Slide 1: Half Year Results
2024 Half Year Results Six months ending 31 March 2024 16 May 2024 Auction Technology Group 1
Slide 2: Agenda
Agenda 1. Results highlights 2. Financial performance 3. Strategic update and outlook 4. Q&A Auction Technology Group 2
Slide 3: 01. Results highlights
01. Results highlights John-Paul Savant, CEO Auction Technology Group 3
Slide 4: ATG is demonstrating the marketplace playbook works for the auction industry
ATG is demonstrating the marketplace playbook works for the auction industry, and we are executing against our investments VAS increased take rate and grew revenue VAS1 growth +44%/+0.7% Cross-listing drove incremental GMV on available auctions atgXL2 impact +9% GMV ESN added scale and accelerated n
Slide 5: 02. Financial performance
02. Financial performance Tom Hargreaves, CFO Auction Technology Group 5
Slide 6: HY24 Financial Highlights
HY24 Financial Highlights Revenue Adjusted EBITDA Adjusted EBITDA margin $86.0m $35.7m 42% +6% reported (6)% (5)ppt +1% organic Adjusted diluted EPS Adjusted free cash flow Adjusted net debt 16.6c $27.7m $141.6m (14)% 77% conversion1 1.9x leverage 1. Adjusted free cash flow as a percentage of adjust
Slide 7: Revenue: A&A grew strongly with VAS and ESN contribution; I&C down 2%
Revenue: A&A grew strongly with VAS and ESN contribution; I&C down 2%, but with improved momentum heading into 2H24 Revenue by segment Reported Organic • A&A grew 17% driven by strong performance from $m HY24 HY23 1 2 YoY % YoY % ESN acquisition Arts & Antiques 44.6 38.2 17% 5% Industrial & Commerci
Slide 8: HY revenue bridge: decline in GMV offset by VAS, ESN and favourable commission mix
HY 24 revenue bridge: decline in GMV offset by VAS, ESN and favourable commission mix Commission revenue down 9% YoY Includes impact of rotated volume Contribution to -5% 6% 1% 5% -1% 6% growth1 1. Percentage point contribution to Group organic revenue growth rate. 8
Slide 9: A&A: +17% reported growth driven by ESN and +5% organic
A&A: +17% reported growth driven by ESN and +5% organic due to strong VAS and event fees A&A operational KPIs and revenue Organic HY24 HY23 YoY %1 As expected, THV impacted by weakness in higher-value end markets and timing of Easter. THV $2.8bn $2.9bn (5)% Conversion rate flat with some initial ben
Slide 10: I&C deep dive: GMV impacted by asset prices, rotated volume & Proxibid
I&C deep dive: GMV impacted by asset prices, rotated volume & Proxibid. Improving GMV momentum on Proxibid in March and April Asset price normalisation impacted THV, with signs of stabilisation GMV down 19% due to rotated volume & Proxibid impacts, with on sequential basis stability in other I&C mar
Slide 11: I&C: Lower GMV on Proxibid partially offset by growth elsewhere
I&C: Lower GMV on Proxibid partially offset by growth on other I&C marketplaces, VAS and event fees I&C operational KPIs Organic HY24 HY23 YoY % THV decline represents rotated volume, asset price THV $3.9bn $4.3bn (9)% normalisation and annualisation of exceptional activity. Conversion rate impacted
Slide 12: Profit: Revenue mix and phasing of costs impact profit and margin
Profit: Revenue mix and phasing of costs impact profit and margin • Gross margin down 1% as high-margin event fee and marketing revenue Group financial summary offset by growth in shipping and payments and decline in commission $m HY24 HY23 Movement1 • One-off phasing of costs with higher costs in H
Slide 13: Adjusted EBITDA margin bridges
Adjusted EBITDA margin bridges: headwinds in H1 expected to reverse in the second half of FY24 H1 23 to H1 24 adj EBITDA margin bridge H1 24 to H2 24 forecast adj EBITDA margin bridge revenue & Reorganisation phasing mix and other savings Auction Technology Group 13
Slide 14: Balance sheet: Strong cash generation offset by final ESN payment
Balance sheet: Strong cash generation offset by final ESN payment, working capital timing and investments to drive organic growth Net debt bridge • Adj. net debt / adj. EBITDA of 1.9x vs 1.8x at year end (2.4x HY23) largely due to timing of payments • $12m deferred consideration and bonus retention
Slide 15: FY24 Guidance reiterated
FY24 Guidance reiterated Measure Guidance $175m-$180m, implying mid-point of 7% and including 2-5% organic growth Revenue H2 growth driven by continued strong growth from our strategic programmes and improving momentum on Proxibid, in conjunction with easing of year-on-year comparatives. Adjusted EB
Slide 16: 03. Strategic update and outlook
03. Strategic update and outlook John-Paul Savant, CEO Auction Technology Group 16
Slide 17: Customers continue to increase trust in ATG to deliver value
Customers continue to increase trust in ATG to deliver value and unlock access to the widest range of curated specialized secondary items Auctions facilitated Lots listed 44,000 12.6m A Queen Anne heavy baluster Clarice Cliff collectors piece sold +3% +7% wine glass from 18th century for £18,000 (es
Slide 18: ATG has the potential for step-function share gain with an integrated suite of products
ATG has the potential for step-function share gain with an integrated suite of products that raise auctions to online buying standards ATG today HORIZON 3 HORIZON 2 Highlights Expansion – Roll out value - add – Raised E2E closer to e- HORIZON 1 services commerce standards E2E experience – Build high
Slide 19: ATG creates differentiated value by solving core customer problems
ATG creates differentiated value by solving core customer problems. Where we have invested, we have grown During Covid Today Investments driving VAS Investments driving GMV - atgPay - atgWL (white label) - atgShip - atgXL (Cross-listing) - atgAMP - ESN (with LA-X-list) +44% YoY +5-10% GMV uplift on
Slide 20: atgAMP: Subscription packages, self-serve features and high ROI
atgAMP1: Subscription packages, self-serve features and high ROI have driven +22% paid-for auctioneer marketing revenue % of auctioneers using ATG marketing % of auctions supported by marketing2 56% 59% 27% 30% HY23 HY24 HY23 HY24 Average YoY increase in Uplift in key metrics from auctioneer marketi
Slide 21: atgPay: payments revenue growth accelerated
atgPay: payments revenue growth accelerated driven by high penetration and refined pricing, with an improved margin Onboarding of US LiveAuctioneer auctioneers to atgPay Onboarding of Proxibid auctioneers to atgPay 48% 94% 91% 38% 83% 75% 21% 61% 61% 58% 0% 48% 41% 42% Sep 22 Mar 23 Sep 23 Mar 24 Pr
Slide 22: atgShip is both a direct revenue driver and a driver of GMV
atgShip is both a direct revenue driver and a driver of GMV Strong shipping KPIs since Positive impact on other New features launch marketplace KPIs Onboarded auctioneers >270 Conversion rate uplift Items shipped +6% 10,000 Active buyers with atgShip % US listed items covered by atgShip +9% 9% Run a
Slide 23: atgXL differentiates ATG's offering to auction houses and bidders alike
atgXL differentiates ATG’s offering to auction houses and bidders alike, driving impact and ease for auctioneers and choice for bidders Before atgXL After atgXL Auctioneer Auctioneer Multiple inventory uploads and auction management, with Single upload of inventory which reduces costs price incentiv
Slide 24: atgXL differentiates ATG from all the competition
atgXL differentiates ATG from all the competition and accelerates our network effect, providing a GMV opportunity…800+ auctions, +$100m GMV since launch Add Auction House logo here +9% average GMV uplift from atgXL auctions Auction Technology Group 24
Slide 25: ESN cross-listing demonstrates the impact of new bidder traffic on the ATG flywheel
ESN cross-listing demonstrates the impact of new bidder traffic on the ATG flywheel and the unique advantages we derive from acquisitions Now incentivising ESN sellers to Driving ESN traffic to …with high ROI, supporting switch online auctions to ATG LiveAuctioneers… further auctioneer uptake market
Slide 26: Proxibid has lapped the impact of standardizing the rate card
Proxibid has lapped the impact of standardizing the rate card and has leveraged our new atg white label + atgXL to win new clients and switch auctioneers from 3rd party white labels to the atg white label • Differentiated Product – Only ATG • Incentivises Timed Auction adoption • Brand + Bidders + S
Slide 27: ATG is confident in its outlook and excited about the future
ATG is confident in its outlook and excited about the future • ATG is following the marketplace playbook. We are investing to differentiate appeal of our core marketplace product and to increase monetization of each transaction. • We grow by creating customer value: Auctioneers want bidders, an easy
Slide 28: 04. Q&A
04. Q&A Auction Technology Group 28
Slide 29: 05. Appendix
05. Appendix Auction Technology Group 29
Slide 30: 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 HY24 HY23 HY24 HY23 HY24 HY23 $m $m $m $m $m $m Profit before tax 3.1 0.6 Profit attributable to equity Adj
Slide 31: Revenue and organic growth rate by product
Revenue and organic growth rate by product YoY $86.0m movement $80.8m 2% Content 2% 5% 6% +30% 20% +3% ex ESN Auction Services 16% Listing and other fees +44% 17% 23% +40% ex ESN Value Added Services 21% 19% A&A commission (9)% 37% 31% I&C Commission HY23 HY24 Auction Technology Group 31
Slide 32: KPIs by segment
KPIs by segment Organic Organic Organic $m A&A I&C Group 1 1 YoY % YoY % YoY %1 THV 2,826 (5)% 3,895 (9)% 6,721 (7)% Conversion rate 15% Flat 38% Down 5ppt 28% Down 4ppt GMV 412 (8)% 1,488 (19)% 1,900 (17)% Take Rate 9.5% Up 1.2ppt 2.4% Up 0.5ppt 3.9% Up 0.7ppt Marketplace Revenue $44.6m 5% $35.2m (
Slide 33: Auction Services & Content
Auction Services & Content Auction Service Revenue Content Revenue $5.0m $4.4m $1.8m $1.8m HY23 HY24 HY23 HY24 Auction Technology Group 33
Slide 34: 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
Slide 35: 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 35