Cl8 Holdings Limited · ASX:CL8
Cl8 — H1 FY23 Earnings Presentation
36 slides from Cl8's earnings presentation, Feb 27, 2023
Slide 1: The Future of Car Ownership: H1 FY23 Results & Investor Presentation
Car Subscription The Future of Car Ownership H1 FY23 Results & Investor Presentation 27 February 2023
Slide 2: Disclaimer
Disclaimer The material herein is a presentation of non-specific background information about the current activities of Carly Holdings Limited (Carly Holdings or the Company). It is information given in summary form and does not purport to be complete. All persons should seek appropriate professional
Slide 3: Market Opportunity
Market Opportunity The Ideal Large The Company Solution Opportunity Carly Holdings is innovating in Carly, Australia’s first flexible car 38% of Australians would the rapidly evolving automotive subscription service launched in consider subscribing to a car and mobility markets in Australia. March 201
Slide 4: Why Carly?
Why Carly? Direct & Partnership Experience Strong Growth Model 10+ years’ experience in the Carly generates income from its own Carly is delivering automotive industry - fleet of vehicles and by supporting strong growth leveraging proprietary technology other industry players to access the despite C
Slide 5: What Is A Carly Car Subscription?
What Is A Carly Car Subscription? A fast, flexible and low-risk way for individuals and businesses to access quality new and used vehicles online for 30 days + ● one simple monthly subscription fee ● includes registration, insurance, maintenance and roadside assistance ● exclusive car use ● no break
Slide 6: Subscription Fills a Major Gap In the Mobility Market
Subscription Fills a Major Gap In the Mobility Market Cost Car Share 5.4 months 1 hr – 1 day Average subscription period Car Rental (Dec 2022) 1 – 14 days Car Subscription Outright Purchase & 30 days – 2 years Long-term Finance 2+ years Time 6
Slide 7: The Time is Right for Carly
The Time is Right for Carly Shift from Car Rise in Use of Electric Vehicle Uptake of Multiple Ownership to Access Subscription Services Opportunity Mobility Solutions Ownership is increasingly From mobile phones to The adoption of electric Individuals and businesses being seen as a burden as on-dema
Slide 8: Our Report Card
Our Report Card Despite Covid-19 lockdowns and severe impacts on vehicle supply Carly, has achieved significant improvements in key revenue, expense and fleet size metrics 45% Decrease 69% Increase 261% Increase in Net 80% decrease in Revenue in Gross Profit Cash Used in Marketing Cost / Operating S
Slide 9: Strong Growth in Revenue
Strong Growth in Revenue Revenue Transaction Value % Revenue / Transaction Value How Did We Achieve Increased the proportion of owned vehicles, achieved high vehicle utilisation and retained customers for 5+ months These Results? 9
Slide 10: Revenue and Profit per Subscription Continue to Grow
Revenue and Profit per Subscription Continue to Grow As Carly grows, it is delivering material increases in revenue and gross profit though successful implementation of price increases, upselling to higher value subscription plans and retaining more profit from owned & leased vehicles. The results b
Slide 11: Lifetime Value Continues to Grow
Lifetime Value Continues to Grow Through a range of fleet, pricing and operational activities, Carly is increasing the average value derived from each subscription while acquiring customers at lower cost. A higher proportion of owned & leased vehicles will support continued growth in Revenue & Gross
Slide 12: FY23 Focus & Achievements
FY23 Focus & Achievements Securing Supply and Improving Conversion & Electric Vehicles Increasing Revenue Pathway to Profitability Acquisition Costs Subscription is an ideal Carly has established a Continued focus on Carly continues to optimise model to introduce hybrid vehicle supply model expandin
Slide 13: This is What We Do
This is What We Do Marketing Consumer Market Online discovery Carly Owned Fleet Payments ● Purchase ● Lease ● Finance ID verification Sales Customer service Business Market Third Party Fleet ● Automotive manufacturers Fleet management ● Automotive dealers Insurance ● Ex-lease ● Strategic partners Dat
Slide 14: We Give Customers Flexibility
We Give Customers Flexibility Car Subscription is suitable for any person or business seeking flexible access to vehicles for medium term periods. Often it is not possible or desirable to commit to a long term vehicle purchase or finance - the sensible alternative is car subscription. Get the car yo
Slide 15: Customers Want Car Subscription
Customers Want Car Subscription Carly commissioned Omnipoll to survey the attitude of Australians to car subscription. The research indicates there is a strong appetite for flexible access to cars via car subscription in Australia, particularly amongst younger generations. People who would consider
Slide 16: Business & Government
Business & Government Carly Subscription provides a fast and flexible way for businesses to access quality new or used vehicles at short notice. Whether a business needs just one car, or a whole fleet, it can easily scale subscriptions up or down depending on its changing needs Carly is also the onl
Slide 17: We Are Smart About How We Grow Our Fleet
We Are Smart About How We Grow Our Fleet Carly seeks to maximise speed of growth and establish a sustainable competitive advantage by utilising a hybrid fleet strategy which incorporates an owned fleet of vehicles (asset heavy) and vehicles provided by third parties (asset light). This strategy ensu
Slide 18: Using Asset Finance to Accelerate Growth
Using Asset Finance to Accelerate Growth Carly has demonstrated that it can secure asset finance facilities, acquire vehicles in a timely manner despite supply constraints and swiftly monetise the vehicles. The primary objective for Carly in CY 2023 is to secure materially larger asset finance facil
Slide 19: Car Subscription is Expanding Globally
Car Subscription is Expanding Globally Global car subscription market is expected to grow at 35% CAGR - to reach US$100 billion by 20321 % % % 40 10 15 2027 CAGR of private & of new car sales in By 2027 the 2023 - 2032 in the Asia corporate new US and Europe are Independent/ Third Pacific Market veh
Slide 20: Carly is Part of a Global Trend
Carly is Part of a Global Trend Global car subscription market is expected to grow at 35% CAGR to reach US$100 billion by 20321 Total Funding Equity Funding Debt Funding Company1 Operations Founded €m €m €m Finn Germany & US 2019 844 144 700 Onto UK 2017 330 n/a n/a Planet427 South Africa & Mexico 2
Slide 21: The Electric Vehicle Opportunity
The Electric Vehicle Opportunity Carly is an enabler for the transition to electric vehicles - creating ‘try before you buy’ opportunities to remove uncertainty about new technology and accelerate adoption Subscription is an ideal, low risk way for businesses and consumers to trial electric vehicles
Slide 22: Strategic Relationship SG Fleet
Strategic Relationship SG Fleet ● SG Fleet is Carly’s 2nd largest shareholder ● A dominant player in fleet management and leasing, SG Fleet manage about 270,000 vehicles and supply Carly with vehicles ● The B2B collaboration enables SG Fleet to offer subscription services to its customers and derive a
Slide 23: Strategic Relationship Turners Automotive New Zealand
Strategic Relationship Turners Automotive New Zealand Turners subscription is achieving significant traction in New Zealand: ● Turners Automotive is Carly’s 3rd largest shareholder ● Turners Subscription powered by Carly launched in September 2020 ● Growing strongly - 136% increase in total subscrib
Slide 24: Strategic Relationship Hyundai Australia
Strategic Relationship Hyundai Australia ● Hyundai was the fifth largest car brand in Australia in 2022 “ The future of personal mobility will not be based solely around vehicle ownership and Hyundai will adapt to changing consumer demands. Through this partnership we will provide consumers with mor
Slide 25: Fraud Prevention Platform
Fraud Prevention Platform Carly has developed peerpass, a proprietary customer verification platform to assess and verify customers online before gaining access to a vehicle. peerpass assists Carly to reduce risk and improve conversion which delivers more subscribers at lower cost LOWER HIGHER MORE
Slide 26: Car Subscription for Business Exclusive ATO Product Ruling
Car Subscription for Business Exclusive ATO Product Ruling Carly has secured a product ruling from the Australian Taxation Office that provides a clear framework for Carly subscribers using cars for business or work purposes to claim tax deductions. The ATO Product Ruling is exclusive to Carly and doe
Slide 27: ESG & Benefits of Car Subscription
ESG & Benefits of Car Subscription Car subscription is positively positioned relative to Environmental, Social & Corporate Governance (ESG) concerns and opportunities Subscription increases utilisation of existing vehicles • Subscription enables more efficient use of underutilised and dormant vehicl
Slide 28: Carly’s Competitive advantage
Carly’s Competitive advantage 10+ years industry experience Direct and licensing income Substantial industry partnerships Industry enabler, not a competitor Online customer acquisition Asset-light business model supplemented by direct control of vehicle supply Mass market proposition Peerpass verific
Slide 29: Directors & Senior Management
Directors & Senior Management Chris Noone Robbie Blau Todd Hunter Adrian Bunter Stephen Abolakian Michelle Vanzella Chief Executive Officer Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director and Director Chris has a strong Robbie is CEO o
Slide 30: Corporate Overview
Corporate Overview Board, management and As at 24 February 2023 Other Shareholders related parties Shares on issue 204.4 m Options on issue 77.4m 25.51% 27.04% Market capitalisation $4.1m Top Shareholders Willoughby Capital Pty Ltd 24.5% SG Fleet Management Pty Limited 19.3% Turners Automotive Group
Slide 31: 1H23 Results: Profit & Loss
1H23 Results: Profit & Loss 69% Increase in Revenue Consolidated 31 Dec 2022 31 Dec 2021 Variance $ $ Higher Gross Profit driven by more Revenue from continuing operations 880,715 521,346 68.9% Cost of sales (392,977) (386,248) 1.7% subscribers, higher margin from Gross profit 487,738 135,098 261% o
Slide 32: Revenue & Gross Profit Growing Strongly
Revenue & Gross Profit Growing Strongly For the half-year, ending December 2021, a pro forma adjustment has been made for the accounting of depreciation of vehicles as a cost of sale. Consistent with the FY22 Annual Report, depreciation associated with vehicles was not included as part of cost of sa
Slide 33: 1H23 Results: Cash Flows
1H23 Results: Cash Flows 45% Decrease in Cash Used Consolidated 31 Dec 2022 31 Dec 2021 $ $ Variance 22% increase in Receipts from Cash flows from operating activities Customers Receipts from customers 1,714,436 1,405,017 22.0% Payments to suppliers and employees (2,750,011) (3,027,618) (9.2%) Inter
Slide 34: 1H23 - Statement of Financial Position
1H23 - Statement of Financial Position 70% Increase in Net Assets Consolidated 31 Dec 2022 30 Jun 2022 Variance $ $ CURRENT ASSETS Cash and cash equivalents 1,618,188 805,407 100.9% Trade and other receivables 105,904 248,921 (57.5%) Other current assets 178,869 74,855 139.0% Total Current Assets NO
Slide 35: Why invest in Carly?
Why invest in Carly? Carly is creating new ways to access Carly is the only ASX-listed business vehicles that consumers and businesses are focusing on the sizeable car subscription demanding in a global market forecast to opportunity in Australia and New Zealand grow to US$100 billion p.a. by 2032 A
Slide 36: W: https://investors.carly.co/ E: shareholder@carly.co Sign up to our investor newsletter
W: https://investors.carly.co/ E: shareholder@carly.co Sign up to our investor newsletter https://investors.carly.co/investor-relations/newsletter/ 36