investor presentation

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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

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Page 1: Investor Presentation

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.

Page 2: Investor Presentation

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

Page 3: Investor Presentation

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

Page 4: Investor Presentation

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

Page 5: Investor Presentation
Page 6: Investor Presentation

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

Page 7: Investor Presentation

Our Support Team

Marketing Experts Call-Center Staffing Trust Administrators Operational Technicians

Page 8: Investor Presentation
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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

Page 11: Investor Presentation
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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

Page 14: Investor Presentation

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

Page 15: Investor Presentation
Page 16: Investor Presentation

Few arePublicly Listed

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

Page 17: Investor Presentation

Past Performance

Page 18: Investor Presentation

4-PointGrowth Strategy

1. Increase Margins With More Bought Deals– Bought Deals

• Financial Guarantees

• Out-right Purchases

Page 19: Investor Presentation

Bought Deals

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2. Diversify By Segment– Heavy Construction– Industrial Plant– Automobiles

3. Expand Geographically– Ontario– Alberta

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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

Page 23: Investor Presentation
Page 24: Investor Presentation

Capital Requirements

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

Page 25: Investor Presentation

Use of Proceeds

50% Bought Deal 50% Working Capital

– New Technology Development– Marketing– Expanded Sales Force– Seasonal Cash Flow

Page 26: Investor Presentation

Capital Structure

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

Page 27: Investor Presentation

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