Slide 1: Half Year Results
2022 Half Year Results Six months ended 31 March 2022 19 May 2022 Auction Technology Group
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Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE STRICTLY CONFIDENTIAL AND ARE NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY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 1. Results highlights 2. Financial performance and outlook 3. Strategic update 4. Q&A Auction Technology Group 3
Slide 4: Results highlights
01. Results highlights John-Paul Savant Auction Technology Group 4
Slide 5: ATG – Unlocking the value of the curated secondary goods market
ATG – Unlocking the value of the curated secondary goods market and accelerating the growth of the circular economy
Slide 6: Unlocking the value of the curated secondary goods market
Unlocking the value of the curated secondary goods market Auction Technology Group 6
Slide 7: Accelerating the growth of the circular economy
Accelerating the growth of the circular economy Online auctions attract more bidders to auction vs offline Curation of assets More assets means gives bidder more bidders confidence The auction industry’s unique role in accelerating the circular economy Higher returns means more assets to auction tha
Slide 8: HY 22 Highlights
HY 22 Highlights THV +27%1; continued shift online, higher prices, more inventory, newer verticals Revenue Online share stable at 33%1; continued growth of timed online-only auctions £57.7m +16% 1 GMV +25%1; delivering growth on growth post Covid Diversification of revenue with 63% growth in value-a
Slide 9: Financial performance and outlook
02. Financial performance and outlook Tom Hargreaves Auction Technology Group 9
Slide 10: HY 22 Financial Highlights
HY 22 Financial Highlights Revenue Adjusted EBITDA Adjusted EBITDA margin £57.7m £26.8m 46% +16%1 +58% +1ppt from FY 21 Adjusted diluted EPS Adjusted Free Cash Flow Adjusted Net Debt 13.4p £24.3m £120m +>100% 91% conversion2 Below 2.5x leverage 1. On a proforma basis 2. Adjusted free cash flow as a
Slide 11: Solid progress made against our strategic KPIs
Solid progress made against our strategic KPIs GMV (£bn) Online share (%) THV (£bn) YoY growth at 89% 25% YoY growth at 29% 27% actual FX rate actual FX rate YoY growth at 97% 25% YoY growth at 34% 27% constant FX rate constant FX rate £1.6bn £4.9bn £1.3bn 33.8% 33.1% £3.8bn HY 21 HY 22 HY 21 HY 22
Slide 12: As we lap Covid-19, we have delivered growth on growth
As we lap Covid-19, we have delivered growth on growth GMV (£bn) THV (£bn) YoY growth at actual FX rate 25% YoY growth at actual FX rate 27% YoY growth at constant FX rate 25% YoY growth at constant FX rate 27% £1.6bn £4.9bn £1.2bn £1.3bn £1.3bn £3.8bn £4.0bn £3.0bn £3.1bn £0.7bn H1 20 H2 20 H1 21 H
Slide 13: Segmental performance – strength across both segments
Segmental performance – strength across both segments Revenue by segment KPIs by segment £m HY 22 HY 21 Reported Pro-forma £m A&A Pro-forma I&C Pro-forma YoY %1 YoY %2 YoY %2 YoY %2 Arts & Antiques 26.9 8.1 232% 16% THV 2,146 +28% 2,752 27% Industrial & Commercial 25.1 21.5 17% 16% Online Share 17%
Slide 14: An increasingly diversified and resilient revenue model
An increasingly diversified and resilient revenue model Revenue by type • Revenue model blends transactional fees and recurring SaaS-like subscription revenue £57.7m • Enables us to build loyalty with auctioneers and share £49.9m 15% in the upside as they grow – ensures high retention 11% rates irre
Slide 15: Strong reported and proforma revenue growth
Strong reported and proforma revenue growth Reported growth: Actual FX rates 67% Proforma growth: Constant FX rates 16% “ “ 1 1. Includes £0.2m for Auction Mobility 2. Average US dollar rate: HY 22 1.34 and HY 21 1.35 Auction Technology Group 15
Slide 16: High operational gearing resulted in strong profit growth
High operational gearing resulted in strong profit growth • Gross profit increased 70% to £39.1m; gross margin Group financial summary flat at 68% £m HY 22 HY 21 Reported Proforma YoY1 YoY2 Revenue 57.7 34.5 67% 16% • No exceptional costs in HY 22 Cost of Sales (18.6) (11.5) 62% • Adjusted EBITDA up
Slide 17: Strong cash generation driven by a capital light model
Strong cash generation driven by a capital light model Movement in cash excluding acquisition of LiveAuctioneers • Strong cash generation driven by high operational leverage and capital light model • Adjusted free cash flow conversion of 91% • Total cash consideration for LiveAuctioneers of £376.8m
Slide 18: Financial guidance – increased FY 2022 expectations
Financial guidance – increased FY 2022 expectations • Sales performance in the first half of 2022 was better than expected • Based on HY 22 outperformance and management’s unchanged view of second half FY 22, we are increasing our revenue guidance • For FY 22 we now expect low double digit proforma
Slide 19: Strategic update
03. Strategic update John-Paul Savant Auction Technology Group 19
Slide 20: Our mission: unlock the value in the secondary goods market
Our mission is to Unlock the value in the secondary goods market, for good. Auction Technology Group 20
Slide 21: The ATG investment case
The ATG investment case Structural shift offline to Strong competitive Strong and scalable online creating positive position - geographic and proprietary auction tailwinds vertical diversification platform technology and leadership Six proven growth levers Proven, attractive and Experienced resilien
Slide 22: Our growth is evidence of the value ATG provides
Our growth is evidence of the value that ATG provides for both auctioneers and bidders £4.9 billion Over 89 million Value of assets Bidding sessions listed More More eyes assets to on assets list Higher online Over 6 million Over 54 million prices Auction Bids placed registrations All data shown for
Slide 23: We continue to execute on each of our six growth levers
We continue to execute on each of our six growth levers Pursue accretive Grow Take M&A Rate via VAS Expand operating leverage Enhance the network effect Grow online penetration Extend the TAM Auction Technology Group 23
Slide 24: We have enhanced the value proposition for auctioneers and bidders
We have enhanced the value proposition for both auctioneers and bidders 1. Drive bidder acquisition 2. Increase auction registrations 3. Improve bidder success • Invest in SEO • Revamped marketing emails • Help auctioneers approve bidders faster • Improve site search • More relevant ads for bidders
Slide 25: We have enhanced the value proposition for auctioneers and bidders
We have enhanced the value proposition for both auctioneers and bidders 4. Grow timed online only 5. Maintain high auctioneer 6. Grow value add services • Further simplified cross-listing retention rates • +63% in HY 22 • THV on timed-online only +32% • Strong account management • Growth in both pay
Slide 26: LiveAuctioneers is performing ahead of our expectations
LiveAuctioneers is performing ahead of our expectations and the adoption of payments is growing rapidly • Integration into the Group is progressing well Rapid increase in the adoption of payments on LiveAuctioneers • Strong first half revenue growth, and strong growth in adoption of payments and adv
Slide 27: We have added to the breadth and depth of the ATG team
We have added to the breadth and depth of the ATG team • Significant depth and breadth of industry knowledge • Highly engaged team – 91% engagement rate in latest survey1 and 96% employee trust in leadership • New additions to the leadership team • Welcomed Pratyush Rai as Global Chief Technology Of
Slide 28: We have welcomed three new Board members
We have welcomed three new Board members Suzanne Baxter Pauline Reader Tamsin Todd Auction Technology Group 28
Slide 29: We are early in our journey to transform the auction industry
We are early in of our journey to transform the auction industry Horizon 1 Horizon 2 Horizon 3 Expansion E2E Experience • Launch of value-add services • Financing, restoration, • High standard ecommerce insurance, repair, maintenance • Upgraded UX Foundation & logistics • Integrated value chain • Ne
Slide 30: Extending into the auction ecosystem to enhance bidder value proposition
As we extend into the auction ecosystem, we will enhance the bidder value proposition, whilst also lowering auctioneer costs Key Value Add Services Take rates of market leaders1,2 18.9% Logistics & Delivery Payments Financing 12.9% 11.2% Insurance Storage 8.6% Restoration Repair 3.2%3 Upside potenti
Slide 31: We are early in our journey of growth and transformation
We are early in our journey of growth and transformation • Structural shift online • Diversified and resilient • Competitive position • Six growth drivers • Team to execute Auction Technology Group 31
Slide 32: Top 15 items sold on ATG save 1 million tonnes CO2
15 top items sold on ATG Save 1 million tonnes CO2 emissions equivalent to 50 million trees 2022 ATG carbon impact report per year Top 15 items accounts for c.600k lots out of a total 9.5m lots sold in FY 21 Potential saving in FY 21 compared to a worst case scenario in which all these items were di
Slide 33: Our ambition: save CO2 emissions equivalent to 1 billion trees
Our ambition is to Save CO2 emissions equivalent to 1 Billion trees per year Auction Technology Group 33
Slide 34: Q&A
04. Q&A Auction Technology Group 34
Slide 35: Appendix
05. Appendix Auction Technology Group 35
Slide 36: 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, on a proforma basis, excluding additional fees (such as online fee and auctioneers’ com
Slide 37: Reconciliation of FY 21 THV
Reconciliation of FY 21 THV FY 21 Gross THV FY21 Gross THV Less Duplications (FY21 published results) (updated) ATG excluding LiveAuctioneers £6.3bn (£0.6bn) £5.7bn LiveAuctioneers £2.4bn (£0.3bn) £2.1bn Proforma ATG £8.7bn (£0.9bn) £7.8bn On a proforma basis at actual rates Auction Technology Group
Slide 38: 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 22 HY 21 HY 22 HY 21 HY 22 HY 21 £m £m £m £m £m £m Profit/(loss) before tax 3.3 (22.6) Profit/(loss) att
Slide 39: Auction Services & Content
Auction Services & Content Auction Service Revenue Content Revenue £4.1m £3.7m £1.6m £1.4m HY 21 HY 22 HY 21 HY 22 HY 21 Revenue shown on a proforma basis Auction Technology Group 39
Slide 40: The world's leading marketplaces and auction services for curated online auctions
The world’s leading marketplaces and auction services for curated online auctions United Kingdom United States Germany (ATG Headquarters) Harlequin Building 4411 S 96th St Große Bäckerstraße 9 65 Southwark Street Omaha 20095 London, SE1 0HR NE 68127 Hamburg +44 203 725 5500 +1 877 505 7770 +49 (0) 4