Slide 1: Q3 2019 Earnings Review and Update
Q3 2019 EARNINGS REVIEW AND UPDATE ° . oy ° _ MOVE | BUILD | -GROW — : 29 een 8
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: Conference Call Participants
Conference Call Participants Sharon Driscoll Karl Werner Joint Interim Co-Chief Joint Interim Co-Chief Executive Officer Executive Officer & & Chief Financial Officer President, International 3
Slide 4: 3Q 2019 Highlights
3Q 2019 Highlights GROSS YTD Cashflow ADJUSTED TRANSACTION TOTAL REVENUE from DILUTED VALUE (in millions) Operations (in billions) EPS (in millions) $1.1 +4.3% $289.8 +18% $0.23 +28% $309 +218% +10% Reported ▪ FX headwinds: on a constant currency basis, Gross Transaction Value +5% ▪ Live GTV -3% ; O
Slide 5: Consolidated Performance
Consolidated Performance INVENTORY ADJUSTED ADJUSTED NET SERVICE REVENUE TOTAL REVENUE OPERATING INCOME REVENUE INCOME + 11% + 32% + 18% + 23% + 31% 111.2 289.8 40.2 25.3 84.0 32.7 178.6 245.3 19.3 161.4 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 • 4% increase in • Total inventory sales • Inc
Slide 6: Auctions & Marketplaces - Service Revenue
Auctions & Marketplaces - Service Revenue Service Revenue Mix by Region ▪ Service revenue increase of 12% driven by both strong guarantee rate performance and higher fee revenue from fee harmonization and GTV growth ▪ US Service revenue +19% 14% ▪ Canada Service revenue +2% 3Q 2019 ▪ International S
Slide 7: Auctions & Marketplaces - Inventory Sales Revenue
Auctions & Marketplaces – Inventory Sales Revenue Inventory Sales A&M INVENTORY SALES REVENUE Revenue mix by region • Inventory sales $200 15.0% 11.8% 11.2% 10.6% revenue increased 10.3% $150 32% primarily due to 8.1% 10.0% $100 an increase in 44% 44% $158 $131 $159 5.0% volume of inventory $50 $111
Slide 8: SG&A Expenses
SG&A Expenses 3Q19 60.7 14.6 10.0 8.4 $93.7 3Q19 vs 3Q18 57.0 15.1 9.3 7.0 SG&A expenses 3Q18 $88.3 increased 6% to $93.7 Employee Compensation Buildings/Facilities/ Technology million primarily due to Travel/Adv/Promotion Professional Fees/Other higher incentive compensation expenses, 11% 11% on-go
Slide 9: Balance Sheet & Liquidity Metrics
Balance Sheet & Liquidity Metrics 2019 Balance sheet and liquidity metrics (all unadjusted unless otherwise noted) Adjusted Net TTM Operating Debt/ TTM Return On Capex Spend Free Cash Flow Adjusted EBITDA Invested Capital (non-GAAP) (non-GAAP) (non-GAAP) 3Q19 3Q18 2019 Capex Range 3Q19 3Q18 3Q19 3Q1
Slide 10: Auction Highlights
Auction Highlights Live Industrial & Agricultural Auctions Online Marketplaces ▪ -3% Live Industrial Auction decline primarily due to ▪ 37% Online Marketplaces GTV growth led by MPE, agricultural and energy sector performance GOV growth ▪ 58% of live industrial auctions posted year-on-year ▪ Across
Slide 11: Marketplace-E (MPE)
Marketplace-E (MPE) Over $500 million GTV transacted since inception ▪ MPE has allowed RB to engage with new customers and penetrate new markets through a unique reserved platform ▪ Greater share of wallet - many MPE sellers prefer a reserved model ▪ MPE gives DIY sellers more control over equipment
Slide 12: Q4 Focus
Q4 Focus 1 Continued focus on sales execution 2 Advancing our key growth drivers 3 Leadership through the transition 4 Providing exceptional service to our customers 5 Continued expense management & cash flow focus 12
Slide 13: Takeaways from Q3
Takeaways from Q3 Execution of our multichannel strategy is showing positive results Strong Financial Performance Online GTV Acceleration 1 +5% GTV1 / +18% Tot.Rev / +23% Adj. OI / 2 +37% Growth +28% Adjusted EPS Strong US Region Performance Strong Balance Sheet / Cash Flow 3 Double-digit GTV growth
Slide 14: Q&A Members of the RBA Management Team
Q&A Members of the RBA Management Team 14
Slide 15: Appendix
Appendix : rb RITCHIEBROS.
Slide 16: 3Q19 and 4Q19 - Auction Calendar Notes
3Q19 and 4Q19 – Auction Calendar Notes 3Q19 Live Auction Notes 4Q19 Provisional Live Auction (Total Auctions = Live Industrial + Agriculture) Notes 3Q19 3Q18 +/- 4Q19 4Q18 +/- Total Live Auctions 56 68 -12 Industrial auctions 54 53 1 Non Recurring 2018 Auctions Ag Auctions 28 23 6 Estevan, SK 1 -1 8
Slide 17: Appendix - Non GAAP Reconciliations
Appendix – Non GAAP Reconciliations 17
Slide 18: Appendix - Non GAAP Reconciliations
Appendix – Non GAAP Reconciliations 18
Slide 19: Appendix - Non GAAP Reconciliations
Appendix – Non GAAP Reconciliations 19
Slide 20: Appendix - Non GAAP Reconciliations
Appendix – Non GAAP Reconciliations 20
Slide 21: Appendix - Non GAAP Reconciliations
Appendix – Non GAAP Reconciliations 21