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CCC INTELLIGENT SOLUTIONS TO ACQUIRE EVOLUT IONIQ DECEMBER 20, 2024© CCC Intelligent Solutions Holdings Inc. All rights reserved.
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D I S C L A I M E R 2 The information contained in this presentation is solely for the purpose of familiarizing potential investors with CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) and the transaction discussed herein. The information contained in this presentation is summary information that is intended to be considered in the context of the Securities and Exchange Commission (“SEC”) filings of CCC and other public announcements that the Company may make, by press release or otherwise, from time to time. The Company does not undertake any duty or obligation to publicly update or revise the forward-looking statements or other information contained in this presentation. You should not view information related to the past performance of the Company or information about the market, as indicative of future results, the achievement of which cannot be assured.The information contained herein is in summary form, does not purport to be complete and may be superseded in its entirety by any information made available to you after the date hereof, if any. Certain information has been obtained from public sources. You acknowledge and agree that (i) the Company and its affiliates bear no responsibility (and shall not be liable) for the accuracy, fairness or completeness (or lack thereof) of this presentation or any information contained herein or the use or misuse thereof except as required by law, (ii) no representation regarding this presentation is made by the Company or its affiliates and (iii) the Company and its affiliates shall have no obligation to update or supplement this presentation or otherwise provide additional information except to the extent required by applicable law.Forward-Looking Statements. This presentation contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this presentation include, but are not limited to, statements regarding future events, goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy, statements regarding future use and performance of CCC’s and EvolutionIQ’s digital solutions, the anticipated benefits of the transaction, expected synergies resulting from the transaction, the expected timing to close the transaction and the likelihood and ability of the parties to successfully consummate the transaction. Such differences may be material. We cannot assure you that the forward-looking statements in this presentation will prove to be accurate. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, competition, including technological advances and new products marketed by competitors; changes to applicable laws and regulations; and other risks and uncertainties, including those included under the header “Risk Factors” in CCC’s Annual Report on Form 10-K, filed with the SEC on February 28, 2024 and in the Company’s other filings with the SEC. The forward-looking statements in this presentation represent our views as of the date of this presentation. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation.Industry and Market Data.In this presentation, CCC relies on and refers to certain information and statistics obtained from third-party sources including reports by market research firms. CCC has not independently verified the accuracy or completeness of any such third-party information. You are cautioned not to give undue weight to such industry and market data.This presentation may include trademarks, service marks, trade names and copyrights of CCC, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SM, (C), (R) or TM symbols, but CCC will assert, to the fullest extent under applicable law, the right of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights. © CCC Intelligent Solutions Holdings Inc. All rights reserved.
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©2020 Information Services Inc. All rights reserved. P O W E R I N G F O R W A R D 3 TODAY’S PRESENTERS © CCC Intelligent Solutions Holdings Inc. All rights reserved. B R I A N H E R BE V P , C H I E F F I N A N C I A L O F F I C E RG I T H E S H R A M A M U R T H YC H A I R M A N & C H I E F E X E C U T I V E O F F I C E R
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© CCC Intelligent Solutions Holdings Inc. All rights reserved.4 E V O L U T I O N I Q R E I N F O R C E S A N D A D V A N C E S C C C ’ S V I S I O N O FI N T E L L I G E N T E X P E R I E N C E SAuto Physical Damage Repair Facilities Others (ISVs | Service Providers | Broader Ecosystem) OEMs Suppliers Dealers CasualtyDisabilityWork Comp AI-enabled Event-driven architecture100% SaaS35K+ companies Enabling Intelligent ExperiencesData | AI | EcosystemIX CloudInsuranceAutomotiveSaaS solutions that digitize workflows to drive optimal decisions and customer outcomes •Pioneered AI-based next best action claims guidance in disabilityand workers’ compensation•Extracts insights from medical documents via AI for disability, work comp, casualty, and general liability•Proven ROI with strong customer satisfaction Complete repair facility operating system to attract, deliver, and manage quality repairs Highly complementary, industry-leading,AI combinationCombines two AI pioneers and leaders delivering real-world results to customersBroadens CCC's capabilities in NLP and Generative AINext Best Action platform extensible across broader CCC customer base Leading AI-powered claims resolution platform for disability and injury claims Many pathways for durable, long-term growth
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© CCC Intelligent Solutions Holdings Inc. All rights reserved.5 S T R A T E G I C R A T I O N A L Epioneered the use of AI powered Next Best Action recommendations in insurance claims, revolutionizing how disability and injury claims are resolved and driving hard customer ROI and consumer benefit High-growth SaaS business model delivering real AI results in claims Extends scope of CCC’s multi-sided network across the insurance economy, with advanced AI unlocking data to deliver new intelligent experiences that realize new levels of simultaneous customer, consumer, and employee valueReinforces and accelerates CCC’s strategy of Intelligent ExperiencesTransformative solutions to address rising medical inflation and complexity, strengthening offerings to existing CCC customers while adding new customer types and opening new revenue streams within the insurance economy Strengthens and expands CCC TAM via attractive market adjacencies Injury claims resolution is ~10% of current CCC revenues, with AI capabilities enhancing CCC auto casualty suite while also providing pathway to bringing next best action solutions to rest of CCC’s 35,000 customersHighly complementary to existing CCC portfolio and technology
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6 E V O L U T I O N I Q I S A I P O W E R E D D I S A B I L I T Y A N D I N J U R Y C L A I M S R E S O L U T I O N P L A T F O R MCloud-native disability and injury claims platform powered by transformative AIPioneering Next Best Actionsolution transforms complex claims data into actionable insights and tactical guidance for claims professionalsProven track record of delivering significant ROI while helping injured Americans return to their productive lives soonerFocused on disability and injury claims resolution, a large and growing part of the insurance economy burdened by accelerating medical complexity Claims GuidanceEmpower claims professionals with Next Best Actions to optimize claimant interactions and claim resolutionMedical SummarizationDecode medical documents, build claim comprehension, and accelerate decisions with AI-driven insights KEY SOLUTIONSWho is ? High-Growth SaaS Business Model2019Founded$10 billion+Claims Processed Annually ~95%Gross Dollar Retention150%+ Net Dollar Retention~200 Employees7 of Top 15 Disability Carriers75%+Gross Margins© CCC Intelligent Solutions Holdings Inc. All rights reserved.
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Staffing LimitationsNew adjusters struggle to ramp and managers struggle to scale Degraded ExperienceDelays with reduced claimant and employee satisfaction Increased STD LTD ConversionPeople not back to work and living productive livesClaims LeakageErrors leading insurers to pay more than what they owe Failure to Intervene EarlyMissing the critical window where actions have the most impact © CCC Intelligent Solutions Holdings Inc. All rights reserved.7 T H E P R O B L E M : A C C E L E R A T I N G C O M P L E X I T Y I S C R E A T I N G C H A L L E N G E S F O R I N S U R E R S A N D C O N S U M E R S LABOR SHORTAGESMEDICAL INFLATIONINCREASING COGNITIVE LOAD Claims handling complexity is growing rapidly…… Creating challenges for everyone
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© CCC Intelligent Solutions Holdings Inc. All rights reserved.8 D I S A B I L I T Y A N D I N J U R Y C L A I M S A R E R I P E F O R I N T E L L I G E N T E X P E R I E N C E SEach Claim is an Impossible Big Data Problem:Claim Update AssessmentInterventionCritical Thinking The complexity of a single claim is often too much for humans to process real time…yet the average claims examiner is responsible for 100+claims at a given time Dozens or Hundreds of Pages120,000 Medical Codes to ApplyConstant Real-TimeUpdates UnstructuredData to Process
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9 E V O L U T I O N I Q : P U R P O S E - B U I L T T O E L E V A T E C L A I M SP R O F E S S I O N A L S A N D R E S O L V E C O M P L E X I T Y Assess Automated predictions identify critical issues, forecast claim trajectories, and pinpoint claims needing immediate attention Elevate Adapt by using data and change management to transform operations and boost team performance Distill Unstructured DataStructured DataProprietary DataExtract & synthesize overwhelming claims data in any form to help claims professionals see the full picture InterveneStrategize with key actions presented to tackle issues before they escalate, driving optimal claim outcomes Returned to Work From an impossible data problem… Medical SummarizationClaims Guidance … To consistent claims excellence at scale AI Powered Insights Next Best Action Medical ReportIntelligenceClaims Prioritization © CCC Intelligent Solutions Holdings Inc. All rights reserved.
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E V O L U T I O N I Q D E L I V E R S S U B S T A N T I A L C U S T O M E R R O IW I T H A T T R A C T I V E , D U R A B L E E C O N O M I C M O D E LReal-time assisted comprehension and guided action driving 8-10x average program ROI Multi-MillionDollar ACV Contracts75%+Gross MarginsHigh-Growth SaaS Revenue Model Durable Economic ModelProven ROIClaims excellence, at scaleMillionsof Claims Guided~95%GDR7 of Top 15Disability Carriers150%+NDR Claims Prioritization 70%+Increase in Attention to At-Risk Claims Reduced Cognitive Load900Examiner Hours Saved Per Month Back to Work Sooner40%+Increase in STD Return-To-Work Rate © CCC Intelligent Solutions Holdings Inc. All rights reserved.10
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C C C A N D E V O L U T I O N I Q H A V E S H A R E D D N A 11Innovative CultureJoint deep history of solving complexity through innovation Customer FocusPurpose built, mission specific solutionsBroad Installed BaseStrong relationships with customers and the communities they serve Top-Tier TalentHigh-caliber professionals who set industry standards © CCC Intelligent Solutions Holdings Inc. All rights reserved.Enduring commitment to delivering tangible ROI to customers while empowering claims professionals to create a better environment for all stakeholders –where life just works
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© CCC Intelligent Solutions Holdings Inc. All rights reserved.12 T R A N S A C T I O N S U M M A R Y$730 million transaction valueApproximately 60% cash / 40% stock consideration, including senior management(1)Cash consideration to be funded through cash on balance sheet and an additional $225 million term loanTransactionOverview TargetFinancial Overview2025E revenue of $45 - $50 million100 – 200 bps incremental accretion to CCC’s organic revenue growth near-term 2025E gross margins in line with CCC’sModestly EBITDA negative near-term with positive free cash flow; EBITDA margins expected to normalize over medium termCCC’s pro forma net leverage approximately 2.3x at close TimingDefinitive agreement signed on December 19, 2024Transaction expected to close in Q1 2025, subject to customary closing conditionsDebt financing to be completed prior to closing Share Repurchase AuthorizationNew $300 million authorization to be funded with available liquidity and free cash flowDemonstrates confidence in free cash flow and future benefits of acquisition, and underscores CCC’s commitment to drive shareholder returns 1. Subject to adjustments set forth in the definitive agreement
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A C Q U I S I T I O N U N L O C K S N E W G R O W T H O P P O R T U N I T Y V I A M U L T I - L I N E I N T E L L I G E N T E X P E R I E N C E E X P A N S I O N 13 $35B+ 1. Based on 2024 assessment 2. Based on 2022 Net Written Premium3. Based on 2023 Net Written PremiumSource: A.M. Best © A.M. Best Company – used by permission, analyst reports, CCC and EvolutionIQ data and estimates as of 2022 CCC Total Addressable Market(1) Expand use of new and existing productsGeographic expansionFurther M&A opportunitiesGLOBAL P&C$35B+ $35B+Multi-line expansionNew customer expansionFurther M&A opportunitiesUS P&C + Disability$15B+ US AUTO$10B+ 23 of Top-30(2)P&C Carriers27 of Top-30(2)Auto Carriers on CCC platform Global P&C$35B+ US P&C$15B+US Auto$10B+ Long-term growth potential © CCC Intelligent Solutions Holdings Inc. All rights reserved.7 of Top-15(3)Disability Carriers+
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T O T A L M A R K E T O P P O R T U N I T Y F O R E X I S T I N G S O L U T I O N S( 1 )( I N C L U D I N G E V O L U T I O N I Q ) I S L A R G E A N D G R O W I N G © CCC Intelligent Solutions Holdings Inc. All rights reserved.14 ExistingSolutions$6BFutureInnovation$4BFuture Innovation$4BInsurance$4BAutomotive$2B $7B $15B $7B$8BFuture Innovation$7BExisting Solutions$5BInsurance $2BAutomotive$4BEmerging$3BEstablishedCCC products in market for multiple years across APD, Casualty, Automotive, and Parts portfolios<30% currently penetrated EvolutionIQ solutionsCCC recent / upcoming launches including intelligent APD solutions, subrogation, diagnostics, payments, and automotive category expansionUntapped white spaceNew logo expansionCross-sell / upsellPackage adoption and migration CCC All US P&C Addressable Market(2) 1. Existing solutions include products in market or on 2025 roadmap2. Based on 2024 assessmentSource: A.M. Best © A.M. Best Company – used by permission, analyst reports, CCC data and estimates as of 2023
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Impact 15 I N T E L L I G E N T E X P E R I E N C E S W I L L D E F I N E O U R N E X TD E C A D E O F G R O W T H '00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23Platform AdoptionDigital Adoption Year 20+ Consecutive Years of Revenue Growth Across Multiple Market Cycles(1)Intelligent Experiences Beyond…By pioneering Intelligent Experiencesfor the P&C insurance economy and strategic adjacencies, we are on a mission to shape a world where life just works. EBITDA MarginsModestly dilutive in near-term; normalizing over medium-term Revenue Growth100 – 200 bps accretion to revenue growth near-term 1. Revenue excludes Casualty 1st Party Clinical (divested 2020) and discontinued Europe and Consumer Services businesses (discontinued 2001)© CCC Intelligent Solutions Holdings Inc. All rights reserved.
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©2020 Information Services Inc. All rights reserved. P O W E R I N G F O R W A R D 16 Q & A © CCC Intelligent Solutions Holdings Inc. All rights reserved.