Slide 1: 2024 Full Year Results
2024 Full Year Results Twelve months ending 30 September 2024 27th November 2024
Slide 2: Agenda
Agenda 1. Results highlights 2. Financial performance 3. Strategic update and outlook 4. Q&A Auction Technology Group 2
Slide 3: 01. Results highlights
Results 01. highlights John-Paul Savant, CEO Auction Technology Group 3
Slide 4: ATG connects bidders from >170 countries with 4,000 auctioneers
ATG creates value by connecting bidders from >170 countries with 4,000 auctioneers, facilitating the sale of over $13bn of curated used items atgAMP: auctioneer paid-for digital atgPay: integrated payments solution marketing atgShip: integrated shipping solution atgXL: seamless cross-listing of time
Slide 5: FY24 improved value to auctioneers and bidders
In FY24, improved our value to auctioneers & bidders by better connecting supply & demand and increased monetization of each transaction GMV -11% YoY, but with significant improvement as the year progressed, GMV recovery driven by I&C; underlying1 I&C GMV positive H2 +2%; A&A also improved +0.6ppt t
Slide 6: 02. Financial performance
Financial 02. performance Tom Hargreaves, CFO Auction Technology Group 6
Slide 7: FY24 Financial Highlights
FY24 Financial Highlights Revenue Adjusted EBITDA Adjusted EBITDA margin $174.2m $80.0m 46% +5% reported +2% (1)ppt +2% organic Adjusted diluted EPS Adjusted free cash flow Adjusted net debt 38.6c $65.8m $114.7m (3)% 82% conversion1 1.4x leverage 1. Adjusted free cash flow as a percentage of adjuste
Slide 8: Revenue: Robust A&A growth with improving momentum on I&C
Revenue: Robust A&A growth with improving momentum on I&C • A&A +12% (organic +6%), driven by VAS and strong growth Revenue by segment of ESN, despite challenging A&A market conditions Reported Organic $m FY24 FY23 YoY % 1 YoY %2 • I&C flat as lower GMV on Proxibid partially offset by Arts & Antique
Slide 9: FY24 revenue bridge
FY 24 revenue bridge: decline in GMV offset by VAS, ESN & favourable commission mix Commission revenue down 5% YoY $10.2m $4.9m $174.2m $165.9m $5.6m -$1.9m -$0.2m -$10.3m Includes impact of rotated volume GMV volume VAS ESN FY24 FY23 Commission mix fixed fees Auction Services & content Contribution
Slide 10: A&A +12% revenue growth driven by VAS and ESN
A&A +12% revenue growth: driven by VAS and ESN with headline KPI measures distorted by asset mix • Organic revenue driven by strong growth in all three A&A operational KPIs and revenue value-added services leading to take rate +1.2ppt to 9.8% FY24 FY23 YoY %1 • THV growth reflects strong growth in T
Slide 11: A&A more resilient than wider auction markets
A&A: ATG more resilient than wider auction markets: stable conversion rate in core geographies1,2 THV: core THV down 4% impacted by Conversion rate: Auctions outside our GMV: core conversion rate stable with weaker end markets core geographies tend to be more decline in GMV largely due to weak volat
Slide 12: I&C +1% revenue growth
I&C +1% Revenue Growth: Tough comps for H1, with GMV improved in H2 as core assets return to growth and VAS adoption continues THV and GMV by half I&C operational KPIs and revenue H1 24 YoY % H2 24 YoY% FY 24 YoY % FY24 FY23 YoY % THV (9)% 6% (2)% GMV (19)% (4)% (12)% THV $7.5bn $7.6bn (2)% • THV im
Slide 13: I&C showed significant improvement in H2
I&C showed significant improvement year-on-year in H2: lapped impact of tough comps, rotated volume and Proxibid rate card Sequential stabilization in THV despite market headwinds Peak impact from high asset prices (9)% $4.3bn +6% $3.9bn $3.7bn $3.6bn $3.6bn $3.4bn $2.9bn $2.8bn H1 21 H2 21 H1 22 H2
Slide 14: Steadily improved momentum in I&C in H2
Steadily improved momentum in I&C in H2: GMV improving from (19)% in H1 to (4)% in H2, or up 2% in H2 if exclude real estate H2 THV & GMV by type of asset1 Rate card win backs $m THV GMV • Momentum improved across H2 H2 23 H2 24 YoY H2 23 H2 24 YoY Yellow 1,663 1,734 4% 583 619 6% • Good performance
Slide 15: Adjusted EBITDA margin improved as expected
Adjusted EBITDA margin improved as expected: FY margin improved from H1, with full year margins at 46% FY23 to FY24 adj EBITDA margin bridge • Gross margin down 1ppt as impacted by decline in high-margin commission revenue 47% • Benefit in FY24 from lower bonus payout 1% 0% 46% (2%) • As expected, s
Slide 16: Profit growth across most profit measures
Profit growth: Improvement across most profit measures driven by revenue growth and lower interest charge as debt steadily reduced • Admin expenses of $84.8m include $28.3m acquired amortisation, Group financial summary $6.0m share-based payments (down YoY reflecting changes in $m FY24 FY23 Movement
Slide 17: Balance Sheet Strength: significant deleverage
Balance Sheet Strength: Strong cash generation driving significant deleverage • Continued strong cash generation resulted in Net debt bridge adj. net debt/adj. EBITDA decreasing from 1.8x to 1.4x. Includes • $12m deferred consideration and bonus retention payment for ESN • $11m additions to internal
Slide 18: Capital allocation
Capital allocation ATG will continue to carefully manage its balance sheet, including retaining a prudent and appropriate level of liquidity headroom. Our priorities for capital allocation are: 1. Organic investment 2. M&A 3. Shareholder returns ATG continues to focus on driving ATG may supplement t
Slide 19: 03. Strategic update and outlook
Strategic update 03. and outlook John-Paul Savant, CEO Auction Technology Group 19
Slide 20: ATG connects bidders from >170 countries with 4,000 auctioneers
ATG creates value by connecting bidders from >170 countries with 4,000 auctioneers, facilitating the sale of over $13bn of curated used items atgAMP: auctioneer paid-for digital atgPay: integrated payments solution marketing atgShip: integrated shipping solution atgXL: seamless cross-listing of time
Slide 21: Significant enhancements to both sides of our marketplace
In FY24, we made significant enhancements to both sides of our marketplace, generating more revenue per transaction and investing in capabilities that improve conversion ATG firmly in Horizon 2 Horizon 3 Horizon 2 Transform the Ecosystem E2E experience Transform auction industry Horizon 1 Auctions t
Slide 22: We expanded both supply and demand on our marketplace
We expanded both supply and demand on our marketplace Auctions facilitated Lots listed 88,000 23.8m +2% +7% Bidder Sessions New Account Registrations 390m 1.6m +16% +3% Auction Technology Group 22
Slide 23: Deeper engagement with auctioneers through integrated technology suite
We drove deeper engagement with auctioneers through an increasingly integrated technology suite that extends reach and saves time Consignment Strong Asset Prices: White label + marketplace + bidders Post Sale Admin Cataloging Accurate ROI 1 upload Lower Cost: reporting Single Event Fees: multiple au
Slide 24: White label presents an opportunity for growth
White label presents an opportunity for growth, with our integrated solution providing auctioneers with a branded website while also maximising bidders from a marketplace • White label is already highly penetrated amongst Breakdown of ATG’s THV by source of winning bid1 auctioneers • c.80% of our I&
Slide 25: Auctioneer retention was 98%
Auctioneer retention was 98%1 as we deliver unmatched demand, enhanced with the introduction of atgXL and atg Partner Network ATG provides bidder … as well as bringing new activity to help drive bidders the auctioneer has the optimal price…. never seen before >55% >40% of all bids placed in an of GM
Slide 26: Value-added services +35% with further take rate opportunity
We had continued successes growing value-added services, +35%, with significant growth opportunities remaining to further expand our take rate Sustained strong growth in value-added services Marketing revenue penetration of THV for I&C platforms shows a significant opportunity at Proxibid 0.7% $41.9
Slide 27: Bidder retention for ATG is high
Bidder retention for ATG is high, as we retain high value bidders in our ecosystem whilst also continuously attracting new bidders I&C GMV1 by bidder year of acquisition: A&A GMV2 by bidder year of acquisition: new and returning bidders to ATG new and returning bidders to ATG New bidder GMV New bidd
Slide 28: ESN cross-listing enhances ATG's network effect
ESN demonstrated that buyers in one sector of A&A will respond to cross-listing from other A&A marketplaces, enhancing ATG’s network effect 49% +9% Of auctions on GMV impact on LiveAuctioneers cross- LiveAuctioneers when listed on ESN in H2 ESN buyers participate Auction Technology Group 28
Slide 29: Multiple levers to grow the conversion rate
Our comprehensive strategy provides multiple levers to grow the conversion rate over time Driver How Progress & what’s next Validation • More eyeballs per auction • Launched mid FY24 • Easier to run timed auctions across multiple atgXL platforms and integrated white label • Incentivise and drive ado
Slide 30: Progress executing the online marketplace playbook
We made solid progress executing the online marketplace playbook in FY24, with investment in key areas to drive conversion rate in FY25 2025 Customer 2024 Experience: atgShip Marketplace expansion: best Pre-2024 ✓ Make practices to Search and remove shopping on Discovery: friction, ✓ Higher quality
Slide 31: Confident in outlook, accelerating the marketplace flywheel
ATG is confident in its outlook & excited about the future. We are moving faster to accelerate the marketplace flywheel I&C GMV momentum atgXL A&A GMV momentum atgXL, ESN, atgShip Take rate growth opportunity to further drive penetration and usage of VAS (atgShip, atgPay, atgAMP) White label s
Slide 32: FY25 Guidance
FY25 Guidance Measure Guidance 4-6% revenue growth, supported by the continued growth of value-added services, and Revenue positive GMV growth also reflecting uncertain end markets Adjusted EBITDA margin 45% - 46% Net finance cost 7% effective interest rate on c.$97m average gross debt balance plus
Slide 33: 04. Q&A
04. Q&A Auction Technology Group 33
Slide 34: 05. Appendix
05. Appendix Auction Technology Group 34
Slide 35: Reconciliation of APMs
Reconciliation of APMs Reconciliation of profit before tax to adjusted Reconciliation of profit after tax to adjusted Cash generated from operations and adjusted EBITDA earnings free cash flow FY24 FY23 FY24 FY23 FY24 FY23 $m $m $m $m $m $m Profit before tax 18.4 8.7 Profit attributable to equity Ad
Slide 36: Revenue and organic growth rate by product
Revenue and organic growth rate by product $174.2m $165.9m 2% Content 2% 5% 6% FY24 FY23 YoY Auction Services 24% $m $m 19% Content 3.7 3.8 (3)% Value Added Services Auction Services 8.4 10.2 (18)% 19% 20% Event and other fees Value Added Services 42.0 31.0 35% Event and other fees 34.6 30.7 13%1 A&
Slide 37: KPIs by segment
KPIs by segment Organic Organic Organic $m A&A I&C Group 1 1 YoY % YoY % YoY %1 THV $5.7bn 1% $7.5bn (2)% $13.2bn (1)% Conversion rate 14% Down 1ppt 38% Down 4ppt 27% Down 4ppt GMV $0.8bn (7)% $2.8bn (13)% $3.6bn (11)% Take Rate 9.8% Up 1.2ppt 2.5% Up 0.3ppt 4.2% Up 0.6ppt Marketplace Revenue $90.3m
Slide 38: H1 and H2 growth rates by segment
H1 and H2 growth rates by segment Organic YOY %1 Reported YOY %2 H1 24 H2 24 FY 24 H1 24 H2 24 FY 24 A&A 5% 6% 6% 17% 8% 12% I&C (2)% 2% 0% (1)% 2% 1% Marketplace Revenue 2% 4% 3% 8% 5% 7% 1. At constant FX rates excluding ESN. 38 2. At actual FX rates including ESN.
Slide 39: Auction Services & Content
Auction Services & Content Auction Service Revenue Content Revenue $10.2m $3.8m $3.7m $8.4m FY23 FY24 FY23 FY24 Auction Technology Group 39
Slide 40: Disclaimer
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Slide 41: Operator of world-leading marketplaces and auction services
Operator of world-leading marketplaces and auction services for curated online auctions www.auctiontechnologygroup.com investorrelations@auctiontechnologygroup.com press@auctiontechnologygroup.com © Auction Technology Group 41