Slide 1: Q3 2020 Earnings Review and Update
Q3 2020 EARNINGS REVIEW AND UPDATE rb RITCHIEBROS.
Slide 2: Forward looking statements and non-GAAP measures
Forward looking statements and non-GAAP measures Caution Regarding 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”), in
Slide 3: Ann Fandozzi, Chief Executive Officer
Ann Fandozzi Chief Executive Officer 3
Slide 4: Third Quarter - CEO Perspectives
Third Quarter - CEO Perspectives Our True North Performance ▪ Be there for our consignors when they need liquidity ▪ Strong 3Q amidst uncertain environment the most while keeping the health and safety of our ▪ Continue to drive solid demand and price employees and customers at the forefront performa
Slide 5: Strong Performance against our Q3 Priority Focus Areas
Strong Performance against our Q3 Priority Focus Areas ▪ Continue vigilance on hygiene, disinfection protocols and social HEALTH AND SAFETY distancing guidelines OF OUR EMPLOYEES ▪ Continue to work-from-home policy & CUSTOMERS ▪ Mandatory safety (PPE) gear for our team members (e.g. masks) ▪ Message
Slide 6: Sharon Driscoll, Chief Financial Officer
Sharon Driscoll Chief Financial Officer 6
Slide 7: Third Quarter Highlights
Third Quarter Highlights All amounts In USD unless otherwise stated, growth YoY YTD Cashflow GTV TOTAL REVENUE REPORTED ADJUSTED from Operations (in billions) (in millions) EPS EPS (in millions) $1.3 +22% $331 +14% $0.41 +78% $0.44 +91% $266 -14% ▪ Strong GTV growth in all regions and channels ▪ Rob
Slide 8: Third Quarter Consolidated Performance ($mm)
Third Quarter Consolidated Performance ($mm) SERVICE INVENTORY SALES OPERATING ADJUSTED NET TOTAL REVENUE REVENUE REVENUE INCOME INCOME +25% - 2% +14% + 68% +92% 331.5 222.7 67.4 48.6 289.8 178.6 111.2 108.9 40.1 25.2 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20 • 24% increase in • Total invent
Slide 9: Auctions & Marketplaces - Service Revenue
Auctions & Marketplaces - Service Revenue 26% Year-Over-Year Service revenue driven by strong execution across all regions ▪ US Service revenue +28% ▪ Canada Service revenue +20% ▪ International Service revenue +26% A&M Service Revenue & mix as a % of total GTV 250 15.0% 14.3% 14.5% 200 13.8% 14.0%
Slide 10: Auctions & Marketplaces – Inventory Sales Revenue
Auctions & Marketplaces – Inventory Sales Revenue A&M INVENTORY SALES REVENUE (MIX) $200 Lower inventory volumes in 15.0% 11.2% 10.6% 10.3% 10.4% Canada and US partially $150 offset by increases 8.2% 7.9% 8.2% 10.0% $100 international 5.0% $50 Government surplus $131 $159 $111 $114 $90 $155 $109 $-
Slide 11: SG&A Expenses
SG&A Expenses SG&A dollars increased 3Q20 78.4 15.9 5.510.4 $110.2 18% to $110.2(b) million SG&A primarily driven by Expense higher performance 3Q19 60.7 14.6 10.0 8.4 driven employee Breakdown $93.7 compensation partially in millions (USD) Employee Compensation Buildings/Facilities/ Technology offs
Slide 12: Balance Sheet & Liquidity Metrics
Balance Sheet & Liquidity Metrics 2020 Balance sheet and liquidity metrics Adjusted Net Debt/ TTM Operating TTM Return On Net Capex Spend Adjusted EBITDA Free Cash Flow Invested Capital (non-GAAP) (non-GAAP) (non-GAAP) 3Q20 3Q19 3Q20 3Q20 3Q19 3Q20 3Q19 $260.4M $334.4M $28.8M 0.5X 1.4X 11.5% 8.6% •
Slide 13: Ann Fandozzi, Chief Executive Officer
Ann Fandozzi Chief Executive Officer 13
Slide 14: Rouse expected to accelerate our evolution
Rouse expected to accelerate our evolution ▪ Rouse offers a highly complementary suite of data and service products that is expected to accelerate Ritchie Bros.’ evolution to a global trusted marketplace for used equipment and services ▪ Rouse accelerates new data and technology platforms to offer c
Slide 15: Rouse Services overview
Rouse Services overview ▪ Leading provider of information services to the industrial equipment industry Business overview ▪ Proprietary database of actual transactional and operational information augmented nightly through a network connections with industry participants ▪ Analytics – Benchmarking s
Slide 16: Strong cultural fit with shared core principles
Strong cultural fit with shared core principles Care, custody and Customer-first culture Data driven insights control of data Shared belief on Strong cultural fit arming customers Data integrity, with a shared core with the right tools reliability, and strict value of deep focus and deep data to confide
Slide 17: Current Trends and Looking Forward
Current Trends and Looking Forward Q4 PRIORITIES BALANCE SHEET HEALTH AND SAFETY CUSTOMER STRENGTH & OF OUR EMPLOYEES EXPERIENCE FINANCIAL & CUSTOMERS FLEXIBILITY Q4 CONSIDERATIONS Opportunities Risks ▪ Distressed consignors need liquidity quickly ▪ Resurgence in Covid drives new restrictions ▪ Gove
Slide 18: Monday, December 7, 2020
Monday, December 7, 2020 10:00 a.m. ET Virtual To register for the event, please visit: http://investor.ritchiebros.com 18
Slide 19: Q&A
Q&A Members of the RBA Management Team 19
Slide 20: Appendix
Appendix rb RITCHIEBROS.
Slide 21: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 21
Slide 22: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 22
Slide 23: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 23
Slide 24: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 24
Slide 25: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 25
Slide 26: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 26
Slide 27: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 27