Clarivate : Q2 2021 – Supplemental Materials

Q2 2021 Earnings

Supplemental

Materials

July 29, 2021

Forward-Looking Statements

This communication contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future business, events, trends, contingencies, financial performance, or financial condition, appear at various places in this communication and may use words like "aim," "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "see," "seek," "should," "strategy," "strive," "target," "will," and "would" and similar expressions, and variations or negatives of these words. Examples of forward-looking statements include, among others, statements we make regarding: guidance outlook and predictions relating to expected operating results, such as revenue growth and earnings; our expectations around our ability to consummate our pending acquisition of ProQuest, which is subject to customary closing conditions including receipt of approval under the Hart- Scott-Rodino Antitrust Improvements Act of 1976; strategic actions such as acquisitions, joint ventures, and dispositions, including the anticipated benefits therefrom, and our success in integrating acquired businesses; anticipated levels of capital expenditures in future periods; our ability to successfully realize cost savings initiatives and transition services expenses; our belief that we have sufficiently liquidity to fund our ongoing business operations; expectations of the effect on our financial condition of claims, litigation, environmental costs, the COVID-19 pandemic and governmental responses thereto, contingent liabilities, and governmental and regulatory investigations and proceedings; and our strategy for customer retention, growth, product development, market position, financial results, and reserves. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management's current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include those factors discussed under the caption "Risk Factors" in our 2020 annual report on Form 10-K/A, along with our other filings with the U.S. Securities and Exchange Commission ("SEC"). However, those factors should not be considered to be a complete statement of all potential risks and uncertainties. Additional risks and uncertainties not known to us or that we currently deem immaterial may also impair our business operations. Forward-looking statements are based only on information currently available to our management and speak only as of the date of this communication. We do not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Please consult our public filings with the SEC or on our website at www.clarivate.com.

Non-GAAP Financial Measures

This presentation contains financial measures which have not been calculated in accordance with United States generally accepted accounting principles ("GAAP"), including Adjusted Revenues, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Free Cash Flow, and Organic Revenues because they are a basis upon which our management assesses our performance and we believe they reflect the underlying trends and indicators of our business. Although we believe these measures may be useful for investors for the same reasons, these financial measures should not be considered as an alternative to GAAP financial measures as a measure of the Company's financial condition, profitability and performance or liquidity. In addition, these financial measures may not be comparable to similar measures used by other companies. At the Appendix to this presentation, we provide further descriptions of these non-GAAP measures and reconciliations of these non-GAAP measures to the corresponding most closely related GAAP measures.

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Financial and Business Highlights

Combination of operational enhancements and post pandemic business recovery driving improved year over year performance

Financial(1)

+59%	+57%	+5%
$446M	$447M	+$13M
2Q Revenue	2Q Adjusted	2Q Organic Revenue
	Revenue(2)	Growth
+225%		+89%
$82M		$189M
2Q GAAP Net Loss		2Q Adjusted EBITDA(2)

42%	+143%	+116%
+610bps	$262M	$259M
2Q Adjusted	1H'21 Net Cash	1H'21 Adjusted
EBITDA Margin(2) (3)	Operating Activities	Free Cash Flow(2)

1. Revenue at constant currency.
2. See the Appendix for a reconciliation of GAAP to Non-GAAP measures.
3. Adjusted EBITDA Margin equals Adjusted EBITDA divided by Adjusted Revenue.
4. Chief Revenue Officer effective August 2, 2021.

Business

• Announced proposed acquisition of ProQuest, creating a global provider of mission critical information and data-driven solutions for science and research
• • Completed $2B equity and $2B debt financing to fund transaction
• Nearing completion of account transitions to new inside sales / Global Business Centers
• CPA Global integration more than 4 months ahead of schedule
• • Identified $25M of additional cost synergies; now expected to achieve $100M
• Completed first Colleague Engagement and Customer Delight Surveys for 2021
• • Stable performance despite global COVID challenges
• Issued first annual sustainability report; aiming to be listed on the DJSI and FTSE 4 GOOD Index based on 2023 performance and be carbon neutral by 2024
• Enhanced leadership team by addition of a Chief Revenue Officer(4)
• Launched new Web of Science™ offering researchers a highly dynamic, personal and indispensable research assistant through a host of new features and a redesigned user interface
• Issued annual Journal Citation Reports, which enables the research community to evaluate the world's high-quality academic journals using a range of indicators, descriptive data and visualizations

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Delivering on Revenue and Earnings Growth Objectives in 2021

With first half organic revenue growth of 6%, we are on target to achieve 6% to 8% organic revenue growth exiting 2021

Revenue(1)

$874

$514

$446

$274

Q2'20	Q2'21	1H'20	1H'21
	Actual F/X	Constant F/X
2Q'21	+63%	+59%
1H'21	+70%	+66%

($ in millions, actual f/x)

Adjusted Revenue(2)

Recurring Transactional Subscription

			$879
			$479
	$447	$519
$277	$244	$410	$174
$217	$90		$226
$60	$114	$110
Q2'20	Q2'21	1H'20	1H'21
	Actual F/X	Constant F/X
2Q'21	+61%	+57%
1H'21	+69%	+65%

Organic Revenue
Growth	2Q'21	1H'21

(at constant f/x)

Adjusted

1.4% 3.6%

subscription

Adjusted

15.8% 13.3%

transactional

Adjusted

---

re-occurring

Adjusted Revenue	4.5%	5.7%

	Adjusted EBITDA(2)	$354
+89%				+98%
		$189		$178
$100
	36%	42%	Adjusted EBITDA 34%	40%
		Margin(3)
	Q2'20	Q2'21		1H'20	1H'21

GAAP Net Loss

$106 $155

$82

$25

Q2'20

Q2'21

1H'20

1H'21

1. 2Q'21 includes $1M and 2Q'20 includes $3M, and 1H'21 includes $4.4M and 1H'20 includes $5.3M of deferred revenue adjustment, a result of purchase accounting primarily related to acquisitions.
2. See the Appendix for a reconciliation of GAAP to Non-GAAP measures.

(3) Adjusted EBITDA Margin equals Adjusted EBITDA divided by Adjusted Revenue. See the Appendix for a reconciliation of GAAP to Non-GAAP measures.	4

First Half 2021 Sustainability Highlights

Recognition: Earned ISO 27000 Certification. Earned Silver Status with EcoVadis for ESG Performance (80th Percentile)​

• Published first annual sustainability report, GRI and SASB Reporting
• UN Global Compact Signatory
• Submitted Ecovadis (100 questions) annual assessment, Earning a Silver Medal Status (80th percentile)
• Earned ISO 27001 Information Security Certification
• Completed inaugural S&P Corporate Sustainability Assessment (CSA) response submitted (90 questions, 800 data points)
• Submitted first DEI assessment (280 questions) alongside first disability/accessibility assessment (80 questions)
• Gathered ESG assessments for 38% of Clarivate spend ($191M, top 30 suppliers); 100 suppliers completed assessment
• Kicked off Diversity Council & developed 2020 draft scorecard
• Board Diversity Statement drafted
• Modern Slavery Statement and Australian Access Federation Compliance Statement 2021 completed
• Sustainability Policy published
• Customer Delight Score (1 of 2 in 2021, 75 Score)
• Colleague Engagement Survey (1 of 2 in 2021, 75 score)
• Participating in telehealth initiative as part of the CEO Fellowship on Racial Equity
• Launched 2 new colleague resource groups (environment and military veterans) (Now a total of 6 global CRGS)
• Completed Women's Empowerment Principles (WEPs) Gap analysis
• Kicked off COI (Conflict of Interest) training
• Achieved 13% of Volunteer goal towards 32,000 hours & launched CEO 40+ hour recognition program

Aiming to be listed on the Dow Jones Sustainability Index and FTSE 4

GOOD Index based on 2023 performance and be carbon neutral by 2024

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