Slide 1: Half Year Results
2023 Half Year Results Six months ended 31 March 2023 17 May 2023 Auction Technology Group
Slide 2: 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Disclaimer NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND DEPENDENCIES, ANY STATE OF THE UNITED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 3: Agenda
Agenda 1. Results highlights 2. Financial performance 3. Strategic update and outlook 4. Q&A Auction Technology Group 3
Slide 4: Results highlights
01. Results highlights John-Paul Savant Auction Technology Group 4
Slide 5: Unlocking the value of the curated secondary goods market
Unlocking the value of the curated secondary goods market and accelerating the growth of the circular economy Trust Auction Technology Group 5
Slide 6: HY 23 Highlights: Strong financial performance as we have lapped Covid-19
HY 23 Highlights: Strong financial performance as we have successfully lapped the Covid-19 period Robust Gross Merchandise Value growth Strong revenue growth to £67.3m High operational leverage driving adjusted to £1.9bn EBITDA2 to £31.5m +17% +17% 47% +5% +5% constant FX £31.5m organic1 46% £67.3m
Slide 7: HY 23 Highlights: Strong operational progress and continued momentum
HY 23 Highlights: Strong operational progress and continued momentum against strategic growth drivers 1 GMV +5% to £1.9bn driven by resilience of auctions & continued structural shift online 2 Acceleration of revenue growth through H1 having finished annualising Covid-19 comparators 3 Flat take rate
Slide 8: Financial performance
02. Financial performance Tom Hargreaves Auction Technology Group 8
Slide 9: HY Financial Highlights: Robust revenue growth, margin expansion and cash generation
HY 23 Financial Highlights: Robust revenue growth, margin expansion and cash generation Revenue Adjusted EBITDA Adjusted EBITDA margin £67.3m £31.5m 47% +17% reported +18% +1ppt +5% organic Adjusted diluted EPS Adjusted free cash flow Adjusted net debt 16.0p £21.8m £132.4m +19% 69% conversion1 2.3x
Slide 10: Solid revenue growth driven by strength in core business, FX and ESN
Solid revenue growth driven by strength in core business, FX and contribution from ESN Revenue by segment Revenue by product Reported Organic £m HY 23 HY 22 1 YoY % YoY % 2 Arts & Antiques 31.8 26.9 18% 4% £67.3m 2% Industrial & Commercial 29.8 25.1 19% 7% 6% £57.7m Total Marketplace 61.6 52.0 18% 6
Slide 11: I&C: Robust volume and revenue growth supported by strong end markets
I&C: Robust volume and revenue growth supported by strong end markets GMV (£bn) Take rate (%) Marketplace revenue (£m) YoY growth at 35% 20% YoY reported 17% 19% actual FX rate growth YoY organic 35% 7% YoY organic 16% 7% growth growth £1.5bn £29.8m 2.0% 1.9% £1.3bn £25.1m HY 22 HY 23 HY 22 HY 23 HY
Slide 12: A&A: Solid growth in the half with an improving exit growth rate
A&A: Solid growth in the half with an improving exit growth rate GMV (£bn) Take rate (%) Marketplace revenue (£m) YoY growth at 1% 5% YoY reported 16% 18% actual FX rate growth YoY organic 1% (3)% YoY organic 16% 4% growth growth £0.37bn 7.6% 8.3% £31.8m £0.35bn £26.9m HY 22 HY 23 HY 22 HY 23 HY 22
Slide 13: Growth in high margin commission and fixed fee revenue drives operational leverage
Growth in high margin commission and fixed fee revenue drives operational leverage • Adjusted EBITDA margin up 1 ppt to 47% Group financial summary Restated1 £m • Administrative expense increase driven by HY 23 HY 22 Movement1 Organic2 Revenue 67.3 57.7 17% 5% • £1.7m exceptional costs related to ac
Slide 14: Strong cash generation enabled acquisition of ESN while maintaining net debt
Strong cash generation enabled us to complete acquisition of ESN whilst maintaining net debt Net debt bridge • 69% adjusted free cash flow conversion • Strong trading activity at end of H1 leading to working capital outflow • Bonus payment and accrual • £4.1m capex primarily relates to single tech p
Slide 15: Strategic update and outlook
03. Strategic update and outlook John-Paul Savant Auction Technology Group 15
Slide 16: Executing against each of our six strategic growth drivers
We continued to execute against each of our six strategic growth drivers in the first half Pursue accretive Grow take M&A rate via VAS Expand operational leverage Enhance the network effect Grow the conversion rate Extend the TAM Auction Technology Group 16
Slide 17: Our end markets have been resilient with a growing supply of assets
Extend the TAM Our end markets have been resilient with a growing supply of assets to our marketplaces attracted by price realisation, transparency and speed of sale Total Hammer Value +11% constant FX £6.0bn A&A I&C Number of auctions hosted1 Number of lots listed £5.2bn £4.9bn +8% £4.0bn +14% £3.8
Slide 18: ATG consistently attracts new bidders due to choice, trust and convenience
Extend the ATG consistently attracts new bidders due to the choice, trust and TAM convenience. The resulting scale of bidders improves price realisation Significant scale in bidder reach with growth in many metrics post Number of bidders on each Proxibid lot in HY 231 Covid-191 1 bidder 20% >5 bidde
Slide 19: Conversion of 32% is >10 ppt higher than pre-pandemic
Grow the conversion Conversion of 32% is >10 ppt higher than pre-pandemic rate Group conversion rate of 32% is >10ppt higher than pre-pandemic Improvement in conversion rate for LFL auctioneer cohorts levels e.g. LiveAuctioneers since pre Covid-19 Covid-19 period Covid-19 period 33% 33% 32% 31% 26%
Slide 20: Improvements to drive bidder engagement and conversion
Grow the conversion We have made improvements to drive bidder engagement and rate conversion 30k more sessions to thesaleroom 12% increase in email alerts sent SEO updates including optimised driven by SMS alert including new browsed alert trigger1 sitemaps and event schema 1. for the saleroom Aucti
Slide 21: Facilitating the shift to timed auctions through price incentivisation
Grow the conversion We are facilitating the shift to timed by encouraging them through rate price incentivisation Timed auctions result in a higher registrant to bidder Our new pricing structure on Proxibid will help to incentivize the conversion1… shift to timed auctions Live 43% Timed 62% …as well
Slide 22: Integrated white label and easier cross-listing through Timed+
Enhance the network We have integrated our white label and made it easier for auctioneers effect to cross-list through the introduction of Timed+ Auctioneers can more easily reach more buyers -> higher hammer prices (+26%)1 Buyers can more easily access a wider range of inventory Unique value propos
Slide 23: Operational leverage through fixed fee increases, self serve and single platform
Expand operational We have driven operational leverage through fixed fee increases, self leverage serve features and progress against the single technology platform Progress against the single technology platform programme Rolling out self serve features including on marketing products ✓ Wire transf
Slide 24: Phase one of payments developed with encouraging auctioneer response
Grow take rate via We have developed phase one of payments and are encouraged by the VAS initial auctioneer response and take up Path of progression of payments at LiveAuctioneers Encouraging adoption rates on Proxibid in H1 23 %%ofofLA USauctioneer basebase LA auctioneer onboarded onboarded 83% % P
Slide 25: Strong growth in paid-for marketing solutions
Grow take rate via Strong growth in paid-for marketing solutions driven by growing VAS adoption as well as consistent new product development Growing penetration… New assets include sponsored search, % of auctioneers using ATG marketing improved email segmentation and 56% optimised homepage banners
Slide 26: EstateSales.NET is an attractive bolt on acquisition
Pursue accretive EstateSales.NET is an attractive bolt on acquisition, with near term M&A commercial opportunities as well as longer term revenue synergies Feb 23 Commercial opportunities to optimise the listing site Synergies with ATG and opportunity to enhance the estate sales marketplace Promote
Slide 27: Highlighting our green credentials; the sustainable way to shop
Highlighting our green credentials; the sustainable way to shop Facebook Twitter Instagram Auction Technology Group 27
Slide 28: Building an engaged and collaborative culture
Building an engaged and collaborative culture is a critical enabler of success Overall engagement score A connected and collaborative team The people I work with treat me with 93% respect. The people on my team collaborate & 93% help each other. I enjoy working with the people on my 95% team. Fav
Slide 29: FY 23 Guidance
FY 23 Guidance • As expected, improving rate of growth across the first half as well as at the start of the second half • Auction markets have remained robust despite an uncertain macroeconomic backdrop • A&A marketplaces have seen positive GMV growth for the three months to end of April • Reaffirm
Slide 30: Q&A
04. Q&A Auction Technology Group 30
Slide 31: Appendix
05. Appendix Auction Technology Group 31
Slide 32: Glossary of key definitions
Glossary of key definitions Term Definition A&A Arts and Antiques GMV gross merchandise value, representing the total final sale value of all lots sold via winning bids placed on the marketplaces or the platform excluding ESN, excluding additional fees (such as online fee and auctioneers’ commission
Slide 33: Reconciliation of APMs
Reconciliation of APMs Reconciliation of profit before tax to Reconciliation of profit after tax to adjusted Cash generated from operations and adjusted EBITDA earnings adjusted free cash flow HY 23 HY 22 HY 23 HY 22 HY 23 HY 22 £m £m £m £m £m £m Profit before tax 0.8 3.7 Profit attributable to equi
Slide 34: KPIs by segment
KPIs by segment Operational KPIs for I&C and A&A Organic Organic £m I&C 1 A&A 1 YoY % YoY % THV 3,580 +16% 2,445 +5% Conversion rate 43% Down 3ppt 15% Down 1ppt GMV 1,537 +7% 370 (3)% Take rate 1.9% Flat 8.3% Up 0.7ppt Marketplace Revenue 29.8 7% 31.8 4% 1. At constant FX rates. 34
Slide 35: Movement in gross debt
Movement in gross debt Movement in gross debt • Senior Loan facility is dollar denominated and carries an interest rate of SOFR + 3% margin • $53.7m pre-payment of Senior Facility • RCF drawdown in February to fund ESN acquisition • Partial repayment of RCF at end of February • Adjusted net debt/ ad
Slide 36: Auction Services & Content
Auction Services & Content Auction Service Revenue Content Revenue £4.1m £4.2m £1.6m £1.5m HY 22 HY 23 HY 22 HY 23 Auction Technology Group 36
Slide 37: The world's leading marketplaces and auction services for curated online auctions
The world’s leading marketplaces and auction services for curated online auctions www.auctiontechnologygroup.com investorrelations@auctiontechnologygroup.com press@auctiontechnologygroup.com © Auction Technology Group 37