Rb Global, Inc. · TSX:RBA
Rb Global — Ritchie Bros. Auctioneers — Investor Day (December 2020)
70 slides from Rb Global's investor day presentation, Dec 7, 2020
Slide 1: The trusted global marketplace for insights, services, and transaction solutions
The trusted global marketplace for insights, services, and transaction solutions for commercial assets.
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures Caution Regarding Forward-Looking Statements This presentation contains forward-looking statements and forward-looking information within the meaning of applicable US and Canadian securities legislation (collectively, “forward- looking statements”), i
Slide 3: Strategic Vision
Strategic Vision • Growth Agenda • Strategic Pillars Overview • Organization Changes • Learning Organization Ann Fandozzi Chief Executive Officer
Slide 4: Strategic Vision
Strategic Vision The trusted global marketplace for insights, The trusted global marketplace for insights, services, and transaction solutions for commercial assets. services, and transaction solutions for commercial assets.
Slide 5: Growth Agenda
Growth Agenda Time (Eastern) Section Topics Speaker • Strategic Pillars Overview 10:00 – 10:20 CEO Perspectives • Organization Changes Ann Fandozzi, Chief Executive Officer • Learning Organization • Employee Experience 10:20 – 10:25 Employee Experience Carmen Thiede, Chief Human Resources Officer •
Slide 6: Management Team Brings History of Shareholder Value Creation and Experience
Management Team Brings History of Shareholder Value Creation and Experience Ann Fandozzi Sharon Driscoll Jim Kessler Karl Werner Chief Executive Officer Chief Financial Officer Chief Operating Officer President, International Kari Taylor Jeff Jeter Kieran Holm Carmen Thiede President, North America
Slide 7: Strategic Vision
Strategic Vision Growth hypothesis before joining Current Potential USA Canada International Canada USA International Now the rest of the story… Canada USA International
Slide 8: Strategic Pillars
Strategic Pillars The Thetrusted trustedglobal marketplace global marketplacefor forinsights, insights,services, services,and transaction and transaction solutions for solutions for commercial commercial assets. assets.
Slide 9: Executive Leadership Team Changes Aligned to Strategy
Executive Leadership Team Changes Aligned to Strategy The trusted global marketplace for insights, services, and transaction solutions for commercial assets. Jim Kessler Carmen Thiede Baron Concors Kevin Geisner Kari Taylor COO CHRO CTO CSO Pres. NA Sales
Slide 10: 2020 – COVID-19 Learnings
2020 – COVID-19 Learnings The World Out of our control: COVID In our control • COVID-19 • Health and safety of our employees and customer • Efficient operations through COVID-19 protocols • Not ramping • Government policy • Corporate staff from home • Sale day 100% online • PPE for employees and cus
Slide 11: Learning Organization: Adapting to Help Our Customers
Learning Organization: Adapting to Help Our Customers • Pilot improvements in • Clear KPIs markets across the globe • Fail fast • Use flexible resources • Celebrate success and failure where possible Test Learn Scale • Quickly adopt successes across the organization
Slide 12: Employee Experience / Diversity and Inclusion
Employee Experience / Diversity and Inclusion • Employee Experience • Diversity and Inclusion Carmen Thiede Chief Human Resources Officer
Slide 13: Delivering the Best Employee Experience
Delivering the Best Employee Experience Creating a common framework of the desired Employee Experience to prioritize our programs, mindshare and spend to support the Moments that Matter #MyRBStory My First My My My My Life My making a Impression Rewards Development Leader Moments Difference Candidat
Slide 14: Connecting with Our People & Communities
Connecting with Our People & Communities Four BLM Committees Communication Talent Practices Greater Vancouver Food Bank Education / Training Community
Slide 15: ESG
ESG • Inaugural sustainability report Ann Fandozzi Chief Executive Officer
Slide 16: Our Inaugural ESG Report
Our Inaugural ESG Report r DRITCHIEBROS. Sustainability Report Serving the globe. Distinctly local. r ORITCHIEBROS. INVESTOR
Slide 17: Doing Our Part for ESG: Enabling the Circular Economy
Doing Our Part for ESG: Enabling the Circular Economy At The Heart Of The Circular Economy Ritchie Bros. is one of the world’s largest “practical green” re-commerce companies, To be a great global company, you have to be a meaning we enable and encourage the market liquidity of heavy equipment and t
Slide 18: Test, Learn, Scale
Test, Learn, Scale • North America Growth Strategy Kari Taylor President, North America Sales
Slide 19: Spearheading Growth as a Thriving, Learning Organization
Spearheading Growth as a Thriving, Learning Organization Building blocks for this growth initiative bring clarity to… what we sell through named initiatives, framing solution selling how we intersect complementary digital touch strategies how we challenge news sales coverage models to move faster an
Slide 20: Building Capacity Through Enhanced Sales Coverage Model
Building Capacity Through Enhanced Sales Coverage Model from one-size fits all to a customer segmented approach Short Tail Customers Long Tail Customers Short Tail Customers Long Tail Customers Territory Account Business Inside Territory Manager Manager Development Manager Manager All accounts ‘Farm
Slide 21: Evolving How We Sell to Unlock Our Addressable Market
Evolving How We Sell to Unlock Our Addressable Market + + Relationship-based selling Activity-based selling Initiative-based solution selling (SAGE) Relevance | Value-add Credibility | Respect | Trust Capacity | Velocity | Reach Trusted Advisor 21
Slide 22: Morphing Our Sales Team Into Trusted Advisors
Morphing Our Sales Team, Armed With Data and Analytics, Into Trusted Advisors Customer Targeted Evolving Sales Reseller Solution Process Oil & Gas Targeted Campaigns Scaling ‘SARP’ (Streamlined At Risk Program) RPO Lease Buybacks 22
Slide 23: Cascading Proven Results To Accelerate Growth
Cascading Proven Results To Accelerate Growth as a Learning Organization USA-No Identify growth Test and Incubate Expand to CA Initiatives in Texas other regions USA-So CA USA-C CA H2-2020 Full Year 2021 Starting H2-2021 • Sales coverage • Learn • Sub-initiatives to Ca-No model • Iterate cascade inc
Slide 24: Test, Learn, Scale
Test, Learn, Scale • International Satellite Site Strategy Karl Werner President, International
Slide 25: Understanding the Customers Benefits of a Satellite Site
Understanding the Customers Benefits of a Satellite Site Online digital model allows us to transact globally, however we think equipment transportation costs remains a hurdle in attracting customers. 1. Yards closer in proximity to customers reduces transportation barriers and attracts customers and
Slide 26: We Gained Confidence With Our Australia Mini-Test in 2020
We Gained Confidence With Our Australia “Mini-Test” in 2020 Results Overall, very positive results and feedback from customers during the initial test pilot Satellite sites further expanded RB’s online presence with sellers and buyers around each site vicinity Perth, Australia • GTV up 85% in 2 year
Slide 27: r D RITCHIEBROS.
r D RITCHIEBROS.
Slide 28: Confirming Our Hypothesis at Scale in 2021
Confirming Our Hypothesis at Scale in 2021 Proprietary Satellite Site Selection Methodology Australia Blending quantitative and qualitative factors 1. Identify additional satellite sites using our proprietary site selection methodology Quantitative Qualitative (Data Science) (RB Sales Team) 2. Open
Slide 29: Confirming Our Hypothesis at Scale in 2021
Confirming Our Hypothesis at Scale in 2021 GTV potential heat map United States Example 1. Continue to scale our learnings and insights from Australia to the US and abroad 2. Accelerate the adoption of the online marketplace with additional satellite sites to provide a seamless online and offline ex
Slide 30: Question & Answer
Question & Answer Ann. Fandozzi Sharon Driscoll Jim Kessler Karl Werner Chief Executive Officer Chief Financial Officer Chief Operating Officer President, International Kari Taylor Jeff Jeter Kieran Holm Carmen Thiede President, North America Sales President, Global Strategic Accounts President, RB
Slide 31: 10 Minute Break
10 Minute Break RITCHIE BROS. INVESTOR
Slide 32: Evolution to Marketplace
Evolution to Marketplace Trusted Advisor Marketplace RBFS IronPlanet Rouse Xcira Mascus Ritchie Bros. Live auction
Slide 33: Marketplace
Marketplace • Inventory Management System • Data & Analytics • Service Matt Ackley Chief Marketing Officer
Slide 34: RBAS Represents a New Way to Go to Market
RBAS Represents a New Way to Go to Market
Slide 35: Making It Easier to Add Inventory
Making It Easier to Add Inventory
Slide 36: Taxonomy and Classification Is Key to Valuation
Taxonomy and Classification Is Key to Valuation
Slide 37: The End Goal Is Better Decision Making for Our Customers
The End Goal Is Better Decision Making for Our Customers
Slide 38: Enable Predictions with Machine Learning and Better Data
Enable Predictions with Machine Learning and Better Data
Slide 39: A Platform to Enable an Entire Suite of Services
A Platform to Enable an Entire Suite of Services • Decision-Making Tools • Market Trends • RB Asset Valuator • RB Price Estimate Branded Webshops Third Party Data Analytics/ • Depreciation Curves • Reports & Dashboards Marketplaces Insights • Fleet Recommendations Inventory Management System Channel
Slide 40: Marketplace
Marketplace • Marketplace implications for Strategic Accounts Jeff Jeter President, Global Strategic Accounts
Slide 41: Marketplace
Marketplace • Enabling Innovation and Speed to Market Baron Concors Chief Information Officer
Slide 42: Future State – Microservices Architecture
Future State – Microservices Architecture • Microservice architecture allows a system to be divided into several smaller, individual and independent services. • Organized around business capabilities not technologies. • Improved productivity and speed by decomposing applications into manageable serv
Slide 43: Video Streaming Platform Example
Video Streaming Platform Example UI Microservice Most Liked Video Uploading Content Microservice Microservice Microservice User Info Most Trending Recommendations Microservice Microservice Microservice
Slide 44: Creating a Business Capability Map to Serve as a Blueprint for Microservices
Creating a Business Capability Map to Serve as a Blueprint for Microservices Transactions Inventory Bids, Offers Listings Assets Taxonomy Fraud Risk Inspections Pricing Prevention Management Buyer Experience Browse/ My Account Content Financing Search Item Details Checkout Payment PriorityBid
Slide 45: Exposing Our Microservices Through APIs Will Fuel Growth and Innovation
Exposing Our Microservices Through APIs Will Fuel Growth and Innovation Third Parties Mobile & Web Microservices APIs Applications
Slide 46: Customer Experience
Customer Experience • Buyer / Seller Journey • Deconstructing Sales Day Jim Kessler Chief Operating Officer
Slide 47: Customer Experience Initiative
Customer Experience Initiative Ritchie Bros. Auctioneers 60+ years of live auction operation experience • Continued evolution of how we interact with our customers • Ritchie Bros Auctioneers built over the last 60 years with a live event as the focus Iron Planet 20+ years of online • Iron Planet bui
Slide 48: Customer Experience – Need for Ease
Customer Experience – Need for Ease Six-month Observations • Ritchie Bros. will solve any issues or problem that occur with any of our customers • Areas of Opportunity • Understanding and researching why customer issues arise and then ensuring the journey for the customer is intuitive • We need to m
Slide 49: Customer Journey Mapping – Buyer and Seller
Customer Journey Mapping – Buyer and Seller Buyer Journey Map Landing Page Social Media Win Item Receive Payment Confirmation Event Marketing Email Affiliate Websites Confirmation of Bid Receive Release Ticket Paid Content Account Creation Bidder Watchlist Auction Ended Email Confirmed Bidding Privi
Slide 50: Customer Journey Mapping – Buyer and Seller
Customer Journey Mapping – Buyer and Seller Seller Journey Map Email Inspection Report Complete Marketing Paid Content Landing Page Buyer Invoiced Inspection Fee Invoice Search Engine Social Media Item Payout Payment Info Requested Pick-up Pending Social Media Obtain Asset Lists Affiliate Websites C
Slide 51: Customer Effort Score (CES) How to Measure
Customer Effort Score (CES) How to Measure Customer Effort Score (CES) 1 is a type of customer satisfaction survey used to measure the ease of service experience with an organization. It asks customers to rate the ease of using products or services on a scale of “very difficult” or “very easy.” Impl
Slide 52: Deconstructing Sales Day
Deconstructing Sales Day Customer Celebration/ Catalog/Brochure Appreciation Ramping In-person Registration Networking/ Equipment Evaluation Industry Events
Slide 53: Finance Review
Finance Review • Review of Financial Performance • Refreshing Evergreen Metrics • Capital Allocation Strategy Sharon Driscoll Chief Financial Officer
Slide 54: History of Delivering Results for All Stakeholders
History of Delivering Results for All Stakeholders • Initial period of transforming into technology enabled company • Prepared to enable seamless transition into 100% online bidding Evergreen Model Score Card Introduced in 2015 Average Annual expectation over a 5-7-year period Strong share price out
Slide 55: KPIs
KPIs Steady Gross Transaction Value Growth CAGR 4.2% Total Revenue Masks Strength in Service Revenue 2014- 3Q LTM 2020 1,400 1326 6,000 CAGR 4.1% 2014-2019 1,200 CAGR 1080 5,000 15% 1,000 10.8% 10.6% 4,000 800 10% US$M US$M 3,000 600 5% 2,000 1.3% 1.2% 400 0% 1,000 200 -5% 0 0 2015 2016 2017 2018 20
Slide 56: Cumulative OFCF and Cash Returned to Shareholders
Cumulative OFCF and Cash Returned to Shareholders Cumulative Operating Free Cash Flow ($m) Cumulative Cash Returned to Shareholders 2015 – Q3 2020 2015 – Q3 2020 179 126 84 1,106 84 433 853 84 366 283 555 208 443 135 330 64 182 2015 2016 2017 2018 2019 Q3 2020 2015 2016 2017 2018 2019 Q3 2020 Cumula
Slide 57: Transitioning Post Pandemic to Refreshed Evergreen Metrics
Transitioning Post Pandemic to Refreshed Evergreen Metrics Gross Transaction • North America Growth Strategy High single digits to low teens • International Growth Strategy Value Growth • Satellite yard expansion • IMS gateway to services • RBAS platform adoption Service Revenue Growth Low double di
Slide 58: Capital Allocation Priorities: Flexibility
Capital Allocation Priorities: Flexibility Source of Capital Capex, Acquisitions, Partnerships to Stakeholder Returns Fuel Growth Strong Operating Cash Dividend Growth Flow Generation The trusted global marketplace for insights, services, and transaction solutions for commercial assets. Share Debt D
Slide 59: Closing remarks
Closing remarks Excited about the future Ann Fandozzi Chief Executive Officer
Slide 60: Estimated Total Available Market Potential
Estimated Total Available Market Potential – Leveraging and Growing our Marketplace Global Used Heavy Equipment Annual Dispositions $300B GTV Data Monetization Appraisal & Inspection Services TBD $2B - $4B (Annual Revenue) Dealer / Retail / Rental $130B Parts and Services Financial Services $100B -
Slide 61: Ritchie Bros. Investment Highlights
Ritchie Bros. Investment Highlights • Omni channel marketplace positioned for growth • Market leader with brand, data and scale advantage • Providing liquidity for used commercial assets through global reach • Growth agenda supported by strong cashflow profile and balance sheet flexibility • Learnin
Slide 62: Question & Answer
Question & Answer Ann. Fandozzi Sharon Driscoll Jim Kessler Karl Werner Chief Executive Officer Chief Financial Officer Chief Operating Officer President, International Kari Taylor Jeff Jeter Kieran Holm Carmen Thiede President, North America Sales President, Global Strategic Accounts President, RB
Slide 63: Join us on ZOOM
Join us on ZOOM (link no longer valid)
Slide 64: Appendix
Appendix US GAAP Reconciliation of Non-GAAP measures The following tables reconcile non-GAAP measures referred to in this presentation to the most directly comparable GAAP measure reflected in the Company’s financial statements.
Slide 65: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures
Slide 66: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures
Slide 67: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures
Slide 68: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures
Slide 69: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures
Slide 70: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures
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