IAA Catastrophe Response Strategy: Real Estate Capacity

Overview

When the unexpected happens, a swift recovery is critical to ensure business continues and communities get back on their feet. IAA’s Catastrophe Response Strategy is sound and scalable, enabling us to respond to the unpredictability, size and frequency of any weather event. Because these catastrophe events, such as wildfires, hurricanes and tornadoes, have many shifting variables, a proactive yet flexible process is necessary to ensure a timely and appropriate response.

IAA’s Catastrophe Response Strategy provides an unmatched level of service to our customers in their greatest time of need. It comprises four key areas: Real Estate Capacity, Operational

Execution, Transportation Logistics and Vehicle Merchandising.

Here, we dive deeper into Real Estate Capacity.

During catastrophic weather events, there can be a rapid increase in insurance vehicle claim volume. The proximity of storage yards to the event and their safe accessibility by insurance professionals and their policyholders is critical. Strategically determining where to secure additional capacity to meet increased volume demands is fundamental to the service and response IAA provides during catastrophes.

The location of yards, the organization of vehicles, and the accessibility to customer assets is critical to ensuring an efficient response process. Storage yards need to be close to the actual CAT event to minimize the time to transport vehicles, and to decrease travel time for adjusters and appraisers. IAA uses our standard vehicle storage structure and spacing within catastrophe storage yards to ensure adjusters can perform their duties safely and efficiently.

IAA’s industry-leading Catastrophe Response Strategy includes our Flexible Capacity Model™. This allows us to secure additional acreage where and when it is needed, providing our customers ample space, efficient accessibility and close proximity to the affected area.

Flexible Capacity Model

IAA is dedicated to providing ample acreage in the right locations to service our customers following a CAT event. In alignment with nearly all emergency-planning protocols, IAA utilizes a Flexible Capacity Model given the unpredictable behavior of all weather-related catastrophes.

The Flexible Capacity Model leverages properties that are leased, owned, or contractually optioned to ensure IAA can provide inventory space where needed, rather than only where property is owned.

In comparison, a fixed capacity model for catastrophes results in significant challenges for customers managing a large influx of vehicle claims. Owned properties located further away from areas affected by a catastrophe create:

• High risk of inaccessibility

• Longer travel times for adjusters and appraisers

• Inability to shift and move to meet uncertain nature of weather events

• Longer transport cycle times potentially affecting policyholder satisfaction

• Inefficient transport dispatch and routing

Our Flexible Capacity Model provides the ability to shift — potentially multiple times — based on a storm’s path, to absorb increased volume across multiple locations.

An example of this occurred with Hurricane Dorian in 2019. Over four days, the storm shifted and traveled over 980 miles with the potential to hit 12 locations. IAA’s Flexible Capacity Model ensured we had property near all potential landfall destinations.

NASCAR Real Estate Agreement

In 2020, IAA extended our agreement with NASCAR. The groundbreaking agreement extends through the end of 2030 and includes tracks located in Miami, FL, Daytona, FL, Darlington, SC and Richmond, VA.

2016 | IAA established the industry’s first real estate relationship with NASCAR for Richmond Raceway. Post-Hurricane Matthew, IAA entered a long-term relationship to utilize NASCAR tracks for CAT response.

14 | Racetracks in catastrophe prone areas are available upon notice.

IAA Real Estate Overview

IAA’s historical success in servicing catastrophes and our capacity to manage them is unmatched in the industry. A fixed capacity model is not designed to shift or adjust to meet the dynamic nature of weather-related catastrophes. Our Flexible Capacity Model provides real-time agility to meet the very uncertain nature of weather events. This is made possible through not only IAA’s operational sites, but also sites from Ritchie Bros., another brand within the RB Global suite.

IAA and Ritchie Bros. Operational Branches

9,900+ | Acres of property in the U.S.

2,200+ | Acres of additional/incremental property throughout the U.S. through our continued agreement with NASCAR and others

300+ | Globally

180+ | Throughout the continental U.S.

49 | Located in nearly all U.S. states

CAT-Prone State Properties

6,100+ | Acres of CAT-prone state property in the U.S

2,200+ | Acres of additional/incremental property available through our continued agreement with NASCAR and others

900+ | Acres of property in Florida

900+ | Southeast Coastal Region (GA, SC, NC, and VA)

250+ | Acres of property in the Gulf Region (TX, LA, MS, and AL)

IAA's Competitive Advantages

• Consistent delivery of the industry’s leading CAT service and response in all events over the last 40 years.

• Significant capacity in CAT-prone areas to handle large-scale vehicle events based on the exposure in the region and through property lease, acquisition and options.

• Substantial additional space in more than 50 locations throughout coastal regions.

• Best solution in the very uncertain environment of the annual hurricane season, when a storm’s intensity, direction and speed can change by the hour.

• Optimal locations allow insurance companies’ assets to be located in highly organized yards close to the affected area.

• Agreement with NASCAR providing usage of 14 facilities.

• Customer’s accessibility to their vehicle assets in localized yards and IAA vehicle alignment methodology that allows for safe and efficient inspections.

Forward-Looking Statements 

Certain statements contained in this release include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) and Canadian securities laws. Forward-looking statements are typically identified by such words as “aim”, “anticipate”, “believe”, “could”, “continue”, “estimate”, “expect”, “intend”, “may”, “ongoing”, “plan”, “potential”, “predict”, “will”, “anticipates”, “should”, “would”, “could”, “likely”, “generally”, “future”, “long-term”, “foresees”, “estimates”, “opportunity” or the negative of these terms, and similar expressions intended to identify forward-looking statements. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially. These statements are based on our current expectations and estimates about our business and markets, and may include, among others, statements relating to IAA’s Catastrophe Response Strategy, our future strategy, objectives, targets, projections and performance and other statements that are not historical facts. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the combined companies or the price of RB Global’s common shares. Therefore, you should not place undue reliance on any such statements, and caution must be exercised in relying on forward-looking statements. While RB Global’s management believes the assumptions underlying these forward-looking statements are reasonable, these forward-looking statements involve certain risks and uncertainties, many of which are beyond RB Global’s control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to: our results of operations, strategy and plans; potential adverse reactions or changes to our business or employee relationships; our ability to integrate acquisitions (including IAA, Inc. ), the diversion of management time on transaction-related issues; the ability of RB Global to retain and hire key personnel and employees; the significant costs associated with the merger; the outcome of any legal proceedings that could be instituted against RB Global; changes in capital markets and the ability of the company to generate cash flow and/or finance operations in the manner expected or to de-lever in the timeframe expected; the failure of RB Global to meet financial forecasts and/or KPI targets; legislative, regulatory and economic developments affecting the business of RB Global; general economic and market developments and conditions; the evolving legal, regulatory and tax regimes under which RB Global operates; unpredictability and severity of catastrophic events, including, but not limited to, pandemics, acts of terrorism or outbreak of war or hostilities, as well as RB Global’s response to any of the aforementioned factors. Other risks that could cause actual results to differ materially from those described in the forward-looking statements are included in RB Global’s periodic reports and other filings with the Securities and Exchange Commission (“SEC”) and/or applicable Canadian securities regulatory authorities, including the risk factors identified under Part I, Item 1A “Risk Factors” in RB Global’s most recent Annual Report on Form 10-K for the year ended December 31, 2023. The forward-looking statements included in this release are made only as of the date hereof. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Many of these risk factors are outside of our control, and as such, they involve risks which are not currently known that could cause actual results to differ materially from those discussed or implied herein. RB Global does not undertake any obligation to update any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law.