Openlane, Inc. · NYSE:OPLN
Openlane — KAR Auction Services — J.P. Morgan 2022 Auto Conference
14 slides from Openlane's conference presentation, Aug 9, 2022
Slide 1: Corporate Overview
KAR AUCTION SERVICES, INC. Corporate Overview // August 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In particular, statements made in this presentation that are not historical facts (including but not limited to expectations, estimates, a
Slide 3: RemainCo: KAR Global at a Glance
RemainCo: KAR Global at a Glance North American AFC International Digital Marketplaces Leader in Commercial Off-Premise Leader in floorplan financing Leading digital wholesale platform Digital Marketplace for independent used car with operations throughout the UK dealers and Europe Leader in Dealer
Slide 4: KAR: Investment Highlights
KAR: Investment Highlights Leader in digital marketplaces for wholesale used cars Large, expanding TAM with meaningful opportunities for growth Clear strategy to accelerate innovation and growth Projected 20% earnings growth CAGR Cash flow positive with ability to invest and deliver stockholder valu
Slide 5: 2021 – 2025 Projected Growth
2021 – 2025 Projected Growth 13% $500M 20% >$700M Revenue Adjusted EBITDA Adjusted EBITDA Cash generated CAGR (2025) CAGR from operations 1 2 (2022-2025) 1 Revenue excludes purchased vehicles; margins calculated on total revenue less purchased vehicle revenue 2 Full year 2021 excludes realized inves
Slide 6: A Large Addressable Market Exists
A Large Addressable Market Exists ~ 60M Retail used (40M) and > 100KIndustry marketplace wholesale (20M) vehicle participants: dealers and transactions annually other commercial sellers and buyers Source: VIO and Retail amounts: Experian, IHS, National Automobile Dealer’s Association, DesRosiers Aut
Slide 7: KAR Global: Anchor Digital Platforms & Capabilities
KAR Global: Anchor Digital Platforms & Capabilities Off-Lease Enabling Capabilities: Most advanced private label platform supporting 80% of North America’s off-lease inventory • Floorplan financing Dealer • Transport & logistics Flexible, fast-growing dealer-to-dealer digital platforms in US and Can
Slide 8: 2021-2025 Key Growth Drivers
2021-2025 Key Growth Drivers Off-Lease Dealer-to-Dealer Cost Management Cyclical recovery drives Capture share through Continuous focus and revenue increases ongoing shift to digital prioritization to support growth KAR GLOBAL | CORPORATE OVERVIEW 8
Slide 9: Managing Cost While Accelerating Growth
Managing Cost While Accelerating Growth Service Go-to-Market Operations Technology SG&A Leverage and focus Improve cost-to-serve and Optimize investment for Contain SG&A as portfolio capabilities customer experience business growth volumes return and business grows Brands Processes Platforms KAR GLO
Slide 10: KAR: Investment Highlights
KAR: Investment Highlights Leader in digital marketplaces for wholesale used cars Large, expanding TAM with meaningful opportunities for growth Clear strategy to accelerate innovation and growth Projected 20% earnings growth CAGR Cash flow positive with ability to invest and deliver stockholder valu
Slide 11: Appendix
Appendix KAR GLOBAL | CORPORATE OVERVIEW 11
Slide 12: Financial Summary: 2021 to 2025E
Financial Summary: 2021 to 2025E ($ Millions) 2021 2025E Auction Fees & Service Revenues $941 ~$1,550 Floorplan Business Revenues $289 ~$450 Purchase Vehicle Revenues $221 ~$300 Total Revenue $1,451 ~$2,300 Gross Profit $658 ~$1,050 SG&A $421 D&A $110 Operating Profit $127 ~$475 Adjusted EBITDA (exc
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations The 2025 projection for Adjusted EBITDA is a forward-looking non-GAAP financial measure. We have not reconciled this non-GAAP financial measure to the most directly comparable GAAP measure of net income (loss) due to the inherent difficulty and impracticability of predicting
Slide 14: Leverage
Leverage June 30, 2022 (US$ in millions) Balance Term Loan B-6 (Adjusted LIBOR + 2.25%) $- Revolving Credit Facility (Adjusted LIBOR + 1.75%) - Senior Notes (Fixed 5.125%) $950 Finance Leases & Other $15 Total $965 Less: Available Cash* ($800) Net Debt $165 Senior Secured Net Leverage Ratio (2.5) To
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