sotheby's fourth quarter and full year 2012 earnings

7/29/2019 Sotheby's Fourth Quarter and Full Year 2012 Earnings

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SOTHEBYS REPORTS FOURTH QUARTER ANDFULL YEAR 2012 FINANCIAL RESULTS;ANNOUNCES BUYERS PREMIUM INCREASEFebruary 28, 2013, New York Sothebys (NYSE: BID) today reported financial results for the fourth

quarter and full year ended December 31, 2012.

For the full year 2012, Sothebys reported total revenues of $768.5 million, a $63.3 million (8%) decline

from the prior year. This decrease is largely attributable to a $79.4 million (11%) drop in auction

commission revenues resulting from a 10% reduction in net auction sales, as 2011 included a record

level of sales from single owner collections. The decline in auction commission revenues is partially

offset by a $6.8 million (10%) improvement in private sale commission revenues and a $5.7 million

(47%) increase in finance revenues.

Sothebys reported net income of $108.3 million, or $1.57 per diluted share, in 2012, a $63.1 million

(37%) decrease from 2011 partially due to the aforementioned reduction in revenues. In late 2012,

Sothebys refinanced its long-term bonds by ten years, to 2022, and, as a result, incurred a $15.0

million pre-tax bond redemption loss ($8.3 million after taxes, or $0.12 per diluted share) that

negatively impacted the comparison to the prior year. This long-term refinancing will reduce

Sothebys financing costs by approximately $5 million per year, beginning in 2014. In addition, in

December, Sothebys extended and improved its credit facility, further improving its liquidity and

lowering its cost of funds. The comparison of 2012 net income to the prior year is also unfavorably

impacted by a non-recurring $13.6 million tax benefit recognized in 2011 due to the reversal of a

valuation allowance against certain of Sothebys deferred tax assets.

For Immediate Releaseress Release New YorkNew York | +1 212 606 7176 | Andrew Gully I [email protected] | Lauren Gioia | [email protected]

London | +44 (0) 20 7293 6000 | Matthew Weigman | [email protected]


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Consolidated sales* in 2012 were a robust $5.4 billion as healthy bidding continued around the world

for great works of art, said Bill Ruprecht, Chairman, President and Chief Executive Officer. Our

operating results reflect some significant successes, a stiff comparison to one of the best years in

Sothebys history a year ago, and a very competitive climate for high-end consignments. Overall, I

remain confident in the marketplace.

Private sales*, an increasingly important part of Sothebys business, totaled a record $906.5 million, an

11% increase. And as of the end of 2012, the Companys finance segment loan portfolio balance was

$425.1 million, almost double the prior year balance of $223.0 million, and near peak levels.

Sothebys ended the year with a very strong balance sheet and we are continuing to invest in our

business, said Ruprecht. As a result, 2012 was a year of meaningful progress in the development of

our client-focused strategy. We have totally reengineered our post-sale client services in our key sales

centers of London and New York and made an array of enhancements to facilitate and personalize

the client experience. Sothebys is a global pioneer in broadening the art market and offering the

highest levels of client service and we dramatically demonstrated that across the business in 2012.

The global reach of our team is central to our success and the value we add for our clients. We are

the first Western auction house to hold an auction in mainland China through a ground-breaking jointventure which will allow us to take advantage of a planned Beijing free port project, providing a tax-

advantaged platform for storage, selling, exhibition and educational activities. Were the only auction

house with a formal presence in Brazil and Argentina, among our 90 offices worldwide, were the only

auction house to hold sales in Doha, Qatar, and we have received bids from over 120 countries in

2012, he continued.

We are pushing innovations on our web platform to make art more accessible and to reward our best

clients. We offer our clients personalized account information in the language of their choice, were

the only auction house to provide digital catalogues and a magazine in downloadable format, and the

only auction house with a Catalogue App program that offers twirling 360 degree views, note taking,

real-time sale results and video. We reward our best clients through Art Fair VIP opportunities and

perquisites at more than 100 partner museums, said Ruprecht.


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Sothebys is the first auctioneer to have a dedicated private sales exhibition gallery (S/2) within its

headquarters in New York and office in Hong Kong and will open a third gallery at its London office

this year. Last year, the Company held seven private sales exhibitions in partnership with renowned

artists and tastemakers.

The Company remains sharply focused on developing its presence in China, deepening its

relationships with Chinese art collectors in a number of tangible ways, including the expanded use of

Chinese language on the website, Chinese e-catalogues, investing in Asian client-service staff,

expansion of Sothebys Hong Kong premises and an increased number of auction and private selling

events in Asia. This year, Sothebys will celebrate the 40th anniversary of its Hong Kong office the

oldest Western auction house in Hong Kong.

These achievements should provide Sothebys with a solid platform for growth as well as a more

diversified revenue stream in future years, said Ruprecht.

Year to Date 2013Sothebys annual Old Masters Week auctions in late January in New York brought a total of $80.1

million and was highlighted by an exceptional work by Pompeo Girolamo Batoni from 1751, Susannaand the Elders, which exceeded the pre-sale estimate of $6/9 million and brought $11.4 million, a

record for the artist at auction.

Sothebys February sales of Impressionist, Modern and Contemporary Art in London brought a

combined total of $374.2 million and the top two prices of the year thus far. The Impressionist and

Modern Art sale was led by Pablo Picassos, Femme Assise Prs DUne Fentre from 1932; a

monumental work which introduced his golden muse Marie-Thrse to the public eye and sold for

$45.0 million. Highlighting the Contemporary Art sales was Francis Bacons triptych, Three Studies for

a Self-Portrait, from 1980 which brought $21.5 million and was painted when the artist was 71 years old.

Year to date 2013 sales are up over 30% but the sales growth experienced thus far this year has been

in the most competitive areas of Impressionist, Modern and Contemporary Art where the climate for


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the most high-value consignments remains very competitive and with such consignments often

earning thinner auction commission margins. Due to the seasonality of the sales calendar, the first

quarter is typically a loss quarter for Sothebys, with the anomaly of having the majority of its sales at

the highest end of the market. In order to enhance its revenue stream and strengthen profit margins,

Sothebys is today announcing its first pricing change in almost five years. Effective as of March 15,

buyers at auction will pay 25% on the first $100,000 of hammer price; 20% on the portion of hammer

price above $100,000 up to and including $2 million; and 12% on any remaining amount above $2

million. For over 98% of lots sold, this change will represent an increase of 2% or less in the final

purchase price and for all lots, a maximum 3.6% increase in the final purchase price.

Upcoming SalesFrom April 3

rd

to 8th

, Sothebys will hold its spring series of sales in Hong Kong. Highlighting the salesisA Magnificent Ruby-Ground Falangcai Double-Lotus Bowl from the Collection of Dr. Alice Cheng

(pre-sale estimate of $10 million), 20th Century Chinese artist Zao Wou-kis majestic and rare

diptyque 10.3.83(pre-sale estimate of $3/4 million) and a 3.04-Carat Fancy Intense Blue Diamond,

Pink Diamond And Diamond Ring (pre-sale estimate of $2/3 million). Also, in our Contemporary

Asian Art sale will be the Kurokochi Collection of works by Yoshitomo Nara. The 35 lots were

collected between 1988 and 2006 and is the first private collection to come to auction dedicated to

the works of the renowned contemporary Japanese artist.

Year To Date 2013 SalesSothebys annual January Old Masters Week auctions in New York brought a total of $83,887,800. The sale ofImportant Old Master Paintings & Sculpture sale totaled $58,230,315, highlighted by an exceptional work byPompeo Girolamo Batoni from 1751, Susanna and the Elders, which exceeded the pre-sale estimate of $6/9million. Five bidders battled for this major work and two determined phone bidders drove the final price to$11,394,500, a record for the artist at auction. Ten bidders fought for an unrecorded, recently-discovered HansMemling devotional panel, Christ Blessing, which realized $4,114,500, also a record for the artist at auction(est. $1/1.5 million). The panel, which has been in the same New England collection for over 150 years, wascompletely unknown to scholars and collectors alike before it was discovered by a Sothebys expert earlier this

year.

The Old Master Week of sales began with the two-day auction ofProperty from the Estate of Giancarlo Baroni,which brought a strong total of $13,859,634, above pre-sale expectations of $8.4/12.1 million. Bidders fromaround the globe filled the salesroom and participated by phone and via the internet, actively pursuing worksfrom the renowned Old Master connoisseur, collector and dealers collection, which ranged from 15 th centurygold ground paintings to works by El Greco, Giovanni Battista Tiepolo, Bernardo Bellotto and GiovanniBoldini, among others. The sale was led by Eva Gonzals La demoiselle dhonneur, which achieved$2,546,500, more than four times its presale high estimate of $600,000, and a record for the artist at auction


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The Old Master Drawings sale on 30th January 2013 offered works from the 16th to 18th centuries by French,Italian and Dutch artists and totaled $2,619,251. The sale was led by William Blakes The Gambols of Ghostsaccording with their Affections previous to the Final Judgment , one of nineteen watercolors by him thatwere rediscovered in 2001 in a small bookshop in Glasgow, which sold for $722,500, above its pre-sale highestimate.

A late 16th century Safavid Carpet sold for $1,930,500, more than double its pre-sale high estimate, during theMasterworks sale on 1st , which brought in a total of $5,374,000.

On 5th February, Sothebys London Impressionist & Modern, and Surrealist ArtEvening Sales brought a total of121,075,400 ($190,500,035) (est. 103.2/149million), to establish the second-highest total for a SothebysEvening Sale in this category in London. In total, 18 lots sold for over 1 million and 28 sold for over $1 million.The top price of the evening was achieved for Pablo Picassos 1932 painting Femme assise prs dune fentre,which sold to an anonymous telephone bidder for 28,601,250 ($45,001,207) (est. 25/35 million). Thismonumental work is part of a defining series which introduced his golden muse Marie-Thrse to the publiceye.

Sothebys Contemporary Art Evening Auction in London on 12th February brought the strong total of74,364,200 ($116,357,664), within pre-sale expectations (est. 61.2/84.5 million), representing Sothebyssecond-highest total for a February Sale of Contemporary Art in London. The top lot of the auction wasFrancis Bacons 1980 oil on canvas triptych masterwork Three Studies for a Self-Portrait, which sold for13,761,250 ($21,532,228) against an estimate of 10/15 million. The work was acquired by a German collectorJrgen Hall who will generously loan the work to a major international institution.

The Paris auction ofArt Nouveau From The Former Collection Of The Garden Museum, in Japan on 16thFebruary brought a total of 6,660,713 ($9,158,014), beating the previous world record for an Art Nouveaucollection, set at Sothebys New York in 1993. The sales top price was for Ren Laliques bronze sculptureFemme Aile one of the bronze elements from the balustrade of the Lalique stand at the 1900 ExpositionUniverselle which quadrupled the 300,000 high estimate to sell for 1,240,750 ($1,706,000).

Additional Upcoming HighlightsOn 19th and 20th March Sothebys will present the bi-annual Fine Chinese Ceramics and Works of Artauction asthe opening auction of Asia Week New York. The 500 lot, four session sale will be led by An Imperial KhotanGreen Jade Dragon Seal which was made circa 1781 in honor of the 70th Birthday of the Qianlong Emperor(est. $1/1.5 million). Other highlights include archaic bronzes, early pottery, an impressive example of a Tanghorse, Ming and Qing ceramics, Buddhist bronzes, jades, and an Imperial court battle painting and scholarsobjects.

On 19th March 2013, Sothebys will present the Amaya Collection, the first international Evening Sale of IndianArt and the first single-owner sale in this category to be held at Sothebys in more than a decade. Consigned by

esteemed collector and author, Amrita Jhaveri, the collection comprises important Modern & ContemporaryIndian Art produced from the second half of the 20th Century through to the early 21st. The sale offers some ofthe finest examples from the oeuvres of key artists, including highly sought-after and important works by 20 thCentury Modernist Masters Maqbool Fida Husain, Tyeb Mehta, Francis Newton Souza, Sayed Haider Raza,and Vasudeo Gaitonde, many of which have been extensively published and exhibited internationally. Theauction of 43 lots is estimated at approximately $5/7 million

The Indian and South East Asian Works of Art sale in New York on 20th March features a particularly stronggroup of Nepalese and Tibetan sculpture and painting, many from private American Collections. In addition


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there are several high-quality Indian works of art in stone and bronze as well as a good cross sectionalrepresentation of Indian miniature painting from North Indian and Rajput courts. Highlights include a Portraitof Sachen Kunga Nyingpo (est. $300/$500,000) and A Black Stone Stele of Vishnu India, Rajasthan,11th/12th century (est. $200/300,000).

The sale ofFine Chinese Classical Paintings on 21st March features a strong selection of high quality works of

Chinese painting and calligraphy encompassing a variety of styles, dating from the 14th

through 20th

centuries.The early Qing dynasty is well represented, with paintings by Wang Shimin, Wang Hui, Wang Yuanqi, TangDai and Yun Shouping. Among the highlights is Grand View of Mountains and Rivers by Dai Jin (est.$400/600,000).

Over 100 important ceramics by Pablo Picasso from a single private collection will be auctioned at SothebysLondon on 19th March. The characterful plates, bowls and vases, splendidly decorated by Picasso andtransformed into owls, goats, men, women and fish, were produced at the renowned Madoura Pottery inSouthern France between 1947 and 1969. The individual pieces range from around 2,000 to 30,000, and intotal the sale, which will also include over 50 prints from the same private collection, is expected to realize inexcess of 970,000.

On 21st March 2013, Sothebys London will offer for sale items from the collection of Mark Birley (1930-2007),one of the 20th centurys most stylish men. Birley, the mastermind behind the legendary Annabels nightclub,was for more than two decades the innovator of aristocratic nightlife in London - creating a world where royaltyand rock stars partied together in an atmosphere of sophisticated country house glamour. From works byDante Gabriel Rossetti and David Hockney to his bespoke Herms backgammon board and solid silverbathroom taps, Sothebys auction of over 500 works of art from Thurloe Lodge, Birleys London home, willprovide a special glimpse into the hidden world of the man who brought the Swinging Sixties to high-societyLondon. Estimates range from 50 to 250,000, and the sale is expected to achieve in excess of 1.3 million.

From the 3rd to the 8th of April, Sothebys Asia will hold its Spring Sale Series 2013. Highlights include: aMagnificent Ruby-Ground Falangcai Double-Lotus Bowl Blue Enamel Yuzhi Mark And Period OfKangxi which is expected to fetch in excess of HK$80 million ($10 million); 20th Century Chinese artist ZaoWou-kis majestic and rare diptyque 10.3.83 (est. HK$25/ 32 million, $3.2/4.1 million); 3.04-Carat FancyIntense Blue Diamond, Pink Diamond And Diamond Ring (Est. HK$16/20 million, $2/2.5 million).The Series will also offer a line-up of private collections: the sale of You are not Alone - Yoshitomo Nara Worksfrom The Kurokochi Collection - the worlds first private collection dedicated to the works of renownedcontemporary Japanese artist Yoshitomo Nara (35 lots; estimated to fetch in excess of HK$18 million, $2.4million); a group of 22 custom-made clocks by world-renowned watchmakers and jewelers including PatekPhilippe - Magnificent Clocks From An Important Private Collection (est. in excess of HK$35 million,$4.5million).

On 3rd April in Hong Kong and 26th April in New York, Sothebys will present The elBulliCellar sold to benefit

the elBulliFoundation - two sales of wines and memorabilia from the celebrated Catalan restaurant that closedlast year. Founded over 50 years ago in 1961, elBulli was led by Ferran Adri for the last 27 years. The cuttingedge gastronomy of elBulli is recognized as having changed culinary history by reworking ingredients into newforms and combinations. It was feted with awards with Adri frequently named the worlds greatest chef.Proceeds from the two auctions will benefit the elBulliFoundation, an experimental centre looking at theprocess of innovation and creativity.

Sothebys is to hold an auction ofContemporary Artin Doha on 22nd April which will include a selection of topcalibre works from many leading Middle Eastern artists as well as international Contemporary artists.


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Outstanding examples of video art, photography and painting will be featured, and an elegantly curatedhighlights exhibition will be displayed in London, New York, Dubai and Jeddah.

The auction will be headlined by Ahmed Alsoudanis astounding Untitled from 2011, a fascinating example ofthe artists more recent work (est. $350/450,000). Alsoudanis technical brilliance and astonishing powers ofimagination are displayed to full effect within Untitled, in which a contorted mass of human and animal formsare thrown together in writhing, visceral conflict. Another highlight is provided by the inclusion of ChantAvedissians Icons of the Nile, an exquisite example of his signature stencil technique (est. $1/1.5 million). Acommanding portrait by Ayman Baalbaki is also featured alongside a stunning landscape by Mahmoud Said,considered to be one of the pioneers of modern Egyptian art.

On 29th April 2013 Sothebys will offer the most significant collection of Judaica to be offered at auction in halfa century withA Treasured Legacy: The Michael & Judy Steinhardt Judaica Collection in a single-owner auctionin New York. The exceptional and rare objects that comprise the Steinhardt Collection illustrate the sweep ofJewish history from antiquity through the 20th century and across Europe, Asia, Africa and the Americas. Theapproximately 400 lots in the auction which bear a wide range of estimates touch every aspect of Jewishlife, and represent the dual worlds of observance and cultural heritage in both the home and the synagogue.The sale is estimated to bring in excess of $11 million.

On 29th and 30th April Sothebys Paris will present the 1,000 lot sale of the Library of the Ducs de LuynesChteau de Dampierre - one of the most important private libraries in France, which charts the history of anillustrious family intimately linked to the history of France since the 17th century. Most of the books are boundin morocco or calf and embellished with the arms of the Luynes family. The majestic scope of the Libraryranges from history, genealogy and literature to travel, philosophy, religion and music.

Sothebys London will present the most important and complete group of 18th century Meissen animals andbirds ever to appear at auction on 1st May 2013. From the aristocratic Collection of Sir Gawaine and LadyBaillie, this remarkable offering comprises over 140 different figures, almost all of which were created atMeissen during the 1730s and 1740s under the legendary Johann Joachim Kndler. The collection was started

in the 1930s by the Anglo-American heiress Olive, Lady Baillie (grand-daughter of William Whitney), whobought many of the pieces for her home, Leeds Castle, Kent. With estimates ranging from 1,000 - 150,000,the works will be offered together with a selection of furniture and decorations from the West Sussex Housedesigned by Sir Gawaine and Lady Baillie, their home for over 40 years. In total, the sale is expected to achievein excess of 1.8 million.

On 5th June 2013, Sothebys will offer Important Carpets from the Collection of William A. Clarkon behalf of theCorcoran Gallery of Art in a dedicated auction in New York. Comprising 25 rugs and carpets from the 16th and17th centuries, the group includes one of the most important and revered carpets in the world, The ClarkSickle-Leaf Carpet (est. $5/7 million), as well as one of the most majestic , The Lafes Carpet (est.$800,000/1.2 million). Both epitomize the pinnacle of weaving attained during the Safavid dynasty in Persia(15011722) and are extraordinarily beautiful works of art. The offering is estimated to bring in excess of $6.7

million, and proceeds will benefit future acquisitions.

Fall 2012 SalesFine and Decorative ArtsSothebys New York auction ofProperty from the Estate of Brooke Astoron 24th and 25th September brought animpressive total of $18,828,109. The sale had already exceeded its low estimate after the first of its four sessions,and by early on the second day had already surpassed its high of $9.7 million. A remarkable 95% of the 901-lotauction was sold, as buyers competed for paintings, drawings, Chinese works of art, furniture and decorative art


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from Mrs. Astors New York City and Westchester residences, as well as jewelry from her personal collection.The auctions proceeds benefited a number of charitable organizations selected by Mrs. Astor during herlifetime, including The New York Public Library, The Metropolitan Museum of Art, The Pierpont MorganLibrary, and The Animal Medical Center of New York.

Sothebys London sale ofOld Master, Modern and Contemporary Prints on 19th September realized 2,969,325

($4,829,607). The top lot was an exceptionally fresh and vibrant print of Andy Warhols The Scream (AfterMunch), which sold for 211,250 ($343,598) and established one of the highest prices at auction for ascreenprint with this motif, after Munch, by the artist. Albrecht Drers Saint Jerome, one of three masterengravings that represent the pinnacle of his achievements in printmaking, attained the highest price at auctionfor a print of this subject by the artist when it brought 181,250 ($294,803).

Sothebys became the first international fine art auction house to obtain a license to sell art in China inSeptember 2012. An historic first auction was held in Beijing on the 27th of September, 2012 to celebrate theestablishment of Sothebys (Beijing) Auction Co. Ltd the Companys joint venture with Beijing GeHua ArtCompany - where a remarkable single lot, Self and Self-Shadow, by prominent Chinese artist Wang Huaiqingwas sold for RMB1,695,000 ($267,307) against an estimate of RMB 1/1.5 million.

The Autumn Sale Series 2012 held from the 5th to the 9th of October sold over 3,150 lots and realized overHK$2 billion ($260 million), exceeding pre-sale estimate of over HK$1.6 billion. The Company set a record saleofModern and Contemporary Southeast Asian Art, an auction record for a Southeast Asian painting and for theartist Lee Man Fong, as well as an auction record for the contemporary Chinese artist Liu Wei. Sothebys alsoachieved the strongest total for a wine sale series in Hong Kong in 2012, a record for a various-owner sale ofwatches at Sothebys worldwide and a DIF diamond necklace totaling 88.88 carats fetched HK$39.86 million($5.1 million). In the traditional Chinese art categories, our Fine Chinese Paintings sale doubled its estimate anda pair of enameled double-gourd vases from the Qianlong period brought the astonishing price of overHK$107 million ($13.7 million) in the Chinese Ceramics and Works of Artsale. Together these are testimony tothe growing importance of Asia in the worlds art market place.

In October 2012, Sothebys launched the first selling exhibition of outdoor sculptures in Asia - Zadok Ben-David at Singapore Botanic Gardens - in Singapore. In November 2012, the first selling exhibition of Europeandecorative arts in Asia, the Age of Elegance, was held. These selling exhibitions were followed by an inauguralauction of Asian and Western Contemporary Art in Asia - Boundless Contemporary Art - on the 3rd ofDecember 2012 which achieved HK$47.7 million / $6.1 million (Est. HK$47 68 million / $6.2 8.8 million) withsolid sell-through rate of 85.9% by lot.

Sothebys LondonArts of the Islamic Worldsale on 3rd October brought a total of 3,825,588 ($6,164,170). Thetop lot, a Fatimid lustre pottery jar, Egypt, 10th 11thcentury, sold for 289,250 ($466,069), while the secondhighest price achieved was 241,250 ($388,726) for a Rare Pair Of Silk Lampas Trousers, Central Asia, 7 th/8 th Century.Sothebys London sales ofContemporary Artand20th Century Italian Arton 12th and 13th October brought anoverall total of 69,891,075 ($112,119,046) establishing the highest total for any October sales series ofContemporary Art and 20th Century Italian Art in London. The Contemporary Art Evening Sale brought44,146,350 ($70,793,087), the highest total for an October Sale of Contemporary Art at Sothebys (est.28.1/38.9 million). The top-selling lot was Gerhard Richters abstract masterwork Abstraktes Bild (809-4),which achieved the well-above-expectations sum of 21,321,250 ($34,190,756), and established a record price atauction for the artist and a new benchmark price for the work of any living artist. The 20th Century Italian Artsale achieved a total of 15,569,650 ($24,967,491) against pre-sale expectations of 14.6/19.5 million. The toplot was Piero Manzonis kaolin on canvas, Achrome, which sold for 4,017,250 ($6,442,062).


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On 24th October the Sothebys Paris sale of the Collection of Zaira & Marsel Mis was led by a series of worksfrom key periods of the career of the great Belgian Surrealist Ren Magritte. Leading the sale was La GrandeTable, a mature work which set a new record price for Magritte in France when it sold for 5,104,750($6,595,490). Overall the sale realized 19,069,925 ($24,638,915) - the highest total for a single-ownercollection offered at auction in France in 2012.

Sothebys Prints sale in New York on 2nd November 2012 brought a strong total of $11,740,940, well within thepre-sale estimate. Andy Warhol dominated the sale, with six of the top lots sold comprised by his completesets. All six, featuring some of the most iconic images of 20 th Century art, sold within or above pre-saleestimates. The top lot sold was Marilyn Monroe, which included the original stamp-numbered cardboard boxfrom 1967 and sold for $1,650,500, followed by Mao, which realized $722,500. The timely and relevant AndyWarhol print, The Scream (After Munch), sold for $302,500, just a week after Munchs The Scream went onview at the Museum of Modern Art.

The November sales ofImpressionist & Modern Artin New York together achieved $203,115,775. The EveningSale on 8th November was led by six works by Pablo Picasso that together sold for $81,387,000, featuring twoportraits of his iconic muse Marie-Thrse Walter: Nature morte aux tulipes, which brought $41,522,500 (est.$35/50 million), and Femme la fentre (Marie-Thrse), which sold for $17,218,500 (est. $15/20 million).Works from notable American museums performed particularly well throughout the evening, as did propertyfrom prominent estate collections: Claude Monets Champ de bl, sold to benefit future acquisitions at theCleveland Museum of Art, achieved $12,122,500 (est. $5/7 million), while six works from the estate of Greekshipping magnate George Embiricos together totaled $22,093,000.

The 13th November auction ofContemporary Artin New York totaled $375,149,000, the best auction result inany category in the Companys history (est. $277/374 million). The sale was 84% sold-by-lot and was led byMark Rothkos No.1 (Royal Red and Blue) , which sold for $75,122,500 (est. $35/50 million). The majesticcanvas was one of eight works hand selected by Rothko for his landmark solo show of the same year at the ArtInstitute of Chicago. Measuring 113 x 67 in (288.9 x 171.5 cm), No.1 (Royal Red and Blue) remained in the

same collection for 30 years. Other Abstract Expressionist highlights came from A Distinguished PrivateAmerican Collection which totaled $101,348,000 and was highlighted by Jackson Pollocks Number 4, 1951which sold for $40,402,500, well over the $25/35 million estimate to set a new auction record for the artist aswell as Willem de Koonings Abstraction from circa 1949, which sold for $19,682,500 (est. $15/20 million). Inaddition to Jackson Pollock, artist records were set for Franz Kline, Hans Hofmann, Arshile Gorky, RobertMotherwell, and Wade Guyton, as well as for a work-on-paper by Andy Warhol and a painting by TakashiMurakami.

Sothebys sale ofModern and Post-War British Art in London on 13th and 14th November realized 6,504,425($10,325,124). The top lot was Frank Auerbachs Head of Paula Eyles which sold for 397,250 ($630,595).Property from a Chelsea Collection, an important group of 56 works by artists including Auerbach, LucianFreud, John Craxton and Graham Sutherland, brought a combined total of 1,616,675 ($2,566,310).

The Evening Sale of Latin American Art in New York on 19th November 2012 brought a strong total of$19,275,250, nearly reaching the high estimate (est. $16.2/19.8 million) and with 89% of lots sold. The sale wasled by Mattas Nada, which sold for $1,818,500, well within estimate (est. $1.5/2 million). Six new artist recordswere achieved for Claudio Bravo, Dr. Atl, Jess Rafael Soto, Gego, Guiseppe Leone Righini, and Pietro Gualdiin addition to a the highest price for a piece of Latin American colonial art at auction.

Sothebys London 19th Century European Paintings sale on 20th November brought a total of 8,286,900($13,183,629), within the pre-sale estimate of 6.7/9.8 million. The auction was led by Joaqun Sorollas


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Pescadores valencianos (Valencian Fishermen), which sold to a European Foundation for 3,737,250($5,945,591), establishing a record for the artist at auction in sterling. Danish artist Peder Severin KryersMarie Kryer and Anna Ancher on the Beach at Skagen sold for 493,250 ($784,711), eclipsing its pre-saleestimate of 150/250,000 and establishing the second highest price for the artist at auction. A painting byGustave Courbet never before offered on the market Le Ruisseau de Plaisir-Fontaine, dans la valle duPuits Noir sold for 481,250 ($765,621), above the high estimate (200/300,000). Sunset over LakeRuovesi by Finnish artist Akseli Gallen-Kallela soared above its pre-sale estimate of 90/120,000 to achieve325,000 ($517,440), the second highest price for a work by the artist at auction. A record for a gouache by theartist at auction was established when Nils Dardels Young Man in Black, Girl in White sold for 445,000($708,438) against an estimate of 400/600,000.

Sothebys London Winter 2012 Russian Art Sales Series on 26th and 27th November realized a combined total of20,553,775 ($32,959,940). This sum brought Sothebys 2012 global total for auctions of Russian Art to$63,828,414, reconfirming Sothebys dominance as global leader in the market for Russian Art for the tenthconsecutive year. The Evening auction ofImportant Russian Artbrought 11,471,250 ($18,386,120), comfortablywithin pre-sale expectations of 9/12.8 million. The sale achieved a sell-through rate of 89.3% and establishedsix new artist records. The top-selling lot was Valentin Alexandrovich Serovs Portrait of PraskoviaAnatolievna Mamontova which sold for 1,217,250 ($1,951,008), setting a new record for the artist at auction.The auction established the highest sell-through rate by lot, ever achieved by Sothebys for an Evening Sale inthis category. The Russian Paintings Day Sale brought 5,619,300 ($9,016,729). Eight bidders in the saleroomand over the telephones competed for Yuri Annenkov's Portrait of Vsevolod Meyerhold, which set a newWork on Paper record for the artist at auction. The drawing sold for 35-times the low-estimate for 1,049,250($1,683,627). The Russian Works of Art, Faberg & Icons Day Auction realised 3,463,225 ($5,557,091). Thetop-selling lot was a Faberg Study of a Cornflower and Oats , which more than doubled its pre-sale lowestimate of 180,000, selling for 433,250 ($695,193). A further highlight was the sale of an important Romanovsilver-gilt and cloisonn enamel Icon of Christ Pantocrator, gifted to Emperor Alexander III in 1888 tocommemorate the miracle at Borki, which realised 253,250 ($406,365).

The New York auction ofAmerican Art on 29th November totaled $27,608,500, exceeding its pre-sale high

estimate of $24.2 million and selling a strong 80.3% of the lots on offer. Multiple bidders competed for many ofthe works at the top end of the sale, demonstrating demand for quality across a broad range of genres theauctions Top 10 pieces included examples of modernism, Western art, American illustration andImpressionism, led by works from American icons Georgia OKeeffe and Norman Rockwell. In total, nine lotssold for over $1 million, and new artist records were established for western artist Alfred Jacob Miller, earlymodernist Arthur Dove, and regionalist painter Marvin Cone.

The Paris sale of Impressionist and Modern Arton 5th December was led by Wilfredo Lams Peinture Noust'Attendons which sold for 2,976,750 ($3,892,458) and brought the autumn total for this collecting categoryin Paris to 20 million ($26.7 million).

Sothebys London sale ofEuropean Sculpture & Works of Art: Medieval to Modern on 5th December brought a

total of 2,814,850 ($4,533,597). The top lot was An Amber Games Board which sold for a record 601,250($968,373). The 17th-century games board, with a provenance that is believed to trace back to King Charles I ofEngland and Scotland, dates from the golden age of amber production in Knigsberg, and can be attributed tothe leading practitioner of the day, Georg Schreiber, the celebrated master of royal chess-sets.

Sothebys London Evening Sale ofOld Master & British Paintings Including Three Renaissance Masterworks fromChatsworth on 5th December achieved a total of 58,061,500 ($93,513,852). The art world witnessed an historicmoment when Raphaels Head of a Young Apostle (c. 1519-20) dramatically set a new record for any drawingever sold at auction, as well as a record for the artist, when it achieved 29,721,250 ($47,869,045). The drawing


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which came to sale from one of the greatest Old Master Drawings collections in the world, the DevonshireCollection at Chatsworth achieved a price almost three times that of its pre-sale low estimate of 10/15million. Also from The Devonshire Collection at Chatsworth, a flawlessly preserved 15 thcentury illuminatedmanuscript, The Deeds of Sir Gillion de Trazegnies in the Middle East, was bought by the J. Paul GettyMuseum for 3,849,250 ($6,199,602). In addition to the record achieved for Raphaels drawing, seven furtherrecords were established, including Jan Havicksz. Steens The Prayer Before the Meal, from the collection atSudeley Castle, which brought 5,641,250 ($9,085,797). Four extremely rare 14

th

-century paintings by theFlorentine artist Niccol di Pietro Gerini, depicting Scenes from the Passion of Christ achieved 1,105,250($1,780,116). Portrait of Giovanni Gaddi (1493-1542), Head and Shoulders, Wearing a Black Cap , most likelypainted in Florence in the first years of the 16 th century, sold to an online bidder for 1,273,250 ($2,050,696).Sothebys Day Sale of Old Master and British Paintings on 6th December realised 4,409,150 ($7,090,795),bringing the total for the companys London December sales of Old Master and British Paintings to acombined total of 62,470,650 ($100,604,647).

The Paris African and Oceanic Art sale on 12th December totaled 7,268,875 ($9,453,027) against an estimateof 4/5 million. The Biwat Ancestor Spirit Figure from a Sacred Flute was previously in the LemaireCollection and Speyer Collections and ranks among the most mysterious ritual sculptures ever made in NewGuinea. This masterpiece of Oceanic art sold to a French collector for 1,408,750 ($1,832,051), the top price

of the sale (est. 450/550,000).

The sale ofA Show Of Hands: Photographs from The Collection of Henry Buhlon 12th and 13th December inNew York brought a total of $12,318,704, exceeding the pre-sale estimate of $8.1/12.2 million. The total is thethird highest for a single-owner collection of photographs and the highest ever for a private collection ofphotographs. The auction was led by Lonely Metropolitan by Herbert Bayer and Fotogramm by LszlMoholy-Nagy, each of which sold for $1,482,500. These two results, which now tie as the third highest price fora classic photograph at auction, mean that Sothebys has sold eight of the top ten and all of the top six classicphotographs at auction. Other highlights included Rayographwith Hand, Lens, and Egg by Man Ray whichfetched $866,500, well over the $250/350,000 estimate and Alfred Stieglitzs Georgia O'Keeffe -- Handsand Thimble which sold for $770,500.On 14th December the Paris piano from Oscar-Award winning film Casablanca sold at Sothebys New York for$602,500. The 58-key piano on which Sam plays As Time Goes By is the key prop in the intensely romanticflashback scene in Paris at La Belle Aurore, and this scene is where the romance between Rick (HumphreyBogart) and Ilsa (Ingrid Bergman) is established.

Sothebys London sale of Important Manuscripts, Letters and Memorabilia from the Family of Arturo Toscaninion 28th November realized a total of 1,281,402 ($2,050,884), exceeding the pre-sale estimate of 900,000/1.2million. The sale was 88.6% sold by lot. The top lot was a Mendelssohn autograph manuscript of the full scoreof the concert overture, The Fair Melusine, which fetched 433,250 ($693,417). A remarkable autographmanuscript by Verdi, containing three early drafts for the opening ofFalstaff sold for 157,250 ($251,679).The London sale ofMusic, Continental & Russian Books and Manuscripts on 28th November brought a total of3,538,150 ($5,662,809), well above the pre-sale estimate of 1.9/2.6 million. In a dramatic 18-minute battle,three telephone bidders competed for a highly important archive of material relating to the Russian filmdirector Andrei Tarkovsky (1932-1986) which sold for 1,497,250 ($2,396,349), 15-times the pre-sale estimate of80/100,000, to representatives of the government of the Ivanovo Region.

Sothebys London single-owner sale of precious Central European silver and goldsmiths art, Dr. HellersLexicon, on 4th December 2012 brought 1,425,776 ($2,295,642). Over 200 works, spanning four centuries from the 16th to the 20th - from the collection of the eminent radiologist and art historian, Dr. Istvn Heller, were


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offered for sale. The top lot was a 17th-century Slovakian parcel-gilt silver canister, which sold for 139,250($224,206).

Sothebys Zurich Swiss Artsale on 3rd December totalled CHF 3,065,275 ($3, 310,497). The auction comprisedSwiss artworks from the 19th century to the present day and was led by Giovanni Giacomettis stunninglandscape, Winterlanschaft bei Capolago (Winter Landscape near Capolago) which fetched CHF 434,500($469,260).

On 15th December, Sothebys New York sales of Important 20th Century Design, Important Tiffany, andMasterworks by Tiffany Studios from the Geyer Family Collection totaled $12,877,127. The morning auction ofImportant 20th Century Design totaled $7,055,501, well within the pre-sale estimate of $6.7/9.8 million. The salewas led by Paul Dupr-Lafons Console Table which achieved $752,500, above the high estimate of$600,000. This elegant table is decorated with rich, red Herms leather panels, contrasted by the limed oakframe and brass feet. Another highlight included Moutons de Laine by Franois-Xavier Lalanne from theestate of Suzy Furman, an accomplished Palm Beach artist, dealer and collector who co-founded the NortonGallery Workshop and the Contemporary Gallery in Palm Beach, sold for $542,500, above the pre-saleestimate of $300/500,000. Additionally, a unique variant of Demeter Chiparus five-figure Les Girls sculpturebrought in $434,500 (est. $300/500,000).

Sothebys London sale of English Literature, History, Childrens Books and Illustrations on 12th Decemberbrought a within-estimate total of 1,987,850 ($3,200,439). The top lot of the sale was an important cache of sixletters by Charlotte Bront, including several written in the throes of her religious crisis of 1836, which realised223,250 ($359,432), well in excess of the estimate of 100/150,000. It was purchased by the Bront ParsonageMuseum in Yorkshire. Mick Jaggers love letters to Marsha Hunt, written in the summer of 1969, sold for187,250 ($301,472) - more than double their pre-sale low estimate.

Sothebys London sale The Art of Illustration, the Collection of Michael Winner on 12th December realised awithin-estimate total of 1,127,296 ($1,814,947). A new artists record at auction was set for E H Shepardsoriginal ink drawing Here is Edward Bear, coming downstairs now, bump, bump, bump which realised139,250 ($224,192).

Asian ArtSothebys sales ofChinese Works of Artand Classical Chinese Paintings at the beginning of September broughta combined total of $43,512,627 comfortably exceeding the high estimate of $33.4 million. These two auctionsbrought the overall total for Chinese Art sold at Sothebys New York in 2012 to $102,944,968.

On 11th and 12th September the Fine Chinese Ceramics and Works of Art sale brought the outstanding total of$26,985,314. The total significantly exceeded the pre-sale high estimate of $21.6 million and was nearly 20%higher than the equivalent sale last year. It is also the second highest total for a various owner Chinese Works ofArt sale at Sothebys New York beaten only by the historic sale in March 2007.

On 13th September the bi-annual auction of Classical Chinese Paintings brought a total of $16,527,313,exceeding the pre-sale estimate of $7.4/11.8 million by a substantial margin. Sothebys is the only major globalauction house to hold regular dedicated sales of Classical Chinese Paintings in New York, and the resultbrought total 2012 sales in the category in New York to $52 million double the combined high estimate. Thesale was led by the Hongren hand-scroll Seclusion amid Mountains and Streams which sold for $3,218,500,several times the $600/800,000 estimate and a record for the artist at auction. Hongren is one of the mostsought after 17th century artists, and bidders were drawn to this masterpiece in his signature style as well asworks from An Important American Collection Part II, many of which also exceeded the high estimates.


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Sothebys London sales series of Fine Chinese Ceramics and Works of Art on 7th November brought thecombined total of 14,721,050 ($23,599,316), surpassing pre-sale expectations for the three auctions of 7.6/11.3million. Treasures of The Qing Court: A Personal Perspective From The Collection of Cameel Halim, a selectionof 22 works from the collection of Chicago-based collector Cameel Halim, achieved a total of 3,072,175($4,925,004), significantly above the pre-sale estimate of 1.6/2.5 million. A Rare Underglaze-BluePolychrome-Enamelled Magpie and Prunus Moonflask, Qianlong Seal Mark and Period sold for1,049,250 ($1,682,053), over double the high pre-sale estimate of 300/500,000. Chinese Ceramics from TheCollection of Peter and Nancy Thompson achieved a total of 2,118,375 ($3,395,967), also far surpassing the pre-sale estimate of 563/839,000. The various owners sale ofFine Chinese Ceramics and works of Artbrought at atotal of 9,530,500 ($15,278,345), again exceeding the pre-sale expectations of 5.4/8 million. A Pair ofHuanghuali 'Official's Hat' Yokeback Armchairs sold for 847,650 ($1,358,868) against an estimate of70/90,000.

Watches and JewelrySothebys Jewellery Division in Europe saw its highest-ever annual total, achieving a combined total of$198,534,943 in 2012. This result includes the world record of $108,377,219 for a various owner jewellery sale setby the two-day Magnificent Jewels and Noble Jewels Sale in Geneva in May, which surpassed the record of$105 million established by Sothebys Geneva in November 2010.

Sothebys Geneva auction of Magnificent Jewels on 14th November realized a total of CHF 76,719,325($81,092,327) and was distinguished by the sale of an exceptionally rare fancy deep blue diamond weighing10.48 carats which was bought by Laurence Graff for CHF 10,274,500 ($10,860,146) a world record price percarat for a deep blue diamond ($1,036,273 per carat) and a world record price for a briolette diamond atauction.

The 2012 results also underlined the extraordinary appeal of Noble Jewels the unique category established bySothebys in 2007. The autumn offering of jewels of aristocratic provenance was spearheaded by anastonishingly beautiful and unique conch pearl, enamel and diamond bracelet made by Cartier, Paris in the late1920s which realised CHF 3,274,500 ($3,461,146), more than four times the pre-sale estimate of CHF 750,000-

1,300,000 ($800,000-1,400,000), setting a new landmark for a conch pearl jewel. Formerly in the personalcollection of Queen Victoria Eugenia of Spain (1887-1969), the grandmother of Juan Carlos, the present King,this bracelet was one of the most important jewels created by Cartier in the inter-war period.

Sothebys London sale of The George Daniels Horological Collection on 6th November achieved a total of8,285,139 ($13,249,594), far surpassing the pre-sale estimate of 3.8/5.8 million. As four centuries of watchesand clocks went under the hammer, 98.5% of the 137 lots belonging to the great British horologist sold whenbuyers battled for the highly prized timepieces. All of the nine watches made by George Daniels saw strongdemand, selling above their high estimates. The top lot of the sale was George Daniels Space TravellersWatch which sold for 1,329,250 ($2,125,737) establishing not only a new record for Daniels at auction, butalso a record for an English watch and for an independent watchmaker at auction. A Small Silver-MountedEbony Roman Striking Table Clock by Joseph Knibb, London, dated 1677, sold for 1,273,250 ($2,036,181).Sothebys Geneva sale ofImportant Watches on 13th November brought CHF 7,950,900 ($8,373,411) and wasled by rare models of vintage and modern wristwatches, including a most probably unique example ofPatekPhilippe Ref. 2524/1 retailed by Tiffany & Co, which doubled pre-sale expectations (est. CHF 250,000 350,000) and sold for CHF 542,500 ($571,328).

The 4th December auction ofImportant Watches & Clocks totaled $11,672,988, marking the highest result for avarious-owners sale of watches and clocks at Sothebys New York. The auction featured The Duc dOrlansBreguet Sympathique, which set a new auction record for any clock and the second-highest price for any


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timepiece at auction when it sold for $6,802,500, above an estimate in excess of $5 million. The distinguishedexample of the exceptionally rare Sympathique clocks, which helped cement the fame and renown of Frenchwatchmaker Abraham-Louis Breguet, was last offered at auction in Sothebys 1999 sale of Masterpieces fromthe Time Museum, when it achieved the previous record for any clock until the present sale.

Jewelry from esteemed private collections propelled Sothebys 5th December auctions ofMagnificent Jewels to

a total of $64,765,013, exceeding their overall pre-sale high estimate of $63.3 million and marking the highest-ever total for a day of jewelry sales at Sothebys New York. The evening sessions opened with the much-anticipated sale of jewels from the collection of philanthropist and arts patron Mrs. Charles Wrightsman, whichtotaled $15,541,188 well in excess of its $9 million high estimate and sold a very strong 95.2% by lot. The dayof sales then concluded with a selection of jewels from the collections of Este Lauder and Evelyn H. Lauder,which together sold for a remarkable $22,248,250 led by a Fancy Intense Pink Diamond and DiamondRing, Oscar Heyman & Brothers that brought $8,594,500 ($1.3 million per carat) above a high estimate of $5million. The net proceeds from the Lauder collections will benefit The Breast Cancer Research Foundation,founded by Evelyn Lauder in 1993.

Sothebys London sale of The Jewellery Collection of the Late Michael Wellby on 11th December made anoutstanding total of 2,836,300 ($5,606,090) more than three times the pre-sale low estimate of

800,000/1.2 million, in a white glove auction in which all 211 lots were sold. Collectors competed fiercely forkey pieces. The top lot was An Important Late 18th Century Diamond Devant De Corsage, which keenbidding drove to 385,250 ($619,251) more than six times the low estimate of 60,000). A 19th century wheatsheaf diamond tiara also outstripped expectations sixfold, fetching 373,250 ($599,962), against an estimate of60/80,000.

WineSothebys Wine Auctions in 2012 brought an overall total of $64,462,965 meeting presale expectations of$49.3/67.1 million. The year saw exceptionally strong results for New York auctions which totaled $17.7 million,well above both the high estimate and the $13.5 million achieved in 2011. The London sales achieved a total of$19.7 million against an estimate of $16.5/21 million. Hong Kong once again posted the highest total of the

three sale locations with a result of $27 million characterized by a diversification of the wines being sold. Acrossthe world, Sothebys continued its commitment to offering wine collections of excellent provenance with manycoming direct from the producers that are so sought after by international clients.

# # #

*Defined as the sum of Aggregate Auction Sales, Private Sales and Dealer revenues. Aggregate Auction Salesrepresent the hammer (sale) price of property sold at auction plus buyer's premium and Private Sales representthe total purchase price of property sold in private sales brokered by Sothebys.Note: Estimates do not include buyer's premium. Sale totals for auctions discussed in this release include buyer'spremium.All Sotheby's Press Releases and SEC filings are available on our web site at www.sothebys.com. An outline of theconference call will be available at http://investor.shareholder.com/bid/events.cfm.

Sothebys will host a conference call at 4:45 PM EST on February 28, 2013, to discuss its fourth quarter and full year 2012financial results. Please dial 888-371-8897 and for callers outside the United States, Puerto Rico and Canada, please dial 1-970-315-0479,approximately 15 minutes before the scheduled start of the call. The call reservation number is 96854563.


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The conference call will also be accessible via webcast on the Investor Relations section of the Sothebys web site athttp://investor.shareholder.com/bid/events.cfm.

Forward-looking StatementsThis release contains certain forward-looking statements (as such term is defined in the Securities and Exchange Act of1934, as amended) relating to future events and the financial performance of the Company. Such statements are onlypredictions and involve risks and uncertainties, resulting in the possibility that the actual events or performances will differ

materially from such predictions. Major factors, which the Company believes could cause the actual results to differmaterially from the predicted results in the forward-looking statements include, but are not limited to, the overallstrength of the international economy and financial markets, political conditions in various nations, competition with otherauctioneers and art dealers, the success of our risk reduction and margin improvement efforts, the amount of qualityproperty being consigned to art auction houses and the marketability at auction of such property. Please refer to our mostrecently filed Form 10-Q (and/or 10-K) for a complete list of Risk Factors.

Financial Table FollowsFOR MORE NEWS FROM SOTHEBYSVisit: www.sothebys.com/en/inside/services/press/news/news.htmlFollow: www.twitter.com/sothebysJoin: www.facebook.com/sothebys & www.weibo.com/sothebyshongkongWatch: www.youtube.com/sothebys

Sothebys has been uniting collectors with world-class works of art since 1744. Sothebys became the first international auction housewhen it expanded from London to New York (1955), the first to conduct sales in Hong Kong (1973) and France (2001), and the firstinternational fine art auction house in China (2012). Today, Sothebys presents auctions in 8 different salesrooms, including New York,London, Hong Kong and Paris, and Sothebys BidNow program allows visitors to view all auctions live online and place bids in real-timefrom anywhere in the world. Sothebys offers collectors the resources ofSothebys Financial Services, the worlds only full-service artfinancing company, as well as private sale opportunities in more than 70 categories, including S|2, the gallery arm of Sotheby'sContemporary Art department, as well as Sothebys Diamonds and Sothebys Wine. Sothebys has a global network of 90 offices in 40countries and is the oldest company listed on the New York Stock Exchange (BID).

Estimates do not include buyers premium and prices achieved include the hammer price plus buyers premium.Images are available upon request

All catalogues are available online at www.sothebys.com or through Sothebys Catalogue iPad App.


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SOTHEBYS 2012 HIGHLIGHTSSothebys is a global pioneer in broadening the art market and offering the highest levels of clientservice and we dramatically demonstrated that across the business in 2012, said Bill Ruprecht,Chairman, President and Chief Executive Officer. We ended the year with a very strong balancesheet and we are continuing to invest in our business.Our operating results reflect some significant successes, a tough comparison to one of the bestyears in Sothebys history a year ago, and a very competitive climate for high-endconsignments. Overall, we remain confident in the marketplace, said Mr. Ruprecht.

Consolidated sales* were a robust $5.4 billion. Global bidding continued for great works of art with participation from more than 120 countries. Sothebys is a pioneer in broadening the art market - nearly 30% of the bidders in our globalsalesrooms in 2012 were participating in a new category for the first time. Private sales reached a record $906.5 million, an 11% increase over 2011. Sothebys Financial Services, the worlds only full-service art financing company, saw revenuesincrease 47%; loan portfolio balance was $425.1 million at the end of 2012, almost double the prior

year balance.

Sothebys became the first international auction house to hold a sale in mainland China through agroundbreaking joint venture.

Sothebys sold six of the top ten lots at auction in 2012 , led by Edvard Munchs The Scream, whichachieved nearly $120 million**, the new world record for any work of art ever sold at auction.

Highest auction total in Company history November Contemporary Art Evening Sale achieved$375.2 million.

Sothebys highest-ever annual totals for Jewellery & Watches worldwide. Sothebys achieved the highest price across all categories in Europe in 2012 Raphaels Head of a

Young Apostle, which sold for $47.9 million.

Established a new auction benchmark for any living artist with Gerhardt Richters Abstraktes Bild(809-4) selling for $34.2 million.

632 lots sold for over $1 million; 104 lots sold for over $5 million; 35 lots sold for over $10 million.

*Consolidated Sales is defined as the sum of Auction Sales (including buyers premium), Private Sales and Dealer Revenues.**Estimates do not include buyers premium and prices achieved include the hammer price plus buyers premium.

For Immediate Releaseress Release New YorkNew York | +1 212 606 7176 | Andrew Gully | [email protected] | Lauren Gioia | [email protected] | +44 (0) 20 7293 6000 | Matthew Weigman | [email protected]


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APPENDIX A

Three Months Ended Twelve Months EndedDecember 31, December 31, December 31, December 31,

2012 2011 2012 2011

Revenues:

Auction and related revenues 269,959$ 274,897$ 717,231$ 791,738$

Finance revenues 4,980 3,016 17,707 12,038

Dealer revenues 14,293 4,942 26,180 21,790

License fee revenues 1,585 1,109 6,124 5,228

Other revenues 306 285 1,250 1,042

Total revenues 291,123 284,249 768,492 831,836

Expenses:

Direct costs of services 26,741 29,212 65,665 69,507

Dealer cost of sales 9,494 3,471 21,118 23,738

Marketing expenses 5,349 4,420 17,857 15,059

Salaries and related costs 78,724 74,344 273,273 268,530

General and administrative expenses 41,467 50,309 158,220 161,097

Depreciation and amortization expense 4,698 4,801 17,942 17,604

Restructuring charges, net - 354 (2) 4,830

Total expenses 166,473 166,911 554,073 560,365

Operating income 124,650 117,338 214,419 271,471

Interest income 447 335 1,550 4,002

Interest expense (13,747) (10,221) (44,429) (41,498)

Extinguishment of debt, net (15,020) - (15,020) (1,529)

Other income (expense) 525 398 2,916 (1,057)

Income before taxes 96,855 107,850 159,436 231,389

Equity in earnings of investees, net of taxes 57 31 251 59

Income tax expense 30,821 36,401 51,395 60,032

Net income 66,091$ 71,480$ 108,292$ 171,416$

Basic earnings per share - Sotheby's common shareholders 0.97$ 1.05$ 1.59$ 2.52$

Diluted earnings per share - Sotheby's common shareholders 0.96$ 1.04$ 1.57$ 2.46$

Cash dividends paid per common share 0.28$ 0.08$ 0.52$ 0.23$

UNAUDITED AUDITED

SOTHEBYS

CONSOLIDATED INCOME STATEMENTS

(Thousands of dollars, except per share data)

6

sotheby's fourth quarter and full year 2012 earnings

Documents