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Transcript of Investor Presentation

  • 1. Disclaimer The 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.

2. Investor Presentation 3. 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

4. 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

5. 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

6. 7. 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

8. Our Support Team

  • Marketing Experts
  • Call-Center Staffing
  • Trust Administrators
  • Operational Technicians

9. 10. 11. 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

12. 13. 14. 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

15. Our Competition

  • Local, Regional, National
  • Ritchie Bros. Worlds 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

16. 17. Few are Publicly Listed

  • Very Few Auction Companies Publicly Listed
  • Most Held Closely in Private Structures
  • Opportunity For Investors in Hodgins

18. Past Performance 19. 4-Point Growth Strategy

  • 1. Increase Margins With More Bought Deals
    • Bought Deals
      • Financial Guarantees
      • Out-right Purchases

20. Bought Deals 21.

  • 2. Diversify By Segment
    • Heavy Construction
    • Industrial Plant
    • Automobiles
  • 3. Expand Geographically
    • Ontario
    • Alberta

22. 23.

  • 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

24. 25. Capital Requirements

  • This is effectively an IPO for Hodgins
  • Private Placement by Accredited Investors
  • Initial Raise of $750,000 to $1,000,000

26. Use of Proceeds

  • 50% Bought Deal
  • 50% Working Capital
    • New Technology Development
    • Marketing
    • Expanded Sales Force
    • Seasonal Cash Flow

27. Capital Structure

  • 8,598,500 Shares Issued & Outstanding
  • 9.2 Million Fully Diluted
  • 55% Owned by Management
  • Public Float Less than 4 Million Shares

28. THE END