#1Charles River Associates Investor Day November 26, 2019 CRA Charles River Associates This presentation is subject to and should be read in conjunction with the disclaimers and other statements contained under the heading "Safe Harbor Disclaimer."#2Safe Harbor Disclaimer Statements included in this presentation which are not historical in nature, including those concerning the company's future business, operating and financial condition, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements may include statements concerning our plans, objectives, goals, strategies, and future events, including, but not limited to, future revenues, growth, profitability, performance, as well as our expectations regarding revenue and non-GAAP EBITDA margin, the declaration of future quarterly dividends and capital allocation strategies. These statements that are not historical may be reflected in words, graphs or diagrams. When used in this presentation, words such as “believe,” “seek," "aim," "going forward," "achieve," "committed," "pursuits," "target," "continue," "expect," "estimate," "should," and variations of such words or similar expressions are intended to identify forward-looking statements. These statements are based upon management's current expectations and speak only as of the date of this presentation. Charles River Associates ("CRA") cautions readers that there may be events in the future that CRA is not able to accurately predict or control, and the information contained in the forward-looking statements is inherently uncertain and subject to a number of risks that could cause actual results to differ materially from those contained in or implied by the forward-looking statements or by the historical references. These risks include, but are not limited to, the possibility that the demand for our services may decline as a result of changes in general and industry specific economic conditions; the timing of engagements for our services; the effects of competitive services and pricing; our ability to attract and retain key employee or non-employee experts; the inability to integrate and utilize existing consultants and personnel; the decline or reduction in project work or activity; global economic conditions including less stable political and economic environments; foreign exchange rate fluctuations; unanticipated expenses and liabilities; risks inherent in international operations; changes in tax law or accounting standards, rules, and regulations; our ability to collect on forgivable loans should any become due; and professional and other legal liability settlements. Further information on various potential factors and risks that could affect CRA's financial results are included under the heading "Risk Factors" in the annual and quarterly reports we file with the Securities and Exchange Commission (SEC), as well as in the other documents we file with the SEC, which are available on the SEC's website or in the Investor Relations section of CRA's website at www.crai.com. The inclusion of such forward-looking information should not be regarded as our representation that the future events, plans, or expectations contemplated will be achieved. CRA cannot guarantee any future results, levels of activity, performance, or achievement and undertakes no obligation to update any of its forward-looking statements, nor does it assume any liability for any investment decisions made or not made as a result of this presentation. 2 CRA Charles River Associates#3Paul Maleh President & Chief Executive Officer Opening Remarks CRA Charles River Associates#4Today's Agenda 4 Time 9:00 to 9:30am 9:30 to 10:15am Presentation Opening Remarks Overview of Antitrust & Competition Economics Practice Presenter Paul Maleh, President & Chief Executive Officer Margaret Sanderson, Practice Leader, Antitrust & Competition Economics 10:15 to 10:30am 10:30 to 11:15am 11:15 to Noon Break Overview of Life Sciences Practice Seeds of Growth - How Energy and Forensic Services Have Grown at CRA Greg Bell, Practice Leader, Life Sciences Chris Russo, Practice Leader, Energy Kris Swanson, Practice Leader, Forensic Services Noon to 12:30pm 12:30 to 1:00pm Lunch Financial Review 1:00 to 1:30pm Closing Remarks and Q&A Chad Holmes, Chief Financial Officer Paul Maleh, President & Chief Executive Officer CRA Charles River Associates#5Delivering Growth in the Business While Returning Capital to Shareholders да ஜார் Revenue Growth* Headcount Growth EPS Growth* Fiscal 2019 Q3 YTD 8% 8% maintaining utilization of 76% 17% Stock Repurchases $18M average price of $42.94 per share 13% Fiscal 2018 Fiscal Years 2014-2018 53% 9% maintaining utilization of 76% 44% $28M average price of $51.51 per share 55% maintaining utilization of 75% *Presented on a non-GAAP basis. A presentation of and reconciliation to the comparable GAAP financial measures appears at the end of this presentation. 5 143% $105M average price of $31.50 per share CRA Charles River Associates#6Investment Thesis We are committed to being the firm of choice for our clients as they address their most important litigation, regulatory, and strategic challenges, as well as for our employees as they seek a fulfilling and exciting place to work 80% Leading experts in their respective fields Management team with strong track record of operating performance 6 No long-term debt and history of strong cash flows 19 Value-based decision makers with disciplined capital allocation strategy Objective is to maximize the long-term value per share CRAC Charles River Associates#7A Leading Global Consulting Firm CRA Charles River Associates For over 50 years, Charles River Associates (CRA) has been a premier consulting firm. In 1965, our founders envisioned a company that would bring the developing technology of academia, especially in the then-burgeoning area of quantitative methods in economics, to the real world. This vision continues to resonate strongly today as we apply university-quality quantitative tools and microeconomic analysis to our clients' most important challenges. 7 ·P IS 回回 G Positioning Economic Litigation and Management Consulting Boutique with Leading Positions in Antitrust & Competition Economics, Valuation, Financial Markets, and Corporate Strategy Two Lines of Business Legal, Regulatory, and Financial Consulting "Cutting Edge Approaches to High Stakes Cases" Management Consulting Sector Specialized Boutique Sources of Distinctiveness Leading Experts Client-Tailored Model Superior Analytics Industry Insight Senior-Led Organization/ Culture Team-Based Entrepreneurial Efficient Infrastructure CRAC Charles River Associates#8Performance Driven by Highly Talented and Dedicated Colleagues 8 1 + 81% of senior staff have advanced degrees, with 35% holding PhDs CRA accepts less than 2% of campus applicants Less than 5% voluntary turnover among top revenue generators over past 5 years Over 30 languages spoken Our staff hail from over 50 countries across 6 continents m 22 offices across 9 countries CRAC Charles River Associates#9Solving Complex Problems with High Value Added Expertise 9 Each of our practices is highly regarded, and our consultants are recognized for their creative and multidisciplinary approach to solving clients' complex problems in the US and throughout the world 月 Antitrust & Competition [1010 Forensic Services [1100] Auctions & ☑HA Competitive Bidding Energy $ Finance Intellectual Property Labor & Employment Life Sciences Financial Economics E-O Marakon CRA Charles River Associates#10In the Past Two Years, We Have Worked with 88 of the Fortune 100 Google Pfizer AT&T CVS pharmacy CAT STATE FARM Chevron BERKSHIRE HATHAWAY INC. Life Fire INSURANCE Bank of America (intel FORTUNE 100 Corporate yε BEST BUY JOHN DEERE 10 10 VALERO amazon.com COSTCO WHOLESALE Morgan Stanley 11|11|1. CISCO ORACLE GM WELLS FARGO O MCKESSON hp TARGET PHILLIPS 66 comcast. Walmart ExxonMobil IBM CRA Charles River Associates#11In the Past Two Years, We Have Partnered with 98 of the Top 100 Law Firms 11 WLRK WACHTELL, LIPTON, ROSEN & KATZ SIDLEY JONES DAY Simpson Thacher GT GreenbergTraurig KIRKLAND & ELLIS LLP DLA PIPER BAKER BOTTS orrick Dechert LLP The 棚 AM LAW WHITE & CASE ROPES & GRAY BRYAN CAVE Baker McKenzie. Akin Gump STRAUSS HAUER & FELD LLP SULLIVAN & CROMWELL LLP Law Firm Cooley Proskauer≫ VENABLE.LP MAYER BROWN Skadden WILMERHALE WH ALSTON & BIRD Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates WER Wilson Sonsini Goodrich & Rosati PROFESSIONAL CORPORATION CRAVATH, SWAINE & MOORE LLP Weil CRA Charles River Associates#12Margaret Sanderson Overview of Antitrust & Competition Economics Practice CRA Charles River Associates#13CRA's Competition Practice Offers Global Expertise from Offices Across North America and Europe 13 CRA's Antitrust and Competition Economics practice is a leader in providing economic analysis, advice, and testimony for antitrust and merger cases worldwide. Our work as competition experts relies on rigorous theoretical and econometric modelling to determine whether customers will likely face higher prices, fewer choices, or stifled innovation. 30 College Station Oakland Salt Lake City 124 Boston Chicago Toronto Washington DC London 42 17 Brussels Lyon Munich Paris Prague CRA Charles River Associates#14Clients and Industry Observers Recognize the Value and Depth of the Practice's Expertise We are hired by private parties and governments to work on the highest profile merger and antitrust litigation matters around the world Reflecting our expertise and the stakes at issue, our average effective bill rate in 2019 is approximately $500. Testifying expert hourly rates for CRA vice presidents and academic senior consultants range from $645 to over $1,500 per hour. In 2019, more than 99% of work has been billed on a time and materials basis. Approximately 90% of the T&M work was on projects with no limit. Matter Type 0 ■ Litigation Mergers Client Type 0 ■ Other We are among the very top firms in this line of work The Global Competition Review writes, “Charles River Associates' stellar team...has an equally impressive list of clients it is advising across Europe and the US. It is regarded as one of the top firms for competition experts across the world..." Consistent with that description, Who's Who Legal: Competition recognized 33 CRA experts in the most recent edition. ■ Law Firm ■Government ■ Other 14 CRA Charles River Associates#15Our Success Is Built on a Three-Pronged Approach Designed to Put World-Class Talent to Work for Our Clients Develop talented people into exceptional consultants 15 Recruit talented staff at all levels 202 Retain employees and consultants by enabling further success Charles River Associates CRAC#16Our Employees Are Graduates from Elite Schools Around the World and Are Thought Leaders in Competition Policy The Competition practice is home to over 210 employees, nearly double the headcount in 2010 16 Recruit talented staff at all levels 202 Our consultants include former heads of US and European antitrust agencies. Our Senior Consultants are top academics in the field of antitrust. Former CRA consultants lead enforcements agencies in several jurisdictions around the world. Develop talented people into exceptional consultants Retain employees and consultants by enabling further success Approximately 90% of our senior staff hold at least one graduate degree; nearly 70% of the senior staff has a PhD Undergraduate interest in CRA is at record levels: we currently receive 31 applications and interview 3 candidates per Analyst position Charles River Associates CRAS#17Buoyed by Formal Programs, the Competition Practice Has a Tradition of Cultivating Staff from Entry to Rainmaking Recruit talented staff at all levels We have heavily invested in mentorship and professional development for staff in order to develop successful future rainmakers 55% of our current Vice Presidents were hired in a non-Vice President role; approximately one third of revenue over the past two years was originated by these staff Develop talented people into exceptional consultants Retain employees and consultants by enabling further success Our active business generators grew by nearly 40% from 2013 through 2018, led by employee rainmakers who grew by nearly 50% over the same period 17 We offer a comprehensive, sustained training program that allows new employees to contribute immediately and existing employees to develop new, client-ready skills CRAC Charles River Associates#18CRA's Internal Network and Top-to-Bottom Talented Staff Allow Rainmakers to Generate More Together than They Would Alone 18 Recruit talented staff at all levels Develop talented people into exceptional consultants Retain employees and consultants by enabling further success More than 40% of our revenue over the past two years was originated by teams of employees and/or Senior Consultants Our sustained investments in recruiting and development means we give experts the opportunity to work with remarkable teams The team we deliver to clients allows us to work on the most high profile matters in jurisdictions around the world CRAC Charles River Associates#19Representative Merger Client Engagements 19 EC clears the merger of Microsoft and GitHub CRA supported Microsoft and GitHub during the European Commission's merger investigation. The parties both offer tools for developers to collaboratively work on software development, including code editors and integrated development environments. The Commission investigated whether Microsoft may seek to integrate GitHub's tools into its own software development tools and worsen the ability to integrate GitHub with tools of third parties. It was found that Microsoft would have no incentive in degrading GitHub by reducing the ability for developers to openly collaborate. The merger was cleared unconditionally. North American merger support helps obtain US regulatory approvals CRA economists advised counsel to CVS Health (CVS) and Aetna on CVS's acquisition of Aetna. CRA economists prepared extensive economic analyses that addressed questions raised by the US Department of Justice (DOJ) and Departments of Insurance in a number of US states regarding whether the merger raised competitive concerns. The DOJ allowed the merger to proceed subject to the divestiture of Aetna's Medicare Part D prescription drug plan business for individuals. The DOJ concluded that the merger did not raise any other horizontal or vertical competitive concerns. Global team offering multi-jurisdiction merger support CRA economists advised counsel to Essilor and Luxottica as they sought regulatory approval of their $53 billion merger. The merger combined one of the world's leading consumer eyewear groups with the largest manufacturer of lenses in the world. The merger was reviewed and approved by regulators in the United States, Canada, Europe, Brazil, and China. CRA Charles River Associates#20Representative Antitrust Litigation Client Engagements CRA expert key to defense against abuse of dominance claim A CRA Vice President's testimony contributed to the UK Competition Appeal Tribunal's (CAT) decision to set aside the UK Competition and Markets Authority's (CMA) finding that Flynn and Pfizer had committed an abuse of dominant position by charging excessive prices for an anti-epileptic drug. Importantly, the CAT decided that the CMA erred in its reliance on the "Cost Plus" approach to determine whether prices were excessive and misapplied the United Brands test. In particular, the CAT found that the CMA "did not appropriately consider what was the right economic value of the Pfizer-Flynn Capsules" and "did not take sufficient account of the situation of other, comparable products." 20 Memory Module ITC investigation A CRA-affiliated academic expert testified on behalf of SK Hynix in an International Trade Commission investigation into whether SK Hynix was importing memory modules that violated patents owned by Netlist, Inc. His testimony addressed the role Netlist's RAND commitment played in determining the calculation of a reasonable royalty and in assessing the public interest implications of granting Netlist an exclusion order. P Expert testimony in US antitrust litigation CRA consultants provided assistance and expert testimony to the University of Pittsburgh Medical Center in defending against allegations that its WorkPartners subsidiary had tried to monopolize the markets for worker's compensation insurance and third-party administration, which would have been a violation of the Sherman Act. In March 2019, the US District Court for the Western District of Pennsylvania granted a summary judgment motion dismissing the claims against UPMC. Charles River Associates CRAS#21Creating a Foundation to Support Future Growth Anticipating impacts of the changing regulatory environment in key markets Anticipate that pro-enforcement coalition in the US will be good for demand Brexit is likely to increase demand for our services Tech sector enforcement debate is another demand driver Sensitivity to merger activity in varying macroeconomic conditions 21 Strategic acquisitions generate demand for our services CRA is hired on far more than mergers CRA Charles River Associates#22Greg Bell Overview of Life Sciences Practice CRA Charles River Associates#2323 223 CRA's Life Sciences Practice Is a Growing Player in a Thriving Consulting Market A Multi-Billion Dollar, Rapidly Growing Consulting Market i!! مممم Thorny Strategic Issues - Technology advances driving business model transformation Shifting regulatory environments Complex demand patterns / stakeholders Complex pricing and multi-layered payment models Differentiated product markets Event-driven Use of External Experts - Business model transformation (mass market to personalized) Product launches or extensions Competitor launches and patent expirations Pipeline/portfolio events (development / acquisitions / licensing) Large, Profitable Brands / Franchises Consulting work purchased throughout the organizations: C-suite, business unit, brand team, and cross-brand functions CRA Charles River Associates#24Practice Strategy Guideposts 宝 CRA provides top quality consulting services to address some of the most complex challenges facing life sciences clients Areas of focus: Commercial Strategy, Pricing and Market Access, Policy, Litigation Delivery approach: Data-driven, bespoke, innovative, expert-informed We are focused on client needs and are driven by their success Key account focus: Bring full complement of CRA services Right people on the right projects Forward-thinking about key industry issues / developments We attract, develop, and retain the best and brightest talent - High standards, quality training, apprenticeship culture, meritocracy, cross-practice opportunities We are a global, integrated practice Global leadership: Accountability, decision-making Global processes: Project delivery, recruiting, staffing, marketing 24 CRA Charles River Associates#25Our Offerings 25 8 Commercial Strategy (~50% of practice) Helping clients understand their markets and optimize brand and portfolio performance Pricing and Market Access (~25-30% of practice) Helping clients optimize returns through pricing and patient access strategies Global Policy (~5% of practice) Helping clients understand the evolving policy environment, set policy agendas, and shape the public discourse Litigation (~15-20% of practice) Providing expert analysis and testimony in a variety of litigation matters for Life Sciences companies Our competitive advantage is the breadth of our expertise, which allows us to win complex, multi-faceted projects CRAC Charles River Associates#26Commercial Strategy: Helping clients understand their markets and optimize brand and portfolio performance 26 Opportunity Assessment Disease landscape handbooks Market / indication prioritization and sequencing Forecasting Due diligence support بیج Brand Strategy Launch planning Positioning Competitive scenario planning Brand performance optimization Brand communications optimization Market Understanding - Patient journey Patient finding/tracking Market shaping Stakeholder assessment Stakeholder engagement 0 Analytics |||I Market maps Physician and patient segmentation Key behavioral influencer Payer analytics Local market analytics Predictive modeling CRAC Charles River Associates#27Pricing and Market Access: Helping clients optimize returns through pricing and patient access strategies 0 Discover Early development Market, competitor, and payer landscaping Payer insights on go-no-go decision making and investment requirements Payer needs assessment Evidence requirements; rationalized trial design Develop Late development Payer value drivers and PMA positioning Payer value proposition and value message development Evidence generation strategies Payer value and evidence packs Account segmentation Deliver Launch PMA strategy development Launch pricing strategies Contracting strategies Competitor strategies (e.g., via "war games") Stakeholder engagement strategies Policy strategies/ initiatives Defend Life cycle & LOE Life cycle management strategies -new indications, markets, geographies Competitor response strategies Price/access/ uptake benchmarking and assessments LOE strategies 27 CRA Charles River Associates#28Global Policy: Helping clients understand the evolving policy environment, set agendas, and shape the public discourse Response Analysing global, regional, and national policy challenges Anticipation Assessing the business impact of proposed policy changes 28 歐 + Market Shaping Building stakeholder engagement Supporting commercial priorities Internal Alignment Managing global policy processes Charles River Associates CRAS#29Litigation: Providing expert analysis and testimony in a variety of litigation matters for Life Sciences companies Commercial Disputes Launch commercialization Breach of contract Co-development, co- marketing, and co-promotion Arbitration 0 1° Rigorous Analytics Industry Experience Competition Market definition Assessment of market power Patent settlement disputes Antitrust damages Intellectual Property Reasonable royalties Lost profits Commercial success Irreparable harm Trade secrets Financial Disputes Valuation 10b-5 and CVR disputes Product Liability Class certification Labelling Product promotion 29 29 Charles River Associates CRAS#30Growth Platforms: Three Issues Leadership Teams 00 30 Rare Disease Pricing and value in small populations Patient finding/tracking Unique go-to-market challenges Disruption in Life Sciences Anticipating technological change (e.g., curative therapies) Regulatory and market disruptions (e.g., HTA approaches) Commercial innovation (e.g., business model shifts) Life Sciences 2030 Digital strategy Patient empowerment 2030 critical success factors CRA Charles River Associates#31Growth Platform: MedTech 31 Client needs Analyse impact of new technology on treatment paradigms Investigate market opportunities and challenges facing new technologies Launch new products or expand into new markets Support evolution of the portfolio (product life cycle, new versions, etc.) Optimize performance of existing products/portfolio Protect innovation and remove counterfeits CRA capability Stakeholder journey: Patients, providers, payers, distributors, etc. Conduct due diligence to support investment decisions Develop integrated launch and expansion strategies Advise on portfolio design, co-positioning, and conversion strategies Review product performance and devise strategies to activate growth Provide expert testimony informed by topical and industry experience Concerted effort to build out the MedTech opportunity based on past projects in each of the four sectors of the practice CRAS Charles River Associates#32Acquisition and VP Recruiting Yield Nearly 150% Growth in 2017; Organic Growth Continues as We Integrate 250 200 Period-End Consultant Headcount 170 201 217 150 140 135 127 100 69 50 47 66 99 77 43 22 0 2016 2017 2018 2019 Q3 ■ Europe ■North America Acquisition of C1 Consulting and the addition of several business generators from IMS Consulting (now part of IQVIA) in 2017 has been followed by organic growth 32 CRA Charles River Associates#33Team Spans North America and Europe to Service Global Clients and Leverage Talent in Key Geographies 33 London Cambridge 23 San Francisco 117 59 52 Boston New York Summit, NJ 25 25 Brussels Zurich All major practice activities are integrated across geographies Project delivery, recruiting, staffing, training, marketing and issues leadership, etc., are managed globally We extend our delivery capabilities with partnerships in Asia and LATAM Toronto Washington DC Munich CRA Charles River Associates#34Our Team Brings a Diverse Mix of Skills and Academic Backgrounds 34 250 200 1500 100 50 50 0 Academic Degrees 75% with advanced degrees ■MD/PharmD ■All Other Advanced Degrees ■PhD Economics / Management ■MA/MS/PhD Data Science ■MBA ■MA/MS Economics / Management ■MA/MS Life or Physical Science PhD Life or Physical Science ■Bachelors Critical Success Factors for Our Talent Pool Recruit a diverse group of top entry-level talent Provide apprenticeship and training opportunities Invest in and retain our star performers CRA Charles River Associates#35Our Team Is Led by Experienced Industry Experts 35 250 Consultants by Level 21 200 22 22 Vice President 150 72 ■ Principal Mid-Level 100 Junior 50 102 0 Clients Hire CRA Life Sciences for Our Industry Expertise Even at junior levels, our consultants specialized in Life Sciences, building. industry knowledge as they progress into project leadership CRA Charles River Associates#36Our Near-Term Focus Is Organic Growth, But We Are Pushing Towards Some Long-Term Goals 36 Near-Term Focus: Organic Growth - Innovation and articulation of offerings Individual Vice President and Principal development / improvement Enable / encourage account-level collaboration / growth Targeted senior hires to fill capability / geographic gaps Long-Term Goals - - Expand analytics (across clients and through EU) Beyond pharma: MedTech/devices/ diagnostics / wellness Geographic Expansion: Asia, US (Chicago, SoCal), France Perceived as #1 destination for LS-focused consulting CRAS Charles River Associates#37Chris Russo Kris Swanson Seeds of Growth - How Energy and Forensic Services Have Grown at CRA CRA Charles River Associates#38Energy Practice We Deliver Advisory and Litigation Support Services Across the Power, Gas, Oil, Renewables, and Industrials Markets -8 Our service offerings are balanced between... To clients in... - 38 Strategy / Advisory - Growth & portfolio strategy, composition & planning Market analysis and asset valuation - Capital allocation - Large and growing market, with well-defined client base Expert Services / Litigation Support - - High-stakes civil litigation, international arbitration, and administrative proceedings Market power analysis & M&A support Expert testimony and reports related to valuation, damages and liability High margin market with large project size Law Firms Traditional and boutique litigation firms International arbitration But principally not energy attorneys Financial Community Energy-focused private equity firms & LPs Infrastructure funds Occasionally banks and debtholders Utilities - Medium to large, vertically integrated investor owned utilities and municipals Natural gas concerns Large energy consumers CRA Charles River Associates#39Energy Practice We Have Built a Diverse Team Over the Past Seven Years 39 London 42 9 Boston New York Toronto Washington DC 51 team members - 20 nationalities and 39% women - Located in Boston, DC, NYC, London and Toronto Greater than 95% of senior staff hold advanced degrees Most staff have "hybrid" backgrounds, e.g. engineering, physics, mathematics, in addition to economics or finance We are focused on career-accelerating investments in high- potential staff MBA funding for high- potential junior staff - Leadership coaching The team remains cohesive and collaborative at the senior level The challenge is to maintain the same entrepreneurial, "start-up" culture as we grow and diversify CRA Charles River Associates#40Energy's Service Offerings Energy Practice ဝဝဝ GG. Strategic Consulting Focus on energy and chemical industry Utility Planning Resource planning for large, vertically integrated utilities Disputes & Litigation Expert witness support for disputes in federal and state courts, and international arbitrations Regulatory Testimony Assistance with mergers and acquisitions, electric and gas regulatory filings 40 40 Strategic planning for business growth, offered to the CEO and board level Cloud-based analytics, focused on transforming the electric grid Focus on high-stakes, high-value cases for our clients Support for our clients before regulatory and governmental bodies Our clients are some of the top AmLaw and Magic Circle law firms CRA Charles River Associates#4141 Practice Growth Has Been Entirely Organic Energy Practice Hires have come from academia, government, former employees, and business developers built from within 60 60 Period-End Consultant Headcount 50 50 There have been very few lateral hires from peer firms, and two , internally promoted Vice Presidents 40 40 30 30 20 We are actively focused on acquisitions and group hires, but have not found the right fit yet 20 15 4 10 10 11 الس 51 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Q3 ■Non-Vice Presidents ■Vice Presidents Charles River Associates CRAS#42Energy Practice The Energy Practice Has Grown Beyond Electricity to Other Areas 42 - Natural Gas & LNG New hires and investments to support gas and LNG analysis Market entry strategy engagement for large pipeline operators Joint engagements with Finance and Competition Practices related to natural gas and LNG litigation Renewables Several large commercial advisory efforts focused on renewable investment and regulatory strategy Dissenting shareholder litigation related to the global solar panel market Commercial strategy for a large energy storage project Oil 2018 saw three major arbitrations and disputes on European and global oil pricing Several smaller engagements ongoing related to transportation fuels for a multinational client Principally a European offering at the current time Industrials & Strategy Several large engagements with a large lighting and smart-home supplier Ongoing advisory work for an innovative modular nuclear reactor company Several ongoing strategy engagements for chemicals-industry clients CRAS Charles River Associates#43Energy Practice An Industry in Transition with Major Challenges Presents Attractive Opportunities for Practice Growth Around Consumer Choice, Renewables, and Sustainability Technology Disruption Consumer Attitudes Changing Regulatory Environment 1. Increasing benefits and adoption of energy efficiency technologies 2. Continued declining costs of renewable energy generation 3. Increasing scale and declining costs of battery storage 4. Increasing digitalization – big data, Al, smart devices 5. Rollout of EVs in auto industry - infrastructure / load impact 6. Improving technologies for space heating and cooling Cost competitiveness of coal/gas 1. Rapidly increasing concern for climate change across the US 2. Increasing negative attitudes towards natural gas 3. Greater public acceptance for increased energy efficiency 4. Adoption of Electric Vehicles 5. Adoption of Smart products and impact on demand 6. Acceptance of non-utility players providing new energy services 7. Increased adoptions of DERS - rooftop solar, batteries, etc. 1. Increasingly aggressive local building efficiency codes 2. Growing number of states / cities with 100% renewable targets 3. Various carbon tax proposals across the US 4. Transport and buildings de- carbonization policies 5. Potential for rate and utility model restructuring 6. High local resistance to any new gas infrastructure development 7. Potential impact of 2020 election 43 CRAC Charles River Associates#44Creating a Foundation to Support Future Growth External Growth Energy Practice Internal Initiatives Continued search for lateral hires, group hires and acquisitions and rainmakers We have looked closely at more than 20 potential acquisition targets, but have not yet found a good match for the firm Development of more formal practice structure to support future growth A major, structured push in 2020 for enhanced branding across multiple offerings A focus on targeted marketing to the top law firms, utilities, and banks in the energy industry Institution of formalized programs in: Staff development Knowledge management - Intellectual capital development Business development 44 CRA Charles River Associates#45Representative Client Engagements Litigation & Regulatory Support We supported dissenting shareholder litigation related to a going-private transaction in renewable energy, and in the process examined the global market for renewable power and manufacturing, global sustainability trends, regulatory policy across different markets, energy technology manufacturing costs, and funding conditions for manufacturers. 45 49 Energy Practice Strategic Consulting & Utilities Faced with low usage growth and rising retail rates, a large US utility retained CRA to help them develop a capital allocation strategy. Our team developed a first-of-its-kind rate benchmarking model that enabled the client to analyze its planned spending and rate growth against a peer set and optimize their strategic decisions. CRAC Charles River Associates#46Forensics Overview Forensic Services Practice CRA's Forensic Services Practice assists companies in reaffirming their commitment to integrity by independently responding to allegations of fraud, waste, abuse, misconduct, and non-compliance. We deliver deep and timely insights by deploying cross-trained teams of experienced forensic professionals. Fraud investigation Cyber and data incident response Cyber incident insurance claims 46 く Forensic accounting Theft of trade secrets White collar defense Digital forensics Post-acquisition disputes Healthcare fraud and compliance Expert testimony and litigation support Blockchain and cryptocurrency Business intelligence and reputational due diligence Our clients include boards of directors, the C-suite, outside counsel, and insurance carriers CRAC Charles River Associates#47Forensics Overview Our staff include: CPAs 47 47 Investigators Former law enforcement officers Former "Big Four" auditors CFES, CAMS, CFFs Chicago Toronto 50 Practice Employees New York DC Boston Forensic Services Practice Incident responders Former IT auditors Information security experts Computer forensics experts Source of Practice Revenue 19% 81% Billings of CRA Employees ■ External Consultants/Contractors Charles River CRAC Associates#48Growth Highlights and Strategy Forensic Services Practice Organic Strong investment in strategic business development activities Relationship building / internal marketing to support cross-practice collaboration, staffing and project referrals; bring best talent to the table to meet client needs Maximize the value proposition to clients: 48 000 808 Maintain "best in class” privacy and security standard for client data by obtaining ISO 27001 certification for the Practice Build infrastructure for scalability (digital forensics lab designed to be able to support clients globally) Use of staff from other practices and third party consultants to bring specializations to bear, and to "flex" staff capacity as needed to meet project deadlines Cross-train staff to add greater value more quickly and reduce single points of dependency Encourage and support professional development and credentialing of staff Lateral Target lateral revenue generators with focus on major markets; build out leverage as production grows Strengthen CRA's "forensics" brand in the marketplace to attract talent (e.g., recognized by Global Investigations Review as one of 10 investigations consultancies from around the world able to handle sophisticated cross- border government-led and internal investigations) CRA Charles River Associates#4949 Representative Client Engagements Forensic Services Practice On behalf of an investment management company with $15 billion of assets under management, our forensic accounting experts conducted a privileged independent assessment of whistle-blower claims, which included allegations of investor harm due to valuation model errors, and presented the results to the board of directors and to the US Securities and Exchange Commission. Our team assisted external counsel in preparing for anticipated regulatory enforcement actions and employment retaliation claims. When a nationwide financial services company was hit by a targeted phishing email campaign, thousands of customers became victims of wire fraud. 332519 A UNITED HE UNI Our cyber response experts traced the unauthorized network intrusions and identified impacted customers for timely notification. We helped the company assess its disclosure and regulatory reporting obligations, and prepare an insurance claim to recover costs and damages. 2 MC 366 In addition, we conducted an assessment of the model and the governance over the model. MB 73332519A TWENTY DOLLARS 100 KB 533216110 SOFAMER ACCM DYBALA TES Chris Scho KS 533216110 44100 Hounds £50 Bank of England CE CB EZ EXT EKP 20 Fifty Pounds CRA Charles River Associates#50Drivers of Demand for Forensic Services Forensic Services Practice Increased government regulation and enforcement at international / federal/state/local level, including: O Cyber risks/privacy rights Financial reporting and disclosure obligations, fuelled in part by whistle-blower reward programs Anti-bribery, anti-corruption Greater use of sweeps (e.g., new DOJ "strike force" to combat antitrust misconduct in government procurement) Increasing number and evolving complexity of cyber security incidents and thefts of trade secrets; growing risks of cyber sabotage/hacktivism Rising expectations from investors / regulators / plaintiffs around corporate governance / disclosures / financial reporting, including: Courts and regulators increasingly using monitorships to help resolve regulatory non-compliance or other misconduct 50 १९.९१११ 888856 Cyber Environmental/Social/ Governance/Stewardship CRA Charles River Associates#51Chad Holmes Financial Review CRA Charles River Associates#52529 52 Investment Thesis We are committed to being the firm of choice for our clients as they address their most important litigation, regulatory, and strategic challenges, as well as for our employees as they seek a fulfilling and exciting place to work 80% Leading experts in their respective fields Management team with strong track record of operating performance No long-term debt and history of strong cash flows 19 Value-based decision makers with disciplined capital allocation strategy Objective is to maximize the long-term value per share CRAC Charles River Associates#53Capital Allocation Philosophy 53 $262 Million Talent Acquisition & Maintenance, $85 Given the strength of our business, all investments have been funded from operations Capital Expenditures, $60 Redistribution to Shareholders, $117 Always seek to deliver returns well above our cost of capital Uses of Capital (FY2014-18) Note: Figures in millions of dollars CRA Charles River Associates#54Talent Acquisition and Maintenance Strategy $262 Million Forgivable Loan Issuances, Net, $67 Acquisitions, $18 Capital Expenditures, $60 Redistribution to Shareholders, $117 Uses of Capital (FY2014-18) Over this period, revenue has increased by 53%, or $144 million* Historically, our revenue growth has been balanced between organic and inorganic opportunities; our goal is to have a growth engine tilted toward organic initiatives and supplemented by inorganic pursuits to address gaps in our capabilities Talent investments will be focused on service offerings within our existing lines of business; recent investments have focused on expanding our offerings in the areas of forensic services and life sciences Talent maintenance investments average approximately 2% of annual revenue, although actual outlays vary from year to year When targeting individual revenue generators, forgivable loans are used at times as a form of talent acquisition capital Note: Figures in millions of dollars *Presented on a non-GAAP basis. A presentation of and reconciliation to the comparable GAAP financial measures appears at the end of this presentation. 54 CRA Charles River Associates#55Capital Expenditures 55 $262 Million Talent Acquisition & Maintenance, $85 Outlays associated with lease expirations and office expansions to accommodate growth accounted for $46 million of total capital expenditures Capital Expenditures, $60 Redistribution to Shareholders, $117 Uses of Capital (FY2014-18) Our real estate investments have focused on efficient space planning, reducing our square feet per employee by nearly 30% As a result, our real estate cost per employee has remained relatively flat over this time period As a professional services business, our non-real estate capital expenditures are typically modest, having averaged approximately $3 million per year Note: Figures in millions of dollars Charles River Associates CRAC#5656 90 Redistribution of Capital to Shareholders $262 Million Talent Acquisition & Maintenance, $85 We have repurchased 3.3 million shares at an average cost of $31.50 per share during 2014-2018 Capital Expenditures, $60 Dividend Payments, $12 Stock Repurchases, $105 Uses of Capital (FY2014-18) Repurchase activity has reduced net shares outstanding by 20% Initiated quarterly dividend of $0.14 per share in Q4 of 2016, with subsequent increases in 2017, 2018 and 2019 resulting in a current quarterly dividend of $0.23 per share During 2014-2018, stock repurchases and dividend payments have combined to deliver an average shareholder yield of 8% relative to our average market capitalization Note: Figures in millions of dollars CRA Charles River Associates#57Stock Repurchases Have Significantly Reduced Our Shares Outstanding, Magnifying the Per Share Value Gains Period-end shares outstanding (million) 11.0 10.0 9.0 8.0 7.0 10.0 9.2 8.9 8.3 8.3 8.0 7.7 2013 2014 2015 2016 2017 2018 Q3 2019 Repurchase Activity $2.2M 119K shares $18.44/share $25.5M 972K shares $26.27/share $12.8M 477K shares $26.86/share $19.1M 784K shares $24.33/share $19.5M 555K shares $35.23/share $27.9M 542K shares $51.51/share $18.1M 421K shares $42.94/share 44 57 CRAC Charles River Associates#58Without Relying on Debt, How Has CRA Funded Its Investments? 58 $262 Million Forgivable Loan Issuances, Net, $67 Acquisitions, $18 Capital Expenditures, $60 $195 Million Cash Flow from Operating Activities, $181 Redistribution to Shareholders, $117 Uses (FY2014-18) Note: Figures in millions of dollars Misc. Other Sources, $15 Sources (FY2014-18) CRA Charles River Associates#59Forgivable Loans Add Complexity to the Interpretation of Our Financial Statements Talent Acquisition Approaches Traditional M&A Hire Revenue Generators 59 Objective Upfront payment Acquire talent collectively Yes Acquire talent individually Yes Form of transaction consideration Tax treatment Need to renew Purchase price to/for LLC, C-Corp, etc. Slower amortization (up to 15 years) Potentially, depending on individual circumstances Forgivable loan(s) Faster amortization (3-8 years) Potentially, depending on individual circumstances Effects on Income Statement Amortize only value of identified intangibles; amounts added back when computing EBITDA Expense 100% of upfront payment over period of loan forgiveness, reflected as a non-cash charge to cost of services; amounts not added back when computing EBITDA Effects on Statement of Cash Flows Transaction consideration reflected in Cash Flow from Investing Activities Transaction consideration reflected in Cash Flow from Operating Activities CRA Charles River Associates#60Forgivable Loan Issuance Is Already Captured as a Deduction when Computing Cash Flow from Operating Activities $262 Million Forgivable Loan Issuances, Net, $67 Acquisitions, $18 Capital Expenditures, $60 $262 Million Forgivable Loan Issuances, Net, $67 Cash Flow from Operating Activities, $181 60 Redistribution to Shareholders, $117 Uses (FY2014-18) Note: Figures in millions of dollars Misc. Other Sources, $15 Sources (FY2014-18) CRA Charles River Associates#61Paul Maleh Closing Remarks and Q&A CRA Charles River Associates#62Being Good Stewards of Our Capital Has Propelled CRA's Stock Performance Cumulative Total Stock Returns (as of 31 October 2019) 1 Year 2 Years 3 Years 5 Years CRA 19% 20% 66% 72% S&P 500 14% 23% 52% 67% NASDAQ Composite 15% 26% 65% 90% Source: Capital IQ 62 62 CRA has been rewarded for its ability to support the business through prudent investments while at the same time returning capital to shareholders CRA Charles River Associates#63Expectations for the Future 63 Over the next several years and consistent with past performance, we intend to continue targeting the following metrics Average annual revenue growth in the mid-single digits driven primarily from organic pursuits Utilization in the mid-70s For FY2019, we have provided the following annual financial guidance on a constant currency basis Revenue range of $446 - $452 million* Upper half of non-GAAP EBITDA margin range of 9.2% - 10.2%* *FY2019 guidance as of October 31, 2019. Guidance is presented on a constant currency basis relative to fiscal 2018; a description of how CRA calculates constant currency financial measures appears at the end of this presentation. CRAC Charles River Associates#64Appendix Supplemental Financial Disclosures CRA Charles River Associates#65Reconciliation of non-GAAP financial measures ($ in millions, except per share data) Revenues Income from operations Operating margin (%) 2013 2014 Fiscal Years Ended 2015 2016 Fiscal YTD 2017 2018 Q3 2019 Q3 2018 $ 278.4 $ 306.4 $ 18.5 24.0 303.6 $ 12.4 324.8 $ 370.1 $ 417.6 18.9 15.8 $ 332.1 $ 308.9 28.9 22.1 21.1 6.7% 7.9% 4.0% 5.8% 4.3% 6.9% 6.6% 6.8% Net income (loss) attributable to CRA International, Inc. 11.4 13.6 7.7 12.9 7.6 22.5 16.0 15.6 Net income (loss) attributable to noncontrolling interest, net of tax (0.1) (0.2) (1.3) 1.3 0.1 0.0 Net income $ 11.2 $ 13.4 6.3 $ 14.2 $ 7.7 $ 22.5 $ 16.0 $ 15.6 Net income margin (%) 4.0% 4.5% 2.1% 4.4% 2.1% 5.4% 4.8% 5.1% Interest expense (income), net 0.4 0.4 0.5 0.5 0.5 0.6 1.0 0.6 Provision (benefit) for income taxes 6.7 9.9 5.5 7.7 7.5 6.5 4.8 5.0 Depreciation and amortization 6.4 6.4 6.6 7.9 8.9 10.0 7.7 7.3 EBITDA ($) $ 24.7 $ 30.2 $ 18.9 $ 30.3 $ 24.6 $ 39.6 $ 29.4 $ 28.5 EBITDA (%) 8.9% 9.9% 6.2% 9.3% 6.6% 9.5% 8.8% 9.2% Weight average shares outstanding (diluted) 10.2 9.9 9.2 8.6 8.5 8.6 8.2 8.6 Diluted earnings per share $ 1.12 $ 1.38 $ 0.83 $ 1.49 $ 0.89 $ 2.61 $ 1.94 $ 1.81 Reconciliation of GAAP revenue to non-GAAP revenue: GAAP revenue $ 278.4 $ Revenue from GNU (5.1) Non-GAAP Revenue $ 273.4 $ 306.4 $ (4.8) 301.6 $ 303.6 $ (3.8) 299.8 $ 324.8 $ (0.8) 324.0 370.1 $ 417.6 $ 332.1 $ 308.9 $ 370.1 417.6 $ 332.1 $ 308.9 Reconciliation of GAAP net income to non-GAAP net income: GAAP net income $ 11.2 $ 13.4 $ Revenue from GNU (5.1) (4.8) 6.3 $ (3.8) 14.2 $ 7.7 22.5 $ 16.0 $ 15.6 (0.8) Other 5.1 5.1 9.2 (2.2) 8.6 1.4 3.4 1.0 Tax effect of non-GAAP Adjustments 0.2 0.2 (1.6) 0.3 0.1 (0.2) (0.9) 0.0 Non-GAAP Adjustments, net of tax 0.3 0.5 3.8 (2.7) 8.7 1.2 2.5 1.0 Non GAAP net income 11.5 $ 13.9 10.1 $ 11.5 $ 16.4 $ 23.7 $ 18.5 $ 16.6 Non-GAAP net income margin (%) 4.2% 4.7% 3.3% 3.6% 4.4% 5.7% 5.6% 5.4% Non GAAP net income (loss) per diluted share outstanding $ 1.13 $ 1.41 $ 1.10 $ 1.33 $ 1.91 2.75 $ 2.25 $ 1.92 65 CRA Charles River Associates#66Reconciliation of non-GAAP financial measures (cont.) Fiscal Years Ended Fiscal YTD 2013 2014 2015 2016 2017 2018 Q3 2019 Q3 2018 Reconciliation of GAAP income from operations to non-GAAP income from operations: GAAP income from operations $ 18.5 $ 24.0 $ 12.4 $ 18.9 $ 15.8 $ 28.9 $ 22.1 $ 21.1 Revenue from GNU (5.1) (4.8) (3.8) (0.8) Other 5.1 5.1 9.7 1.6 8.8 1.7 3.4 1.0 Non-GAAP Adjustments (0.1) 0.3 5.9 0.8 8.8 1.7 3.4 1.0 Non-GAAP income from operations $ 18.4 $ 24.3 $ 18.3 $ 19.7 $ 24.6 $ 30.6 $ 25.5 $ 22.1 Non-GAAP operating margin 6.7% 8.1% 6.1% 6.1% 6.6% 7.3% 7.7% 7.2% Reconcilation of EBITDA to non-GAAP EBITDA: EBITDA $ 24.7 30.2 $ 18.9 $ 30.3 $ 24.6 $ 39.6 $ 29.5 $ 28.5 Non-GAAP adjustments to net income 0.2 0.5 3.8 (2.8) 8.8 1.2 2.5 1.0 Provision (benefit) for income taxes (0.2) (0.2) 1.6 (0.3) (0.1) 0.2 0.9 0.0 Non-GAAP Adjustments Non-GAAP EBITDA (0.0) 0.3 5.3 (3.0) 8.5 1.4 3.4 1.0 $ 24.7 $ Non-GAAP EBITDA Margin 9.0% 30.5 $ 10.1% 24.2 $ 27.2 $ 33.1 $ 41.0 $ 32.8 $ 29.4 8.1% 8.4% 9.0% 9.8% 9.9% 9.5% GAAP Difference due to GNU Non-GAAP and Other Revenue Growth (Fiscal Years 2014-2018) 50% 53% 3% Earnings per diluted share (EPS) Growth (Fiscal Years 2014-2018) 133% 143% 10% Revenue Growth (Fiscal Year 2018) Earnings per diluted share (EPS) Growth (Fiscal Year 2018) 13% 13% 0% 193% 44% -149% Revenue Growth (Fiscal Year 2019 YTD Q3) 8% 8% 0% Earnings per diluted share (EPS) Growth (Fiscal Year 2019 YTD Q3) 7% 17% 10% 66 CRA Charles River Associates#67Reconciliation of non-GAAP financial measures Notes: 1) Adjustments for GNU and Other These adjustments arise from activity related to GNU, CRA's majority owned subsidiary, formerly known as "NeuCo," in the Company's GAAP results. In April 2016, substantially all of GNU's assets were sold. Additional adjustments referred to as "Other" include goodwill and intangible impairment charges, restructuring charges, valuation changes in contingent consideration liabilities associated with prior acquisitions, consideration paid in connection with the IQVIA transaction, lease recapture and related tax effects, estimated impact of The Tax Cuts and Jobs Act ("Tax Act"), and certain other unusual charges. 2) Constant Currency Calculations CRA believes that fluctuations in foreign currency exchange rates can significantly affect CRA's financial results. Therefore, CRA provides a constant currency presentation to supplement disclosures regarding its results of operations and performance. CRA calculates constant currency amounts by converting its applicable fiscal period local currency financial results using the prior fiscal year's corresponding period exchange rates. 3) Forgivable Loan Issuances, Net Forgivable loan issuances represent amounts disbursed during the year, including current year advances as well as accrued advances from the prior year, net of repayments. For amounts denominated in foreign currencies, the issuances are translated at the spot rate on the date of disbursement. 62 67 CRAC Charles River Associates#68Investor Relations 68 CRA Charles River Associates Charles River Associates 200 Clarendon Street Boston, MA 02116 [email protected] in www.crai.com Follow Us f www.Linkedin.com/company/ charles-river-associates www.twitter.com/News_CRA 3 www.facebook.com/ Charles RiverAssociates www.youtube.com/ Charles RiverAssociates www.instagram.com/ charlesriverassociates Charles River Associates CRAS