Sotheby's Investor Briefing
• Market for quality, high-end art rebounded from 2008
financial crisis and remains vigorous
Increased buyer's premium rates in March 2013
Spring 2013 auction season saw sales growth in
Impressionist, Modern, and Contemporary Art
.
STRONG BUSINESS FUNDAMENTALS
Just-completed record-setting Hong Kong sales, up over
100% from prior year. Positive outlook for upcoming Fall
season auctions
■
Strong competition for high-end consignments has
persisted, resulting in lower auction commission margins
from sellers, partially offsetting benefit of buyer's premium
increase
• Commission margins are in line with Sotheby's historic 25
year average, highlighting the Company's ability to
manage margins over time
• Fall season will see increased use of guarantees to
balance risk / reward opportunities
Share price continues to perform well over recent periods;
currently trading near two-year highs
Net Commission Margin Over Time
22%
17%
12%
Share Price Performance
Sotheby's
S&P 400
Average: 16.7%
1989 1992 1995 1998 2001
46.1%
Sotheby's
21.9%
56.0%
sa
25.8%
33.4%
2004 2007 2010 1H
2013
55.1%
144.9%
71.0%
Year-to-Date
1 Year
3 Year
5 Year
Note: Share price performance per Bloomberg, as of September 30, 2013
9View entire presentation