Openlane, Inc. · NYSE:OPLN
Openlane — KAR Auction Services — Merger or Acquisition (February 2022)
12 slides from Openlane's merger presentation, Feb 24, 2022
Slide 1: February 2022 Investor Presentation
// February 2022 Investor Presentation KAR AUCTION SERVICES, INC.
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements Certain statements contained in this presentation include, and KAR may make related oral, “forward - looking statements” within th e meaning of the Private Securities Litigation Reform Act of 1995 and which are subject to certain risks, trends and uncertainties. In par
Slide 3: Today's Speakers
3 KAR GLOBAL | INVESTOR PRESENTATION Today’s Speakers Peter Kelly CEO and Board Member, KAR Eric Loughmiller Executive Vice President and CFO, KAR • Executive Vice President and CFO since 2007 • Prior to KAR, served as Vice President and CFO of ThoughtWorks, Inc. from 2001 to 2006 • Served as Execut
Slide 4: Our vision is to build the world's greatest digital marketplaces for used vehicles
4 KAR GLOBAL | INVESTOR PRESENTATION - OUR VISION IS TO BUILD - The world’s greatest digital marketplaces for used vehicles KAR GLOBAL | INVESTOR PRESENTATION
Slide 5: Overview of ADESA U.S. Physical Auction Business Sale Transaction
5 KAR GLOBAL | INVESTOR PRESENTATION Overview of ADESA U.S. Physical Auction Business Sale Transaction 1. Cash Payment: $2.2bn for the sale of ADESA U.S. Physical Auction Business to Carvana • Cash Proceeds Net of Taxes and Fees: Expected taxes and fees of ~$550mm result in net cash proceeds of ~$1.
Slide 6: Transaction Rationale
6 KAR GLOBAL | INVESTOR PRESENTATION Transaction Rationale Divestiture of higher fixed cost physical auction business Solidifies KAR’s position as a digital marketplace leader with a large and high - growth market opportunity Catalyzes the transition to a more asset - light and lower overhead operat
Slide 7: KAR Global at a Glance
7 KAR GLOBAL | INVESTOR PRESENTATION KAR Global at a Glance North American Digital Marketplaces Leader in Commercial Off - Premise Digital Marketplace Leader in Dealer Off - Premise Digital Marketplace Leader in Canadian Wholesale Marketplace International Leading digital wholesale platform with ope
Slide 8: Analyst Day Targets September 21, 2021
8 KAR GLOBAL | INVESTOR PRESENTATION Analyst Day Targets September 21, 2021 KAR Post - Transaction Revenue Growth ~7% CAGR 2020 - 2025 Higher Gross Margin in 2025 >50% margin ex - purchased vehicles Higher Adj. EBITDA Margin in 2025 28 - 30% ex - purchased vehicles Higher Adj. EBITDA Growth ~15% CAG
Slide 9: Estimated EBITDA Impact of the Transaction
9 KAR GLOBAL | INVESTOR PRESENTATION Estimated EBITDA Impact of the Transaction ~$100mm Reduction in KAR FY22 Adj. EBITDA (1) (1) Net impact on FY22 full year basis accounting for the positive adj. EBITDA impact of the Commercial Service Agreement and el imination of additional stranded costs
Slide 10: Next Steps
10 KAR GLOBAL | INVESTOR PRESENTATION NEXT STEPS Closing Focused on steps required to close the transaction Investor Communication To provide further detail closer to closing date Analyst Day Update Upcoming presentation to provide outlook for digital business
Slide 11: What Does This Transaction Do For KAR?
11 KAR GLOBAL | INVESTOR PRESENTATION What Does This Transaction Do For KAR? Accelerates digital marketplace vision Enhances financial profile Increases focus & ability to invest in most strategic, highest growth solutions Unlocks significant shareholder value Simplifies our business and enables us
Slide 12: Q&A
Q&A KAR AUCTION SERVICES, INC.
KAR Auction Services — Merger or Acquisition (February 2022) on 6ix