Car Group Limited · ASX:CAR
Car — Investor Presentation (September 2023)
38 slides from Car's investor presentation, Sep 8, 2023
Slide 1: Trader Interactive Investor Presentation
Trader Interactive Investor Presentation 8 September 2023
Slide 2: Disclaimer and Non-IFRS Information
Disclaimer and Non-IFRS Information Disclaimer What is IFRS and non-IFRS financial information? The material in this presentation has been prepared by carsales.com Limited (ASX: • IFRS financial information is financial information that is presented in CAR) ABN 91 074 444 018 (“carsales") and is gen
Slide 3: Contents
Contents # Section Pages 1 Introduction 4–9 2 Strategic Priorities 10 – 20 3 Dealer and Market Overview 21 – 30 4 Media Strategy 31 – 36 5 Appendix 37 – 38 3
Slide 4: 1. Introduction
1. Introduction 7) (RADER ‘T INTERACTIVE carsales@)com ltd
Slide 5: The Trader Interactive Story
The Trader Interactive Story 1991 1996 2006 2017 2021 2022 Cox Enterprises and Trader Publishing Landmark Media and Cox Eurazeo and Goldman Landmark Media Company launches Enterprises split auto and Sachs acquire come together to form non-auto vehicle non-auto assets, Landmark Dominion Web Trader Pu
Slide 6: Strong Conviction in Growth Potential
Strong Conviction in Growth Potential • Attractive, large market with c.1.3m vehicles listed which is 5x Leadership carsales.com.au listings across huge 1 and attractive • Long-term, favourable structural trends through i) dealers increasing focus on digital marketing channels; and ii) rising RV and
Slide 7: Leadership Across Huge and Attractive Markets
1 Leadership Across Huge and Attractive Markets US non-auto market is significant Trader Interactive has strong brands 25 Vehicle Transactions (m)1 Traffic vs Nearest Competitor2 20 20 RVs Powersports 15 10 5 5x 7x 1 4 0 AU - auto AU - non- auto US Non-auto Auto Non-auto Total addressable market (A$
Slide 8: Significant Future Growth Opportunity
2 Significant Future Growth Opportunity Substantial dealer penetration upside1 Take-rates are low compared to Australia2 8% 80% 6% 60% 40% 4% 20% 2% 0% 0% RV Powersports Trucks Equipment TI - FY16 TI - FY23 carsales - FY23 TI can further diversify revenue contribution3 Future opportunities in adjace
Slide 9: Strong Business Model Driving Performance
3 Strong Business Model Driving Performance Trader Interactive has delivered strong financial outcomes Revenue (USDm) Adjusted EBITDA (USDm)1 180 100 160 90 94 161 80 140 142 81 70 120 125 69 60 100 109 50 80 52 40 60 30 40 20 20 10 0 0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 9 (1) Adjusted financia
Slide 10: 2. Strategic Priorities
2. Strategic Priorities By GRADER carsales@)com ltd
Slide 11: Unrivalled Scale of Marketplaces
Unrivalled Scale of Marketplaces Our network of marketplaces has unrivalled scale generating strong network effects 1.3 million 250 million Vehicles online1 Annual visits2 10,000 11 million Subscribed dealerships3 Monthly unique audience4 4 million 920 million Dealer leads5 Annual page views6 11 (1)
Slide 12: Strong Operating Metrics
Strong Operating Metrics Focus on delivering outcomes for buyers and sellers Traffic volumes have Compelling value Inventory conditions normalised above 2019 proposition with leads continue to improve and are levels in all verticals significantly above 2019 near pre-pandemic levels levels Traffic (v
Slide 13: Rapid Execution Over Last 12 months
Rapid Execution Over Last 12 months carsales adtech implemented in programmatic media Premium Select launched on all verticals Launched digital retailing on Cycle Trader Dynamic pricing launched on private seller ads Lead Amplifier product launched on all verticals $ Yield increase implemented on al
Slide 14: Trader Interactive's Priorities
Trader Interactive’s Priorities • Grow the size and engagement of our audience with the best consumer experience Strong 1 Marketplaces • Deliver superior dealer and customer value through more leads • Extend market leading positions and close gap where we are #2 • Improve the digital sophistication
Slide 15: Strengthen our Marketplaces
1 Strengthen our Marketplaces Our aim is to make buying and selling a great experience Build the best Invest in growing consumer and stronger brands customer experience gest audience at r tra la ct Optimise SEO he Best in class performance user experience s t $ Increase and Increasingly enhance paid
Slide 16: Dealer Growth Priorities
2 Dealer Growth Priorities Strategy is to grow our value proposition which will support future dealer acquisition and yield growth Enhance Value Proposition Grow Dealer Subscription Volumes • Grow lead volumes faster than our competitors - leads are up • Dealer penetration is c.30%3 41% on pre-pande
Slide 17: Private Seller
3 Private Seller The private-to-private market opportunity is The dynamic pricing engine is driving yields significant Market Volume1 Yield1 TAM • Historically, charged one flat fee regardless of inventory value 800k x $150 = $120m • Dynamic pricing has been launched on all verticals to more closely
Slide 18: Media Opportunity
4 Media Opportunity Large upside opportunity through a more sophisticated and dedicated approach to media The total addressable We will grow a direct sales TI Media revenue per visit is market 6x the size of the team to engage OEMs and 5x lower than Australia Australian auto market1 Agencies Media T
Slide 19: Digital Transactions
5 Digital Transactions Digital Trade-ins Digital Retailing We have built a motorcycle valuation tool The consumer demand for a digital retail is very strong in bikes and are adding dealers to the platform with a high number of low value transactions Willingness to buy online1 Dealer to Consumer sale
Slide 20: Future Horizons – Marine & Data
6 Future Horizons – Marine & Data The marine TAM is one of the largest in the TI portfolio1 Opportunity to expand data and services $1.7bn $1.0bn • Trader Interactive has a data business that collects $0.7bn industry sales information to produce reports similar to the Australian new car sales report
Slide 21: 3. Dealer and Market Overview
3. Dealer and Market Overview
Slide 22: RV Market Overview
RV Market Overview Good outlook for the RV industry RV buyer demographic is changing Annual RV shipments (000)1 700 • Generational shift underway as buyers of RVs trend younger 600 • Also becoming more diverse with an increase in female participation 500 • Buyers who purchased RVs during the pandemi
Slide 23: RV Market Overview
RV Market Overview RV Inventory Types Key Players – nearly 100 brands % TI Market Shape Type Description Price Brand Owner listings share Class A Truck chassis or Berkshire $80k - $150k+ 10% 20% commercial bus Hathaway Converted Thor Industries 13% Class B conventional van / $75k - $125k 5% Mkt Cap:
Slide 24: Powersports Market Overview
Powersports Market Overview Growing powersports market Motorcycle buyer demographics are changing North American Total Powersports market (US$bn)1 • Surging demand for lifestyle assets and Increasing interest in off- 22.4 road adventure activities is driving popularity of powersports 21.2 vehicle ow
Slide 25: Powersports Market Overview
Powersports Market Overview Key Powersports Inventory Types Key Players % TI Market Shape Type Description Price Brand Owner listings share High-performance Sport NYSE: HOG motorcycles for $2k - $20k+ 10% 25% bikes Mkt Cap: $5bn high-speed riding Low seats, often Cruisers reclined for TYO: 7267 $2k
Slide 26: Trucks Market Overview
Trucks Market Overview Strong growth in registered trucks Supported by favourable market dynamics • Trucks are a critical component of the US economy Trucking Transport companies (000)2 • Rise of e-commerce has increased transport and truck demand 180 • Increases in construction activity also expect
Slide 27: Trucks Market Overview
Trucks Market Overview Truck Inventory Types Key Players % TI Market Shape Type Description Price GVWR Brand Owner listings share Light Duty Light Duty Light trucks Ford Classes 29% including SUVs $5k - $30k+ <14k lb 53% Mkt Cap: $48bn 1-3 and pick-up trucks GM 22% Mkt Cap: $46bn Medium trucks inclu
Slide 28: Equipment Market Overview
Equipment Market Overview Demand for equipment underpinned by Key Equipment Inventory Types construction tailwinds % TI Shape Type Description listings • Strong rebound in both non-residential and residential construction following significant challenges during the pandemic Vehicle for mechanising •
Slide 29: Dealer Acquisition Strategy
Dealer Acquisition Strategy Dealer whitespace is substantial with large volume of dealers to be acquired Heat Map of Key Dealer Acquisition Target States Acquisition Strategy States with States with few dealers many dealers 1 Segmenting sales teams by vertical with dedicated new business and account
Slide 30: Dealer Yield Growth Strategy
Dealer Yield Growth Strategy Focus on increasing premium product take-up and dealer education Upsell Dealers Into Increase Depth Maximise TI Value Premium Packages Product Offering Attribution Advance dealers through inventory Expand on success of Premium Select Ensure optimum attribution of TI tier
Slide 31: 4. Media Strategy
4. Media Strategy By GRADER carsales@)com ltd
Slide 32: Media Strategy
Media Strategy 1 2 3 4 Grow direct sales Expand media Explore Diversify customer team to engage OEMs product set and implementation base into non-vehicle and Agencies capability of key technologies advertising market • Develop and grow sales • Implement key media • Improve programmatic • Attract dig
Slide 33: Grow Direct Sales Team
1 Grow Direct Sales Team There are more than 300 vehicle advertisers with large addressable markets Motor- RVs cycles Trucks Equipment $1.3bn $1.5bn $1bn $1bn Key brands Key brands Key brands Key brands 33 Total addressable markets are carsales management estimates based on the marketing spends of O
Slide 34: Expand Media Product Set
2 Expand Media Product Set Trader Interactive can increase product capability by implementing key products from carsales RVTrader app today Carsales Australia product set Homepage Buyout Native Ads Creative Native Video Partnerships Branded Content 34
Slide 35: Explore Key Technology Programs
3 Explore Key Technology Programs carsales has a suite of technologies that can enhance TI’s media offering Programmatic • Implementation of programmatic best- 1• Using match, advertisers can match • ignition enables advertisers to plan, create, practice into Trader Interactive websites their first-
Slide 36: Diversify Customer Base
4 Diversify Customer Base Significant opportunity to expand offering to broader advertising market US Advertising Market Forecast (USDbn)1 Key Focus Markets Digital Traditional 467 Automotive 440 413 386 101 97 356 CAGR: 5% 323 89 93 Travel & tourism 85 80 CAGR: 9% 365 Accessories & apparel 343 320
Slide 37: 5. Appendix
5. Appendix 7) (RADER ‘T INTERACTIVE carsales@)com ltd
Slide 38: Total Addressable Markets
Total Addressable Markets Volume Yield TAM Country Segment (m) (AUD) (AUDm) B2C 2.0 250 500 Digital Retailing 0.15 700 105 Dealer Digital trade-in 0.45 500 225 Finance 0.1 490 50 Non-auto - - 200 Private 1.8 100 175 Media - - 800 Data & Services - - 500 Australia Total 2,555 RV 0.8 667 500 Powerspor