Slide 1: Investor Presentation June 2021
Inve s t o r P r e s e n t a t i o n June 2021
Slide 2: Disclaimer
Disclaimer 2 Investor Presentation – June 2021 This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between Cazoo Holdings Ltd. (the “Comp
Slide 3: Disclaimer: Industry and Market Data; Non-IFRS Measures
Disclaimer 3 Investor Presentation – June 2021 Industry and Market Data This presentation has been prepared by Cazoo and Ajax and includes market data and other statistical information from sources believed by Cazoo and Ajax to be reliable, including independent industry publications, governmental p
Slide 4: Our mission: to transform the car buying experience
O u r m i ss i on To transform the car buying experience across the UK and Europe. 4 I n v e st o r Pre s e n t a t io n – J u n e 2 0 2 1 Investor Presentation – June 2021 4 We make getting your next car no different to ordering any other product today…where consumers can simply & seamlessly purcha
Slide 5: Key investment highlights
Key investment highlights (1) Run - Rate revenues as of Mar 21. c.£500bn market across the UK & EU ripe for digital disruption Unique proposition and brand with market - leading execution Proprietary data and technology underpin growth & profitability Fully integrated model in the UK, with in - hous
Slide 6: Our progress so far
Our progress so far Vehicles sold 25,000+ Subscribers 6,500+ Employees Vehicles available c.3,000 2,000+ Note: Vehicles sold and Subscribers since launch in Dec 19, as of May 21. Employees, Inventory and Strategic Deals as of May 21. Run - Rate revenues as of Mar 21. Run - Rate Revenues £550m+ Strat
Slide 7: Transaction summary
Transaction summary Note: This presentation assumes 1.379 GBP to $1 exchange rate, which represents the closing exchange rate on 29 March 2021. (1) Total value including secondary. (2) Total shareholder ownership post transaction. (3) Any redemptions will impact the value of secondary proceeds. Seco
Slide 8: Market Opportunity
Market Opportunity 8 Investor Presentation – June 2021
Slide 9: US peers highlight scale of opportunity
Note: Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of future results. (1) Q1’2017 Retail Units Sold for Carvana, Q1’2020 Ecommerce Units sold for Vroom, Q2’2021 Units Sold for Cazoo. Cazoo expects to exceed Carvana IPO sale
Slide 10: Cazoo has created the most comprehensive market offering
Cazoo has created the most comprehensive market offering I n cu m b en t s Brand leadership Online only retail Own refurb/logistics Fully digital finance Market leading NPS National coverage Delivery & collection In - house servicing Subscription offering New car inventory 10 Investor Presentation –
Slide 11: The UK & Europe have many advantages over the US
The UK & Europe have many advantages over the US • 2 . 0x e - c o mmer c e p en et r a t i o n / adoption in the UK vs US (1) • 1 . 5 x c a r p u rc h a s e t u rno v e r / frequency in the UK vs US (2) • 7.5x population density in the UK and 3.5x in Europe vs US reduces logistics challenges (3) • T
Slide 12: Huge market opportunity
H u g e m ar k e t o pp o r t u n i t y … £480bn+ ~£310bn ~ £ 150b n ~ £ 110b n ~ £ 40b n Used Cars Clothing Furniture Cosmetics & Toiletries Consumer El e c t ro n ic s Used cars is the largest retail market with a total size of ~£500bn across the UK & EU (1) £ 100b n + £ 3 80b n + £480bn+ UK EU TA
Slide 13: Ripe for digital disruption
…ripe for digital disruption (1) OC&C estimate of UK online penetration (defined as where full payment taken on phone or online) in 2020 for retail Used Cars market, other retail markets in the UK in 2020 from GlobalData. (2) OC&C Car Buyer Survey 2021 and analysis, 877 used car buyers / sellers in
Slide 14: COVID has accelerated shift from offline to online
*Source: CarGurus – UK COVID - 19 Sentiment Study COVID has accelerated shift from offline to online Shift to online • 64% of consumers would now buy used cars online (36% pre - COVID)* • Shift to online will continue and be permanent given poor legacy experience • Increased consumer discovery of ne
Slide 15: Company Overview
Company Overview 15 Investor Presentation – June 2021
Slide 16: Better selection, value, quality, flexibility & convenience
Better selection, value, quality, flexibility & convenience for consumers looking for their next car H o w i t w o r ks Delivering the best - in - class proposition & customer experience Fully integrated proposition Thousands of cars purchased using proprietary data and algorithms and reconditioned/
Slide 17: Data & technology at the heart of the business
Data & technology at the heart of the business Bu yin g Operations Selling Demand - led retail back algorithmic buying model provides unique inventory advantage over incumbents In - house refurb capabilities, logistics network and data - driven team, tools and infrastructure to optimise operations P
Slide 18: Very strong brand identity with 69% national UK brand awareness
Very strong brand identity with 69% national UK brand awareness (1) already (1) Source: March Kantar Brand Tracker. 18 Investor Presentation – June 2021
Slide 19: Hard to replicate vertically integrated infrastructure
Hard to replicate vertically integrated infrastructure R ef ur b i s h me n t Capacity C u s t o mer Centres Delivery I n f r as t ru c t ur e 5 lo c a t ions 1 7 o p en 1 5 0 + si ngl e c ar tr a n s p o rt e rs 200 k + c a r s p er a nnum (c.£2.5bn estimated revenue from UK alone) 25+ future 25+ m
Slide 20: Set up for scale with market-leading operations & logistics
Set up for scale with market - leading operations & logistics 20 Investor Presentation – June 2021
Slide 21: Building trust with our leading online car buying experience
Building trust with our leading online car buying experience NPS Score c.80 Repeat Intent 88% Would recommend to friends & family 98% Source: Q1 CX 2021 Survey, Trustpilot. 21 Investor Presentation – June 2021
Slide 22: Led by one of Europe's most successful serial founders & entrepreneurs
Led by one of Europe’s most successful serial founders & entrepreneurs A world - class team with an unrivalled track record Alex Chesterman OBE, Founder & CEO Nico Polleti EU Managing Director 22 Investor Presentation – June 2021 Rachael Malcolm, Group Strategy Director S tep hen M or a n a , Group
Slide 23: The UK market leader set for European expansion
Th e U K m ar k e t l ea d e r se t fo r Euro p ea n e x p a ns i on Record setting growth • £550m run - rate revenue after 1 4 mo n ths (1 ) • Revenue continues to grow month - on - month 23 Investor Presentation – June 2021 Market - leading brand • Leading marketing deals including Premier League
Slide 24: European expansion: first target countries
Full Cazoo p ro p o s i t io n launched Existing subscription, fu ll p ro p o s i t io n by end 2021 Existing subscription, f u ll p ro p o s i t io n by end 2021 Full Cazoo p ro p o s i t io n in 2022 Full Cazoo p ro p o s i t io n in 2022 Source: OC&C estimate for Europe and UK retail Used Cars ma
Slide 25: Executing game-changing M&A
Executing game - changing M&A Accelerating the move in house of refurb capabilities • Less reliance on third - party suppliers • Team of c.500 vehicle prep experts providing key organic growth Increases UK National Coverage • Acquisition provides the addition of 4 prep centres / inventory storage si
Slide 26: Leading European car subscription player
Already a leading European car subscription player with 6.5k+ subscribers across UK, France and Germany And subscription provides opportunity to increase TAM & margins (1) CAC defined as customer facing marketing spend divided by total retail and subscription orders. T h e c u s to m e r proposition
Slide 27: High confidence in continuously improving metrics
High confidence in continuously improving metrics (1) Retail GPU defined as retail and ancillary gross profit divided by retail units sold. (2] CAC defined as customer facing marketing spend divided by total retail and subscription orders. • Greater online adoption • Growing inventory levels • Incre
Slide 28: Company Financials
Company Financials 28 Investor Presentation – June 2021
Slide 29: Financial highlights
Financial highlights Vehicles Sold (1) 2 5 , 000 + Run - Rate Revenue (2) £ 55 0 m + QoQ Revenue Growth (3) 52 % Gross P rofit (4) Positive Note: 2020 financial information and data is unaudited, based on draft statutory accounts, and subject to change. (1) Total vehicles sold since inception in Dec
Slide 30: Strong order growth drives attractive financial profile
F Y 2 1 - 24 CAGR Strong order growth drives attractive financial profile Revenues by channel (£m) Note: Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of future results. (1) Other revenues includes ancillary, subscription an
Slide 31: Robust unit economics drive operational leverage
Robust unit economics drive operational leverage UK Europe Note: Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of future results. (1) GP margin not representative as all of Europe 2021E gross profit is from subscription; Eur
Slide 32: Clear pathway to significant revenue growth and strong profitability
Clear pathway to significant revenue growth and strong profitability 32 Investor Presentation – June 2021 Note: Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of future results. Dec YE financials (£m) 2020A 2021E 2022E 2023E
Slide 33: Robust operational and financial KPI performance
Dec YE KPIs 2020A 2021E 2022E 2023E 2024E Units s ol d ( k) (1) 14,981 57,986 172,557 311,977 445,414 33 Investor Presentation – June 2021 Retail 12,097 43,442 127,829 234,214 324,347 Wholesale 2,884 14,544 44,728 77,763 121,067 T o tal GPU (£ ) (2) (238) 1,024 1,245 1,710 2,299 By Segment Retail (3
Slide 34: Strong start to Q1, high confidence in 2021 delivery
St r o n g s t a r t to Q 1 , h i gh c o n f i d e n ce i n 2 0 21 d e l iv ery Note: Financial information and data is unaudited and subject to change. Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of future results. Units
Slide 35: Key investment highlights
Investor Presentation – June 2021 Key investment highlights (1) Run - Rate revenues as of Mar 21. 3 5 c.£500bn market across the UK & EU ripe for digital disruption Unique proposition and brand with market - leading execution Proprietary data and technology underpin growth & profitability Fully inte
Slide 36: Appendix
Appendix 36 Investor Presentation – June 2021
Slide 37: Cazoo projects best-in-class growth relative to comparable companies
21E - 23E R ev en u e CAGR 21E - 23E GP CAGR 2022E & 2023E GP Margin 8 % 9 % 53 % 53 % 10 % 16 % 16 % 10 % 44 % 44 % 138 % 35 % 52 % 24 % 18 % C a z o o C a r va n a V r oom High Growth Internet¹ Inventory Carrying E - Comm.² 200 % 38 % 72 % 27 % 18 % Cazoo projects best - in - class growth relative
Slide 38: Cazoo exhibits a truly differentiated financial profile
Cazoo exhibits a truly differentiated financial profile All North - America listed tech companies 800+ companies Source: FactSet as of 14 May 2021, Company model. Note: Cazoo figures converted from GBP to USD at conversion rate of 1.379 USD/GBP. $3bn Revenue 22E Scale 284 public companies Scale >$1,
Slide 39: Cazoo's growth trajectory closely matches Carvana's proven profile
Cazoo’s growth trajectory closely matches Carvana’s proven profile Revenue Estimates ($m) 2020 2023E Gross Profit Estimates ($m) Note: These forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of future results. Source: Company In
Slide 40: Cazoo's valuation is attractive on a growth-adjusted basis
2022E EV / Revenue 2022E EV / GP 2023E EV / Revenue 2023E EV / GP 1.3 x 2.6 x 0.8 x 3.6 x 1.7 x 0.9 x 1 7. 1 x 9.7 x 1.5 x 7.4 x 12.7 x 16.1 x 7.2 x 8.7 x 4.8 x 6.3 x 32.3 x 26.7 x 10.1 x 42.0 x 2.5 x 3.5 x 1. 1 x 4.0 x 1.9 x C a z o o C a r va n a V r o om High Growth Internet¹ Inv. Carrying E - Co
Slide 41: Near term penetration levels in UK imply $25bn+ revenue potential
Near term penetration levels in UK achieved in TAM imply $25bn+ in revenue potential 20 2 5 F TAM A ss u me d M a r k e t Penetration Implied Revenue ~£120bn ~£510bn ~£630bn ~3.0% ~3.0% ~3.0% ~£4bn ~£15bn ~£19bn UK E U Note: These forward - looking projections are for illustrative purposes and shoul
Slide 42: In a highly fragmented industry
… i n a h i g h l y fra g m en t e d i n d us t ry There are ~180k dealerships across the top 10 markets in Europe (1) & no dealer group has >5% market share (2) Source: Company annual reports, IBIS World, DeStatis, Eurostat, ICDP, Xerfi - Le Journal de L'automobile, IFA, OC&C analysis. (1) OC&C Mar
Slide 43: Financials split by region
Financials split by region 43 Investor Presentation – June 2021 Note: Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of future results. Dec YE financials (£m) 2020A 2021E 2022E 2023E 2024E R eve n u e - UK 162 681 1,789 3,018
Slide 44: Overview of Ajax I
Overview of Ajax I Source: Company information. (1) Subject to early release if shares trade at or above $12.00 (as adjusted) for 20 out of 30 - trading day period beginning 150 days post business combination. A Unique and Differentiated Investor - Operator Value Proposition Lower Cost of Capital wi
Slide 45: Why we believe in the Cazoo opportunity
W h y w e b e l iev e i n t h e Ca z o o oppo r t u n i t y Why w e b el i eve in the story • Unique proposition and brand with market - leading execution • Clear leader & significant head start in Europe’s most attractive market • World - class team led by one of Europe’s most successful founders W
Slide 46: Build up of Cazoo financials
B u i l d u p o f Ca z o o fi n a n c ia l s 2 0 2 0 A Los s for t h e Y e a r from Continuing Operations Adjustments 2020A A dj u s t e d E B I TD A Loss for the year from continuing operations 2020A ( £ m ) (98.9) Tax credit ( 1 . 0 ) Finance income ( 0 .5) Finance expense 1 .3 Depreciation (1) 5.