PDF KAR Auction Services, Inc. Corporate Update

KAR Auction Services, Inc. Corporate Update

Second Quarter 2019

Forward-Looking Statements

This presentation includes forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those projected, expressed or implied by such forward-looking statements. Many of these risk factors are outside of the company's control, and as such, they involve risks which are not currently known to the company that could cause actual results to differ materially from forecasted results. Factors that could cause or contribute to such differences include those matters disclosed in the company's Securities and Exchange Commission filings. The forward-looking statements in this document are made as of the date hereof and the company does not undertake to update its forward-looking statements.

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Multiple Businesses With Leading Market Positions

Wholecar Auctions

Dealer and institutional vehicles (e.g., off-lease, repossessions)

? #2 North American market position

? 3.5M vehicles sold ? ~54% vehicles sold online ? 75 locations

Salvage Vehicle Auctions

Total loss vehicles (insurance companies, charities, etc) ? Co-leader North American

market position ? 2.5M vehicles sold ? ~60% vehicles sold online ? 190+ locations

Vehicle Floorplan Financing

Independent dealer vehicle inventory (floorplan) finance

? #2 North American market position ? 1.8M loan transaction units ? ~65 day short-term secured ? 125+ locations

~6.0M

vehicles sold in 2018

Revenue Adj. EBITDA % margin

$3,770M $894M 24%

AFC ($341)

9%

IAA 35% ($1,327)

Revenue by

Segment

ADESA 56% ($2,102)

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Unique Industry Fundamentals

Generate Consistent Free Cash Flow

Clear Shareholder Friendly Capital

Allocation Framework

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Key Investment Highlights

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Strong and Visible Organic Growth

Leverage Technology and Data Analytics for Long Term Growth

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Large North American Addressable Market

19 Million Units

New Vehicle Sales

300M

Vehicles in Operation

42 Million

Used Vehicle Sales

5+ Million Units

Salvage Auctions

13 Million Units

Removed From Operation

12 Million Units

Consumer to Consumer

30 Million Units

Retail Dealer Sales

11 Million Units

Wholecar Auctions

19 Million Units

Trade-Ins & Other

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