Car Group Limited · ASX:CAR
Car — Shareholder Meeting (October 2023)
35 slides from Car's shareholder meeting presentation, Oct 27, 2023
Slide 1: 2023 AGM Presentation
2023 AGM Presentation 27 October 2023
Slide 2: Agenda
Agenda 1 2 3 4 Performance Financial Operating Strategy Summary Review Segments Update Review 3 - 11 12 - 16 17 - 23 24 - 33 2
Slide 3: 1. Performance Summary
carsales (@)com lid 1. Performance Summary
Slide 4: Delivering Strong Shareholder Returns
Delivering Strong Shareholder Returns carsales (CAR) Total Shareholder Return (TSR) v S&P ASX200 Total Return Index (AXNT)1 900% carsales (ASX:CAR) S&P ASX200 800% 784% 700% 600% 500% 400% 300% 200% 172% 100% 0% 4 (1) Total Shareholder Returns (TSR) includes dividends paid and share price appreciati
Slide 5: FY23 Financial Summary
FY23 Financial Summary • Outstanding financial performance with 18% proforma1 revenue growth, 19% proforma1 EBITDA growth and margin expansion to 53% • Excellent progress on strategic priorities and continued investment in long-term growth initiatives • Creating substantial value through delivery of
Slide 6: FY23 Operational Metrics
FY23 Operational Metrics Excellent operational metrics reflect strength of our global marketplaces Marketplace Highlights Dealer Highlights Consumer Highlights 2.2 million 48 thousand 18 billion Vehicles online1 Subscribed dealers2 Page views3 1.2 billion 410 thousand 11x more preferred Total sessio
Slide 7: Market Opportunity
Market Opportunity We operate in large markets with significant opportunity for future long-term growth Market Share (revenue / TAM) $2.6 billion Market Share $3.2 billion $2.0 billion 1 9% 4% FY15 FY23 $2.5 billion 1 7 Refer to slide 41 of FY23 results presentation for calculation methodology. (1)
Slide 8: Strong US Growth Since Acquisition
Strong US Growth Since Acquisition Key Revenue Synergies Being Delivered Revenue Growth Has Increased Revenue (USDm) and Growth vs pcp (%) by Half October Lead Amplifier 2022 Revenue (USDm) Growth v pcp • Audience extension product with 75% dealer uptake • Price of 99USD per month +16% • Delivering
Slide 9: Strong webmotors Progress
Strong webmotors Progress National expansion driving increased audience and new initiatives gaining traction National Expansion Dynamic Pricing Private Ad Yield Investment in increasing brand presence is yielding strong benefits • Dynamic pricing engine 12% implemented mid-June Curitiba (Pop. 3.7m)
Slide 10: Delivered Compelling Double-Digit Growth Over 16 Years Through Different Economic Cycles
Delivered Compelling Double-Digit Growth Over 16 Years Through Different Economic Cycles Highly resilient and Group Proforma Financial Performance (AUDm) countercyclical business model 46% growth Revenue EBITDA through pandemic 1,000 • carsales is more geared to used vehicle buy & sell transactions
Slide 11: Positive Outlook for FY24
Positive Outlook for FY24 Four months into the new financial year we are very pleased with how the company continues to perform, which gives us confidence in the reiteration of the outlook statement provided in August: Outlook statement Proforma Basis We expect to deliver good growth in Revenue and
Slide 12: 2. Financial Review
carsales @)com ltd 2. Financial Review
Slide 13: Strong Track Record of Growth
Strong Track Record of Growth Proforma Proforma Revenue1 ($m) EBITDA1 ($m) 496 942 820 428 386 698 619 640 330 312 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Adjusted Adjusted NPAT ($m) EPS2 (cents) 278 78.1 195 66.5 153 58.4 130 138 53.6 50.6 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Slide 14: P&L Summary
P&L Summary Actual Basis $A Millions FY22 FY23 Growth % • Very strong increase in revenue and EBITDA reflects strong underlying Revenue 509.5 781.0 53% double-digit growth and the consolidation of Trader Interactive and webmotors in FY23 Operating expense 238.4 356.1 49% Adjusted EBITDA 271.2 424.9
Slide 15: Segment Performance
Segment Performance Delivering double-digit revenue and earnings growth in all key segments Proforma Basis $A Millions FY22 FY23 Growth % • Australia – excellent revenue and EBITDA result driven by continuing to provide a compelling value proposition for our Australia2 351.7 399.1 13% customers. Ref
Slide 16: Strong Cash Flow and Robust Balance Sheet
Strong Cash Flow and Robust Balance Sheet Cash flow conversion Leverage2 and net debt Capex • Good conversion of EBITDA to cash • Net debt and leverage ratio increase • Key investments in digital retailing reflects the attractive working capital reflects incremental debt drawn down and trade-in, dyn
Slide 17: 3. Operating Segments Review
3. Operating Segments Review
Slide 18: Strong Marketplace Metrics
Strong Marketplace Metrics +15% +21% +49% +2% Traffic1 FY19 FY23 FY19 FY23 FY19 FY23 FY19 FY23 +10% +41% +10% +57% Leads FY19 FY23 FY19 FY23 FY19 FY23 FY19 FY23 250 1.5 200 500 Inventory2 200 1.0 150 400 150 100 100 300 0.5 50 000s m 000s 000s 0 0.0 50 200 Nov-20 Oct-21 Oct-21 Apr-21 Mar-22 Jul-20 M
Slide 19: Australia - carsales
Australia - carsales Excellent execution on key priorities supported by strength and resilience in the used car market Financial summary Performance commentary $A millions FY22 FY23 % • Outstanding FY23 result with double digit growth in Dealer, Private and Media segments Dealer 183.8 203.0 10% Priv
Slide 20: North America - Trader Interactive
North America - Trader Interactive Outstanding first year of full ownership with strong progress on synergies driving growth Financial summary (proforma) Performance commentary FY22 FY23 % • Strong financial performance reflects delivery of new product, acquiring new customers and investing in techn
Slide 21: Latin America - webmotors
Latin America - webmotors Excellent financial performance with strong growth in all key areas and margin expansion Financial summary (proforma) Performance commentary FY22 FY23 % • Excellent financial performance in Brazil reflecting strong execution of the national expansion plan driving lead volum
Slide 22: Asia - Encar
Asia - Encar Continued execution on penetrating premium products driving good growth Financial summary Performance commentary FY22 FY23 % • Good growth in revenue and EBITDA which was a pleasing result given tight credit market conditions experienced throughout the Revenue 79.3 88.2 11% KRWb year Ad
Slide 23: Latin America & Investments
Latin America & Investments Latin America ex. Brazil1 Investments FY22 1 FY23 % Revenue 6.1 8.0 31% Revenue 56.5 60.9 8% 1 AUDm CCm EBITDA (1.3) (1.3) (1%) EBITDA (1.9) (3.0) n.m. • Strong growth in revenue reflects increasing customer penetration • Solid revenue result reflects double-digit growth
Slide 24: 4. Strategy Update
carsales @)com ltd 4. Strategy Update
Slide 25: Our Global Priorities
Our Global Priorities We have a clear set of priorities across our global marketplaces 1. Market 2. Digital Leadership Retailing Expand the Increase digitisation leadership positions of the vehicle of our online buying and selling marketplaces process 3. Dynamic 5. Future 4. Media Pricing Horizons C
Slide 26: 1. Market Leadership
1. Market Leadership Expand the leadership positions of our online marketplaces Lead vs. #21 Lead vs. #22 7.5x 5.4x Increased marketing Continued focus on organic investment, expanding traffic generation and inventory choice and new investment in Dealer Direct product delivery driving brand drove si
Slide 27: 2. Digital Retailing
2. Digital Retailing Increase digitisation of the vehicle buying and selling process Our strategy is to adapt key digital retailing features to cater to local market’s conditions $ Car buying steps Search Fixed Price Inspection Trade-in Finance & Payment Delivery Own NEW NEW > 4mil monthly > No-hagg
Slide 28: 3. Dynamic Pricing
3. Dynamic Pricing Alignment of price to value in the most structured and automated way • carsales continued rollout of new pricing engine features, with area-based pricing (metro/rural) recently launched • Implemented value-based dynamic pricing in Trader Interactive and webmotors which is driving
Slide 29: 4. Media
4. Media Connect advertisers to our audience through the most sophisticated data products Australian double-digit growth continues and adtech is being leveraged into international markets New audience match Agency re-brand is We are deploying technology is increasing driving new customer Australian
Slide 30: 5. Future Horizons
5. Future Horizons Leverage insights and trends to explore new ideas and opportunities In-house product Adjacent International carsales development and marketplace M&A early-stage innovation opportunities opportunities investments • Our culture of innovation • Explore horizontal and • Invest in high
Slide 31: Artificial Intelligence
Artificial Intelligence AI supports innovation to drive customer experience and efficiency to deliver improved productivity Our Artificial Intelligence Strategy Enrich the Consumer Enhance Security, Trust Optimise Engineering Experience & Safety & Processes • Deploy artificial intelligence to make •
Slide 32: Sustainability
Sustainability We are committed to driving improvement across our Sustainability focus areas Environment Social Governance • Published our first TFCD report in • Certified as a Great Place to Work for • Implemented subsidiary boards with FY23 the sixth year in a row and independent directors in each
Slide 33: How carsales Creates Shareholder Value
How carsales Creates Shareholder Value carsales presents a highly compelling investment proposition with multiple growth large opportunities across large addressable markets 1 2 3 4 5 Clear leadership Digitising Underpenetrated Transferrable, Strong cash flows positions in each vehicle international
Slide 34: Disclaimer and Non-IFRS Information
Disclaimer and Non-IFRS Information Disclaimer Non-IFRS Financial Information The material in this presentation has been preparation of such statements, actual carsales' results are reported under prepared by carsales.com Limited (ASX: results may vary in a material manner. International Financial R
Slide 35: Thank you
carsales @)com ltd Thank you