Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results © 2023 RB Global, Inc. | All Rights Reserved 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements and forward-looking information within the meaning of applicable US and Canadian securities legislation (collectively, “forward- looking statements”), including, in particular, statements regarding future financial and
Slide 3: Key Messages
Key Messages Focus on execution drove strong flow through to Adjusted EBITDA from GTV growth Modern checkout product powered by RB marketplace technology piloted Significant progress on integration and achieving cost synergies © 2023 RB Global, Inc. | All Rights Reserved 3
Slide 4: Significant Progress on Integrations
Significant Progress on Integrations Integration Cost Synergies Growth Opportunities Preparing Ritchie Bros. team Realized $7 million cost synergies in Focused on delivering the very best members to process catastrophic the second quarter service level to customers salvage volumes Actioned $36 milli
Slide 5: Gross Transaction Value
Gross Transaction Value Sector Growth* Geographic Split* 30% 19% 13% 15% 10% 9% 11% 8% 8% 8% 9% 7% 5% 5% 5% 4% Automotive Commerical Other Total United States Canada International Total GTV Construction & Transportation Lot volume GTV As reported Constant currency * Reported gross transaction value
Slide 6: Service Revenue and Take Rate
Service Revenue and Take Rate Service Revenue Service Revenue Take Rate $806 M 19.5% $703 M $108 M 18.5% $77 M $465 M $408 M $218 M $233 M 2Q 22* 2Q 23 2Q 22* 2Q 23 Commissions Buyer Fees Marketplace Services * Pro forma combined • Service revenue increased 15% YoY on a pro forma combined basis on a
Slide 7: Inventory Revenue, Return and Rate
Inventory Revenue, Return and Rate Inventory Revenue $35.0 M Inventory Return and Rate 30.0% $302 M $300 M $30.0 M $30.0 M 25.0% $25.0 M 20.0% $20.0 M 15.0% $15.0 M 9.9% 10.0% $10.0 M $8.5 M 2.8% 5.0% $5.0 M $0.0 M 0.0% 2Q 22* 2Q 23 2Q 22* 2Q 23 Return Rate * Pro forma combined • Inventory revenue d
Slide 8: Adjusted EBITDA and Adjusted Diluted EPS
Adjusted EBITDA and Adjusted Diluted EPS Adjusted EBITDA Adjusted Earnings Per Share $0.85 $0.74 2Q 22 2Q 23 Adjusted EBITDA increased 13% YoY when compared to the combined Adjusted EBITDA of IAA and Adjusted EBITDA Ritchie Bros. for the year-ago period, on strong flow through Adjusted EPS increased
Slide 9: Balance Sheet & Liquidity
Balance Sheet & Liquidity Paid down $103 million in debt in the second quarter Targeting to 2.0x by end of the first quarter of 2025 21.4x 4.1x 2.6x 2.0x Debt / Net income Adjusted Net Debt / Adjusted Net Debt / 24 Month Post Close TTM Adjusted TTM Combined Target EBITDA Adjusted EBITDA • Expect int
Slide 10: Appendix
Appendix • Gross Transaction Value Overview • Revenue Overview • Expense Categories • How to Compute EPS Under Two-Class Method - Illustrative • Reconciliation of IAA’s Reported Adjusted EBITDA to RB Global Definition of Adjusted EBTIDA © 2023 RB Global, Inc. | All Rights Reserved 10
Slide 11: Gross Transaction Value Overview
Gross Transaction Value Overview Automotive Includes consumer automotive vehicles Commercial Construction and Transportation Includes heavy equipment such as excavators, dozers, lift and material handling, vocational and commercial trucks and trailers Other Includes agriculture, oil and gas, and gov
Slide 12: Revenue Overview
Revenue Overview Historically, Ritchie Bros. was about: Fee collected on services GTV from the Seller Commissions seller for acting as an agent for 60% Commissions, 40% Buyer Fees consigned assets IAA was about: 20% Commissions, 80% Buyer Fees Service Buyer Fees Fee collected from the buyer as part
Slide 13: Expense Categories
Expense Categories Costs of Services • Includes yards that support weekly auctions, such as the IAA’s yards and Ritchie Bros.’ GovPlanet locations • Costs of services also includes any direct costs incurred to earn auction revenue or marketplace services • Includes the cost of our inspectors for auc
Slide 14: How to Compute EPS Under Two-Class Method - Illustrative
How to Compute EPS Under Two-Class Method - Illustrative Illustrative Quarter 20XX Notes Numerator: Net income (loss) attributable to controlling interests XX Less: Dividend related to the issuance of redeemable convertible $6,668,750 Quarterly 5.5% dividend on $485 million of Preferred Shares Prefe
Slide 15: Reconciliation of IAA's Reported Adjusted EBITDA to RB Global Definition
Reconciliation of IAA’s Reported Adjusted EBITDA to RB Global Definition of Adjusted EBTIDA (in U.S. dollars in millions) Quarter ended July 3, 2022 Net income $ 82.7 Add: income taxes 10.1 Add: interest expense, net 11.5 Add: depreciation & amortization 26.6 EBITDA 130.9 Add back non-GAAP adjustmen