corporate-strategy

Corporate Strategy

Value proposition

Ritchie Bros. helps consignors achieve the highest net return on the sale of their equipment and trucks. We do this by attracting large and diverse bidding audiences from around the world, comprised primarily of end users, and allowing them to compete in a transparent and fair bidding environment using a variety of on-site and online participation options.

  • We market the equipment to our extensive customer base (over 530,000 customers from roughly 190 countries)
  • All equipment is marketed on our industry-leading 21-language web site with high-resolution photos and equipment specifications
  • Nearly 60% of sales go to buyers from outside the region of the sale
  • Online bidders are buyer or runner-up bidder on over 40% of lots offered online
  • Approximately 75% of sales go to end users of the equipment

Ritchie Bros. unreserved auctions provide equipment sellers with certainty of sale, global market values and the highest level of service and support. 

Ritchie Bros. EquipmentOne, an online marketplace catering to the needs of equipment buyers and sellers, provides  an alternate solution to customers who value control over the price, timing, location or buyer of their assets. 

Our Strategic Roadmap

Three strategic pillars drive our strategy to grow shareholder value, by reinvigorating revenue and earnings growth, driving cash flow, and improving return on net assets (RONA). 

  1. Grow revenue and earnings
    1. Geographies
      • Drive depth vs. breadth
      • Focus on the US
      • Grow business in the U.K., Germany and France
      • Evaluate Japan and China strategic options
    2. Sectors
      • Leverage construction
      • Focus on transportation
      • Grow agriculture
      • Evaluate oil & gas
    3. Services
      • Scale Ritchie Bros. Financial Services
      • Pilot logistics business
    4. Channels
      • Re-launch EquipmentOne
      • Drive multi-channel strategy
    5. Segments
      • Accelerate strategic accounts
      • Develop global accounts
    6. Underwritten Contracts
      • Utilize aggressively
      • Minimize volatility
    7. Mergers & Acquisitions
      • Tuck-ins and bolt-ons
      • Scale enhancers and needle-movers
      • Accretive in a relatively short period of time
  1. Drive efficiencies and effectiveness
    1. Sales Productivity
      • Territory management and coverage based on market potential
      • Consistent go-to-market processes
      • Improve selection, onboarding and training of new hires
      • Consistently utilize sales tools
    2. Processes and Systems
      • Modernize legacy systems
      • Salesforce.com as a unifying platform
      • Focus on Customer Relationship Management (CRM)
      • Enable scaling business & leveraging multichannel
    3. Organizational Structure, and SG&A Expense
      • Regional org. structure with profit and loss statement and balance sheet accountability
      • Target SG&A expense growth lower than revenue growth
      • Flatten levels
    4. Performance Metrics
      • Profit & Loss (P&L) statement and balance sheet scorecard
      • Operational metrics
      • Accountability at all levels
    5. Incentive Compensation
      • Tie to P&L statement and balance sheet measures
      • Revamp sales compensation
  1. Optimize balance sheet
    1. Cash Flow
      • Align organization and incentivize
      • Target operating free cash flow equal to net income
    2. Organic Capital Spend
      • Target net capital <10% revenue
      • Control spending on new sites
      • Focus on IT systems and site maintenance
    3. Capital Structure
      • Institute policy and priorities
      • Return cash via ongoing dividends
      • Address option dilution
      • Invest in growth-driven M&A
    4. Existing Site Returns
      • High, medium and low site return league table
      • Initiatives to improve medium and low site returns
      • Dispose of excess assets

 Download our Strategic Roadmap (in PDF).


Evergreen Financial Model
 

While Ritchie Bros. does not provide guidance, we have presented an Evergreen Financial Model that outlines our expected average annual growth over a 5 to 7 year period.  While fluctuations from the Evergreen Model may occur year-to-year, we believe it provides investors and analysts with the information needed to build financial models related to our company.  

Download our Evergreen Model (in PDF). 

 

Notice: Readers are advised that the information presented on this web site was accurate at the time of posting, but may be superseded by subsequent disclosures. The Company undertakes no obligation to update these documents to reflect subsequent disclosures.

Communicate with the Board

Shareholders and other interested parties may initiate communications directly with the Company's independent directors via email at: Chairman_of_the_Board@rbauction.com

All relevant correspondence will be forwarded to the Chair in accordance with the Company's Shareholder Engagement Policy.

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