Slide 1: Full year results presentation, year ended 31 March 2018
Full year results presentation Year ended 31 March 2018 7 June 2018
Slide 2: Disclaimer
Disclaimer Not for publication, transmission, distribution or release, directly or indirectly, in or into any jurisdiction in which the publication, transmission, distribution or release of this document would be unlawful. By attending the meeting where this presentation is made or by reading this d
Slide 3: Financial highlights
Financial highlights* + 7% Revenue: up 7% to £330.1 million (2017: £311.4 million) + 10% Operating profit: up 10% to £220.6 million (2017: £203.1 million) 67% acquisition Operating profit margin: up 2% points to 67% (2017: 65%). Operating cost growth of 2%, much of which relates to the of Motor Trad
Slide 4: Key drivers
Key drivers +£149 ARPR: up £149 to £1,695 on average per month (2017: £1,546), with growth from product, price and stock + 1% Physical car stock on site: up 1% to 453,000 cars (2017: 450,000) on average - 1% Retailer forecourts: the average number of forecourts in the period was 13,213 (2017: 13,296
Slide 5: Revenue
Revenue Number of retailer forecourts (1) YoY% 0% (2%) (1%) Revenue (£m) Year ended March 2018 is shown as 2018 10% 9% 7% 330.1 10% 311.4 Average Revenue Per Retailer (ARPR) (£) (1) (2) 281.6 (5%) YoY £132 £162 £149 £ pcm +12% +9% 8% Retailer revenue (£m) YoY% 11% 10% 9% Trade revenue comprises: Con
Slide 6: ARPR growth underpinned by new packages and prominence products
ARPR growth underpinned by new packages and prominence products ARPR levers Physical car stock and retailer forecourts Growth in Average Revenue Per Retailer per month (£) YoY average 2% 0% (2%) (1%) retailers (£) £71 £132 £162 £149 YoY average live 7% 3% 3% 1% physical car stock Inflated due to tim
Slide 7: Costs
Costs FTEs (including contractors)(2) YoY% (6%) (4%) - Costs (£m) Year ending 31 March 2018 is shown as 2018 859 824 824 Year-on- (9%) (5%) 2% year growth 2016 2017 2018 112.0 109.5 (17%) Marketing as a % of revenue 108.3 2.5 3.7 10.6 4.5 8.0 7.1 (10%) 32.5 30.7 31.3 5.6% 3% 5.1% 4.9% 15.7 16.0 16.3
Slide 8: Profit and cash flow
Profit and cash flow Operating profit (£m) Cash generated from operations (£m) Year ended 31 March 2018 is shown as 2018 Year ended 31 March 2018 Year-on- 27% 18% 10% year growth 300 80% 3.3 4.9 67% 7.1 65% 70% 250 60% 60% 200 50% 150 40% 226.1 220.6 30% 220.6 100 203.1 169.6 20% 50 10% 0 0% 2016 20
Slide 9: Income statement
Income statement Year ended Year ended Year-on-year March 2018 March 2017 % growth* Revenue 330.1 311.4 7% Administrative expenses (109.5) (108.3) (2%) Operating profit 220.6 203.1 10% Finance costs – net (9.8) (9.7) (2%) Profit before taxation 210.8 193.4 10% Taxation (39.5) (38.7) (3%) Profit for
Slide 10: Net external debt and capital allocation
Net external debt and capital allocation Reconciliation of net external debt (1) (£m) Capital allocation 1.65x Leverage (2) 1.46x • On 6 June 2018, the Group’s Syndicated Term Loan, which was due to mature in March 2020, was refinanced as the Group signed into a new 5 year £400 million revolving cre
Slide 11: UK car market
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Slide 12: Used car transactions remain near record highs but have slowed
The number of used car transactions remains near record highs but there has been a slowdown over the past 12 months New car registrations (1) Used car transactions (2) 9.0 35% 3.0 50% 8.0 30% 2.8 40% Number of used car transactions (m) 25% Number of new car registrations (m) 2.6 30% 7.0 YoY growth f
Slide 13: We expect marginal declines in used car volumes for 2018
We expect marginal declines in used car volumes for 2018 Used car transactions 8.5 Used car transactions (million) 8.0 8.1 8.0 7.9 7.9 7.9 7.5 7.7 7.5 Likely expectation 7.3 is for a 1-3% decline 7.0 7.2 in 2018 7.1 7.0 7.0 7.0 6.9 6.5 6.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 14: UK car parc continues to grow despite fewer used car transactions
Despite the decrease in used car transactions, the UK car parc continues to grow, supportive of our stock based business model 1 2 3 The UK car parc is in long term growth Consumers change their car every three …of which c.25% are new car sales and because cars are lasting longer and years or so (le
Slide 15: An increase in price growth suggests less stock in market
An increase in price growth suggests less stock in market Auto Trader Retail Price Index Like-for-like 3% 2% 5% price growth (%) 14
Slide 16: Key drivers
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Slide 17: Our position as market leader is unchanged with audience engagement remaining strong
Our position as market leader is unchanged with audience engagement remaining strong Share of visits vs. main competitor set (1) Auto Trader vs. 3X 6X 20X 29X (Average pcm - million) competitors 2018: Auto Trader Gumtree Pistonheads Motors.co.uk CarGurus 70% Motors 60% 50% 40% Gumtree retagging 30%
Slide 18: Our position as market leader is unchanged with audience engagement remaining strong
Our position as market leader is unchanged with audience engagement remaining strong Total minutes spent in March 2018 (millions) Percentage of Auto Trader audience that do not visit a particular competitor site 694 90% 86% 75% 69% 155 121 22 51 Auto Trader Gumtree Other Manufacturer Dealer Sites* G
Slide 19: Product growth underpinned by launch of Advanced and Premium packages
Product growth has been underpinned by a successful launch of our Advanced and Premium packages in April Starter Basic Standard Advanced Premium Improve visibility of your stock on Boost your ad views with our Enjoy the greatest share of desktop ad views Engage your buyers through the Stand out and
Slide 20: Managing products: i-Control and Retail Check
Managing products: i-Control and Retail Check Number of forecourts with one of our Managing products Physical car stock from forecourts with a Managing product Average number in the month of March. Trade stock number (000s) – March 2018 Year ended 31 March 2018 is shown as 2018 Penetration 14% 19% 2
Slide 21: New products launched for manufacturers
New products launched for manufacturers Search API Auto Trader 360˚ image app InSearch video for new Enabling manufacturers to Enabling manufacturers to control cars empower their digital marketing their imagery within their network Helping manufacturers agencies to design used car by launching our
Slide 22: 2019 outlook
2019 outlook = AutoTrader
Slide 23: The 1st April pricing event has gone well and we have monetised Dealer Finance
The 1st April pricing event has gone well and we have monetised Dealer Finance in line with our expectations New products added to all of our packages Monetised Dealer Finance Retailers paying for Dealer Finance, average April 2018 Starter Engage your buyers through the essentials of modern online r
Slide 24: 2019 outlook
2019 outlook In April, we successfully monetised our Dealer Finance product and executed our annual pricing event. These events, combined with continued upsell onto higher level packages and further penetration of Managing products, will deliver higher levels of price and product ARPR growth in
Slide 25: Q&A
Q&A = Autotrader
Slide 26: Appendices
Appendices = Autotrader
Slide 27: Cash flow statement
Cash flow statement Year ended Year ended March 2018 March 2017 £m £m Profit before tax 210.8 193.4 Depreciation and amortisation 7.1 8.0 Share-based payments charge (exc NI) 3.3 4.0 Finance costs - net 9.8 9.7 Changes in working capital (4.9) (2.2) Cash generated from operations 226.1 212.9 Tax pai
Slide 28: Automotive marketplace
Automotive marketplace £ 2.4m (QB \ = >>>>>> tememedect >>> >>> > ~ ——— Cd (2.9m > >>> [ crooner \ * to-consumer | \ twansactions / re vsedcarsalee T7>>>>>>>>>> (now andused) LORE Shisedewes” € 846 Qcciccccccecees Sad >>> Business areales tobusinesses >>>>>>297 Fleet &lease customers PSwry Commercia
Slide 29: Notes
Notes = AutoTrader 28
Slide 30: Notes
Notes = AutoTrader 29
Slide 31: a AutoTrader
a AutoTrader