Investor overview presentation - rbauction.com€¦ · Investor overview presentation August 2015...

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A global leader in used equipment sales Investor overview presentation August 2015 – Q2/15 information

Transcript of Investor overview presentation - rbauction.com€¦ · Investor overview presentation August 2015...

Page 1: Investor overview presentation - rbauction.com€¦ · Investor overview presentation August 2015 – Q2/15 information. 2 Forward looking statements This presentation contains forward-looking

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A global leader in used equipment salesInvestor overview presentation

August 2015 – Q2/15 information

Page 2: Investor overview presentation - rbauction.com€¦ · Investor overview presentation August 2015 – Q2/15 information. 2 Forward looking statements This presentation contains forward-looking

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Forward looking statements

This presentation contains forward-looking statements.

Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions. Actual results may differ materially from those expressed herein. Additional information concerning factors that could affect the Company’s actual results is included in the Company’s filings with securities regulators. The Company undertakes no obligation to update publicly any forward-looking statements except as required by securities legislation.

All figures are in US dollars, unless otherwise noted.

While rounding may occur in performance numbers for presentation purposes, percent change figures are calculated using full, unrounded numbers.

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Ritchie Bros. overview

The trusted source for buying and selling industrial equipment• Global leader for industrial auctions; unreserved process

– No minimum bid/reserved price. No buy-backs. – Ensures the sale of goods on the day of the auction at global market price

• Cater to the needs of heavy equipment owners– Customers are from the construction, trucking, agricultural & resource sectors

• 349 auctions; $4.2 billion in Gross Auction Proceeds during 2014– Industry leader by wide margin– Enormous growth opportunity; highly fragmented market

• Launched EquipmentOne online marketplace in 2013 to provide equipment owners a broader set of solutions

Strong financial performance• $481.1 million of revenue during fiscal 2014

• $100.8 million of adjusted net earnings during fiscal 2014

Publicly listed on the NYSE and TSX (as RBA)• Market cap of approx. US$3.1 billion

RBA Auction - Circa 1958

RBA Auction - Now

Ritchie Bros. has a strong heritage –selling used equipment since 1958

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31.0%

45.2%

21.4%2.4%

Regional breakdown of gap (2014)(Gross Auction Proceeds, $US billions)

Canada: $1.3 B

United States: $1.9 B

Rest of World: $0.9 B

EquipmentOne: $0.1 B

Global reach44 auction sites in 14 countries worldwide• Approx. 55% of auction purchases are made by bidders from

outside the region of the auction

• Allows RBA to effectively transfer equipment between regions experiencing different economic cycles

• Consignors benefit from global market pricing for their equipment, generated by international demand

• Buyers benefit from a global supply, with an ability to purchase and ship equipment from weak economic regions to areas with stronger growth

32.1%

46.5%

12.2%9.2% Canada

United States

Europe

Other

Regional breakdown of revenue (2014)(Revenue breakdown - % of 2014 total)

Ritchie Bros.’ online bidding allows customers from around the world to bid on equipment at any of our auctions.

• Real-time information from live auctions available online to registered bidders

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Regional amounts represent GAP generated from Ritchie Bros. auctions. All sales from RBA’s online marketplace, EquipmentOne, are included in the EquipmentOne segment (regardless of geography)

$4.2 B

$481 M

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Global equipment market size is $360 billion

Ritchie Bros. is a global leader in used equipment sales, with $4.2 billion of equipment sold in 2014However, this represents only 1.2% of a highly fragmented global used equipment exchange market

The US market alone represents over $50 billion, 7x Canada – a key market for growth

Mining

Oil & Gas

Transportation

Agriculture

Construction

Source: Internal estimates; based on historical OEM unit sales, estimates of fleet turnover, and average selling prices at RB auctions. Allocation by geography based on sector GDP.

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Mining

Oil & Gas

Transportation

Agriculture

Construction

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2014 Highlights

Double-digit adjusted 2014 EPS growth

$1.8 billion of online sales during 2014

CAD$1.4 billion of GAP in Canada

• 12% growth in annual adjusted EPS • Helped by unusually low tax rate

Operating free cash flow 119% of adjusted

net earnings

• Demonstrates the strength of our digital capabilities• Leading multi-channel player in our space

• 5th consecutive year of strong GAP growth in Canada• Bolstered by growth in both western and eastern

Canada

• Significant cash generating capabilities• OFCF 131% of unadjusted net earnings

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0

20,000

40,000

60,000

80,000

100,000

120,000

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Consignments Buyers

0

100,000

200,000

300,000

400,000

500,000

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Registrants Lots

Growing seller and buyer base

5.6% CAGR in consignments over last 10 years

6.1% CAGR in buyers over last 10 years

7.8% CAGR in registrants over last 10 years

5.5% CAGR in Lots over last 10 years

Consignments & buyer base (Metrics are for industrial auctions only)

Auction registrants & lots(Metrics are for industrial auctions only)

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$4,212

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

1980

1981

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1983

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1991

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1993

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1995

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1998

1999

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2010

2011

2012

2013

2014

Growth of Gross Auction Proceeds (GAP)

US$4.2 billion of GAP produced during fiscal 2014

GAP:The aggregate dollar amount sold through our multiple solutions

8 Includes transactions of AssetNation and EquipmentOne online marketplaces in 2012 - 2014

Gross Auction Proceeds (US$ millions)

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Four external influences on GAP

The pricing environment• A strong pricing environment will enhance market values of equipment sold at auctions• Stable or increasing pricing environment provides consignors with more confidence to

sell equipment through unreserved auctions

The mix of categories of assets sold • RBA sells a wide variety of industrial and agricultural equipment and other products.

There is no consistency to the mix of assets sold, as it varies at each auction held due to regional, seasonal and cyclical factors.

• The proportion of higher-valued items sold at each auction relative to smaller goods impacts the auction proceeds generated

The mix of equipment age• Newer equipment generally has a higher market value compared to older machinery

The number of Lots consigned• Each sale generates proceeds. Increasing the number of Lots sold can bolster gross

auction proceeds

1

2

34

9

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Unreserved auction revenue model

Four main revenue streams support Ritchie Bros.’ unreserved auction business:

Unreserved Auction

Straight Commission

Guaranteed Proceeds (underwritten transaction)

Inventory (underwritten transaction)

Consignors contract to sell their equipment through one of Ritchie Bros. unreserved auctions. A pre-determined percentage of the selling price is provided to RBA as commission.

Consignors are guaranteed to receive a pre-determined amount for their equipment, regardless of the final selling price at the auction. A stepped commission fee is negotiated, accounting for the additional risk being assumed by RBA. (Also known as an ‘at risk’ transaction)

On rare occasions, Ritchie Bros. may choose to purchase equipment outright, obtaining title of the piece to sell at an upcoming auction.

TRANSACTION TYPE REVENUE

Straight Commission fee (% of auction proceeds)

Stepped commission fee (x% of guaranteed proceeds; x+y% for proceeds above guaranteed amount)

Gains on sale

Sellers (Consignors)

Buyers Admin Fees & Value-added Services (VAS) Admin fees and fees from value-added service activities

RBA provides many services to assist with the purchase of equipment, including financing , inspection services, painting etc.

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Focus on underwritten business

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• Better leveraging our skills, expertise and market knowledge to drive stronger performance

• Transferring best practices to underperforming regions

• Equipment valuations team is more involved

• Implemented a more rigorous underwritten deal approvals process

• Smaller transactions are receiving more scrutiny

• Not a vehicle to ‘buy’ GAP; no market pressures to pursue underwritten contracts

See significant opportunity to drive earnings growth by improving the performance of our underwritten business

Casper, WY auction

Completed more than $10 billion worth of underwritten transactions over the last 11 years.

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Multi-channel solutions

• Provides access to a larger share of the equipment market

• Allows RBA to cater to a wider range of equipment seller needs

• Provides another entry point to gain a customer during the equipment seller journey (some equipment sellers consider online listings first)

• Offers sellers more control over the sales price, time and purchaser; opens up opportunities for RBA to bid on RFPs

• During 2014, EquipmentOne contributed approx. $100 million of GTV (Gross Transaction Value) to GAP

Commercially launched on April 8, 2013

Customers of EquipmentOne value having control over the process and price, more than the guarantee of sale. They prefer a negotiated price, over global market value.

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The launch of EquipmentOne provided customers with another sales solution – an online equipment marketplace

The seller journey: sellers choose methods based upon needed degree of controlOur vision is to position appropriate solutions at each point of seller journey and connect them

High

Cont

rol t

o Se

ller

LowEffort for Seller

Control over:PriceTime

LocationBuyer

Listing Service

Low

High

Uncertain CertainSome Certainty of Sale

Result: Transacting anyhow, anytime, anywhere

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EquipmentOne – Strategy is taking hold

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E1 achieved 15% revenue growth compared to Q2 last year

$3.8 

$0.4 

-$2

-$1

$0

$1

$2

$3

$4

$5

Revenue EBITDA 4 quarter moving average 4 per. Mov. Avg. (EBITDA)

EquipmentOne Revenue and EBITDA($US millions)

Q2 2015 EBITDA was positive on a 12 month trailing and 4-quarter moving average basis for the first time

Q3 2014 Q4 2014 Q1 2015 Q2 2015

Revenue4-quarter moving average $ 3.2 $ 3.3 $ 3.4 $ 3.6

Trailing 12 months $ 12.7 $ 13.2 $ 13.7 $ 14.2

EBITDA4-quarter moving average $ (0.6) $ (0.4) $ (0.0) $ 0.2

Trailing 12 months $ (2.4) $ (1.6) $ (0.2) $ 0.8

EquipmentOne Revenue and EBITDA($US millions)

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Q2 EquipmentOne updates

US sales team training:19 of 22 complete

Enhanced user experience based on customer feedback

• Accelerated the launch of E1 products through US sales team; all US teams trained by year-end

• Learnings from initial pilots have been incorporated into the sales process/training

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Operational Results:

• Gross Transaction Value (GTV) from E1 in Q2 up 7% from Q2 last year• GTV of $111.6 million twelve months trailing June 2015

• Website traffic up 19% in Q2 2015 (average monthly user, three months trailing June 30)

• Updated website terminology to be more consistent with Ritchie Bros. language, as requested by customers

• Enhanced visual design to ease site navigation

Recent Initiatives:

Integrating E1 listings on rbauction.com searches

• Gives buyers a greater array of equipment in search results

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Strategic RoadmapObjective: grow revenue & earnings, drive cash flow, improve RONA

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2015 priorities – focus on execution

1. Improve our revenue rate– Laser focus on improving the performance of our underwritten business

2. Spur straight commission growth across all geographies

3. Increase our penetration in Transportation – Targeted initiatives; building organizational capabilities and sector expertise

4. Optimize a go-to-market strategy for EquipmentOne– “Better Together” approach using the RBA sales force

5. Program to target acquisition candidates

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2015: Pivoting from strategy to execution

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Q2 and H1 2015financial performance

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Reported - % Growth Organic - % GrowthVersus Q2 2014 Versus Q2 2014

GAP 3% 11%

Revenue 10% 19%

Operating Profit 21% 30%

Diluted EPS 21% n/a

Operating Free Cash Flow (12 month rolling)

91% n/a

RONA (12 month rolling)

738 bps n/a

RONA excluding effects of term loan reclassification

495 bps n/a

Q2 2015 financial highlights

Strong growth compared to Q2 2014, both on a constant currency (organic) basis and a reported basisForeign exchange had an impact on some operating lines

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H1 2015 financial highlights

Performance in first half of the year demonstrates our commitment to execution and our agility in leveraging market opportunitiesForeign exchange remains a headwind

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Reported - % Growth Organic - % GrowthVersus H1 2014 Versus H1 2014

GAP 6% 14%

Revenue 13% 21%

Operating Profit 33% 41%

Diluted EPS 33% n/a

Operating Free Cash Flow (12 month rolling)

91% n/a

RONA (12 month rolling)

738 bps n/a

RONA excluding effects of term loan reclassification

495 bps n/a

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$1,150

$673

$1,040

$865

$1,195

$849

$1,000

$845

$1,073

$790

$1,107

$855

$1,229

$887

$1,241

$956

$1,262

$4,212$4,313

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

$0

$250

$500

$750

$1,000

$1,250

$1,500

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Record Q2 and 12-month trailing

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12-months trailing GAP

Quarterly GAP

Quarterly Gross Auction Proceeds($US millions)

$4.31 Billion GAP on 12-month trailing basis

2011 2012 2013 2014 2015

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Q2 auction volumes bolstered by many sectors

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Q2 Auction volumes (Lot count) Q2 2015 Incremental Lots per Customer sectorTotal lots sold per quarter Lot growth per customer (seller) sector, compared to Q2 2014¹

15% increase in auction volume (lots sold) compared to Q2 last year Increase largely due to more assets from customers in the heavy and light construction sectors.

Num

ber o

f Lots

Lot g

rowth per customer sector

Growth of lots from customer se

ctor

Growth from

 prio

r Q2 81,000 

84,500  85,500 83,500 

96,000 

4%

1%

‐2%

15%

‐5%

20%

520 

998 618  732 

1,023 

3,823 

31%

69%

113%

16% 15%24%

0%

120%

¹ Selected customer sectors. Does not include all sectors equipment came from.

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Record quarterly revenue achieved in Q2 2015

Revenue fluctuates considerably between quarters due to seasonality and the number of auctions held in each period.

Revenue Rate fluctuations are due primarily to the performance of the Company’s underwritten contracts.

Quarterly revenue & revenue rate ($US millions)

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2012 2013 2014

Revenue Rate Revenue

11-12% annual revenue rate range

2015

$127

$92

$117

$102

$128

$106

$131

$99

$142

$102

$138

$116

$156

10.7%

12.0%11.5%

12.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

0

25

50

75

100

125

150

175

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

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11%

8% 19%

‐9%

10%

0%

5%

10%

15%

20%

25%

Total Volume Rate Total Organic Growth FX Impact Total Growth

Q2 Revenue growth bolstered from both volume and rate

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Breakdown of revenue growth, % attributable to itemQ2 2015 revenue compared to Q2 2014 revenue

~60% of the organic revenue growth was driven by increases in auction volumes~40% was driven by revenue rate improvement

Changes in foreign exchange had a negative impact on reported revenue growth

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Strong Q2 revenue growth from Canada and US

Geographic breakdown of Q2 revenue$US revenue

Q2 Revenue growth rates$US reported growth; local currency

Strong revenue growth in the US and Canada in local currency; FX translation muted reported growth in Canada and Europe.

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19%

6%

‐14%

13%10%

19% 19%

7%

17%

‐15%

30%

US Canada Europe Other RBA - All

Reported growthLocal currency growth

41%

41%

8%10%

USCanadaEuropeOther

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$32

$10

$22

$14

$30

$16

$30

$14

$39

$14

$33

$24

$46

0

5

10

15

20

25

30

35

40

45

50

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Q2 2015 earnings increased 20% from Q2 2014

Record quarterly earnings driven by auction volumes, strong revenue rate, and revenues growth exceeding expense growthTax rate consistent with Q2 2014

2012 2013 2014 2015

Quarterly Adjusted Net Earnings¹($US millions)

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20% growth from year ago quarter

¹ Earnings attributable to Ritchie Bros. Incorporated. Excludes minority interest of Ritchie Bros. Financial Services.

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Impact of FX on our Q2 2015 performance

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$26M, 19 %

-$12M, -9%

$14M, 10%

0

5

10

15

20

25

30

35

Organic Growth FX effect Total Growth

in M

illio

ns

Revenue and FX

$11M, 12%

$8M, 9%$3M, 3%

0

5

10

15

20

25

30

Organic Growth FX effects Total Growth

in M

illio

ns

Expenses (DE, SG&A, D&A) and FX

$16M, 30%

-$5M, -10%

$11M, 21%

0

5

10

15

20

25

30

Organic Growth FX effect Total Growth

in M

illio

ns

Operating Income and FX

$132 M, 11 %

-$99M, -8%

$33 M, 3%

020406080100120140160

Organic Growth FX effect Total Growth

in M

illio

ns

GAP and FX

* Figures rounded to the million

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Income statement scorecard – Q2 and H1 2015

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Q2 2015: 3 months trailing ($US Millions except for EPS, %) June 30, 2015 June 30, 2014 Better / (Worse)

GAP $1,262.2 $1,229.2 3%

Revenues $155.5 $141.8 10%

Revenue Rate 12.32% 11.54% 78 bps

Operating Income $62.4 $51.7 21%

Operating Income Margin 40.2% 36.5% 370 bps

Diluted EPS $0.43 $0.36 21%

H1 2015: 6 months trailing ($US Millions except for EPS, %) June 30, 2015 June 30, 2014 Better / (Worse)

GAP $2,217.7 $2,084.6 6%

Revenues $271.1 $240.4 13%

Revenue Rate 12.22% 11.53% 69 bps

Operating Income $92.1 $69.4 33%

Operating Income Margin 34.0% 28.9% 509 bps

Diluted EPS $0.65 $0.49 33%

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Balance sheet scorecard (as of June 30, 2015)

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12 months trailing ($US Millions except for percent figures) June 30, 2015 June 30, 2014 Better / (Worse)

Operating free cash flow $220.3 $115.3 91%

Working Capital Intensity -23.9% -15.9% 806 bps

Capex Intensity 3.2% 6.9% 369 bps

RONA (Return on Net Assets) 24.9% 17.5% 738 bps

RONA excluding term loan reclassification 22.5% 17.5% 495 bps

Debt / Adjusted EBITDA 0.6x 0.9x 0.3x

Balance sheet scorecard (as of June 30, 2015)

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Capital allocation priorities

Consistently make use of cash on our balance sheet to facilitate underwritten transactions;The strength of our balance sheet is a competitive advantage.

Priority Discussion

1. Grow dividends with earnings Highly valued return of cash to shareholders

2. Hold fully-diluted shares flat Offset dilution from management stock options through share buybacks

3. Acquisitions Accelerate top-line growth and leverage the model

4. Share buy-backs Growth initiatives are a higher priority at this time

5. Pay down debt Only if better economic returns are not available

(1) Priorities for cash utilization after operating CAPEX needs have been met.29

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14% increase in quarterly dividend (announced Aug. 6, 2015)

Growing our dividend alongside earnings; Committed to 55-60% dividend payout, based on earnings trailing 12 months

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$0.1

050 $0

.112

5

$0.1

125

$0.1

125

$0.1

125

$0.1

225

$0.1

225

$0.1

225

$0.1

225 $0

.130

0

$0.1

300

$0.1

300

$0.1

300

$0.1

400

$0.1

400

$0.1

400

$0.1

400

$0.1

600

$0.10

$0.11

$0.12

$0.13

$0.14

$0.15

$0.16

$0.17

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15

Dividends declared($US cash dividends)

7.1% increase

8.9% increase

6.1% increase

7.7% increase

14.0% increase

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$31

$70

$48

$0

$20

$40

$60

$80

$100

H1 Net Earnings Cash returned to shareholders

Returned $79 mil to shareholders in H1 201514% increase in quarterly cash dividend, announced August 6, 2015 (payable Sept. 25, 2015)1.9 million shares repurchased and cancelled in H1, consistent with our strategy of holding fully diluted shares flat.

H1 2015 Cash Returned to Shareholders, relative to Net Earnings$US millions

$79 million

Dividends

ShareRepurchases

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Dividend payout related to dividends already paid in H1 2015.

This amount is not reflective of the 14% increase to the dividend announced on August 6, 2015.

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Focused on generating long-term shareholder value through continued earnings and dividend growth.

Global leader in industrial auctions• Substantial growth opportunity• Focused on capturing increased market share in the US and Canada

Diversifying services to meet broader customer needs• Sales solutions: Ritchie Bros. Auctioneers, EquipmentOne • Complementary services: Ritchie Bros. Financial Services, Logistical Services

Focused on basics of: • EPS growth • Return on Net Assets• EBITDA margin• Operating free cash flow

Summary

Moerdijk, Netherlands auction

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Learn more about Ritchie Bros. auctions through our online videos:

www.youtube.com/ritchiebros

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2014 annual financial performance

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Annual revenue growth

Revenue Rate fluctuations are due primarily to the performance of the Company’s underwritten contracts.

Annual revenue & revenue rate ($US millions)

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Revenue Rate Revenue

11-12% historical revenue rate range

$357

$396

$438

$467

$481

12.24%11.42%

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2010 2011 2012 2013 2014

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2014 net earnings

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Reconciliation of reported to adjusted net earningsattributable to equity holders

Per share

Net earnings $ 91,490 $ 0.85

After-tax impact of management re-org 4,212 0.04

After-tax gain on sale of property (2,946) (0.03)

Impairment loss on Japan property 8,084 0.08

Adjusted net earnings $ 100,840 $ 0.94

Annual adjusted net earnings ($US millions)

$37 $37

$50$56

$76$85

$92

$65$74

$83$90

$101

$30$40$50$60$70$80$90

$100$110

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

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Appendices

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11.5%

9.6%

4.2%

3.6%

8.7%

10.2%

13.1%

12.1%

11.0%

5.0%

4.8%

8.8%

11.2%

12.1%

12.2%

10.3%

5.0%

4.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2010

2011

2012

2013

2014

YTD July 27 2015New1 Yr Old2 Yrs Old3 Yrs Old4 Yrs Old5 Yrs Old6 Yrs Old7 Yrs Old8 Yrs Old9 Yrs Old10 Yrs Old

3-5 yrs old: 23.7% of GAP¹

18.5% of GAP¹

3-5 yrs old: 35.8% of GAP¹

¹ Industrial auctions only. Excludes equipment over 10+ years and equipment with unknown ages.

New to 1 yr Old

6+ Yrs Old

Equipment sold in 3-5 year age range is growing

Age of Equipment sold¹

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38

RBA evergreen financial model

Above model reflects our aspiration on how the model should work in the next 5 to 7 years

Performance Metric Avg. Annual Growth Targets

• GAP Growth (%) High Single Digit to Low Double Digits

• Revenue Growth (%) (1) Mid Single Digit to High Single Digit

• SG&A Growth (%) Will grow slower than revenues

• Operating Income Margin (& EBITDA Margin) 50 bps +

• EPS Growth (%) (2) High Single Digit to Low Double Digits

• Net Capex Intensity (3) <10%

• OFCF (4) % of Net Earnings >100%

• RONA (5) Increase 50 bps +

• Dividend Payout Ratio 55% to 60%

• Net Debt / EBITDA <2.5X

(1) Includes Tuck In and Bolt On acquisitions(2) Variances may occur in certain years based on tax rate that is influenced by geographic revenue mix(3) Net Capital Spending as % of Revenue(4) Operating Free Cash Flow(5) Return on Net Assets

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Executive and Board updates

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Sharon Driscoll, Chief Financial Officer (as of July 6, 2015)

• Highly experienced CFO; 17 years in senior executive roles

• Track record of partnering with business leaders to drive superior financial performance

• Most recently CFO of Katz Group (Rexall Pharmacies in Canada); former CFO of Sears Canada Inc. (TSX: SCC, NASDAQ: SRSC); former financial executive at Loblaws (TSX:L)

Rob McLeod, Chief Business Development Officer (as of July 6, 2015)

• CFO since 2008; 22 years with Ritchie Bros.

• Held financial, operational and general management roles at RBA in Canada, the United States and Europe

• Rob will be in charge of M&A strategy for RBA – evaluating potential targets, executing the transactions and integrating the businesses

• Will provide oversight in strategies to increase our market share in key focus sectors – transportation, agriculture, oil & gas

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Executive and Board updates (cont.)

40

Lisa Pollina, Director on the Board(As of May 4, 2015)

• Strong capital markets background

• Since 2012, served as Vice Chairman of RBC Capital Markets

• Held prior senior executive roles at Bank of America and Bordeaux Capital

• Appointment approved by shareholders at the 2015 AGM

Terry Dolan, President, U.S. and Latin America(As of May 20, 2015)

• A veteran of the heavy equipment industry

• Highly experienced, with a proven track-record of driving growth and leading high-performance teams

• Strong background in many of our focus sectors

• Prior executive roles at Generac, Boart Longyear, Case/CNH Global, Ingersoll Rand

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EquipmentOne and Unreserved auctions – Better together

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A solution set that caters to equipment sellers with different needs, or at different points of the selling cycle.

• Certainty of sale

• Global market value

• Seller access to largest global buying audience

• Ability to buy at largest global equipment inventory online and onsite

• Highest level of service & support

• Single relationship for all occasions

• Choice to transact anyhow, anytime, anywhere

• Choice of control, level of assistance

• Seller access to the world’s largest equipment buyer base

• Buyer access to the largest global equipment inventory

• Robust selling price data

• Technology-enabled “better together” solutions

• Greater seller control over price, timing, location, buyer

• Access to global buying audience online

• Strong technology platform

• Self-service tools or assistance from world-class sales & operations

• Ability to buy anytime

“Better Together”

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Auction sites

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Investor Questions: [email protected] | 1-778-331-5500