Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-34568 KAR Auction Services, Inc. (Exact name of Re ...

Second Quarter 2022 Earnings Slides August 2, 2022 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 based on management's current expectations, are not guarantees of future performance and 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-lookin ...

Financial Data and Key Metrics Changes - The company generated $384 million in revenue, a 2% increase compared to the same quarter last year [17] - Gross profit reached $172 million, up 3% from Q2 of last year, representing 50.9% of revenue excluding purchased vehicles [18] - Adjusted EBITDA was $56.1 million, a decrease of 10% from Q2 of last year but a sequential increase of 14% over Q1 [18] Business Line Data and Key Metrics Changes - In the Marketplace segment, approximately 343,000 vehicles were sold in Q2, with a decline in conversion rates due to weaker buyer demand [19][20] - Auction fee revenue per unit sold increased by 20% to $289 per vehicle, and gross profit per vehicle sold rose by 11% to $282 [21] - The Finance segment generated $92 million in revenue, a 34% increase over the same quarter last year, with revenue per transaction increasing by 19% to $229 [22] Market Data and Key Metrics Changes - Supply side issues affecting new vehicle production appear to have stabilized, with expectations for increased production in the second half of the year [14][15] - The company anticipates a gradual recovery in new vehicle inventory and wholesale market volumes as production increases [15][16] Company Strategy and Development Direction - The company is focused on capital allocation following the divestiture of the ADESA U.S. physical auction business, which generated approximately $1.65 billion in cash [9][10] - There is a commitment to invest in digital marketplace businesses to expand market share and improve customer experience [11] - The company aims to reduce SG&A run rate by $30 million annually by the end of 2022, with progress already underway [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about gradual recovery in production and vehicle prices, indicating that current market challenges are temporary [16][35] - The company expects better performance in the second half of the year, driven by revenue improvements and cost management actions [31][33] - Adjusted EBITDA guidance has been updated to a range of $245 million to $265 million due to conversion rate pressures [34] Other Important Information - The company has a strong cash position with over $800 million available at the end of Q2, allowing for continued investments and share repurchases [10][12] - The integration of BacklotCars and CARWAVE is progressing well, with the first combined sale successfully hosted [29][100] Q&A Session Summary Question: How is the company managing the transition to a digital marketplace amidst current market challenges? - Management acknowledged the difficulties but noted that supply side issues have stabilized and they are focusing on key metrics such as total volume sold and conversion rates to gauge progress [60][62] Question: What is the receptivity to pricing adjustments made for customers? - Management reported that customers have been understanding of the need for pricing adjustments due to current market realities, with a shift to a tiered pricing structure based on volume [67][70] Question: What is the impact of lower conversion rates on the business? - Management indicated that the decline in conversion rates is primarily due to market factors, with efforts underway to align seller expectations with market realities [75][78] Question: How is the integration of CARWAVE progressing? - The integration is on track, with CARWAVE remaining profitable despite market pressures, and the company is focused on leveraging the combined platform for better customer experience [99][101]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 KAR Auction Services, Inc. (Exact name of Registrant as specified in its charter) Delaware 20-8744739 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 11299 N. Illinois Street, Carmel, Indiana 46032 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURS ...

First Quarter 2022 Earnings Slides May 3, 2022 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 based on management's current expectations, are not guarantees of future performance and 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 st ...

KAR Auction Services, Inc. (NYSE:KAR) Q1 2022 Earnings Conference Call May 4, 2022 8:30 AM ET Company Participants Peter Kelly – Chief Executive Officer Michael Eliason – Treasurer and Vice President, Investor Relations Eric Loughmiller – Chief Financial Officer Conference Call Participants Rajat Gupta – JPMorgan Aileen Smith – Bank of America Gary Prestopino – Barrington Research Bret Jordan – Jefferies Bob Labick – CJS Securities Daniel Imbro – Stephens Inc. Ali Faghri – Guggenheim Partners Operator Good ...

Table of Contents OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-34568 FORM 10-Q KAR Auction Services, Inc. ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of Registrant as specified in its charter) For the quarterly period ended March 31, 2022 Indicate by check mark whether the registrant has submitted electr ...

Financial Performance - Total revenues for the year ended December 31, 2021, were $2,251.6 million, an increase of 3% from $2,187.7 million in 2020[179] - The company recorded a net income of $66.5 million for 2021, compared to a net income of $0.5 million in 2020[179] - Gross profit of the company was $951.7 million in 2021, compared to $902.9 million in 2020[179] - Operating profit increased to $210.6 million in 2021 from $136.4 million in 2020, reflecting improved operational efficiency[320] - The company reported a comprehensive income of $74.5 million for 2021, recovering from a loss of $1.2 million in 2020[323] - Net income for 2021 was $66.5 million, a significant increase from $0.5 million in 2020 and a decrease from $188.5 million in 2019[336] Revenue Breakdown - Auction fees decreased to $877.8 million in 2021 from $887.7 million in 2020, while service revenue declined to $707.2 million from $737.4 million[179] - Purchased vehicle sales increased significantly to $377.4 million in 2021, up from $295.0 million in 2020[179] - For the year ended December 31, 2021, total revenue from ADESA increased by $42.3 million, or 2%, to $1,962.4 million compared to $1,920.1 million in 2020, driven by an increase in average revenue per vehicle sold[191] - AFC revenue increased by $21.6 million, or 8%, to $289.2 million for the year ended December 31, 2021, primarily due to a 31% increase in revenue per loan transaction[199] Expenses and Costs - Interest expense decreased by 2% to $126.6 million in 2021, primarily due to a reduction in the average outstanding balance of corporate debt[183] - Selling, general and administrative expenses for ADESA increased by $14.1 million, or 3%, to $522.9 million, primarily due to acquisition-related expenses[195] - The effective tax rate for the year ended December 31, 2021, was 34.5%, significantly lower than 90.7% in 2020, impacted by contingent consideration adjustments[186] - The provision for credit losses decreased to 0.2% of average managed receivables for 2021, down from 2.1% in 2020[200] Cash Flow and Liquidity - Cash and cash equivalents decreased to $190.0 million in 2021 from $752.1 million in 2020[228] - Working capital declined to $382.5 million in 2021 compared to $924.6 million in 2020[228] - Cash flow from operations increased to $413.2 million in 2021 from $384.4 million in 2020[228] - The company believes its liquidity sources are sufficient to meet operating needs for the foreseeable future[242] Acquisitions and Investments - The company utilized approximately $522 million in cash for business acquisitions, including CARWAVE and Auction Frontier[228] - The acquisition of CARWAVE Holdings LLC was completed for approximately $442.0 million, resulting in $373.4 million of goodwill recorded[268] - The acquisition of Auction Frontier, LLC was completed for approximately $92.2 million, resulting in $73.8 million of goodwill recorded[270] Market Conditions and Outlook - The company expects continued volatility in the automotive market due to supply chain disruptions and the impact of the COVID-19 pandemic[167] - The digital marketplace segment, including ADESA, is strategically positioned with over 70 vehicle logistics center locations across North America[172] - The company anticipates that the mobile applications market could expand the total addressable market for dealer-to-dealer transactions to as much as 15 million units[172] Financial Ratios and Metrics - The Consolidated Senior Secured Net Leverage Ratio was 1.8 as of December 31, 2021[240] - Adjusted EBITDA for the year ended December 31, 2021, was $434.2 million, an increase from $375.3 million in 2020, reflecting a growth of approximately 15.6%[254][255] - EBITDA for the year ended December 31, 2021, was $410.2 million, compared to $324.0 million in 2020, representing a year-over-year increase of approximately 26.6%[255][256] Foreign Currency and Interest Rate Impact - Fluctuations in the Canadian exchange rate increased revenue by $20.0 million and operating profit by $6.7 million for the year ended December 31, 2021[187] - Foreign currency losses on intercompany loans were approximately $3.8 million and $4.9 million for the years ended December 31, 2021 and 2020, respectively[286] - A hypothetical 100 basis point increase in short-term rates (LIBOR) for the year ended December 31, 2021 would have resulted in an increase in interest expense of approximately $4.3 million[289] Operational Highlights - The AFC segment served approximately 14,500 dealers in 2021, with loan transactions totaling approximately 1.4 million[173] - ADESA is the second largest used vehicle auction network in North America, facilitating the sale of used vehicles through both on-premise and off-premise marketplaces[342] - As of December 31, 2021, AFC provided floorplan financing through approximately 100 locations across the United States and Canada[343]

Q4 2021 & Annual Earnings Slides February 16, 2022 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 based on management's current expectations, are not guarantees of future performance and 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-lookin ...

KAR Auction Services, Inc. (NYSE:KAR) Q4 2021 Results Conference Call February 17, 2022 8:30 AM ET Company Participants Michael Eliason - Treasurer and VP, IR Peter Kelly - CEO Eric Loughmiller - CFO Conference Call Participants John Murphy - Bank of America Ryan Brickman - JPMorgan Gary Prestopino - Barrington Research Stephanie Moore - Truist Bob Labick - CJS Securities Bret Jordan - Jefferies Daniel Imbro - Stephens Ali Faghri - Guggenheim Operator Good day and thank you for standing by. Welcome to the K ...