Auction Technology Group Plc · LSE:ATG

Auction Technology — H1 2025 Earnings Presentation

31 slides from Auction Technology's earnings presentation, May 15, 2025

  1. Slide 1: 2025 Half Year Results

    2025 Half Year Results Six months ending 31 March 2025 15th May 2025 Auction Technology Group 1

  2. Slide 2: Agenda

    Agenda 1. Results highlights 2. Financial performance 3. Strategic update and outlook 4. Q&A Auction Technology Group 2

  3. Slide 3: Results Highlights

    01 Results Highlights John-Paul Savant, CEO Auction Technology Group 3

  4. Slide 4: HY25 Highlights

    HY25 Highlights: Delivered +3.4% revenue growth, in line with guidance, and executed well vs all strategic growth initiatives Executed Allocated Stabilised Expanded Strengthened vs Strategic Capital GMV Take Rate leadership Initiatives Effectively +1%1 4.6%2 ~10% GMV $40m Key roles appointed uplift

  5. Slide 5: Financial Performance

    02 Financial Performance Rebecca Edelman, Director of Investor Relations Auction Technology Group 5

  6. Slide 6: HY25 Financial Highlights

    HY25 Financial Highlights Revenue Adjusted EBITDA Adjusted EBITDA margin $89.0m $38.5m 43% +3.4%1 +8% +1ppt +4% marketplace revenue Adjusted diluted EPS Adjusted free cash flow Adjusted net debt 19.0c $32.5m 2 $106.5m +14% 84% conversion 1.3x leverage 1. 2. +3.2% at constant currency. Adjusted free

  7. Slide 7: Group revenue of +3.4%

    Group revenue of +3.4%, driven by marketplace revenue of +4% and weighed down by a predicted drag from Auction Services • Total revenue +3.4%, driven by 4% marketplace revenue Revenue by segment growth $m HY25 HY24 YoY %1 • Revenue +3.2% on constant currency basis with small tailwind from strengthen

  8. Slide 8: HY25 group revenue growth of +3.4%

    HY25 group revenue growth of +3.4% driven by modestly positive commission revenue & by value-added services Commission revenue up 1% YoY $2.7m $0.8m $89.0m $86.0m $0.5m -$0.2m -$0.5m -$0.4m HY24 GMV Commission VAS Real Event & Auction Services & HY25 volume mix estate other fees Content ex real esta

  9. Slide 9: A&A marketplace revenue grew 4%

    A&A marketplace revenue grew 4% in a difficult environment driven by strong performance from value-added services and ESN • Headline THV +3% YoY A&A operational KPIs and revenue • Conversion rate down slightly impacted by dilutive mix of assets listed with THV growth driven by HY25 HY24 YoY % listin

  10. Slide 10: Strong +5% growth in I&C

    Strong +5% growth in I&C driven by GMV performance & continued growth in value-added services. I&C core categories +7% revenue • THV up 3%, benefiting from stabilisation of used asset I&C operational KPIs and revenue (excluding real estate) prices and steady auction volumes • Conversion rate down ~1

  11. Slide 11: Lowered administrative expenses and net finance costs

    Lowered administrative expenses and net finance costs, adj EBITDA margin of 43% (+1ppt) and adj EPS of 19.0c (+14%) • Gross margin -2ppt impacted by increase in software amortisation and higher payroll costs Group financial summary Move- • Admin expenses down 9% benefiting from lower share-based pay

  12. Slide 12: Successfully refinanced our debt

    Successfully refinanced our debt creating a new $200m RCF and commenced a $40m share repurchase programme Successful debt refinancing Share repurchase programme launched • Refinanced Senior Term Loan & RCF • Strategic capital allocation • prioritise growth, organic and inorganic • New $200 Million R

  13. Slide 13: Decreased leverage with strong cash generation

    Decreased leverage with strong cash generation of $38.3m offsetting internal investment & share repurchase programme • $32.5m adjusted free cash flow and 84% Net debt bridge conversion (HY24: 77%) • Capex in line with FY25 guidance ($12m-$13m) & primarily relates to investments in strategic initiati

  14. Slide 14: Strategic Update

    03 Strategic Update John-Paul Savant, CEO Auction Technology Group 14

  15. Slide 15: In HY25, we successfully executed against all product & operational initiatives

    In HY25, we successfully executed against all product & operational initiatives set out at our FY24 Results  single-upload for cross-listing now live with strong interest and atgXL good results post launch  eLabel launched combined with shipping mandate on atgShip LiveAuctioneers from April with s

  16. Slide 16: atgXL single upload is now live

    atgXL single upload is now live, with strong interest from auctioneers and an increase in activity since launch in March Synchronized bidding on own • Consistently strong uplifts in asset prices of ~10%. site & atg marketplaces Hammer • Single upload feature: 1 place to create, edit & manage lots. S

  17. Slide 17: Launched atgShip eLabel

    Launched atgShip eLabel, enabling atgShip for lower cost items, and mandated atgShip as an option across Live Auctioneers atgShip mandate addresses a key pain point and atgShip has performed well over last 12 months… creates a more consistent buying experience March 24 March 25 • Mandated April 1st.

  18. Slide 18: atgAMP continued to grow strongly

    atgAMP continued to grow strongly and we also introduced “atgAMP packages” to capture more auctioneer spend AMP packages maximise value by combining ATG’s extensive portfolio of Increase in marketing spend per marketing assets into compelling, tiered marketing solutions auctioneer across major marke

  19. Slide 19: Our new search & discovery team

    Our new search & discovery team saw promising results from initial improvements to help casual browsers become active buyers Improved saved searches visibility New recommendation model Improved onboarding process 30% uplift in likeliness to bid if customer uses >60% more clicks saved search1 from ex

  20. Slide 20: We strengthened our leadership team

    We strengthened our leadership team with key Executive and Board appointments Sarah Highfield, Lakshimi Andrew Miller, Sejal Amin, CFO Duraivenkatesh, CTO Non-Executive Non-Executive Experienced CFO, including Tesco, Extensive 2-sided marketplace Former CFO of Autotrader. In- In-post CTO of Pricelin

  21. Slide 21: In H2 25, we will continue to execute

    In H2 25, we will continue to execute on the initiatives that drive GMV and improve our competitive differentiation Growth Driver What’s next o Promote across auctioneers atgXL o Launch for live auctions o Use to drive white label adoption o Implement mandate atgShip o Test & evolve product & pricin

  22. Slide 22: ATG remains well positioned

    While the backdrop is volatile and uncertain, ATG remains well positioned with good momentum from strategic programmes • Execution… that steadily is differentiating our offering • Resilience… reflected in above market rates of revenue growth • Levers… atgShip, atgAMP, atgXL with momentum to build on

  23. Slide 23: ATG maintains our full year guidance

    ATG maintains our full year guidance1 and will monitor and adapt to the situation as uncertainties in the macro picture are resolved Measure Guidance Revenue 4-6% revenue growth Adjusted EBITDA margin 45% - 46% Net finance cost 7% effective interest rate on c.$116m average gross debt balance plus ot

  24. Slide 24: Q&A

    04 Q&A Auction Technology Group 24

  25. Slide 25: Appendix

    05 Appendix Auction Technology Group 25

  26. Slide 26: KPIs by segment

    KPIs by segment Excluding real estate Constant currency Constant currency Constant currency $m A&A I&C Group YoY %1 YoY %1 YoY %1 THV $2.9bn 3% $3.7bn 3% $6.6bn 3% Conversion rate 14% Down 1ppt 34% Down 1ppt 25% Down 1ppt GMV $0.4bn (1)% $1.3bn 2% $1.7bn 1% Take Rate 9.8% Up 0.3ppt 2.9% Up 0.1ppt 4.

  27. Slide 27: Reconciliation of APMs

    Reconciliation of APMs Reconciliation of profit before tax to adjusted Reconciliation of profit after tax to adjusted Cash generated from operations and adjusted EBITDA earnings free cash flow HY25 HY24 HY25 HY24 HY25 HY24 $m $m $m $m $m $m Profit before tax 8.9 3.1 Profit attributable to equity Adj

  28. Slide 28: Revenue and organic growth rate by product

    Revenue and organic growth rate by product $86.0m $89.0m Content 2% 2% 4% 5% HY24 HY25 YoY Auction Services $m $m cc 25% 23% Content 1.8 1.8 (5)% Value Added Services Auction Services 4.4 4.0 (9)% 20% 20% Value Added Services 19.7 22.4 14% Event and other fees Event and other fees 17.2 17.6 2% 19% 1

  29. Slide 29: Capital allocation

    Capital allocation ATG will continue to carefully manage its balance sheet, including retaining a prudent and appropriate level of liquidity headroom. Our priorities for capital allocation are: 1. Organic investment 2. M&A 3. Shareholder returns ATG continues to focus on driving ATG may supplement t

  30. Slide 30: Disclaimer

    Disclaimer NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND DEPENDENCIES, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), CANADA, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE

  31. Slide 31: Operator of world-leading marketplaces and auction services for curated online auctions

    Operator of world-leading marketplaces and auction services for curated online auctions www.auctiontechnologygroup.com investorrelations@auctiontechnologygroup.com press@auctiontechnologygroup.com © Auction Technology Group 31

Auction Technology Group — H1 2025 Earnings Presentation on 6ix