investor presentation
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DisclaimerThe views expressed herein contain information derived from publicly available
sources and have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward
looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. For additional information on these or other factors, please see the Company's filings on SEDAR. This presentation should
not be relied upon as a recommendation or forecast by Hodgins Auctioneers.
Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.
Investment Highlights
An Established Auction Company A Big Marketplace The Right Management & Board Our Support Team World Class Services Three Big Markets Our Competition Few are Publicly Listed Past Performance 4-Point Growth Strategy Capital Requirements Use of Proceeds Capital Structure
An Established Auction Company
Hodgins family first entered the industry in 1957
6,000 plus auctions conducted Gross annual system sales between 40 and
50 million Gross revenues between 3.5 and 4.2 million
A Big Marketplace
2007 North American system sales ~ $270.7 billion USD (Live auctions only).
Largest competitor commands only 1% of the total market
Lots of room for growth
The Right Management & Board
Barrie Jung • President/CEO ~ 25 years +
Grant Hodgins • General Manager ~ 30 years +
Todd Bennett• New Business Development Manager ~ 2 years
Larry Buchinski • Industrial Sales Manager ~ 25 years +
Lyle Gradin • Agricultural Sales Manager ~ 10 years +
Myles Taylor • E-Commerce Sales Manager ~ 5 years +
Gordon Anderson • Chairman of the Board
Our Support Team
Marketing Experts Call-Center Staffing Trust Administrators Operational Technicians
World-Class Services
Professional, Comprehensive Marketing Campaigns
100,000 + Customers in Database Complete Set-up Services and Equipment Capacity to do 100 - 200 Auctions per Year
Three Big Markets
Agricultural– Royal Bank study says 50 Billion dollars in farm
assets to change hands in decade prior to 2016 Industrial
– More than 15 Billion dollars annual North American market
Automotive– More than 100 Billion dollars annual sales
Our Competition
Local, Regional, National Ritchie Bros. – World’s Largest Industrial
Auctioneer Listed NYSE Adesa – Formerly Owned by Minnesota Light
& Power Manheim – Owned by Cox Enterprises which
brings in 15 Billion in Revenues and has 77,000 Employees
Few arePublicly Listed
Very Few Auction Companies Publicly Listed Most Held Closely in Private Structures Opportunity For Investors in Hodgins
Past Performance
4-PointGrowth Strategy
1. Increase Margins With More Bought Deals– Bought Deals
• Financial Guarantees
• Out-right Purchases
Bought Deals
2. Diversify By Segment– Heavy Construction– Industrial Plant– Automobiles
3. Expand Geographically– Ontario– Alberta
4. New Technology for Wholesale Auto Auctions– New Technology well into Development for Mobile
Device Bidding– Revenue Potential
• 6,000 Auto Dealers in Canada– 10% market share at $499 / month = 3.6 Million dollars annually
• 60,000 Auto Dealers in USA– 10% market share at $499 / month = 36 Million dollars annually
Capital Requirements
This is effectively an IPO for Hodgins Private Placement by Accredited Investors Initial Raise of $750,000 to $1,000,000
Use of Proceeds
50% Bought Deal 50% Working Capital
– New Technology Development– Marketing– Expanded Sales Force– Seasonal Cash Flow
Capital Structure
8,598,500 Shares Issued & Outstanding 9.2 Million Fully Diluted 55% Owned by Management Public Float Less than 4 Million Shares
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