Slide 1: Full Year Results
atg TECHNOLOGY 2023 Full Year Results Twelve months ended 30 September 2023 30 November 2023 Auction Technology Group
Slide 2: Agenda
] . Results highlights 2. Financial performance 5. Strategic update and outlook 4. Q&A N Auction Technology Group
Slide 3: Results highlights
QO] ~ highlights John-Paul Savant, CEO
Slide 4: GMV, Reported Revenue, Adjusted EBITDA
GMV Reported Revenue Adjusted EBITDA
Slide 5: In FY23, we continued to execute against key strategic objectives
In FY23, we continued to execute against key strategic objectives, creating more value for customers and growing new revenue streams +13% revenue growth to £135.2m; +5% organic and +6% marketplace, with growth in both A&A and 1&C +27% VAS revenue; strong auctioneer paid-for digital marketing, roll o
Slide 6: We grew both sides of our marketplace
We grew both sides of our marketplace, driving the virtuous circle by attracting more bidders and more unique secondary items Auctions facilitated Lots listed 86,000 22.3m +16% +10% Bidding sessions New account registrations 189M 1.6M +9% +12% Auction Technology Group 6
Slide 7: Financial performance
Financial 10 « performance Tom Hargreaves, CFO
Slide 8: FY23 Financial Highlights
FY23 Financial Highlights Revenue Adjusted EBITDA Adjusted EBITDA margin £135.2mM £64.0m 47% +13% reported +19% +2ppt +5% organic Adjusted diluted EPS Adjusted free cash flow Adjusted net debt 32.6p £49.9m £115./m +11% 78% conversion’ 1.8x leverage 1. Adjusted free cash flow as a percentage of adjus
Slide 9: Solid revenue growth driven by new revenue streams
We delivered solid revenue growth driven by strength in new revenue streams, the contribution from ESN and FX + Marketplace revenue +6%; growth in both A&A Revenue by segment and I&C driven by improvement in the take rate s are FY29 Reported Organic to 3.6% m YoY %' YoY % . . Arts & Anti aa 553 0% 5
Slide 10: Revenue streams: Content, Auction Services, Value Added Services
Content Auction Services Value Added Services Listing fees A&A commission I&C Commission
Slide 11: End markets slowed in the second half
Our end markets slowed in the second half, impacting our overall growth rate, but THV is still almost double pre Covid-19 levels THV by sector +3% constant FX £10.8bn £10.1bn £7.8bn £6.3bn FY21 FY22 FY23 BA&A BI&C THV growth by half year H1 21 H2 21 H1 22 H2 22 H1 23 H2 23 Growth at constant 34% 39%
Slide 12: A&A grew 6%, driven by VAS and event fees
A&A grew 6%, driven by strong VAS and event fees, offsetting the slowdown in THV, with underlying conversion rates stable Marketplace revenue A&A THV and GMV YoY organic growth? YoY reported growth’ 19% THV. GMV. YoY organic growth? 6% 5% (2)% (3)% (3)% FY22 FY23 Bo Be H1 23 H2 23 H1 23 H2 23 * 19%
Slide 13: I&C grew 7%, driven by take rate improvements
I&C grew 7%, driven by take rate improvements; GMV impacted by removal of low take-rate/ high service GMV and 2H THV deceleration Marketplace revenue 1&C THV YoY organic growth? YoY reported growth! 10% Total 16% (7)% YoY organic growth? % Excl rotated volume 17% (3)% £3.6bn £2.7bn = Rotated THV w U
Slide 14: Strong profit growth from high-margin revenue
We delivered strong profit growth driven by increasing high-margin revenue and maintaining operational leverage . Gross margin increase due to growth in high-margin event fee and Group financial summary marketing revenue £m FY23 FY22__ Movement! Administrative expense increase driven by Revenue 135.
Slide 15: Strong cash generation enabled de-leveraging and investment
Our strong cash generation enabled us to de-lever, invest organically and complete an accretive acquisition that expanded TAM Net debt bridge + Adj. net debt / adj. EBITDA reduced from 2.4x to 1.8x £64.0m (£9.3m) (£131.4m) net debt adjusted EBITDA capex 30 Sep 22 2.4x leverage (£18.6m) Za (£24.9m) u
Slide 16: Strategic update and outlook
John-Paul Savant, CEO
Slide 17: Executing against six strategic levers
In FY23, we executed against each of our six strategic levers, delivering value to our customers, even as our end-markets slowed Pursue accretive M&A Expand operational leverage Grow Take Rate via VAS Enhance the network effect Grow online penetration Extend the TAM Auction Technology Group 7
Slide 18: Auctioneers trust ATG marketplaces
Auctioneers continue to trust ATG marketplaces to deliver value Number of auctioneers Auctions facilitated Lots listed (m) 86,000 3,800 3,900 22.3 a i; 7 Z FY22 FY23 FY22 FY23 FY22 FY23 * Expanded value-added services which now include: digital marketing, atgPay and atgShip * Launched new differenti
Slide 19: Bidders trust ATG marketplaces
Bidders continue to trust ATG marketplaces as the place to find unique and specialised curated secondary assets Bidding sessions (m) New account registrations (m) Lots sold (m) 189 16 7.2 72 a Z L FY22 FY23 FY22 FY23 FY22 FY23 * Improved site navigation and investment in search engine optimisation t
Slide 20: Paid-for marketing increasing 28%
Auctioneers see the value of ATG as a marketing channel, with paid-for marketing increasing 28% driven by deeper penetration per auction Growth in marketing adoption, but at only 0.5% GMV there is significant room to grow proxibid Auctioneer adoption % auctions supported of paid-for marketing by mar
Slide 21: atgPay continues to grow
atgPay continues to grow with interest in both A&A and I&C and encouraging rates of usage in Q4 23 Progression of atgPay at LiveAuctioneers Progression of atgPay on Proxibid + Activation of payments delayed till Q3 to ensure full functionality for 1&C market 91% 83% . . 75% + Encouraging trend in us
Slide 22: atgShip is now out of beta
atgShip is now out of beta and is ramping rapidly on LiveAuctioneers, addressing a key friction point in the auction vs eCom experience liveauctioneers Highlights TREASURES WITH HASSLE-FREE SHIPPING Shipping tech hub with multiple professional shipping BE rl & > ie! @ : . — partners a ; 148 auctione
Slide 23: EstateSales.NET integration performing ahead of expectations
EstateSales.NET integration has progressed well and is performing ahead of expectations with exciting cross-listing opportunities in FY24 Robust growth on ESN platform in FY23 1 50 IM web sessions +7% YoY 1 1 M| subscribers! 121k net new 4 9 8 O 0 estate sellers? +4% YoY Updated pricing architecture
Slide 24: Removing bidder friction and enhancing online auctions
ATG executed on key components that remove bidder friction and enhance online auctions, moving us closer to the "tipping point" while improving operational effectiveness Highlights Raised E2E closer to eCom standards HoRzoN 1 ; Foundation + Build hi ec | a F "One ATG" go-to- , nd ecosystem digital S
Slide 25: FY24 ATG priorities
FY24 ATG priorities focus on creating differentiated customer value Connect = X-Listing atg 22120 Extend Grex 3to1 Consolidate Optimise CRO/CRM = Auction Technology Group 25
Slide 26: Outlook for FY24
Outlook for FY24 + ATG is leading the transformation of the auction industry while delivering profitable and cash generative growth. + In the short term, expect continued impact from underlying A : : ~ p00 mac us 30 w macro factors which remain relatively uncertain. WOW VAN BEETHOVEN + VAS offsettin
Slide 27: Q&A
Slide 28: Appendix
Slide 29: FY24 Guidance
FY24 Guidance Measure Guidance Revenue growth 5-8% organic revenue growth Adjusted EBITDA margin Broadly flat Net finance cost 8.25% effective interest rate on $135m average gross debt balance plus other finance costs ESN deferred consideration $10m cash outflow relates to deferred consideration and
Slide 30: Glossary of key definitions
Glossary of key definitions Term Defi n 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’ commissions) a
Slide 31: Progress against our ESG programmes
Progress against our ESG programmes * Commitment to Net zero by 2040 <7 * 26% reduction in scope 1 and 2 emissions in FY23 Our + Improved disclosure of energy metrics environment O,90 Vv {e) A * ATG Values Our people and Our + All ToGether community governance + ATG Academy * 95% enjoy working with
Slide 32: Reconciliation of APMs
Reconciliation of APMs Reconciliation of profit before tax to adjusted EBITDA Reconciliation of profit/(loss) after tax to adjusted earnings Cash generated from operations and adjusted free cash flow FY23 FY22 FY23 FY22 FY23 FY22 &m &m &m &m &m &m profit before tax 74 9.3] Profit/(loss) attributable
Slide 33: KPIs by segment
KPls by segment Organic Organic Organic &m A&A 1&C Group YoY %' YoY %' YoY %' THV 4,553 +1% 6,252 +4% 10,805 +3% Conversion rate 15% Down ippt 42% Down 3ppt 31% Down 2ppt GMV 693 (3)% 2,635 (3)% 3,328 (3)% Take Rate 8.6% Up 0.6ppt 2.2% Up O0.2ppt 3.6% Up O.3ppt Marketplace Revenue 65.6 6% 58.2 T% 12
Slide 34: Auction Services & Content
Auction Services & Content Auction Service Revenue FY22 FY23 Content Revenue FY22 FY23 Auction Technology Group 34
Slide 35: USD: Group financial summary
USD: Group financial summary $m FY23 FY22 | Movement Revenue 165.9) 151.8) 9% Cost of sales (53.4 (50.5) (6)% Gross profit 112.5) 101.3} 1% Administrative expenses (85.7 (80.3) (7)% Other operating income 0.7| 0.9) (22)% Operating profit 27.5) 21.9) 26% Net finance costs (19.0) (9.3) (104)% Profit b
Slide 36: USD: Revenue by segment and Operational KPIs
USD: Revenue by segment and Operational KPIs $m FY23 FY22 Arts & Antiques 80.5 70.1 Industrial & Commercial 71.4 66.7 Total Marketplace 151.9 136.8 Auction Services 10.2 11.0 Content 3.8 4.0 Revenue 165.9 151.8 $m FY23 FY22 1&C A&A Group 1&C A&A Group THV 7,637 5,572 13,209 7,337 5,561 12,898 Conver
Slide 37: USD: Profit before tax to adjusted EBITDA
USD: Profit before tax to adjusted EBITDA and (loss)/profit after tax to adjusted earnings $m FY23 FY22 $m FY23 FY22 Profit before tax 8.5) 12.6 (Loss)/profit attributable to equity 20.7 (5.5) shareholders of the Company . . Adjustments for: . Adjustments for: Net finance costs 19.0 9.3 Amortisation
Slide 38: USD: Adjusted free cash flow and adjusted net debt
USD: Adjusted free cash flow, adjusted free cash flow conversion and adjusted net debt $m FY23 FY22 Adjusted EBITDA 78.3) 68.7 Cash generated from operations 70.8) 62.9 Adjustments for: Exceptional items 3.3) - Working capital from exceptional and other items (1.5) 6.3 Additions to internally genera
Slide 39: 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 40: Auction Technology Group
© Auction Technology Group 40