Liquidity Services, Inc. · NASDAQ:LQDT

Liquidity Services — Q4 FY2016 Earnings Presentation

25 slides from Liquidity Services's earnings presentation, November 2016

Slide 2: Forward-Looking Information
Forward-Looking Information This document contains forward-looking statements. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause our actual results, leve
Slide 5: Our Purpose: Clients, Buyers, Planet
OUR PURPOSE: To intelligently capture the enduring value of surplus, benefiting our clients, our buyers, and our planet. CLIENTS BUYERS PLANET For enterprises with used, idle, For organizations and consumers For the planet’s natural resources, or excess assets and inventory: looking to achieve busin
Slide 6: Delivering Maximum Value to Clients
Delivering Maximum Value to Clients Better Service OUR VALUE Superior levels of industry and asset expertise, responsiveness, PROPOSITION intelligence, and analytics that achieve high-performance results aligned to your strategic goals TO CLIENTS Better Scale Complete solutions tailored to your indu
Slide 7: Services
Services Liquidity Services provides organizations in every major industry with consultative surplus asset management, valuation, and sales solutions. ©2015 Liquidity Services, Inc. All Rights Reserved. 7
Slide 9: Providing Superior Buyer Experiences
Providing Superior Buyer Experiences OUR VALUE Superior Product Quality and Information Large volumes and recurring flows of products; refurbishment services to PROPOSITION enhance and ensure product quality; ability to view detailed product TO BUYERS information, ask questions, and inspect items Fa
Slide 10: Your Global Partner
Your Global Partner With locations all over the world, Liquidity Services provides you with global coverage for your reverse supply chain. 45 locations 23 countries 6 continents United States Owings Mills, MD China India South Africa Anaheim, CA Plainfield, IN Hong Kong Mumbai Cape Town Atlanta, GA
Slide 11: North American Reach
North American Reach With 12 warehouses and fulfillment centers totaling over two million square feet and five lots totaling over 110 acres, we can meet your storage and transportation needs across North America. Warehouses Warehouses Groveport, OH Lockbourne, OH Oklahoma City, OK (2) Hayward, CA Fu
Slide 12: Market Opportunity
Market Opportunity $50 Billion $3 Billion Retailers & OEMs U.S Public Sector $8 Billion $20 Billion $48 Billion Energy Industrial Capital Assets Transportation $130 Billion Total Addressable Market Our Clients Across Industries ©2015 Liquidity Services, Inc. All Rights Reserved. 12
Slide 13: Growth Strategy
Growth Strategy Acquire Complementary Businesses Develop and Expand Vertical Enhance Features Market Segments and Services and Expertise Grow Buyer Increase Develop Base and Increase Penetration of New Seller Penetration Existing Sellers Relationships Consistent execution of growth strategy delivers
Slide 15: LiquidityOne Transformation Initiative
LiquidityOne Transformation Initiative The key modules are: LiquidityOne Transformation(LOT) is a transformation program that Customer Management Module (CMM): involves defining best practices management of buyer/client leads, contacts, and customer support across the company and building a modern t
Slide 16: Why LiquidityOne?
Why LiquidityOne? Enables singular, more powerful network Simplify and streamline operations by effect, provides our buyer base with enabling common playbooks and global access to all the property available across standard operating procedures all marketplaces, and provides a common account experien
Slide 17: Increased Efficiency Enables Growth
Increased Efficiency Enables Growth Self-service model to capture new segments of Enhanced the commercial AssetZone and market data analytics capabilities and business model Expanded RTV (CAG, RSCG) and refurbishment programs Tuck-in acquisitions to deepen and broaden our Organic growth industry by
Slide 18: IronDirect: New Marketplace Launched in Q4-FY16
IronDirect: New Marketplace Launched in Q4-FY16 is a new B2B marketplace offering construction equipment buyers a revolutionary and safe way to purchase, manage and resell the machines, attachments and parts needed to maximize uptime, productivity and working capital. Leveraging Liquidity Services C
Slide 20: Financial Highlights
Financial Highlights Compelling Business Model  High Customer Value  Multiple, Recurring Revenue Streams  Large Average Transaction Values  Diversified Product and Customer Mix  Significant Barriers to Exit as Critical Mass Builds Strong Financial Position  $134.5 million of Cash  Debt Free ©
Slide 21: Strong Track Record of Growth
Strong Track Record of Growth* Multiple, Synergistic GMV 973 932 Revenue Streams 864 799 642 559  Consignment Model 430 360 356  Profit Sharing Model 234 173  Purchase Model  Revenue Share Model 06 07 08 09 10 11 12 13 14 15 16  Service Revenue Fiscal Year ended 9/30  Buyer Premium Fees Revenu
Slide 22: Diversification
Diversification GMV Mix Pricing Model Seller Base Purchase State & Local 25.6% Gov’t Consignment 38.0% Commercial 68.8% 44.8% DoD Other Surplus 5.6% 11.6% Other 5.6% Q4 FY16 Q4 FY16 ©2015 Liquidity Services, Inc. All Rights Reserved. 22
Slide 23: Profitability
Profitability Adjusted EBITDA(1) $110.0 $104.6 $63.0 $52.5 $37.5 20.7% $33.1 $26.2 $23.6 23.1% $20.4 12.7% $15.0 13.1% 15.6% 8.3% 9.9% 10.0% 10.3% $3.7 10.2% 1.2% 06 07 08 09 10 11 12 13 14 15 16 Fiscal Year ended 9/30 Note: Percentages indicate margin based on GAAP Revenue (1) Adjusted EBITDA shown
Slide 24: Reconciliation of Financial Data
Reconciliation of Financial Data In Thousands Year ended Septem ber 30, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net Income (Loss) $7,981 $11,019 $11,553 $5,719 $12,013 $8,512 $48,296 $41,104 $30,390 ($104,815) ($59,926) Interest & other expense (income), net (431) (2,176) (1,495) (516

Liquidity Services — Q4 FY2016 Earnings Presentation on 6ix

Liquidity Services — Q4 FY2016 Earnings Presentation

Slide 1: Investor Presentation Fourth Quarter Fiscal Year 2016

Slide 2: Forward-Looking Information

Slide 3: ©2015 Liquidity Services, Inc. All Rights Reserved.

Slide 4: ©2015 Liquidity Services, Inc. All Rights Reserved.

Slide 5: Our Purpose: Clients, Buyers, Planet

Slide 6: Delivering Maximum Value to Clients

Slide 7: Services

Slide 8: Client Depth Across Industries

Slide 9: Providing Superior Buyer Experiences

Slide 10: Your Global Partner

Slide 11: North American Reach

Slide 12: Market Opportunity

Slide 13: Growth Strategy

Slide 14: Current Initiatives

Slide 15: LiquidityOne Transformation Initiative

Slide 16: Why LiquidityOne?

Slide 17: Increased Efficiency Enables Growth

Slide 18: IronDirect: New Marketplace Launched in Q4-FY16

Slide 19: Financial Results

Slide 20: Financial Highlights

Slide 21: Strong Track Record of Growth

Slide 22: Diversification

Slide 23: Profitability

Slide 24: Reconciliation of Financial Data

Slide 25: Investor Relations