Auction Technology Group Plc · LSE:ATG
Auction Technology — H1 FY21 Earnings Presentation
33 slides from Auction Technology's earnings presentation, May 26, 2021
Slide 1: FY21 - Interim Results
FY21 - Interim Results Six months ended 31 March 2021 26 May 2021
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE STRICTLY CONFIDENTIAL AND ARE NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRI
Slide 3: Agenda
Agenda Session 01. Results summary 02. Financial review 03. Strategy & outlook 04. Q&A 05. Appendix 2
Slide 4: 01. Results summary
01. Results summary John-Paul Savant
Slide 5: ATG's unique customer value proposition
ATG’s unique customer value proposition Leading the evolution of the auction industry from offline to online by driving higher asset returns for auctioneers and by giving bidders access to the best curated inventory of specialised and unique items in the world Connecting Enabling Discovering Over 20
Slide 6: A reminder of our model and business
A reminder of our model and business Consignments Consignors benefit from auctioneer valuations, storage, curation, and sale of assets, with maximum exposure. Bidders Auction Houses Empowering bidders to Levelling the playing field for buy at auction in a trusted, auctioneers, enabling greater reach
Slide 7: HY1 highlights – Continued excellent momentum
HY1 highlights – Continued excellent momentum Excellent HY1 results for both revenue and profitability Structural shift online accelerated by Covid has been sustained, with key online share gains most notably at Proxibid Our shared success model has attracted incremental THV from existing auctioneer
Slide 8: HY1 – Financial & operational metrics
HY1 – Financial & operational metrics Aggregate Revenue Aggregate Adjusted EBITDA Bidder Sessions £34.5m £17.0m 64m 1 +48% +158% +35% Total Hammer Value Online Share % Gross Merchandise Value £3.0bn 37% £1.1bn 1 1 1 +31% +13pp +101% Note: KPIs and revenue reflect the Group’s aggregate operations, AT
Slide 9: HY1 FY21 saw a continuation of trends that began in FY20
HY1 FY21 saw a continuation of trends that began in FY20 Substantial market expansion combined with increased online share Shift to online maintained… Proven adoption of online model for BidSpotter demonstrates the opportunity for other marketplaces Online Share % H1 FY21 THV £36m £207m £1,813m £457
Slide 10: 02. Financial review
02. Financial review Tom Hargreaves
Slide 11: Group financial summary
Group financial summary Aggregate YoY Var. £m HY1 FY21 HY1 FY20 Headline Organic ◼ Excellent revenue growth as structural shift online Aggregate Revenue 34.5 23.3 48% 41% continues accelerated by covid tailwinds. Cost of Sales (11.5) (10.6) (8%) ◼ Reported revenue growth boosted by acquisition of Gr
Slide 12: Group organic revenue growth
Group organic revenue growth Reported growth: Actual FX rates 48% Organic growth: 41% Constant FX rates “ “ “ “ 2 3 1 xx YoY % ¹ Six week period from 13 Feb 20 to 31 Mar 20 2 01 Oct 19 to 12 Feb 20 for ATG 3 01 Oct 19 to 12 Feb 20 for Proxibid 11
Slide 13: Aggregate revenue by type
Aggregate revenue by type Aggregate Revenue by type (£m) Commission Other Marketplace Auction Services Content Commission % Total 60% 73% 66% 96% ◼ Commission, charged as a % of GMV, Digital 93% 96% % Total continues to be the main driver of growth as £34.5m more lots are sold through our marketplac
Slide 14: Revenue by segment
Revenue by segment Aggregate YoY Var. £m HY1 FY21 HY1 FY20 Reported Organic Arts & Antiques 8.1 6.7 21% 22% Industrial & Commercial (inc. CS&R) 21.5 14.2 51% 59% Total Marketplace 29.6 20.9 42% 47% Auction Services 3.5 0.8 338% (5%) Total Digital Revenue 33.1 21.7 53% 45% Content 1.4 1.6 (13%) (13%)
Slide 15: Total marketplace KPIs – THV, online share, GMV
Total marketplace KPIs – THV, online share, GMV THV (£bn) Online share (%) GMV (£m) Actual FX rate 6% 17% 27% 23% 114% 94% Constant FX rate 5% 17% 31% 22% 116% 101% 42% £3.0bn 37% £2.4bn £2.5bn 24% £1,018m £1,114m £576m HY1 HY2 HY1 HY1 HY2 HY1 HY1 HY2 HY1 FY20 FY20 FY21 FY20 FY20 FY21 FY20 FY20 FY21
Slide 16: Total marketplace - Take rate and revenue
Total marketplace - Take rate and revenue Take rate (%) Total revenue (£m) Actual FX rate 12% 43% 42% Constant FX rate 11% 44% 47% ◼ As expected, take rate declined from prior year due to revenue uncorrelated with online share (such as event fees) growing at rates below GMV, combined with a change i
Slide 17: Industrial & Commercial KPIs – THV, online share, GMV
Industrial & Commercial KPIs – THV, online share, GMV THV (£bn) Online share (%) GMV (£m) Actual FX rate 7% 22% 35% 28% 129% 99% Constant FX rate 6% 23% 41% 27% 132% 108% 48% £2.2bn 43% £1.9bn £1.6bn 29% £886m £945m £475m HY1 HY2 HY1 HY1 HY2 HY1 HY1 HY2 HY1 FY20 FY20 FY21 FY20 FY20 FY21 FY20 FY20 FY
Slide 18: Industrial & Commercial KPIs – Take rate and revenue
Industrial & Commercial KPIs – Take rate and revenue Take rate (%) Total revenue (£m) Actual FX rate 17% 63% 51% Constant FX rate 17% 65% 59% ◼ Take rates stable following volume and mix driven decline seen in HY2 20. 3.0% £20.5m £21.5m 2.3% 2.3% £14.2m HY1 HY2 HY1 HY1 HY2 HY1 FY20 FY20 FY21 FY20 FY
Slide 19: Arts & Antiques KPIs – THV, online share, GMV
Arts & Antiques KPIs – THV, online share, GMV THV (£bn) Online share (%) GMV (£m) Actual FX rate 3% 2% 10% 4% 47% 68% Constant FX rate 3% 2% 10% 4% 48% 69% £0.83bn 22% £0.75bn 20% £0.59bn 13% £132m £169m £101m HY1 HY2 HY1 HY1 HY2 HY1 HY1 HY2 HY1 FY20 FY20 FY21 FY20 FY20 FY21 FY20 FY20 FY21 ◼ THV rec
Slide 20: Arts & Antiques KPIs – Take rate and revenue
Arts & Antiques KPIs – Take rate and revenue Take rate (%) Total revenue (£m) Actual FX rate 1% 2% 21% Constant FX rate 1% 3% 22% ◼ The recovery in THV combined with a return to charging event fees in TSR resulted in a 21% YoY growth in revenue, 6.7% £8.1m 5.0% £6.7m £6.6m 4.8% HY1 HY2 HY1 HY1 HY2 H
Slide 21: Auction Services and Content
Auction Services and Content Auction Services revenue (£m) Content revenue (£m) Actual FX rate (2%) (7%) 338% 5% (29%) (13%) Constant FX rate (3%) (6%) 371% 5% (29%) (13%) £3.5m £1.6m £1.4m £1.2m £0.8m £0.7m HY1 HY2 HY1 HY1 HY2 HY1 FY20 FY20 FY21 FY20 FY20 FY21 ◼ Auction Services includes revenues f
Slide 22: Balance sheet and operating cash flow
Balance sheet and operating cash flow Balance sheet (£m) Operating cash flow (£m) £m 31 Mar 21 30 Sept 20 £m HY1 FY21 Goodwill 140.4 124.0 Adjusted EBITDA 17.0 Other Intangible assets 75.9 74.9 Property, plant and equipment 0.4 0.5 Movement in working capital (1.1) Right of use / other non-current 1
Slide 23: 03. Strategy & outlook
03. Strategy & outlook John-Paul Savant
Slide 24: ATG's Strategy is working; we will continue to drive it in HY2 21
ATG’s Strategy is working; we will continue to drive it in HY2 21 Our vision is to be: The largest global digital marketplace for the buying and selling of all things at auction Our mission is to: Lead the evolution of the auction industry as the trusted partner, securely connecting businesses, coll
Slide 25: Multiple growth levers to sustain momentum
Multiple growth levers to sustain momentum Grow Take Rate via Pursue VAS Accretive Expand M&A operating leverage Enhance the Network effect Grow online penetration Extend the TAM 24
Slide 26: Outlook
Outlook • Sustained post-Covid momentum • Gains in all segments; progression of online only auctions • THV expansion extends TAM and upside growth potential • Bidder acquisition key focus: End-to-end UX, SEO, and CRM • Multiple growth levers to sustain momentum 25
Slide 27: Current trading
Current trading Trading for the year to date has been strong and as a result we are currently trading ahead of Board expectations. However we remain mindful that we have yet to lap the very strong Covid comparators and accordingly our expectations for FY22 currently remain unchanged. 26
Slide 28: Thank You
Thank You 27
Slide 29: 04. Q&A
04. Q&A
Slide 30: 05. Appendix
05. Appendix
Slide 31: Recap on terms used
Recap on terms used Term Definition HY1 FY20 – Reported Represents the six week period from formation of the current group on 13 Feb 20 to 31 Mar 20 Reflect the Group’s aggregate operations, ATG and Proxibid on a combined basis for all periods plus Aggregate later acquisitions on an acquired basis O
Slide 32: Reported interim P&L reconciliation
Reported interim P&L reconciliation Reported Aggregate 1 Oct 19 – 13 Feb 20 – Total £m HY1 FY21 12 Feb 20 31 Mar 20 HY1 FY20 Revenue 16.8 6.5 23.3 34.5 Cost of Sales (7.3) (3.3) (10.6) (11.5) Gross Profit 9.5 3.1 12.7 23.0 Administration expenses (7.9) (9.6) (17.5) (35.2) Other operating income 0.0
Slide 33: Revenue by segment - Prior year restatement
Revenue by segment - Prior year restatement £m FY18 FY19 FY20 HY1 FY21 Industrial & Commercial 22.6 25.8 35.8 - Arts & Antiques 11.7 13.5 13.7 - Content 3.5 3.2 2.8 - Aggregate Revenue - IPO 37.7 42.5 52.3 - Industrial & Commercial (1.1) (1.2) (1.2) - Arts & Antiques (0.4) (0.4) (0.4) - Auction Serv
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