Car Group Limited · ASX:CAR
Car — H1 FY2025 Earnings Presentation
38 slides from Car's earnings presentation, Feb 10, 2025
Slide 1: Half year ended 31 December 2024
Half year ended 31 December 2024
Slide 2: Disclaimer and Non-IFRS Information
Disclaimer and Non-IFRS Information Disclaimer The material in this presentation has been prepared by CAR Group Limited (ASX: CAR) ABN 91 074 444 018 (“CAR Group") and is general background information about CAR Group’s activities current as at the date of this presentation. The information is given
Slide 3: Agenda
Agenda 1 2 3 4 H1 FY25 Financial Operating Appendices Highlights Performance Segments Page 4 - 16 17 - 22 23 - 32 33 - 38 3
Slide 4: 1. H1 FY25 Highlights
1. H1 FY25 Highlights AI generated image
Slide 5: Financial Highlights
Financial Highlights CAR Group delivers excellent H1 FY25 financial results Proforma Revenue Reported NPAT 2 Adjusted NPAT 3 Proforma EBITDA 1 1 $548m $302m $177m $123m 12% 9% 12% 9% 12% 9% 5% in CC4 in AUD in CC4 in AUD in CC4 in AUD in AUD $579m 55% 47cps 1.8x Reported Revenue Proforma EBITDA marg
Slide 6: Track Record of Growth
Track Record of Growth Proforma Proforma Revenue1 EBITDA1 13% CAGR 13% CAGR ($AUDm) ($AUDm) 548 302 487 270 422 231 367 202 330 187 H1 FY21 H1 FY22 H1 FY23 H1 FY24 H1 FY25 H1 FY21 H1 FY22 H1 FY23 H1 FY24 H1 FY25 Adjusted Adjusted NPAT2 EPS3 13% CAGR ($AUDm) 24% CAGR (cents) 47.0 177 43.2 163 34.6 12
Slide 7: Operational Highlights
Operational Highlights Strong operational metrics reflect the strength of our global marketplaces 2.4 million 49 thousand 9 billion Vehicles online1 Subscribed dealers2 Page views3 634 million 48 million 11 million Total sessions4 Unique audience Dealer leads per month5 delivered6 All arrows show ch
Slide 8: Our Global Portfolio
Our Global Portfolio Australia North America LATAM Asia Brands Key Contribution1 Revenue 42% 27% 18% 12% of Group of Group of Group of Group Revenue Revenue Revenue Revenue International (1) Revenue contribution adds to 100% when investments segment is included. 57% of Group Revenue 8
Slide 9: CAR Group Strategy
CAR Group Strategy Our Purpose To make buying and selling a great experience Our Vision To create #1 digital marketplaces for vehicles around the world Our Focus Areas Building seamless Investing in new digital experiences growth opportunities Our Drivers People Sustainable Growth Investing in attra
Slide 10: Our Global Priorities
Our Global Priorities We have a clear set of priorities across our global marketplaces Market Expand the leadership positions of our online marketplaces Leadership 1 Digitising Remove friction points in the vehicle buying and selling process 2 Services 3 Depth Deliver value for sellers through new p
Slide 11: Key Highlights
Key Highlights Market Leadership Spotlight on Brazil National Expansion Maintained significant market leadership1 across the Monthly traffic vs #23 Group H1 FY25 7.0x 3.0x Average 3.3X Jan-23 Jun-23 Nov-23 Apr-24 Sep-24 Dec-24 #2 #2 Dealer Lead Generation 6.9x 3.3x Sao Paulo & Rest of Brazil Rio de
Slide 12: Key Highlights
Key Highlights Digitising Services Depth Seamless finance integration with Santander and strong credit Guarantee inspections provide consumers with increased availability driving finance contract growth confidence in car quality and improved gross margin for dealers Guarantee ad 5X yield vs Standard
Slide 13: Key Highlights
Key Highlights Private Spotlight on C2C Payments Car buying steps Verified $30m $ Own Sellers1 of payments Search Pricing Inspection/ Trade-in Transact Own Test Drive Oct-24 Nov-24 Dec-24 Jan-25 in 4 months since launch carsales strength New opportunities Verified Buyers1 Insurance Finance Oct-24 No
Slide 14: Key Highlights
Key Highlights Media Expansion Spotlight on US media Delivering on revenue diversification strategy through strong media growth with further upside to come US Direct Media Launched in-house media agency Unique Direct Grow Direct Revenue Media Customers Sales Team This allows us to: • Attract investm
Slide 15: Key Highlights
Key Highlights Leveraging generative AI across the Group to deliver enhanced consumer Future Horizons experiences, process efficiency and improved trust and safety Natural language and predictive search • AI powered agent to prequalify AI spam and fraud lead blocker dealer leads to protect private s
Slide 16: Multiple Marketplace Growth Drivers
Multiple Marketplace Growth Drivers Australia International North America Latin America Asia Segment Dealer Private Media Auto Non-Auto Auto Volume New customers Premium ad Traditional Auto diversification Dealer penetration Yield Yield penetration Growth Drivers Native ads Product expansion Product
Slide 17: 2. Financial Performance
2. Financial Performance AI generated image 17
Slide 18: Segment Performance
Segment Performance Revenue and earnings growth in all key segments $AUDm H1 FY24 H1 FY25 AUD % CC %1 Australia Australia2 214 232 9% 9% Delivering consistent revenue and earnings growth through North America 137 148 8% 9% sustained market leadership, a strong customer value proposition, new product
Slide 19: P&L Summary
P&L Summary $AUDm H1 FY24 H1 FY25 AUD % CC %1 Revenue 531 579 9% 12% P&L Overview Operating expense 1 (254) (277) (9%) (13%) • Excellent revenue and EBITDA growth. • D&A largely comprises costs associated with software Adjusted EBITDA 277 302 9% 12% assets, leases and building fit outs. Growth refle
Slide 20: Proforma EBITDA Margin Summary
Proforma EBITDA Margin Summary Maintained group margins while investing to drive future growth Australia - Small margin improvement alongside continued product Latin America – Margin expansion driven by strong revenue growth investment to drive growth. Key investments included site along with sustai
Slide 21: Strong Cash Flow and Robust Balance Sheet
Strong Cash Flow and Robust Balance Sheet Cashflow conversion Leverage, net debt Capex 95% EBITDA to cash conversion Leverage ratio remains prudent Capex investment continues to support reflects the attractive working capital at 1.8x. growth. Key investments include C2C profile of marketplace busine
Slide 22: FY25 Outlook
FY25 Outlook Outlook Statement We expect to deliver good growth in Proforma Revenue, Proforma EBITDA and Adjusted NPAT on a constant currency basis in FY25. Margin We expect to see similar Proforma EBITDA margins in FY25. Australia Observations International Observations Dealer North America • We ex
Slide 23: 3. Operating Segments
3. Operating Segments AI generated image 23
Slide 24: Australian Market Observations
Australian Market Observations Consumer intent – Are you looking to buy?1 Consumer intent – Have you ever considered purchasing an electric vehicle? 1 28% 27% 56% 48% 11% 42% 38% 17% New or Used 34% 30% New 55% 62% Used Jun-22 Nov-22 May-23 Jan-24 May-24 Nov-24 Jan-22 Dec-24 Used car prices2 Dealer
Slide 25: Australia
Australia Consistent market leadership and strong consumer $AUDm vs pcp% engagement driving performance in all segments Revenue 232m 9% Dealer • Increases in lead volumes, yield and depth penetration were the key growth Adjusted EBITDA drivers. 150m 9% • Depth products delivering excellent value in
Slide 26: North America Market Observations
North America Market Observations RV & Powersports Registrations1 Vertical Average website traffic vs pcp3 Light & Heavy Truck Sales2 800 H2 FY24 H1 FY25 600 Registrations thousands 400 (1%) (8%) 200 RV 0 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY24 H1 FY25 1,200 H2 FY24 H1 FY25 Registrations thousands 8
Slide 27: North America
North America Business model strength in more challenging market conditions for recreational vehicles $AUDm vs pcp% North America Highlights Revenue • Resilient result given challenging market conditions in recreational verticals. 148m 8% Commercial markets remain robust. Adjusted EBITDA • Strong de
Slide 28: Brazil Market Observations
Brazil Market Observations Central Bank interest rate1 Credit granted to individuals for vehicle acquisition2 % R$, billions 13.75% 13.75% 13.75% 13.25% 94 12.75% 12.25% 11.75% 87 10.75% 10.50% 10.75% 72 74 71 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Jan-25 H1FY21 H1FY22 H1FY23
Slide 29: Latin America
Latin America Strong operational execution including roll out of new products and regional expansion, delivers excellent financial performance $AUDm vs pcp% CC % Latin America Highlights Revenue • Outstanding first half financial performance underpinned by audience growth and an 97m 11% 30% extensio
Slide 30: Korea Market Observations
Korea Market Observations Korea used car transactions1 Korea new car transactions1 Bank of Korea Interest Rate2 million million +3% 3.50% 3.50% 3.50% +1% +2% 3.73 3.76 3.83 -4% +3% -6% 1.71 1.76 3.25% 1.65 3.00% CY22 CY23 CY24 CY22 CY23 CY24 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 (1) Source: Koreal Mini
Slide 31: Asia
Asia Increasing adoption of premium and digital retailing products $AUDm vs pcp% CC % Revenue Korea Highlights 65m 10% 15% • Excellent growth in revenue and EBITDA driven by premium product penetration, yield increases and continued increase in Home delivery Adjusted EBITDA transactions. 29m 6% 12%
Slide 32: Driving Long Term Shareholder Value
Driving Long Term Shareholder Value CAR Group has multiple growth opportunities across large addressable markets Clear leadership Digitising Underpenetrated Transferrable, Strong cash flows positions in each vehicle international scaled IP and with robust of our markets transactions markets technolo
Slide 33: 4. Appendices
4. Appendices AI generated image 33
Slide 34: Overview of CAR Group Non-IFRS Financial Information
Overview of CAR Group Non-IFRS Financial Information What is IFRS and non-IFRS financial information? • Non-IFRS financial information is calculated based on statutory IFRS financial information and adjusted to show • IFRS financial information is financial information that is either a position excl
Slide 35: Segment Details
Segment Details Proforma Adjusted $AUDm H1 FY24 H1 FY25 AUD % CC % H1 FY24 H1 FY25 AUD % CC % Dealer 106 117 10% 10% 106 117 10% 10% Media 49 52 6% 6% 49 52 6% 6% Private 34 38 10% 10% 34 38 10% 10% Online Advertising 189 207 9% 9% 189 207 9% 9% Data, Research and Services 24 25 5% 5% 24 25 5% 5% Au
Slide 36: Reconciliation of Adjusted to Reported Financials
Reconciliation of Adjusted to Reported Financials A. Restructuring and M&A costs includes costs associated with $AUDm H1 FY24 H1 FY25 Tyres closure, South Korea IPO process and debt refinance. Adjusted NPAT 163 177 B. Gain on lease modification from change in fair value of Restructuring and M&A cost
Slide 37: Exchange Rates
Exchange Rates H1 FY24 Closing H1 F25 Closing FX Rates Average 31 December 2023 Average 31 December 2024 AUD / USD 0.65 0.68 0.66 0.62 AUD / KRW 859.1 881.1 910.0 913.0 AUD / BRL 3.21 3.30 3.76 3.84 AUD / CLP 569.9 597.9 620.3 615.0 37
Slide 38: Total Addressable Markets
Total Addressable Markets Volume Yield TAM Country Segment (m) (AUD) (AUDm) B2C 2.0 250 500 Digital retailing 0.2 700 110 Dealer Digital trade-in 0.5 500 225 Finance 0.1 490 50 Non-auto - - 200 Private 1.8 100 175 Media - - 800 Data & Services - - 500 Australia Total 2,560 RV 0.8 667 500 Powersports