A global leader in used equipment sales Investor presentation - PowerPoint PPT Presentation

A global leader in used equipment sales Investor presentation February 2, 2015 – Q3/14 information 1

Forward looking statements This presentation contains forward-looking statements (as such term is defined in Section 21E of the U.S. Securities Exchange Act of 1934, as amended), which reflect management's current views with respect to certain future events, company strategy and performance. All statements included in or accompanying this presentation, other than statements of historical fact, are 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. Please refer to our website at www.rbauction.com for a description and, as applicable, reconciliation of non- GAAP financial measures such as GAP (gross auction proceeds), EBIT and Adjusted EBIT, ROI and ROIC, RONA or Adjusted EPS. All figures are in US dollars, unless otherwise noted. 2 2

Ritchie Bros. overview The trusted source for buying and selling industrial equipment Ritchie Bros. has a strong heritage – selling used equipment since 1958 • 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 and resource sectors • 349 auctions; $4.2 billion in Gross Auction Proceeds during 2014 – Industry leader by wide margin RBA Auction - Circa 1958 – Enormous growth opportunity; highly fragmented market • Launched EquipmentOne online marketplace in 2013 to provide equipment owners a broader set of solutions Strong financial performance • $467.4 million of revenue during fiscal 2013 – CAGR of 11.2% over last 10 years • $90.0 million of adjusted net earnings during fiscal 2013 Publicly listed on the NYSE and TSX (as RBA) RBA Auction - Now • Market cap of approx. US$2.7 billion 3 3

Global reach 44 auction sites in 14 countries worldwide REGIONAL BREAKDOWN OF GAP (2014) (Gross Auction Proceeds, $US billions) • Approx. 55% of auction purchases are made by bidders from outside the region of the auction Canada: $1.3 B 2.4% • Allows RBA to effectively transfer equipment between regions 21.4% United States: $1.9 B 31.0% experiencing different economic cycles (transcends local market Rest of World: $0.9 B conditions) $4.2 B EquipmentOne: $0.1 B • Consignors benefit from global market pricing for their equipment, generated by international demand for their machinery Regional amounts represent GAP generated from Ritchie 45.2% • Buyers benefit from a global supply, with an ability to purchase and Bros. auctions. All sales from ship equipment from weak economic regions to areas with stronger RBA’s online marketplace, growth EquipmentOne, are included in the EquipmentOne segment (regardless of geography) Ritchie Bros.’ online bidding allows customers from around the REGIONAL BREAKDOWN OF REVENUE (2013) world to bid on equipment at any of our auctions. (Revenue breakdown - % of 2013 total, to be updated • Real-time information from live auctions available online to registered for 2014 when RBA releases 2014 results) bidders Canada 9.1% 29.0% United States 13.9% Europe $4 6 7 M Other 48.0% 4 4

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 2014 However, 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 Mining Oil & Gas Oil & Gas Transportation Agriculture Construction Transportation Source: Internal estimates; based on historical OEM unit sales, estimates of fleet turnover, Agriculture and average selling prices at RB auctions. Allocation by geography based on sector GDP. Construction 5 5

Unreserved auction revenue model Four main revenue streams support Ritchie Bros.’ unreserved auction business: Unreserved Auction TRANSACTION TYPE REVENUE Sellers Straight Commission Straight Commission (Consignors) Consignors contract to sell their equipment through one of Ritchie fee (% of auction Bros. unreserved auctions. A pre-determined percentage of the proceeds) selling price is provided to RBA as commission. Guaranteed Proceeds (underwritten transaction) Stepped commission Consignors are guaranteed to receive a pre-determined amount for fee (x% of guaranteed their equipment, regardless of the final selling price at the auction. A proceeds; x+y% for stepped commission fee is negotiated, accounting for the additional proceeds above risk being assumed by RBA. (Also known as an ‘at risk’ transaction) guaranteed amount) Inventory (underwritten transaction) Gains on sale On rare occasions, Ritchie Bros. may choose to purchase equipment outright, obtaining title of the piece to sell at an upcoming auction. Buyers Admin Fees & Value-added Services (VAS) Admin fees and fees from value-added service RBA provides many services to assist with the purchase of equipment, activities including financing , inspection services, painting etc. 6 6

Growth of Gross Auction Proceeds (GAP) GROSS AUCTION PROCEEDS (US$ millions) $4,500 $4,212 US$4.2 billion of GAP produced during fiscal 2014 $4,000 GAP: $3,500 The aggregate dollar amount sold through our $3,000 multiple solutions $2,500 $2,000 $1,500 $1,000 $500 $- 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 7 7 Includes transactions of AssetNation and EquipmentOne online marketplaces in 2012 - 2014

Four external influences on GAP 1 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 2 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 3 The mix of equipment age • Newer equipment generally has a higher market value compared to older machinery 4 The number of Lots consigned • Each sale generates proceeds. Increasing the number of Lots sold can bolster gross auction proceeds 8 8

Age of equipment sold through RBA auctions Equipment production levels in prior years is reflected in age of assets sold • Drop in equipment production post financial crisis has impacted the age of assets available for sale. Production has since returned to pre-crisis levels • Other GAP influences remain strong: stable equipment pricing and growing number of Lots sold % OF GAP BY ASSET AGE 2014 14% 2009 2010 12% 2011 10% 2012 8% 2013 2014 6% 4% 2% 0% New 1 Yr Old 2 Yrs Old 3 Yrs Old 4 Yrs Old 5 Yrs Old 6 Yrs Old 7 Yrs Old 8 Yrs Old 9 Yrs Old 10 Yrs Old 9 Excludes assets with unknown age and those over 10 years. 9

Growing seller and buyer base CONSIGNMENTS & BUYER BASE AUCTION REGISTRANTS & LOTS (Metrics are for industrial auctions only) (Metrics are for industrial auctions only) 500,000 120,000 7.8% CAGR in registrants 6.1% CAGR in buyers over last 10 years over last 10 years 100,000 400,000 5.5% CAGR in Lots over last 10 years 80,000 300,000 60,000 5.6% CAGR in consignments 200,000 over last 10 years 40,000 100,000 20,000 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Consignments Buyers Registrants Lots 10 10

Growing our market presence Recruiting additional sales people, known as Territory Managers (TMs), to generate new customer relationships • 300+ TMs globally (as of Nov. 4, 2014) • Added 25+TMs since the January 1, 2014 • Expect to grow sales force based on market opportunity Best growth prospects are in our existing major markets • Growing market share in the US is a key opportunity – Still significantly less share than in Canada (RBA’s most mature market) Inaugural auction in China – Small market share gains in the US could translate into meaningful GAP growth Continue to pursue targeted geographic growth initiatives: • Proven growth method: 1. Generate leads in new markets 2. Station a Territory Manager 3. Once business levels can support an auction site, we evaluate the opportunity • Held our first auction in China in April 2013 • Held our first auction in Finland in September 2013 11 11