Sotheby's Investor Briefing

■ APPENDIX GAAP refers to generally accepted accounting principles in the United States of America. In this presentation, financial measures are presented in accordance with GAAP and also on a non-GAAP basis. Non-GAAP measures are intended to supplement, not substitute for, GAAP comparable measures. Investors are urged to consider carefully the comparable GAAP measures and reconciliations provided herein. Sotheby's defines EBITDA as net income (loss), excluding income tax expense (benefit), interest expense, interest income, and depreciation and amortization expense. Sotheby's defines Adjusted EBITDA as EBITDA, excluding certain charges (benefits) as noted in the following reconciliation. Sotheby's defines Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of total revenues. Sotheby's defines Leverage Ratio as total debt divided by Adjusted EBITDA. • We caution investors that amounts presented in accordance with its definitions of EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Leverage Ratio may not be comparable to similar measures disclosed by other companies because not all companies and analysts calculate such measures in the same manner. Management believes that EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Leverage Ratio provide important supplemental measures of Sotheby's performance and that these measures may be used by securities analysts, investors, financial institutions, and other interested parties in the evaluation of Sotheby's. Management also utilizes EBITDA in analyzing Sotheby's performance and in the determination of annual incentive compensation. # A reconciliation of various GAAP to non-GAAP financial measures follows. Sotheby's 24

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