Find 49
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Transportation
Massive-scale oil and LNG tankers and pipelines facilitate the global market
50
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Refining & Marketing
51
Conversion into finished products for distribution and consumption
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Summary
A vital, innovative, and dynamic industry—across the value chain
Demand for oil and gas will keep growing
Oil and gas found everywhere, but OPEC controls oil reserves
Capital-intensive industry—new developments are more challenging
and more expensive
Production dynamics changing with emergence of “unconventionals”
Current oil price cycle removes supply from the market—new, higher-
cost developments will be needed to meet growing demand
52
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Wood Mackenzie
Overview and Opportunity
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Wood Mackenzie: An Overview
54
Provide leading
commercial
intelligence to
the global
energy,
chemicals, and
metals & mining
industries
Industries are
complex and
capital-intensive
Large and diverse
addressable market
Multiple channels for
growth
Undersold and
undermarketed
Verisk and Wood
Mackenzie stronger
together
Strong financial
record
Subscription-based
business with
industry-leading
renewal rates
Diversified solution
set and customer
base
Differentiated
value proposition
built on proprietary
information,
analysis, insight,
and advice over
40 years
Embedded in
customer workflows
High-performing
workforce
What do we do? How do we win? How have we
grown?
What will drive future
growth?
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We are the reference source for commercial intelligence
across the natural resource value chain
Consistent and integrated view
across commodities and the
value chain
Global coverage based on
regional dynamics
Bottom-up approach combined
with corporate/macro perspective
Commodities
Oil/oil
products
Gas/LNG
Coal
Metals
Petro-
chemicals
Find
Extract
Refine
Transport
End
market
Macro
Corporate
Geographic
Asset
Historic/
forecast
The reference source
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Energy is an inherently global business:
We are located close to clients and industry contacts
Wood Mackenzie’s global footprint: 28 global offices in Americas, EMEARC & APAC
Total Headcount: ~1,100(1)
Headcount
(1) As of Oct 2015. Excludes contractor staff
Americas: 27% EMEARC: 54% APAC: 19%
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Our clients are active in highly complex and capital-intensive
industries and need our help
Complex
Dynamic
Partner-
ships
Capital
intense
INSTITUTIONAL
INVESTORS
COAL
INVESTMENT
BANKS
E&P
INTEGRATED
METALSUTILITIES
SERVICE
COMPANIES
NOC,
GOVERNMENTS,
NGO
OUR CLIENTS
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These features...
...enable these
functions...
...to do this:
Global, integrated
value chain coverage
Industry knowledge
and insight
Accessible to clients
Independence and
integrity
Bottom-up proprietary
data
Reliable analysis and
forecasts
Accuracy of data
Strategy and policy
makers
Corporate planning
groups
Business development
New ventures
Market fundamental
groups
Risk management
teams
Investors and advisors
Procurement teams
Understand their
markets
Value assets
Reduce risk
Identify opportunities
Assess competitors
Strengthen strategy
Enhance in-house
views
Negotiate effectively
with third parties
Save time
Wood Mackenzie’s value proposition is compelling
for multiple users with multiple needs
58
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Integrated research, sales & marketing, and consulting model
designed to best serve client needs
59
New business
ideas
ConsultingResearch
Access & feedback
Demonstration of value
Long-term relationships
Insight & information
Database & expertise
Expert network
Bespoke
solutions
Strategic
dialogue
Client
Integrated
Model
Consulting
Research Sales &
Marketing
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Wood Mackenzie portal is the window to 60+ tools and models,
14,000 reports, and vital analysis
• December 2013 portal launch
– Enhances user experience
– Facilitates access to breadth of Wood Mackenzie offerings
• Portal evolving as Wood Mackenzie client base grows
• Engagement up 58% in 2014 and 25% YTD in 2015
Portal
Upstream
Data Tool
60
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We have developed unrivaled breadth and depth in our
assets coverage
61
Upstream Data
• 30,000 oil & gas fields
(assets)
• 52,000 blocks
• 55+ million data points
Valuation
• 5,500+ commercial upstream
valuations
• 1,300+ technical upstream
valuations
• 1,200+ mines (coal)
• 300+ assets (iron ore)
• 200+ plants (steel)
Plus…
• 500+ exploration basins
• 200 unconventional plays
(uncon play service)
• 300+ LNG regasification
terminals
• 105 LNG liquefaction projects
• 200+ plays/sub plays (N.
American company/play tool)
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We provide unique and integrated analysis and insight
through trusted relationships established over 40 years…
62
Intelligence gathering Content development
Insight and services Integrated perspective
Nonpublic data,
multiple sources,
asset-level information
Proprietary information,
independent view,
continuous updates
Asset owners/
Governments/
Regulators
Wood
Mackenzie
experts
Modeling
and
analysis
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…and are deeply embedded in clients’ workflows
User workflow example: Opportunity screening (oil & gas business developer)
Review and filter all regional assets
Upstream Data Tool
Understand upside potential
Exploration Service
Market supply and
demand dynamics
Regional
Gas & Power Service
Valuation, capex, and cashflows
Global Economic
Model (GEM)
Understand risks
Call the Analyst / GEM
Deep dive on specific asset issues
Upstream Asset
Analysis
Wood Mackenzie
content/tool
63
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Competitors operate across all of Wood Mackenzie’s commercial
information market; we aim to be the leader in each vertical
64
Energy
Metals &
Mining
Chemicals
Front-runners/
leaders
Established
global
Established
regional
New entrants
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Having a business with the right talent and culture
is key to driving long-term sustainable growth
65
Wood Mackenzie has received public recognition for its
investment in staff and the quality of its work environment
High-Performing, Diverse, and Engaged Team
Talent
Organization &
resourcing
Rewards &
recognition
Culture
Supported by effective process and systems
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(1) Represents figures for FY 2014 for subscriptions only
NOC = national oil company; NGO = nongovernment organization; E&P = exploration & production; Other includes utilities, manufacturing, conglomerates, and
professional services
Wood Mackenzie has a diverse customer base
with low customer concentration
Revenue diversified across end users(1) Low customer concentration
21%
Top 10 client
subscription value
(2015 YTD)
<4%
Maximum
individual
customer value
30%
26% 25% 25%
24%
23%
21%
2009 2010 2011 2012 2013 2014 2015
Top 10 client subscription value
YTD
Metals &
Mining
16%
Other
NOCs, Government & NGO
Financials
E&P and
Integrated
23%
4%
16%
41%
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Growth in number of Clients
900
Total Customers
7%
Customer Growth
CAGR since 2009
Consistently High Renewal Rates(1)
We have consistently grown our client base and have industry
leading renewal rates
(1) Renewal rates for subscriptions, calculated on total value.
900
822
772
735722
642
590
2015
(YTD)
201420132012201120102009 2015 (YTD)
98%98%
2010 2014
98%
67
Verisk Analytics, Inc.
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Our clients have been increasingly engaging our solutions
and insights
0
20,000
40,000
60,000
80,000
100,000
120,000
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
Jan 16Jan 15Jan 14Jan 13Jan 12Jan 11Jan 10Jan 09Jan 08Jan 07Jan 06Jan 05
Brent crude $/bblNo. of visits
21% CAGR
(Jan 2005 – Sept 2015)
80% CAGR
(Jan 2014 – Sept
2015)
Number of visits to the Wood Mackenzie portal vs Brent crude price
68
Based on individuals logging in to the Wood Mackenzie portal. Excludes Pathfinder and GEM solutions as they are offline.
Brent
No. of visits
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Source: Management Data, Management Presentations, BvD, Annual reports, Broker reports, OC&C Survey, OC&C analysis
Original data in GBP. Conversion rate of 1 GPB = 1.53 USD used.
Energy and commodities information has a large
addressable market (circa US$ 6bn)
RTData
Technical
Sector Vertical
ProductCategory
Consulting2
Commercial
Energy&CommoditiesInformation
Real-Time Data
Market Size: c.$0.8 – 1bn
Market Size: c.$4bn
Market Size:
c.$0.9bn
Market
Size:
c.$0.1bn
Oil Gas Coal Utilities
Industrial
Markets
PetChems Renewables
Market
Size:
c.$0.2bn
Technical
Commercial
Wood
Mackenzie
Heartland
Nascent
Category
Potential Future
Category
Existing Wood Mackenzie markets, emerging verticals, and adjacent categories
69
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Recent dramatic drop in commodity prices has put pressure
on our client base; short-term pressure on spend anticipated
70
E&P and
Integrated
Financials
Metals &
Mining
NOCs, Govs
& NGOs
Americas
AsiaPac
EMEARC
Client Category Region
• Cost cutting to improve
cash flow
• Companies waiting for
market to stabilize
• Rationalization
• Buying opportunities
being pushed
• Still facing malaise that
started in 2012
• Domestic commitments
result in cost-cutting lag
• Focus on efficiencies
and attracting new
investment
• Cuts in activity,
especially in
high-cost North
American plays
• NOC concentration has
lessened the negative
impact for the time being
• Not reached the
depths seen in
Americas
• May have
bottomed out for
another year
H MImpact of Commodity Price Drop:
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However, we have also seen the moat widening
71
Trusted relationships established over 40 years and
embedded way of working are key to maintaining the moat
Year-to-Date Changes
Through Q3 2015
+25%
Portal Usage
+34%
Portal Super Users
+24%
Client-Facing
Calls/Meetings
+98%
Use of Macro Oils
Service and
Global Gas Tool
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Wood Mackenzie has multiple avenues for growth
in the short and long term
New
Clients
M&A
Process
Improvement
New
Distribution
Channels
Product
Enhancement
and New
Development
Wood Mackenzie is currently
undersold and undermarketed
Verisk
Business n+1
and Cross-
Sell
Investment through the cycle to
capture the upside in a recovery
Principles for Growth
Expansion opportunities
in emerging verticals
and adjacent areas
Existing
Product Up-
and Cross-Sell
+ Consulting
Growth Avenues
72
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Product development and enhancement strengthen our market
position and give access to adjacent categories
4 billion data
points from
75+ sources
for 2.3m
wells
Integrated
analysis of
costs, permits,
completions &
production
Visualization
tool with
interactive
maps, charts,
type curve
generator
“Making the tool that Wood Mackenzie analysts use available to our clients”
Launched October 2015
Example: North American Well Analysis Tool (NAWAT)
73
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Significant growth opportunity through New Channels
Benefits of New Channels
Increasing Brand Awareness
Accessing new clients and
markets
Further embedding into client
workflows
Increase penetration with existing
clients
To support growth we are ‘Amplifying the Brand’
900
+4x
Potential ClientsWoodMac
WoodMac Current vs. Potential Clients
74
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Verisk and Wood Mackenzie are stronger together,
with both cross-sell and n+1 opportunities
GIS Platform
Developing a common
database and GIS
platform, in partnership
with the JDE, for
innovative new
offerings
Insurance
Repackaging and
repurpose of Wood
Mackenzie content
for the insurance
sector
Maplecroft
Cross-sell of current
content between
Wood Mackenzie and
Maplecroft
Internationalization
Leverage Wood
Mackenzie footprint to
help internationalize
Verisk
Aerial Imagery
Use of aerial imagery
to enhance analysis
across current and
new content
Supply Chain
Integrated supply
chain solution across
Verisk verticals
Opportunities for developing new proprietary data and strengthening growth
75
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Summary
Verisk and Wood Mackenzie have matching values and distinctives
and are stronger together
76
Wood Mackenzie has strong customer relationships with high
customer retention
Unique data assets and models serving energy, chemicals,
and metals & mining
Current industry headwinds are increasing the need for our analysis
and enabling us to become more deeply rooted in client workflows
Track record of innovation and multiple avenues for future growth
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Questions
77
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Financial Performance
Mark Anquillare, CFO
Verisk Analytics, Inc.
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Historical Performance Summary
79
Key Takeaways
• Summary
− Strong growth across the
board
− Organic revenue growth
accelerated while EBITDA
margins expanded, on
average, over the time period
− Cash flow growth offset by
necessary capital
expenditures
− Adjusted EPS growth highlights
our ability to continuously
deliver shareholder value
• Implications for Future
− Investments in our business
have positioned us nicely for
continued, strong growth
Metric 2005-2009 2010-2014
Total Revenue 10.8% 15.2% CAGR
Organic Revenue Growth 7.8% 8.4% AVG
EBITDA 12.2% 15.0% CAGR
EBITDA Margin 43.4% 46.6% AVG
Operating Profit (EBIT) 11.4% 13.5% CAGR
CapEx as % of Revenue 3.6% 6.2% AVG
Cash Flow
(EBITDA less CapEx)
12.0% 11.6% CAGR
Adjusted EPS 15.1% 17.9% CAGR
Productivity
Revenue/Employee $249 k $276 k AVG
EBITDA/Employee $108 k $129 k AVG
Note: Excludes mortgage.
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Organic Revenue Growth
80
11.0%
8.7%
5.7%
7.7%
5.7%
7.6%
9.1%
8.2% 7.8%
9.4%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
7.8% Average
Key Drivers:
• Organic growth is a measure of our vitality
• Robust innovation agenda has spurred stronger organic growth
• Growth has become more consistent
Note: Excludes mortgage. Organic growth includes businesses owned for a full year or more at measurement.
8.4% Average
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EBITDA
81
250 289
343 367 396
459
555
671
745
803
41.5%
42.6%
45.0% 44.2% 43.6%
46.3% 46.6% 47.6% 46.7% 46.0%
35 .0%
40 .0%
45 .0%
50 .0%
55 .0%
60 .0%
65 .0%
70 .0%
75 .0%
80 .0%
0
10 0,00 0,0 00
20 0,00 0,0 00
30 0,00 0,0 00
40 0,00 0,0 00
50 0,00 0,0 00
60 0,00 0,0 00
70 0,00 0,0 00
80 0,00 0,0 00
90 0,00 0,0 00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(in $ millions)
12.2% CAGR
margin
Note: Excludes mortgage.
Key Drivers:
• 2010-2014 EBITDA growth has accelerated compared to 2005-2009
• Average 2010-2014 EBITDA margin was 46.6%, up from 43.4% in 2005-2009
• Evidence of strong operating leverage
− 2014 EBITDA margin was 47.6% after adjusting for prospective revenue
(Healthcare), one-time FTC, and talent realignment costs
15.0% CAGR
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Capital Expenditures
82
22 21
32 27
38 36
56
73
145 147
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(in $ millions)
3.6% Average, as % of revenue
Hardware/Software
3.7% 3.0% 4.2% 3.2% 4.1% 3.6% 4.7% 5.2%
9.1% 8.4%CapEx as a % of Revenue
non-IT (i.e. furniture)
Internally
Dev. Software
6.2% Average, as % of revenue
Note: Excludes mortgage.
Key Drivers:
• New product innovation and data assets have led to greater capital intensity
• Increased delivery of solutions through software resulting in deeper integration
into customer workflows
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Adjusted EPS
83
15.1% CAGR
17.9% CAGR
$0.58 $0.70
$0.85 $0.91 $1.02
$1.24
$1.63
$2.03
$2.22
$2.40
41.4% 20.9% 20.7% 6.9% 12.4% 21.9% 31.2% 24.2% 9.4% 8.3%
1.0 %
51 .0%
10 1.0%
15 1.0%
20 1.0%
25 1.0%
30 1.0%
35 1.0%
40 1.0%
45 1.0%
0.0 0
0.5 0
1.0 0
1.5 0
2.0 0
2.5 0
3.0 0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(in $/share)
growth
Note: Excludes mortgage.
Key Drivers:
• Adjusted EPS CAGR accelerated in public company period driven by execution
• Effective capital deployment via acquisitions and share repurchases
contributed to the performance
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Productivity
84
228 243 253 266 256 266 270 279 277 287
95 103 114 117 112 123 126 133 129 132
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(in $ thousands) EBITDA/EmployeeRevenue/Employee
2,640 2,795 3,011 3,124 3,553 3,737 4,407 5,047 5,758 6,094FTEs
Note: Excludes mortgage.
Key Drivers:
• Few incremental resources are required to implement and service additional
customers
• Fostering a culture of continuous improvement
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Risk
Assessment
31%
DA
Insurance
29%
Financial
Services
5%
Energy &
Specialized
20%
Healthcare
15%
3Q 2015 Revenue Distribution
Decision
Analytics
69%
Diverse, High Recurring Revenue Sources
Transaction
Revenue
25%
Subscription
Revenue
75%
3Q 2015 YTD Subscription Base
85
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• Growth driven by a combination
− New Customers
− Deeper Penetration into Existing Customers
− New Solutions
• Majority of Revenue is Prepaid Quarterly or Annually
• Very high customer retention
1.8% 0.5% 2.9% 0.3% 1.6% 0.3%
10.3% 17.6%
Industry
Standard
Property
Specific
DA
Insurance
Healthcare Financial Energy &
Specialized
Acquired Total
Revenue
3Q 2015 YTD Contribution to Revenue Growth
6.1% 5.2% 8.5% 1.5% 30.2% 213.7%
in Energy &
Specialized 17.6%
Industry
Standard
Property
Specific
DA
Insurance
Healthcare Financial Energy &
Specialized
Acquired Total
Revenue
3Q 2015 YTD Revenue Growth
86
Insurance a Strong Foundation; New Verticals Making Important
Contributions
Note: (1) After adjusting for prospective revenue, Healthcare contributed 1.5% to total revenue growth of 19.2%,
and grew 9.9% 3Q 2015 YTD.
(1)
(1)
(1)
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168
195
223
242
224 236
257 260 247 262
287 300 288
326
379
100
150
200
250
300
350
400
450
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Decision Analytics Revenue
(in $ millions)
145 144 144 146
153 154 155 156
162 162 161
165
171 172 172
130
140
150
160
170
180
190
200
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Risk Assessment Revenue
(in $ millions)
Consistent Quarterly Top-Line Progression
87
Verisk Analytics, Inc.
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• Stable, visible growth profile
• 5.2% growth in 2014, 5.9% growth in
2015
Risk Assessment: Our Heritage
462
486
514
2013 2014 2015
3Q YTD Revenue
(in $ millions)
55.8%
57.1%
59.2%
2013 2014 2015
3Q YTD EBITDA Margin
%
• Scale economies
• Revenue growth coupled with good
cost management
• Aligning talent for future growth
• 100 of top 100 P&C companies are customers
• Industry-standard, mission-critical, embedded insurance solutions
− Loss cost estimates – insurers’ “cost of goods”
− Regulatory compliance
− Enable speed to market
− Leading commercial property analytics for insurers
• Founded on unique data contributed by insurers
88
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• Strong top-line growth
• 11.0% growth in 2014, 24.7% growth in
2015 helped by acquisitions
Decision Analytics: Enhancing Our Future
717 796
993
2013 2014 2015
3Q YTD Revenue
(in $ millions)
41.5%
39.1%
41.5%
2013 2014 2015
3Q YTD EBITDA Margin
%
• Critical investments to drive future
growth
• Operational efficiencies contributing
to margin
• New, large verticals with data analytic needs
• Cross-vertical themes (antifraud, predictive modeling, benchmarking,
optimization)
• Leveraging existing assets
− Repurposing of data (n + 1)
− Technology infrastructure
− Replatforming
Note: 2015 margin excludes one-time items related to Wood Mackenzie acquisition
and gain on sale of EVT warrants. 89
Verisk Analytics, Inc.
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Opportunities
• International expansion
• Solution line extensions
• Data exchanges
• Create new platforms to deliver our solutions
• Partnerships and third party integration
• Predictive analytics
• Repurposing solutions into adjacent and new
markets
Differentiators
• Unique and proprietary industry data
assets
• Brand recognition and reputation
• Deeply embedded in customer
workflows
• Strong technical and industry (domain)
expertise
• Broad solution set
• Ability to execute
• Advanced analytical and modeling skills
P&C: Differentiators and Opportunities
261 266 270 275 279
288
296 294
304
315 311
320 325
337 334
250
270
290
310
330
350
370
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Combined Insurance Revenue
(in $ millions)
90
Verisk Analytics, Inc.
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Strong, Stable Revenue Growth
(in $ millions)
Leading EBITDA Margin
(%)
Low Capital Intensity
(as reported, CapEx as a % of Revenue)
1,179 1,282
1,507
2013 2014 2015
Verisk’s Differentiated Financial Model
3Q Year-to-Date (YTD)
47.1%
45.9%
47.6%
2013 2014 2015
8.5%
8.0% 7.0%
2013 2014 2015
279 276
414
2013 2014 2015
Strong Free Cash Flow
(as reported, in $ millions)
Note: Free Cash Flow defined as Cash from Operations less CapEx.
Note: 2015 margin excludes one-time items related to Wood Mackenzie acq. and gain on sale of EVT warrants. 91
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Verisk: Disciplined Capital Allocation
(in $ millions)
$3.8 B
70%
$1.6 B
30%
Cumulative
Acquisitions and earn-outs Share Repurchase
2011 2012 2013 2014 2015
Share Repurchase $382 $163 $279 $778 $0
Acquisitions and earn-outs $143 $808 $1 $35 $2,800
Acquisitions and earn-outs Share Repurchase
Note: Cumulative from 2011 through June 2015; 2015 Acquisition amount is
rounded to the nearest 0.1 billion and net of currency hedges. 92
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250
450 350
900
350
900
850
2015 2016 2017 2018 2019 2020 2021 2022 2025 2045
as of 9/30/2015
Public Bonds Revolver Drawn Undrawn Revolver
Debt/ EBITDA(1) 2.9x
Covenant level(2) 3.75x
($ in millions)
Bonds $2,300
Revolver Drawn 0,900
Total Debt $3,200
Revolver expanded to
$1,750M, due May 2020
Strong Capital Structure to Support Growth
Investment Grade Ratings
S&P: BBB-
Moody’s: Baa3
Fitch: BBB+
Note: 1. Per debt covenant
Note: 2. Steps down to 3.50x at the end of the fourth fiscal quarter following the acquisition of Wood Mackenzie. 93
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• Recurring revenue stream and high barriers to entry
− 75% 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
− Deeply embedded in our customers’ critical decision-making
processes
• High incremental margins on existing businesses
− Business model is “build once, sell many times”
− Very little incremental cost to add a new customer
− Our business is not service or capital intensive
• Diverse client base and revenue contribution
− 4 primary verticals with strong underlying demand factors
− Largest customer accounts for about 5% of revenues
− Top 10 customers account for about 21% of revenues
94
Attractive Business Model
Verisk Analytics, Inc.
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Two Paths to Growth –
Organic and M&A
Eva Huston, SVP and Treasurer
Verisk Analytics, Inc.
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Long Runway Remains for Organic Revenue Growth
• While we have grown well for many years, our opportunity
remains robust
− 8.4% average organic revenue growth over five years
− Multiple verticals contributing to stability of growth
− Market opportunity is large and growth can continue to
exceed that of underlying vertical
• We have multiple paths to drive growth in each of our verticals
− Existing customers, new solutions
− Adjacencies for new customer sets
− Adding data to create new analytics
“We are limited only by the imagination of our people.”
96
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P&C Addressable Market
P&C
Current Verisk Revenue Opportunity
$7.5 Billion
Note: Revenue reflects TTM through September 2015.
97
• AIR
• Commercial Lines UW
• ISO Solutions
• Personal Lines UW
• Claims
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Energy and Specialized Addressable Market
Energy
Current Verisk Revenue Opportunity
$6.0 Billion
Note: Revenue reflects TTM through September 2015, pro forma for WoodMac and Maplecroft.
98
• WM Commercial
• Petrochemicals
• Metals & Mining
• Renewables
• Insurance and Other Related
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Healthcare Addressable Market
Healthcare
Current Verisk Revenue Opportunity
$5.0 Billion
99
Note: Revenue reflects TTM through September 2015.
• Revenue Solutions
• Payment Solutions
• Population Health Solutions
• Quality Solutions
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Financial Addressable Market
Consumer Financial
• Global opportunity for
benchmarking studies and
current analytical solutions
• Innovative solutions for
existing customer base
• Media Effectiveness
• Other analytics built on
unique data
Current Verisk Revenue Opportunity
$2.0 Billion
100
Note: Revenue reflects TTM through September 2015.
Verisk Analytics, Inc.
All rights reserved.
Verisk Addressable Market
$21 Billion Addressable Market
P&C
Healthcare
Energy &
Specialized
Financial
Current
Verisk
Revenue
101
Note: Revenue reflects TTM through September 2015.
Verisk Analytics, Inc.
All rights reserved.
M&A Has Been Effective
• Driven by strategy
• Valuation discipline crucial
• Cash generation focused: 19% overall IRR
− 15% hurdle rate, adjusted for risk
− Analysis benchmark for measuring IRR is unlevered
− Assume conservative 10x terminal EBITDA multiple
• Exceeded WACC for all deals of size
− Strong history of growth
− Track record of margin expansion post closing
102
Verisk Analytics, Inc.
All rights reserved.
Summary of Acquisitions
1990’s
1%
2000 – 2004
4%
2005 – 2009
13%
2010 – 2014
23%
2015
59%
By Time Period
By VerticalBy Deal Size
> $500mm
59%
$100mm -
$500mm
26%
Deals $25mm -
$100mm
13%
< $25mm
2%
103
Note: Deal size includes both upfront plus earn-out payments.
Total Deals
~$4.8 billion
Insurance
14%
Financial
9%
Mortgage
2%
Healthcare
13%
Specialized
3%
Energy
59%
Verisk Analytics, Inc.
All rights reserved.
> 20%
10% to 20%
5% to 10%
< 5%
> 40%
30% to 40%
20% to 30%
10% to 20% < 10%
Acquisitions Have a History of Strong Growth and Margins
Acquisition Spend by Target
Revenue CAGR (Yr. 1-3)
Acquisition Spend by EBITDA
Margin @ Acquisition
104
Note: Deal size includes both upfront plus earn-out payments. Wood Mackenzie excluded.
Verisk Analytics, Inc.
All rights reserved.
Revenue Growth by Vertical
Strong Acquisition Revenue Growth Across Verticals
18.5%
14.7% 14.8%
17.4%
13.7%
15.8%
Financial Healthcare Insurance Mortgage Specialized
Revenue CAGR (Year 1-3) Corp. Avg. Acquisition Revenue CAGR
105
Note: Excludes Wood Mackenzie. Revenue CAGR is weighted.
Verisk Analytics, Inc.
All rights reserved.
Internal Rates of Return Demonstrate Shareholder Value Creation
Methodology
• Size of bubble reflects purchase price
• IRR based on free cash flow and 10x terminal multiple methodology for all deals except Mortgage
• Some bubbles reflect aggregation of multiple acquisitions (e.g. Mortgage)
8% Estimated WACC
Average IRR
~19%
IRR
106
Mortgage
Sale Price
~$155M
Verisk Analytics, Inc.
All rights reserved.
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 repurchases remain valuable alternative for capital
deployment
− Deployed $1.6 billion over the past five years
• Reasonable flexibility while deleveraging towards 2.5x Debt/EBITDA
target
107
Verisk Analytics, Inc.
All rights reserved.Verisk Analytics, Inc. All rights reserved.
Senior Management
Q & A
108
Scott G. Stephenson
President and Chief Executive Officer
Scott G. Stephenson is president
and chief executive officer of
Verisk Analytics.
Before becoming Verisk’s CEO,
Mr. Stephenson served as president and chief operating
officer, managing the day-to-day operations of Verisk
Analytics and all of the company’s operating units. He joined
Verisk’s ISO subsidiary in 2001 to focus on bringing new
value and functionality to the company’s product offerings.
In 2002, he was promoted to executive vice president.
Mr. Stephenson became chief operating officer in 2008 and
president in 2011.
Before joining ISO, Mr. Stephenson was a senior partner
with The Boston Consulting Group (BCG), a global
management consulting firm, where he served on the firm’s
North American operating committee. He also served as an
advisor to Silver Lake Partners, a technology-oriented
private equity firm.
Mr. Stephenson is a graduate of the University of Virginia,
where he received a bachelor of science degree in mechanical
engineering, and the Harvard Business School, where he
received a master of business administration degree.
Mr. Stephenson has served on numerous civic and charitable
boards.
Stephen J. Halliday
Chief Executive Officer – Wood Mackenzie
Stephen J. Halliday is chief executive
officer of Wood Mackenzie, a global
leader in data analytics and commercial
intelligence for the energy, chemicals,
metals, and mining verticals.
Mr. Halliday is responsible for setting strategy and oversee-
ing worldwide operations.
Since joining Wood Mackenzie in 1989, Mr. Halliday has
filled a number of leadership roles. Before assuming his
current position, he was executive director of Wood
Mackenzie’s Energy business, where he covered the com-
pany’s research and consulting activities for eight years.
Previous roles included senior analyst in the U.K. upstream
team, head of the European Energy team, and head of the
Energy Consulting team. Mr. Halliday was part of the
management team that led the company’s management and
employee buyout in 2001. He was appointed CEO in 2007.
During his 29 years in the energy industry, Mr. Halliday has
also worked for BP in the downstream oil sector and TOTAL
in the downstream gas business.
Mr. Halliday holds a bachelor of science (honours) degree in
chemical engineering from Edinburgh University.
SPEAKER BIOGRAPHIES
Mark V. Anquillare
Group Executive, Risk Assessment
Executive Vice President and
Chief Financial Officer
Mark V. Anquillare is executive vice
president and chief financial officer of
Verisk Analytics. In his role as CFO,
Mr. Anquillare is responsible for Verisk’s financial processes
and systems, financial analysis, and accounting. He also
manages tax reporting, treasury functions, and investor
relations and plays an important role in forming Verisk’s
strategic plans, acquisition strategies, and product develop-
ment initiatives. Mr. Anquillare is responsible for multiple
corporate departments, including marketing, information
technology, and human resources. He also oversees the ISO
Solutions and Underwriting Solutions businesses of Verisk
Insurance Solutions.
Mr. Anquillare joined Verisk’s ISO subsidiary in 1992 as
director–financial systems. He was promoted to assistant
vice president in 1994 and to vice president and controller in
2000. Mr. Anquillare was promoted to senior vice president
and controller in 2005, to senior vice president and chief
financial officer in 2007, and to executive vice president and
chief financial officer in 2011.
Before joining ISO, Mr. Anquillare was employed by the
Prudential Insurance Company of America. While at
Prudential, he was involved in the life and health business
and property and casualty operations.
Mr.Anquillare is a graduate of the University of Notre Dame,
where he received a bachelor of business administration
degree, and the Rutgers Graduate School of Management,
where he received a master of business administration
degree. Mr.Anquillare is a Fellow of the Life Management
Institute (FLMI).
Mark McCafferty
Head of Upstream Oil and Gas Research for
the EMEARC region – Wood Mackenzie
Mark McCafferty is Wood Mackenzie’s
head of Upstream Oil and Gas Research
for the EMEARC (Europe, Middle East,
Africa, Russia, and Caspian) region.
Mr. McCafferty is responsible for the delivery of Wood
Mackenzie’s EMEARC upstream content.
Since joining Wood Mackenzie in 2002, Mr. McCafferty has
managed the Caspian, Russia, Australasia, and South East
Asia upstream teams. He led the relocation of the South
East Asia team from Edinburgh, U.K., to Singapore in 2007.
Mr.McCafferty became research manager,Europe and Sub
Sahara Africa,in 2011 before taking on his current role in 2014.
During his 17 years of experience in the upstream oil and
gas industry, Mr. McCafferty was also a project executive in
the Scottish Enterprise’s Oil and Gas team in Aberdeen, U.K.
Mr. McCafferty holds a bachelor of science (honours) degree
in technology and business from Robert Gordon University
in Aberdeen.
Eva F. Huston
Senior Vice President, Treasurer, and
Chief Knowledge Officer
Eva F. Huston is the senior vice presi-
dent, treasurer, and chief knowledge
officer of Verisk Analytics. She joined
the company in 2009 as head of investor
relations, playing an important role in Verisk’s initial public
offering of equity. She was appointed treasurer in 2011 and
led the company’s initial public debt issuance. She assumed
additional operational responsibilities in 2012 and 2013.
Ms. Huston is responsible for capital structure and financial
planning, corporate marketing and market intelligence,
investor relations, corporate communications, customer
service, and sales operations. She plays a key role in the
evolution of Verisk’s product and solution vision for future
growth. She also oversees relationships with the debt and
equity investment communities, including both buy-side
institutional investors and sell-side research analysts.
Before joining Verisk, Ms. Huston held the title of managing
director in telecom, media, and technology investment
banking at J.P. Morgan, where she was responsible for the
marketing and information services practice. Her client base
included companies providing data and analytics to a variety
of industry verticals, such as consumer and media, financial
services, insurance, and automotive. Ms. Huston raised more
than $25 billion in equity and debt financing for her clients
and advised clients on significant sector acquisitions.
Ms. Huston is a graduate of Georgetown University, where
she earned a bachelor of science degree in foreign service
with a concentration in international politics. She specialized
in Russian area studies.

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1001205097

  • 1. Verisk Analytics, Inc. All rights reserved.             Verisk Analytics Investor Day December 1, 2015
  • 2. Verisk Analytics, Inc. All rights reserved. Verisk Analytics Investor Day December 1, 2015 Verisk Analytics, Inc. All rights reserved. Strategy Scott Stephenson, CEO
  • 3. Verisk Analytics, Inc. All rights reserved. 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 that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “target,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements. Other factors that could materially affect actual results, levels of activity, performance, or achievements can be found in Verisk’s quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K filed with the Securities and Exchange Commission. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this presentation reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise. Notes Regarding the Use of Non-GAAP Financial Measures The company has provided certain non-GAAP financial information as supplemental information regarding its operating results. These measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures reported by other companies. The company believes that its presentation of non-GAAP measures, such as EBITDA, EBITDA margin and adjusted EBITDA, adjusted net income, and adjusted EPS, provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. In addition, the company’s management uses these measures for reviewing the financial results of the company and for budgeting and planning purposes. 3 Forward-Looking Statements, Safe Harbor, and Non-GAAP Financial Measures Verisk Analytics, Inc. All rights reserved. 4 How Do We Achieve Leading End-Market Positions? The Four Distinctives in The Verisk Way Unique Data Assets Deep Domain Expertise First-Mover Advantage Embedded in Customer Workflows
  • 4. Verisk Analytics, Inc. All rights reserved. Stronger and Larger Company 5 The Verisk Formula Steadily Growing Businesses Powered by Innovation, with Expanding Margins and Low Capital Intensity Newly Acquired Businesses at Reasonable Prices with Similar Characteristics Increasing Financial Capacity Verisk Analytics, Inc. All rights reserved. 6 The Verisk Formula (continued) We can continue to drive strong organic growth • Stay close to our distinctives • Moderate levels of transactions and services • Innovate effectively • Globalize effectively • Expand channels Balanced expectations for M&A spend Strong balance sheet • Committed to 2.5x leverage by end 2016 • Maintain investment grade Return capital to shareholders
  • 5. Verisk Analytics, Inc. All rights reserved. 7 Verisk Strength Built on P&C foundation • Unique data sets, enhanced over time, have enabled growth into more decision processes at our customers − Since 1971, our P&C business has served as the industry standard − Leveraging long-standing relationships with innovation and new solutions has enabled strong growth: 7.2% over past 5 years • Template for how we develop new verticals at Verisk − First mover creates competitive advantage − Become the “must-have” solutions for clients to make strategic decisions about their day-to-day business − Build once, sell many times • Financial model for P&C solutions sets the standard − High percentage of subscription revenue − Limited customer concentration − Scalable with low capex requirements Verisk Analytics, Inc. All rights reserved. Verisk is Stronger with WoodMac Develop a common database and GIS platforms, in partnership with the JDE, leading to innovative new offerings Repackage and repurpose Wood Mackenzie content for the insurance sector Focus on cross-selling of current content between Wood Mackenzie and Maplecroft Leverage Wood Mackenzie footprint to help internationalize Verisk Use of aerial imagery to enhance analysis across current and new content Combined Growth Opportunities • Cross-sell • New geographic footprint and offering opportunities Develop integrated supply chain solution across Verisk verticals 8
  • 6. Verisk Analytics, Inc. All rights reserved. Core Competencies 9 Original (ISO) Core A Different World Current and Future Verisk Core Actuarial analysis Regulatory process (insurance) Templated data collection and management Circulars and tabular output Explosion in data volume Large-scale data integration Multi-tier, multi-spectral imaging Visualization and consumability with emphasis on geo-location Stochastic methods leading to prediction Localization of solutions High-speed networks Compute power Ubiquitous GPS Automated interpretation of imagery Too much data, too little insight Globalization New form competitors Verisk Analytics, Inc. All rights reserved. Large-Scale Data IntegrationM ulti-Tier,M ulti- SpectralIm agingC onsum ability and G eo-Location Stochastic M odeling Localization Insurance Banking/Marketing Effectiveness Energy/Metals and Mining Healthcare 10 Competencies by Vertical
  • 7. Verisk Analytics, Inc. All rights reserved. 1. Large-Scale Data Integration 11 • Geo-location represents the largest degree of potential relatedness • We are rethinking how we structure our data assets Observations • Opportunities exist within categories, e.g., insurance claims • Analyzing individuals is mostly about insurance/financial overlaps; analyzing businesses spans all of what we do Domain Data Category Number of Data Stores Primary Unit of Observation Other Units of Observation Insurance Policy Records Claims Records Property and Location Attributes Behavioral/Criminal Records Forms and Regulations 25 27 8 8 4 Policy Claims (estimates and actual fil i ngs ) Property/Geo-location Individual Business (insurer) Individual/Business, Property, Geo-location Individual/Business, Property, Geo-location Business Geo-location, Property Geo-location Financial Deposit Account Attributes Credit Account Attributes Retail Payment/Deposit Transaction Details 2 2 3 Account Account Transaction Individual, Business, Geo-location Individual, Business, Geo-location Individual, Merchant/Business Oil/Gas Oil/Gas Field Attributes Metal, Mineral, Mine Attributes Energy Distribution Attributes 7 7 7 Field Field/Mine Flow Property/Geo-location, Business Property/Geo-location, Business Production Geo, Businesses, Regimes Other Catastrophic/Geopolitical Event Attributes Weather and Climate Materials and Safety Telematics 9 5 3 1 Geo-location Geo-location Material Details Trip (in car) Property, Businesses, Individuals Property, Businesses Property/Geo-location, Business Individual/Business, Property, Geo-location Verisk Analytics, Inc. All rights reserved. 12 2. Multi-Tier, Multi-Spectral Imaging Nature of Data Potential Use Cases Global 25-50 cm resolution 1-month revisit Ortho, multi-spectral 1. Addition of a swimming pool 2. Measure corn health and recommend fertilizer Metropolitan 5-7 cm resolution Annual revisit Stereo oblique, visible 1. Automatically identify roofs needing repair 2. Automate the design of PV solar installations Neighborhood <1 cm resolution On-demand revisit Oblique, hyper-spectral 1. Monitor large commercial site construction 2. Monitor encroachment into utility easements Building <1 cm (gps limit) On-demand revisit Exterior & interior; multi-spectral, thermal, laser 1. Crowdsource insurance inspections 2. Quantify and map building interiors for remodelers Satellite Aerial Drone Interior Sensing
  • 8. Verisk Analytics, Inc. All rights reserved. 13 3. Consumability and Geo-Location Verisk Analytics, Inc. All rights reserved. Catastrophe Models Need to Simulate Thousands of Potential Hurricanes to Provide a View of Risk 14 4. Stochastic Modeling
  • 9. Verisk Analytics, Inc. All rights reserved. 15 5. Localization Major steps to make Xactimate useful in Australia: Australia Pricing Research Data • 14 databases (~4,000 person-hours) Local Currency and Language Support • Tweak translations and terminology Australia Custom Product Features (minimum viable product) • Tendering estimates out to supply chain • Simplification • Appointment management • Claim-centric approach Process Requirements – Behave More Like an Agile Startup • Increased responsiveness to customer requests • Faster implementation and onboarding • Better customer tracking and billing management Verisk Analytics, Inc. All rights reserved. 16 Infrastructure Enables Competencies Competencies Strategies 1. Large-scale data integration 2. Multi-tier, multi-spectral imaging 3. Comsumability and geo-location 4. Stochastic modeling 5. Geographic localization A. Technology and infrastructure B. Analytic environment and resourcing C. Regionalization
  • 10. Verisk Analytics, Inc. All rights reserved. 17 Corporate Systems Client-Facing Delivery Systems Back-End Data Management and Processing • Systems providing general corporatewide functionality, e.g., HR workflow, GL, e-mail • Will need to evaluate each individually, but generally the SaaS cloud model makes most sense • Factors to consider − Operational efficiencies − Economics − BU integration − Internal cultural bias • Systems providing direct client access with responses and results back to clients • Will need to work with BUs to determine efficacy, but generally the PaaS or IaaS model will make the most sense • Factors to consider − Evaluate dev/test/prod individually − Reliability − Scalability − Economics − Internal cultural and client bias • Systems providing data management, including ingestion, ETL, prep, and staging • Will need to work with BUs to determine efficacy, but generally the PaaS or IaaS model will make the most sense • Factors to consider − Evaluate dev/test/prod individually − Reliability − Scalability − Economics − Internal cultural and client bias A. Technology and Infrastructure Example: Cloud Strategy Verisk Analytics, Inc. All rights reserved. 18 Multivariate regression trees and algorithms to estimate event likelihood and cohort belonging. Serve as industrial workhorses! B. Analytic Environment Verisk Use Cases: • Claims likelihood • Consumer response propensity • Behavioral segmentation • Gas price estimation Simulated Monte Carlo experiments for highly coupled nonlinear systems, particularly with wide variability and high underlying betas. Verisk Use Cases: • Weather events (e.g., hurricane landfall) • Failure rates (manufacturing) • Bank portfolio stress test Classical Regression & Segmentation Monte Carlo Stochastic Modeling
  • 11. Verisk Analytics, Inc. All rights reserved. 19 B. Analytic Environment, continued Verisk Use Cases: • Dynamic fraud identification • Image and facial recognition • Voice and speech recognition • Sentiment analysis • Context analytics • Multi-spectral imaging Model high-level abstractions using multiple processing layers and complex structures (e.g., Bayesian networks, deep machine learning, NLP). Use of network and graph theory — characterizing networked structures in terms of nodes and the ties or edges that connect them. Verisk Use Cases: • Predict influence of individuals and communities on their networks (customer interactions and analysis — ads, product choices, etc.) • Organized/multiparty financial crime (money laundering, intelligence) and fraud (check-kiting, insurance claims) Social Network Analysis (SNA)Machine Learning Methods Verisk Analytics, Inc. All rights reserved. 20 C. Regionalization Example: Possible Verisk Asia Pac Organization KPIs from Verisk for Asia Pac Verisk Asia Pac Chair Shared Services Business Unit Team Members (Asia Pac) M&A e.g., Talent e.g., Facilities Verisk Center Verisk BU
  • 12. Verisk Analytics, Inc. All rights reserved. “Big Five” Operational Priorities 21 Focused Attention on Cross-BU Opportunities Strong Team/Talent Robust Technical Environment Deeper Customer Intimacy Global Platform Verisk Analytics, Inc. All rights reserved. Technical Talent and Advanced Degrees Growing 22 DBA/Developer/Programmer — 79% increase MBA — 45% increase CAS Fellow — 71% increase Master of Science — 55% increase PhD — 15% increase
  • 13. Verisk Analytics, Inc. All rights reserved. 23 Total Employees: 7,500 Q3 2015 YTD Revenue: $1.6B Global Platform Salt Lake City Chicago Houston Lima Buenos Aires Rio de Janeiro Ohio Columbia Annapolis Jersey City New York Boston Quebec Ontario Edinburgh Bath Fleet Tel Aviv Abuja Guildford London Copenhagen Munich Vienna Moscow Astana Nepal Dubai Hyderabad Johannesburg Perth Sydney Brisbane Jakarta Tokyo Beijing Seoul Singapore Kuala Lumpur Hong Kong San Francisco Calgary Minneapolis Carlsbad Note: includes Wood Mackenzie revenue from January through September. Verisk Analytics, Inc. All rights reserved. 24 Conclusion The best benchmark for Verisk is Verisk. Average 1 organic revenue growth over the past ten years has been about 8% • 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 EBITDA margins 450bps to the high 40s, an industry leading level • We will continue to invest in our business • There is natural scale in what we do even at the current strong margin levels, as our incremental margins show 1 Unweighted
  • 14. Verisk Analytics, Inc. All rights reserved.Verisk Analytics, Inc. All rights reserved. Questions 25 Verisk Analytics, Inc. All rights reserved. Wood Mackenzie An Introduction by Stephen Halliday, CEO
  • 15. Verisk Analytics, Inc. All rights reserved. We enrich lives by empowering people with unique insight on the world’s natural resources Wood Mackenzie Mission Statement 27 Verisk Analytics, Inc. All rights reserved. We have evolved over 40 years to become the leading provider of commercial intelligence in the natural resources sector 28 “Follow the molecule”
  • 16. Verisk Analytics, Inc. All rights reserved. 29 Wood Mackenzie is a Verisk business with matching values Verisk Distinctives Subscription Revenue Model and High Customer Retention Company-Specific Attributes Track Record of Growth and Innovation First-Mover Advantage Unique Data Assets and Decision-Making Models Embedded in Customer Workflows Deep Domain Expertise Global Business Data & Analytics Data-Rich Vertical Verisk Analytics, Inc. All rights reserved. Key Messages for Today More than 40 years of history with a reputation for quality and strong customer relationships built on trust 30 Industries that are perfectly suited for data and analytics Diversified across energy, chemicals, and metals & mining Undermarketed and undersold Multiple avenues for growth Verisk and Wood Mackenzie are stronger together
  • 17. Verisk Analytics, Inc. All rights reserved. Wood Mackenzie Oil & Gas Industry— Engine of the World Economy Verisk Analytics, Inc. All rights reserved. Oil & Gas Industry—Engine of the World Economy What drives the demand for oil and gas? Where are the oil and gas reserves? Who are the key stakeholders? How does the industry work? What are the key themes of today’s environment? What sets the oil price? 32
  • 18. Verisk Analytics, Inc. All rights reserved. Underpins the way we live today Energy to heat homes Energy to power industry Fuel to transport goods and people Raw materials for everyday items One of our most fascinating, hi-tech, and vital industries • Cosmetics • Food • Medicine • Plastic • Gasoline • Clothing 33 Verisk Analytics, Inc. All rights reserved. 0% 1% 2% 3% 4% 5% 6% 0 1,000 2,000 3,000 4,000 5,000 6,000 Coal Oil Gas Nuclear Hydro Renew. OSF* CAGR2015–2035 WorldTPED(Mtoe) Global hydrocarbon fuels underpin global energy demand World primary energy demand by fuel, 2015–2035 Source: Wood Mackenzie. *OSF = Other Solid Fuels Renewables: Rapid growth from low base 33% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Total WorldTPED(Mtoe) CAGR2015–2035 2015 2020 2025 2030 2035 CAGR 2015-2035 Coal overtakes oil in 2025 34 Gas fastest- growing hydrocarbon
  • 19. Verisk Analytics, Inc. All rights reserved. Where are the oil and gas reserves? Natural Gas Oil 35Source: Wood Mackenzie Verisk Analytics, Inc. All rights reserved. OPEC and New Discoveries Russia US Saudi Arabia Iran Iraq Canada Qatar Venezuela United Arab Emirates China Rest of the World Total remaining oil & gas reserves (1,535 bnboe*) OPEC controls ~42% OPEC members include Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. 36Source: Wood Mackenzie 0 10 20 30 40 50 60 2005 2007 2009 2011 2013 DiscoveredVolume(bnboe*) South Iolotan DW Brazil East African gas Discovered volumes over the last decade *DW = Deepwater *bnboe = Billion barrels of oil equivalent DW* Brazil South Yoloten
  • 20. Verisk Analytics, Inc. All rights reserved. National oil companies control reserves, only the biggest international oil companies can compete 0 50 100 150 200 250 300 NIOC PDVSA SaudiAramco QatarPet Gazprom Rosneft IraqGovt ExxonMobil CNPC ADNOC Shell Turkmengaz Chevron Africa Asia Europe Latin America Middle East North America Oceania Russia & Caspian Integrated Supply chain Financial institutions Professional services NOCs Small caps Mid caps Large caps Bnboe* N N N N N N N N N N Global reserves held by company, split by region N = national oil company (NOC) 37Source: Wood Mackenzie *Bnboe = Billion barrels of oil equivalent Verisk Analytics, Inc. All rights reserved. 0 10 20 30 40 50 60 70 80 90 100 110 120 0 40 80 120 160 200 240 280 2014 $/bbl Brent 2012 2013 Government Take US$bn 2011201020092008200720062005 Oil Price (Brent, Nominal) Many economies around the world are dependent on oil and gas revenues (and price) Saudi Arabia Russia Norway 38Source: Wood Mackenzie
  • 21. Verisk Analytics, Inc. All rights reserved. What sets the price of oil? Select events affecting global oil prices (Average monthly – Brent $/bbl) Supply & Demand Cost Geo- politics OPEC Demand Supply Speculation/ Trading Oil Price Factors influencing oil price benchmarks Source: Argus Media, Wood Mackenzie 39Source: Wood Mackenzie 0 20 40 60 80 100 120 140 Jan 16Jan 12Jan 08Jan 04Jan 00 Invasion of Iraq Global Financial Crisis Asia Growth Arab Spring OPEC–Market Share Verisk Analytics, Inc. All rights reserved. How does the industry work? The oil and gas value chain Exploration Production Upstream Refining Marketing Downstream Midstream “Global market for petroleum products” Development $472bn(1) $154bn(1) $52bn(1) (1) Average annual investment 2000–2013 based on IEA Energy Investment Outlook, Year 2012 US$ 40
  • 22. Verisk Analytics, Inc. All rights reserved. 0 10 20 30 40 50 60 70 80 90 100 GovernmentTake% Africa Asia Pacific Europe Latin America Middle East North America Russia & Caspian Gaining access to O&G blocks/licenses • Various routes to being awarded a block/license – Licensing rounds – Direct negotiations with governments – Invitations to tender • Generally for exploration acreage, sometimes for developments The larger and higher-quality resources have the highest government take Around 50,000 active blocks around the world 41Source: Wood Mackenzie Verisk Analytics, Inc. All rights reserved. Exploration and Appraisal (E&A) Only around 1 in 5 wells make a commercial discovery 42 Oil WaterRock grains Oil TrapReservoir
  • 23. Verisk Analytics, Inc. All rights reserved. Development Discovery to project sanction takes an average of 8+ years Concept generation Concept screening & selection Project sanction Concept definition 43Source: Wood Mackenzie Verisk Analytics, Inc. All rights reserved. Some amazing innovation to develop increasingly difficult reserves... R E S E R V O I R S Empire State Building 381m 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.56.0 6.5 7.07.5 8.0 8.5 9.0 9.5 10. 0 Maximum lateral reach at this depth Source: Wood Mackenzie, Shell, The Economist 44
  • 24. Verisk Analytics, Inc. All rights reserved. …which has led to a high cost base for the industry 10 11 12 13 14 15 16 17 18 19 20 2008 2010 2012 2014 Capexperboeofproduction(realterms) Development costs per barrel by company type (US$ real) 0 5 10 15 20 25 30 2004 2006 2008 2010 2012 2014 Upstream industry development costs per barrel (US$ real) NOC IOC 0 10 20 30 40 50 60 70 80 90 100 0 100 300 600 900 Posttaxbreakevens(US$/bbl) Pre-FID investments (US$ billion) Deepwater LNG Conventional Cost curve pre-FID capex: (2015–2030) 45Source: Wood Mackenzie Verisk Analytics, Inc. All rights reserved. Production 0 50 100 150 200 250 300 350 400 450 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Brent field oil production (000 b/d) 0 500 1000 1500 2000 2500 3000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 Zohr field gas production (mmcfd) Typical production profiles 46Source: Wood Mackenzie
  • 25. Production from ‘unconventionals’ is driving supply growth 90 50 110 120 60 80 70 130 100 40 0 30 20 10 +2% Millionboed 2004 2014 20142004 Coalbed methane Heavy oil Deepwater Conventional shelfTight gas Tight oil Conventional onshore Shale gas LNG GTL Shale oil Acid/sour gas Oil sands 19% 8% Production Type Total production 2004 vs 2014 % breakdown by theme 2004 vs ‘14 OPEC oil market share 47Source: Wood Mackenzie OPEC Non- OPEC N. America 2008 2014 Verisk Analytics, Inc. All rights reserved. Recent oil price decline results in upstream investment cuts, which lowers the oil supply outlook Wood Mackenzie capex profile, global upstream spend 0 100 200 300 400 500 600 700 2012 2014 2016 2018 2020 Capex(US$bn) Pre oil price decline forecast Onstream NA Onshore Under Development Probable 5 6 7 8 01/13 09/13 05/14 01/15 09/15 05/16 01/17 09/17 Millionb/d Onshore Lower 48 Forecast end-July 15 0 2 4 6 8 10 12 2015 2020 2025 Pre-FIDProduction (mbd) 2014 forecast current forecast 3 million b/d Forecast change in supply following investment cuts Onshore Lower 48 Pre-FID Project (non L-48) 48Source: Wood Mackenzie Forecast end-July 15 Current Forecast
  • 26. Verisk Analytics, Inc. All rights reserved. 0 2 4 6 8 10 12 Millionb/d 75 80 85 90 95 100 Millionb/d Ongoing demand growth and production decline — higher cost new developments needed 2014 Demand Supply Gap Demand Growth Existing Non- OPEC Supply Onstream - Decline Under Develop. Other Sources Pre-FID Projects and New US Tight Oil Drilling Non-OPEC Reserve Growth + YTF Call on OPEC <$50 <$70 <$90 2014 – 20 Supply Gap Supply gap >10m b/d develops (2014 – 2020)… …requiring a greater call on OPEC, tight oil drilling, and conventional oil projects Source: Wood Mackenzie. YTF = Yet-to-Find 49 Verisk Analytics, Inc. All rights reserved. Transportation Massive-scale oil and LNG tankers and pipelines facilitate the global market 50
  • 27. Verisk Analytics, Inc. All rights reserved. Refining & Marketing 51 Conversion into finished products for distribution and consumption Verisk Analytics, Inc. All rights reserved. Summary A vital, innovative, and dynamic industry—across the value chain Demand for oil and gas will keep growing Oil and gas found everywhere, but OPEC controls oil reserves Capital-intensive industry—new developments are more challenging and more expensive Production dynamics changing with emergence of “unconventionals” Current oil price cycle removes supply from the market—new, higher- cost developments will be needed to meet growing demand 52
  • 28. Verisk Analytics, Inc. All rights reserved. Wood Mackenzie Overview and Opportunity Verisk Analytics, Inc. All rights reserved. Wood Mackenzie: An Overview 54 Provide leading commercial intelligence to the global energy, chemicals, and metals & mining industries Industries are complex and capital-intensive Large and diverse addressable market Multiple channels for growth Undersold and undermarketed Verisk and Wood Mackenzie stronger together Strong financial record Subscription-based business with industry-leading renewal rates Diversified solution set and customer base Differentiated value proposition built on proprietary information, analysis, insight, and advice over 40 years Embedded in customer workflows High-performing workforce What do we do? How do we win? How have we grown? What will drive future growth?
  • 29. Verisk Analytics, Inc. All rights reserved. 5555 We are the reference source for commercial intelligence across the natural resource value chain Consistent and integrated view across commodities and the value chain Global coverage based on regional dynamics Bottom-up approach combined with corporate/macro perspective Commodities Oil/oil products Gas/LNG Coal Metals Petro- chemicals Find Extract Refine Transport End market Macro Corporate Geographic Asset Historic/ forecast The reference source Verisk Analytics, Inc. All rights reserved. 56 Energy is an inherently global business: We are located close to clients and industry contacts Wood Mackenzie’s global footprint: 28 global offices in Americas, EMEARC & APAC Total Headcount: ~1,100(1) Headcount (1) As of Oct 2015. Excludes contractor staff Americas: 27% EMEARC: 54% APAC: 19%
  • 30. Verisk Analytics, Inc. All rights reserved. 57 Our clients are active in highly complex and capital-intensive industries and need our help Complex Dynamic Partner- ships Capital intense INSTITUTIONAL INVESTORS COAL INVESTMENT BANKS E&P INTEGRATED METALSUTILITIES SERVICE COMPANIES NOC, GOVERNMENTS, NGO OUR CLIENTS Verisk Analytics, Inc. All rights reserved. These features... ...enable these functions... ...to do this: Global, integrated value chain coverage Industry knowledge and insight Accessible to clients Independence and integrity Bottom-up proprietary data Reliable analysis and forecasts Accuracy of data Strategy and policy makers Corporate planning groups Business development New ventures Market fundamental groups Risk management teams Investors and advisors Procurement teams Understand their markets Value assets Reduce risk Identify opportunities Assess competitors Strengthen strategy Enhance in-house views Negotiate effectively with third parties Save time Wood Mackenzie’s value proposition is compelling for multiple users with multiple needs 58
  • 31. Verisk Analytics, Inc. All rights reserved. Integrated research, sales & marketing, and consulting model designed to best serve client needs 59 New business ideas ConsultingResearch Access & feedback Demonstration of value Long-term relationships Insight & information Database & expertise Expert network Bespoke solutions Strategic dialogue Client Integrated Model Consulting Research Sales & Marketing Verisk Analytics, Inc. All rights reserved. Wood Mackenzie portal is the window to 60+ tools and models, 14,000 reports, and vital analysis • December 2013 portal launch – Enhances user experience – Facilitates access to breadth of Wood Mackenzie offerings • Portal evolving as Wood Mackenzie client base grows • Engagement up 58% in 2014 and 25% YTD in 2015 Portal Upstream Data Tool 60
  • 32. Verisk Analytics, Inc. All rights reserved. We have developed unrivaled breadth and depth in our assets coverage 61 Upstream Data • 30,000 oil & gas fields (assets) • 52,000 blocks • 55+ million data points Valuation • 5,500+ commercial upstream valuations • 1,300+ technical upstream valuations • 1,200+ mines (coal) • 300+ assets (iron ore) • 200+ plants (steel) Plus… • 500+ exploration basins • 200 unconventional plays (uncon play service) • 300+ LNG regasification terminals • 105 LNG liquefaction projects • 200+ plays/sub plays (N. American company/play tool) Verisk Analytics, Inc. All rights reserved. We provide unique and integrated analysis and insight through trusted relationships established over 40 years… 62 Intelligence gathering Content development Insight and services Integrated perspective Nonpublic data, multiple sources, asset-level information Proprietary information, independent view, continuous updates Asset owners/ Governments/ Regulators Wood Mackenzie experts Modeling and analysis
  • 33. Verisk Analytics, Inc. All rights reserved. …and are deeply embedded in clients’ workflows User workflow example: Opportunity screening (oil & gas business developer) Review and filter all regional assets Upstream Data Tool Understand upside potential Exploration Service Market supply and demand dynamics Regional Gas & Power Service Valuation, capex, and cashflows Global Economic Model (GEM) Understand risks Call the Analyst / GEM Deep dive on specific asset issues Upstream Asset Analysis Wood Mackenzie content/tool 63 Verisk Analytics, Inc. All rights reserved. Competitors operate across all of Wood Mackenzie’s commercial information market; we aim to be the leader in each vertical 64 Energy Metals & Mining Chemicals Front-runners/ leaders Established global Established regional New entrants
  • 34. Verisk Analytics, Inc. All rights reserved. Having a business with the right talent and culture is key to driving long-term sustainable growth 65 Wood Mackenzie has received public recognition for its investment in staff and the quality of its work environment High-Performing, Diverse, and Engaged Team Talent Organization & resourcing Rewards & recognition Culture Supported by effective process and systems Verisk Analytics, Inc. All rights reserved. 66 (1) Represents figures for FY 2014 for subscriptions only NOC = national oil company; NGO = nongovernment organization; E&P = exploration & production; Other includes utilities, manufacturing, conglomerates, and professional services Wood Mackenzie has a diverse customer base with low customer concentration Revenue diversified across end users(1) Low customer concentration 21% Top 10 client subscription value (2015 YTD) <4% Maximum individual customer value 30% 26% 25% 25% 24% 23% 21% 2009 2010 2011 2012 2013 2014 2015 Top 10 client subscription value YTD Metals & Mining 16% Other NOCs, Government & NGO Financials E&P and Integrated 23% 4% 16% 41%
  • 35. Verisk Analytics, Inc. All rights reserved. Growth in number of Clients 900 Total Customers 7% Customer Growth CAGR since 2009 Consistently High Renewal Rates(1) We have consistently grown our client base and have industry leading renewal rates (1) Renewal rates for subscriptions, calculated on total value. 900 822 772 735722 642 590 2015 (YTD) 201420132012201120102009 2015 (YTD) 98%98% 2010 2014 98% 67 Verisk Analytics, Inc. All rights reserved. Our clients have been increasingly engaging our solutions and insights 0 20,000 40,000 60,000 80,000 100,000 120,000 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 Jan 16Jan 15Jan 14Jan 13Jan 12Jan 11Jan 10Jan 09Jan 08Jan 07Jan 06Jan 05 Brent crude $/bblNo. of visits 21% CAGR (Jan 2005 – Sept 2015) 80% CAGR (Jan 2014 – Sept 2015) Number of visits to the Wood Mackenzie portal vs Brent crude price 68 Based on individuals logging in to the Wood Mackenzie portal. Excludes Pathfinder and GEM solutions as they are offline. Brent No. of visits
  • 36. Verisk Analytics, Inc. All rights reserved. Source: Management Data, Management Presentations, BvD, Annual reports, Broker reports, OC&C Survey, OC&C analysis Original data in GBP. Conversion rate of 1 GPB = 1.53 USD used. Energy and commodities information has a large addressable market (circa US$ 6bn) RTData Technical Sector Vertical ProductCategory Consulting2 Commercial Energy&CommoditiesInformation Real-Time Data Market Size: c.$0.8 – 1bn Market Size: c.$4bn Market Size: c.$0.9bn Market Size: c.$0.1bn Oil Gas Coal Utilities Industrial Markets PetChems Renewables Market Size: c.$0.2bn Technical Commercial Wood Mackenzie Heartland Nascent Category Potential Future Category Existing Wood Mackenzie markets, emerging verticals, and adjacent categories 69 Verisk Analytics, Inc. All rights reserved. Recent dramatic drop in commodity prices has put pressure on our client base; short-term pressure on spend anticipated 70 E&P and Integrated Financials Metals & Mining NOCs, Govs & NGOs Americas AsiaPac EMEARC Client Category Region • Cost cutting to improve cash flow • Companies waiting for market to stabilize • Rationalization • Buying opportunities being pushed • Still facing malaise that started in 2012 • Domestic commitments result in cost-cutting lag • Focus on efficiencies and attracting new investment • Cuts in activity, especially in high-cost North American plays • NOC concentration has lessened the negative impact for the time being • Not reached the depths seen in Americas • May have bottomed out for another year H MImpact of Commodity Price Drop:
  • 37. Verisk Analytics, Inc. All rights reserved. However, we have also seen the moat widening 71 Trusted relationships established over 40 years and embedded way of working are key to maintaining the moat Year-to-Date Changes Through Q3 2015 +25% Portal Usage +34% Portal Super Users +24% Client-Facing Calls/Meetings +98% Use of Macro Oils Service and Global Gas Tool Verisk Analytics, Inc. All rights reserved. Wood Mackenzie has multiple avenues for growth in the short and long term New Clients M&A Process Improvement New Distribution Channels Product Enhancement and New Development Wood Mackenzie is currently undersold and undermarketed Verisk Business n+1 and Cross- Sell Investment through the cycle to capture the upside in a recovery Principles for Growth Expansion opportunities in emerging verticals and adjacent areas Existing Product Up- and Cross-Sell + Consulting Growth Avenues 72
  • 38. Verisk Analytics, Inc. All rights reserved. Product development and enhancement strengthen our market position and give access to adjacent categories 4 billion data points from 75+ sources for 2.3m wells Integrated analysis of costs, permits, completions & production Visualization tool with interactive maps, charts, type curve generator “Making the tool that Wood Mackenzie analysts use available to our clients” Launched October 2015 Example: North American Well Analysis Tool (NAWAT) 73 Verisk Analytics, Inc. All rights reserved. Significant growth opportunity through New Channels Benefits of New Channels Increasing Brand Awareness Accessing new clients and markets Further embedding into client workflows Increase penetration with existing clients To support growth we are ‘Amplifying the Brand’ 900 +4x Potential ClientsWoodMac WoodMac Current vs. Potential Clients 74
  • 39. Verisk Analytics, Inc. All rights reserved. Verisk and Wood Mackenzie are stronger together, with both cross-sell and n+1 opportunities GIS Platform Developing a common database and GIS platform, in partnership with the JDE, for innovative new offerings Insurance Repackaging and repurpose of Wood Mackenzie content for the insurance sector Maplecroft Cross-sell of current content between Wood Mackenzie and Maplecroft Internationalization Leverage Wood Mackenzie footprint to help internationalize Verisk Aerial Imagery Use of aerial imagery to enhance analysis across current and new content Supply Chain Integrated supply chain solution across Verisk verticals Opportunities for developing new proprietary data and strengthening growth 75 Verisk Analytics, Inc. All rights reserved. Summary Verisk and Wood Mackenzie have matching values and distinctives and are stronger together 76 Wood Mackenzie has strong customer relationships with high customer retention Unique data assets and models serving energy, chemicals, and metals & mining Current industry headwinds are increasing the need for our analysis and enabling us to become more deeply rooted in client workflows Track record of innovation and multiple avenues for future growth
  • 40. Verisk Analytics, Inc. All rights reserved.Verisk Analytics, Inc. All rights reserved. Questions 77 Verisk Analytics, Inc. All rights reserved. Financial Performance Mark Anquillare, CFO
  • 41. Verisk Analytics, Inc. All rights reserved. Historical Performance Summary 79 Key Takeaways • Summary − Strong growth across the board − Organic revenue growth accelerated while EBITDA margins expanded, on average, over the time period − Cash flow growth offset by necessary capital expenditures − Adjusted EPS growth highlights our ability to continuously deliver shareholder value • Implications for Future − Investments in our business have positioned us nicely for continued, strong growth Metric 2005-2009 2010-2014 Total Revenue 10.8% 15.2% CAGR Organic Revenue Growth 7.8% 8.4% AVG EBITDA 12.2% 15.0% CAGR EBITDA Margin 43.4% 46.6% AVG Operating Profit (EBIT) 11.4% 13.5% CAGR CapEx as % of Revenue 3.6% 6.2% AVG Cash Flow (EBITDA less CapEx) 12.0% 11.6% CAGR Adjusted EPS 15.1% 17.9% CAGR Productivity Revenue/Employee $249 k $276 k AVG EBITDA/Employee $108 k $129 k AVG Note: Excludes mortgage. Verisk Analytics, Inc. All rights reserved. Organic Revenue Growth 80 11.0% 8.7% 5.7% 7.7% 5.7% 7.6% 9.1% 8.2% 7.8% 9.4% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 7.8% Average Key Drivers: • Organic growth is a measure of our vitality • Robust innovation agenda has spurred stronger organic growth • Growth has become more consistent Note: Excludes mortgage. Organic growth includes businesses owned for a full year or more at measurement. 8.4% Average
  • 42. Verisk Analytics, Inc. All rights reserved. EBITDA 81 250 289 343 367 396 459 555 671 745 803 41.5% 42.6% 45.0% 44.2% 43.6% 46.3% 46.6% 47.6% 46.7% 46.0% 35 .0% 40 .0% 45 .0% 50 .0% 55 .0% 60 .0% 65 .0% 70 .0% 75 .0% 80 .0% 0 10 0,00 0,0 00 20 0,00 0,0 00 30 0,00 0,0 00 40 0,00 0,0 00 50 0,00 0,0 00 60 0,00 0,0 00 70 0,00 0,0 00 80 0,00 0,0 00 90 0,00 0,0 00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (in $ millions) 12.2% CAGR margin Note: Excludes mortgage. Key Drivers: • 2010-2014 EBITDA growth has accelerated compared to 2005-2009 • Average 2010-2014 EBITDA margin was 46.6%, up from 43.4% in 2005-2009 • Evidence of strong operating leverage − 2014 EBITDA margin was 47.6% after adjusting for prospective revenue (Healthcare), one-time FTC, and talent realignment costs 15.0% CAGR Verisk Analytics, Inc. All rights reserved. Capital Expenditures 82 22 21 32 27 38 36 56 73 145 147 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (in $ millions) 3.6% Average, as % of revenue Hardware/Software 3.7% 3.0% 4.2% 3.2% 4.1% 3.6% 4.7% 5.2% 9.1% 8.4%CapEx as a % of Revenue non-IT (i.e. furniture) Internally Dev. Software 6.2% Average, as % of revenue Note: Excludes mortgage. Key Drivers: • New product innovation and data assets have led to greater capital intensity • Increased delivery of solutions through software resulting in deeper integration into customer workflows
  • 43. Verisk Analytics, Inc. All rights reserved. Adjusted EPS 83 15.1% CAGR 17.9% CAGR $0.58 $0.70 $0.85 $0.91 $1.02 $1.24 $1.63 $2.03 $2.22 $2.40 41.4% 20.9% 20.7% 6.9% 12.4% 21.9% 31.2% 24.2% 9.4% 8.3% 1.0 % 51 .0% 10 1.0% 15 1.0% 20 1.0% 25 1.0% 30 1.0% 35 1.0% 40 1.0% 45 1.0% 0.0 0 0.5 0 1.0 0 1.5 0 2.0 0 2.5 0 3.0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (in $/share) growth Note: Excludes mortgage. Key Drivers: • Adjusted EPS CAGR accelerated in public company period driven by execution • Effective capital deployment via acquisitions and share repurchases contributed to the performance Verisk Analytics, Inc. All rights reserved. Productivity 84 228 243 253 266 256 266 270 279 277 287 95 103 114 117 112 123 126 133 129 132 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (in $ thousands) EBITDA/EmployeeRevenue/Employee 2,640 2,795 3,011 3,124 3,553 3,737 4,407 5,047 5,758 6,094FTEs Note: Excludes mortgage. Key Drivers: • Few incremental resources are required to implement and service additional customers • Fostering a culture of continuous improvement
  • 44. Verisk Analytics, Inc. All rights reserved. Risk Assessment 31% DA Insurance 29% Financial Services 5% Energy & Specialized 20% Healthcare 15% 3Q 2015 Revenue Distribution Decision Analytics 69% Diverse, High Recurring Revenue Sources Transaction Revenue 25% Subscription Revenue 75% 3Q 2015 YTD Subscription Base 85 Verisk Analytics, Inc. All rights reserved. • Growth driven by a combination − New Customers − Deeper Penetration into Existing Customers − New Solutions • Majority of Revenue is Prepaid Quarterly or Annually • Very high customer retention 1.8% 0.5% 2.9% 0.3% 1.6% 0.3% 10.3% 17.6% Industry Standard Property Specific DA Insurance Healthcare Financial Energy & Specialized Acquired Total Revenue 3Q 2015 YTD Contribution to Revenue Growth 6.1% 5.2% 8.5% 1.5% 30.2% 213.7% in Energy & Specialized 17.6% Industry Standard Property Specific DA Insurance Healthcare Financial Energy & Specialized Acquired Total Revenue 3Q 2015 YTD Revenue Growth 86 Insurance a Strong Foundation; New Verticals Making Important Contributions Note: (1) After adjusting for prospective revenue, Healthcare contributed 1.5% to total revenue growth of 19.2%, and grew 9.9% 3Q 2015 YTD. (1) (1) (1)
  • 45. Verisk Analytics, Inc. All rights reserved. 168 195 223 242 224 236 257 260 247 262 287 300 288 326 379 100 150 200 250 300 350 400 450 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Decision Analytics Revenue (in $ millions) 145 144 144 146 153 154 155 156 162 162 161 165 171 172 172 130 140 150 160 170 180 190 200 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Risk Assessment Revenue (in $ millions) Consistent Quarterly Top-Line Progression 87 Verisk Analytics, Inc. All rights reserved. • Stable, visible growth profile • 5.2% growth in 2014, 5.9% growth in 2015 Risk Assessment: Our Heritage 462 486 514 2013 2014 2015 3Q YTD Revenue (in $ millions) 55.8% 57.1% 59.2% 2013 2014 2015 3Q YTD EBITDA Margin % • Scale economies • Revenue growth coupled with good cost management • Aligning talent for future growth • 100 of top 100 P&C companies are customers • Industry-standard, mission-critical, embedded insurance solutions − Loss cost estimates – insurers’ “cost of goods” − Regulatory compliance − Enable speed to market − Leading commercial property analytics for insurers • Founded on unique data contributed by insurers 88
  • 46. Verisk Analytics, Inc. All rights reserved. • Strong top-line growth • 11.0% growth in 2014, 24.7% growth in 2015 helped by acquisitions Decision Analytics: Enhancing Our Future 717 796 993 2013 2014 2015 3Q YTD Revenue (in $ millions) 41.5% 39.1% 41.5% 2013 2014 2015 3Q YTD EBITDA Margin % • Critical investments to drive future growth • Operational efficiencies contributing to margin • New, large verticals with data analytic needs • Cross-vertical themes (antifraud, predictive modeling, benchmarking, optimization) • Leveraging existing assets − Repurposing of data (n + 1) − Technology infrastructure − Replatforming Note: 2015 margin excludes one-time items related to Wood Mackenzie acquisition and gain on sale of EVT warrants. 89 Verisk Analytics, Inc. All rights reserved. Opportunities • International expansion • Solution line extensions • Data exchanges • Create new platforms to deliver our solutions • Partnerships and third party integration • Predictive analytics • Repurposing solutions into adjacent and new markets Differentiators • Unique and proprietary industry data assets • Brand recognition and reputation • Deeply embedded in customer workflows • Strong technical and industry (domain) expertise • Broad solution set • Ability to execute • Advanced analytical and modeling skills P&C: Differentiators and Opportunities 261 266 270 275 279 288 296 294 304 315 311 320 325 337 334 250 270 290 310 330 350 370 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Combined Insurance Revenue (in $ millions) 90
  • 47. Verisk Analytics, Inc. All rights reserved. Strong, Stable Revenue Growth (in $ millions) Leading EBITDA Margin (%) Low Capital Intensity (as reported, CapEx as a % of Revenue) 1,179 1,282 1,507 2013 2014 2015 Verisk’s Differentiated Financial Model 3Q Year-to-Date (YTD) 47.1% 45.9% 47.6% 2013 2014 2015 8.5% 8.0% 7.0% 2013 2014 2015 279 276 414 2013 2014 2015 Strong Free Cash Flow (as reported, in $ millions) Note: Free Cash Flow defined as Cash from Operations less CapEx. Note: 2015 margin excludes one-time items related to Wood Mackenzie acq. and gain on sale of EVT warrants. 91 Verisk Analytics, Inc. All rights reserved. Verisk: Disciplined Capital Allocation (in $ millions) $3.8 B 70% $1.6 B 30% Cumulative Acquisitions and earn-outs Share Repurchase 2011 2012 2013 2014 2015 Share Repurchase $382 $163 $279 $778 $0 Acquisitions and earn-outs $143 $808 $1 $35 $2,800 Acquisitions and earn-outs Share Repurchase Note: Cumulative from 2011 through June 2015; 2015 Acquisition amount is rounded to the nearest 0.1 billion and net of currency hedges. 92
  • 48. Verisk Analytics, Inc. All rights reserved. 250 450 350 900 350 900 850 2015 2016 2017 2018 2019 2020 2021 2022 2025 2045 as of 9/30/2015 Public Bonds Revolver Drawn Undrawn Revolver Debt/ EBITDA(1) 2.9x Covenant level(2) 3.75x ($ in millions) Bonds $2,300 Revolver Drawn 0,900 Total Debt $3,200 Revolver expanded to $1,750M, due May 2020 Strong Capital Structure to Support Growth Investment Grade Ratings S&P: BBB- Moody’s: Baa3 Fitch: BBB+ Note: 1. Per debt covenant Note: 2. Steps down to 3.50x at the end of the fourth fiscal quarter following the acquisition of Wood Mackenzie. 93 Verisk Analytics, Inc. All rights reserved. • Recurring revenue stream and high barriers to entry − 75% 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 − Deeply embedded in our customers’ critical decision-making processes • High incremental margins on existing businesses − Business model is “build once, sell many times” − Very little incremental cost to add a new customer − Our business is not service or capital intensive • Diverse client base and revenue contribution − 4 primary verticals with strong underlying demand factors − Largest customer accounts for about 5% of revenues − Top 10 customers account for about 21% of revenues 94 Attractive Business Model
  • 49. Verisk Analytics, Inc. All rights reserved. Two Paths to Growth – Organic and M&A Eva Huston, SVP and Treasurer Verisk Analytics, Inc. All rights reserved. Long Runway Remains for Organic Revenue Growth • While we have grown well for many years, our opportunity remains robust − 8.4% average organic revenue growth over five years − Multiple verticals contributing to stability of growth − Market opportunity is large and growth can continue to exceed that of underlying vertical • We have multiple paths to drive growth in each of our verticals − Existing customers, new solutions − Adjacencies for new customer sets − Adding data to create new analytics “We are limited only by the imagination of our people.” 96
  • 50. Verisk Analytics, Inc. All rights reserved. P&C Addressable Market P&C Current Verisk Revenue Opportunity $7.5 Billion Note: Revenue reflects TTM through September 2015. 97 • AIR • Commercial Lines UW • ISO Solutions • Personal Lines UW • Claims Verisk Analytics, Inc. All rights reserved. Energy and Specialized Addressable Market Energy Current Verisk Revenue Opportunity $6.0 Billion Note: Revenue reflects TTM through September 2015, pro forma for WoodMac and Maplecroft. 98 • WM Commercial • Petrochemicals • Metals & Mining • Renewables • Insurance and Other Related
  • 51. Verisk Analytics, Inc. All rights reserved. Healthcare Addressable Market Healthcare Current Verisk Revenue Opportunity $5.0 Billion 99 Note: Revenue reflects TTM through September 2015. • Revenue Solutions • Payment Solutions • Population Health Solutions • Quality Solutions Verisk Analytics, Inc. All rights reserved. Financial Addressable Market Consumer Financial • Global opportunity for benchmarking studies and current analytical solutions • Innovative solutions for existing customer base • Media Effectiveness • Other analytics built on unique data Current Verisk Revenue Opportunity $2.0 Billion 100 Note: Revenue reflects TTM through September 2015.
  • 52. Verisk Analytics, Inc. All rights reserved. Verisk Addressable Market $21 Billion Addressable Market P&C Healthcare Energy & Specialized Financial Current Verisk Revenue 101 Note: Revenue reflects TTM through September 2015. Verisk Analytics, Inc. All rights reserved. M&A Has Been Effective • Driven by strategy • Valuation discipline crucial • Cash generation focused: 19% overall IRR − 15% hurdle rate, adjusted for risk − Analysis benchmark for measuring IRR is unlevered − Assume conservative 10x terminal EBITDA multiple • Exceeded WACC for all deals of size − Strong history of growth − Track record of margin expansion post closing 102
  • 53. Verisk Analytics, Inc. All rights reserved. Summary of Acquisitions 1990’s 1% 2000 – 2004 4% 2005 – 2009 13% 2010 – 2014 23% 2015 59% By Time Period By VerticalBy Deal Size > $500mm 59% $100mm - $500mm 26% Deals $25mm - $100mm 13% < $25mm 2% 103 Note: Deal size includes both upfront plus earn-out payments. Total Deals ~$4.8 billion Insurance 14% Financial 9% Mortgage 2% Healthcare 13% Specialized 3% Energy 59% Verisk Analytics, Inc. All rights reserved. > 20% 10% to 20% 5% to 10% < 5% > 40% 30% to 40% 20% to 30% 10% to 20% < 10% Acquisitions Have a History of Strong Growth and Margins Acquisition Spend by Target Revenue CAGR (Yr. 1-3) Acquisition Spend by EBITDA Margin @ Acquisition 104 Note: Deal size includes both upfront plus earn-out payments. Wood Mackenzie excluded.
  • 54. Verisk Analytics, Inc. All rights reserved. Revenue Growth by Vertical Strong Acquisition Revenue Growth Across Verticals 18.5% 14.7% 14.8% 17.4% 13.7% 15.8% Financial Healthcare Insurance Mortgage Specialized Revenue CAGR (Year 1-3) Corp. Avg. Acquisition Revenue CAGR 105 Note: Excludes Wood Mackenzie. Revenue CAGR is weighted. Verisk Analytics, Inc. All rights reserved. Internal Rates of Return Demonstrate Shareholder Value Creation Methodology • Size of bubble reflects purchase price • IRR based on free cash flow and 10x terminal multiple methodology for all deals except Mortgage • Some bubbles reflect aggregation of multiple acquisitions (e.g. Mortgage) 8% Estimated WACC Average IRR ~19% IRR 106 Mortgage Sale Price ~$155M
  • 55. Verisk Analytics, Inc. All rights reserved. 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 repurchases remain valuable alternative for capital deployment − Deployed $1.6 billion over the past five years • Reasonable flexibility while deleveraging towards 2.5x Debt/EBITDA target 107 Verisk Analytics, Inc. All rights reserved.Verisk Analytics, Inc. All rights reserved. Senior Management Q & A 108
  • 56. Scott G. Stephenson President and Chief Executive Officer Scott G. Stephenson is president and chief executive officer of Verisk Analytics. Before becoming Verisk’s CEO, Mr. Stephenson served as president and chief operating officer, managing the day-to-day operations of Verisk Analytics and all of the company’s operating units. He joined Verisk’s ISO subsidiary in 2001 to focus on bringing new value and functionality to the company’s product offerings. In 2002, he was promoted to executive vice president. Mr. Stephenson became chief operating officer in 2008 and president in 2011. Before joining ISO, Mr. Stephenson was a senior partner with The Boston Consulting Group (BCG), a global management consulting firm, where he served on the firm’s North American operating committee. He also served as an advisor to Silver Lake Partners, a technology-oriented private equity firm. Mr. Stephenson is a graduate of the University of Virginia, where he received a bachelor of science degree in mechanical engineering, and the Harvard Business School, where he received a master of business administration degree. Mr. Stephenson has served on numerous civic and charitable boards. Stephen J. Halliday Chief Executive Officer – Wood Mackenzie Stephen J. Halliday is chief executive officer of Wood Mackenzie, a global leader in data analytics and commercial intelligence for the energy, chemicals, metals, and mining verticals. Mr. Halliday is responsible for setting strategy and oversee- ing worldwide operations. Since joining Wood Mackenzie in 1989, Mr. Halliday has filled a number of leadership roles. Before assuming his current position, he was executive director of Wood Mackenzie’s Energy business, where he covered the com- pany’s research and consulting activities for eight years. Previous roles included senior analyst in the U.K. upstream team, head of the European Energy team, and head of the Energy Consulting team. Mr. Halliday was part of the management team that led the company’s management and employee buyout in 2001. He was appointed CEO in 2007. During his 29 years in the energy industry, Mr. Halliday has also worked for BP in the downstream oil sector and TOTAL in the downstream gas business. Mr. Halliday holds a bachelor of science (honours) degree in chemical engineering from Edinburgh University. SPEAKER BIOGRAPHIES
  • 57. Mark V. Anquillare Group Executive, Risk Assessment Executive Vice President and Chief Financial Officer Mark V. Anquillare is executive vice president and chief financial officer of Verisk Analytics. In his role as CFO, Mr. Anquillare is responsible for Verisk’s financial processes and systems, financial analysis, and accounting. He also manages tax reporting, treasury functions, and investor relations and plays an important role in forming Verisk’s strategic plans, acquisition strategies, and product develop- ment initiatives. Mr. Anquillare is responsible for multiple corporate departments, including marketing, information technology, and human resources. He also oversees the ISO Solutions and Underwriting Solutions businesses of Verisk Insurance Solutions. Mr. Anquillare joined Verisk’s ISO subsidiary in 1992 as director–financial systems. He was promoted to assistant vice president in 1994 and to vice president and controller in 2000. Mr. Anquillare was promoted to senior vice president and controller in 2005, to senior vice president and chief financial officer in 2007, and to executive vice president and chief financial officer in 2011. Before joining ISO, Mr. Anquillare was employed by the Prudential Insurance Company of America. While at Prudential, he was involved in the life and health business and property and casualty operations. Mr.Anquillare is a graduate of the University of Notre Dame, where he received a bachelor of business administration degree, and the Rutgers Graduate School of Management, where he received a master of business administration degree. Mr.Anquillare is a Fellow of the Life Management Institute (FLMI). Mark McCafferty Head of Upstream Oil and Gas Research for the EMEARC region – Wood Mackenzie Mark McCafferty is Wood Mackenzie’s head of Upstream Oil and Gas Research for the EMEARC (Europe, Middle East, Africa, Russia, and Caspian) region. Mr. McCafferty is responsible for the delivery of Wood Mackenzie’s EMEARC upstream content. Since joining Wood Mackenzie in 2002, Mr. McCafferty has managed the Caspian, Russia, Australasia, and South East Asia upstream teams. He led the relocation of the South East Asia team from Edinburgh, U.K., to Singapore in 2007. Mr.McCafferty became research manager,Europe and Sub Sahara Africa,in 2011 before taking on his current role in 2014. During his 17 years of experience in the upstream oil and gas industry, Mr. McCafferty was also a project executive in the Scottish Enterprise’s Oil and Gas team in Aberdeen, U.K. Mr. McCafferty holds a bachelor of science (honours) degree in technology and business from Robert Gordon University in Aberdeen.
  • 58. Eva F. Huston Senior Vice President, Treasurer, and Chief Knowledge Officer Eva F. Huston is the senior vice presi- dent, treasurer, and chief knowledge officer of Verisk Analytics. She joined the company in 2009 as head of investor relations, playing an important role in Verisk’s initial public offering of equity. She was appointed treasurer in 2011 and led the company’s initial public debt issuance. She assumed additional operational responsibilities in 2012 and 2013. Ms. Huston is responsible for capital structure and financial planning, corporate marketing and market intelligence, investor relations, corporate communications, customer service, and sales operations. She plays a key role in the evolution of Verisk’s product and solution vision for future growth. She also oversees relationships with the debt and equity investment communities, including both buy-side institutional investors and sell-side research analysts. Before joining Verisk, Ms. Huston held the title of managing director in telecom, media, and technology investment banking at J.P. Morgan, where she was responsible for the marketing and information services practice. Her client base included companies providing data and analytics to a variety of industry verticals, such as consumer and media, financial services, insurance, and automotive. Ms. Huston raised more than $25 billion in equity and debt financing for her clients and advised clients on significant sector acquisitions. Ms. Huston is a graduate of Georgetown University, where she earned a bachelor of science degree in foreign service with a concentration in international politics. She specialized in Russian area studies.