Carvana Co. · NYSE:CVNA
Carvana — Merger or Acquisition (April 2022)
17 slides from Carvana's merger presentation, April 2022
Slide 1: ADESA U.S. Acquisition Deck
ADESA U.S. Acquisition Deck APRIL 2022
Slide 2: Safe Harbor
SAFE HARBOR FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Carvana's current expectations and projections with respect to, among other things, our ab
Slide 3: ADESA U.S. Transaction Summary
ADESA U.S. TRANSACTION SUMMARY CARVANA TO ACCELERATE GROWTH THROUGH ACQUIRING ADESA U.S. PHYSICAL AUCTION BUSINESS (“ADESA U.S.”) FROM KAR AUCTION SERVICES, INC. (“KAR”) • On February 24th, 2022, Carvana announced a definitive agreement to acquire ADESA U.S., a wholly owned subsidiary of KAR, subjec
Slide 4: Overview of ADESA U.S. Physical Auction Business
OVERVIEW OF ADESA U.S. PHYSICAL AUCTION BUSINESS BUSINESS OVERVIEW FULL SUITE OF AUCTION SERVICES Dealer Registration 2nd largest provider of wholesale used vehicle PRE-SALE Vehicle Inspections auction solutions to a broad set of commercial and dealer customers Vehicle Storage & Security Merchandisi
Slide 5: Transaction Summary
TRANSACTION SUMMARY ACQUIRED SITE LOCATIONS CARVANA TO ACQUIRE ADESA U.S.’S PHYSICAL AUCTION BUSINESS Total Purchase Price of $2.2BN $1BN estimated future CAPEX investment to achieve targeted production capacity Funded via a combination of committed financing provided by JPMorgan Chase Bank N.A. and
Slide 6: Strategic Rationale
STRATEGIC RATIONALE 1 FURTHER SOLIDIFIES OUR PATH TO BECOME THE LARGEST AND MOST PROFITABLE AUTOMOTIVE RETAILER 2 INCREASES ANNUAL IRC PRODUCTION CAPACITY BY APPROXIMATELY 2M UNITS ONCE FULLY BUILT OUT 3 DRAMATIC LOGISTICS IMPROVEMENTS OVER TIME DRIVEN BY BROADENED GEOGRAPHIC COVERAGE, SHORTENING IN
Slide 7: Becoming the Largest, Most Profitable Auto Retailer
1 BECOMING THE LARGEST, MOST PROFITABLE AUTO RETAILER MORE ADESA U.S. SALES ACQUISITION MORE INVENTORY SHORTER Increases IRC production DELIVERY TIMES capacity by ~2M at full utilization MORE IRC’S 56 nationwide locations Better customer experiences and cost savings CARS ARE CLOSER TO CUSTOMERS >78%
Slide 8: Accelerates Path to Becoming Largest, Most Profitable Auto Retailer
1 ACCELERATES PATH TO BECOMING LARGEST, MOST PROFITABLE AUTO RETAILER RETAIL MARKET 3.53% UNITS PENETRATION 2013 cohort 51% 2013 Cohort 74% YoY 425,237 SOLD Growth BY COHORT YoY growth 2014 Cohort 2.52% 2015 Cohort 1.76% 2016 Cohort 244,111 1.37% 2017 Cohort 177,549 1.26% 1.35% 2018 Cohort 1.03% 0.9
Slide 9: Increased IRC Production Capacity
2 INCREASED IRC PRODUCTION CAPACITY EXPECTED IRC CAPACITY AT FULL UTILIZATION CARVANA EXISTING IRC (EOY)* FOOTPRINT + ACQUIRED SITES 3.2M Increased incremental IRC capacity ~2.3x to over 3M 1.4M 1M 0.8M+ FY 2021 Q1'2022 Post-ADESA Future Capacity Carvana IRCs - Launched Carvana IRCs - Under Construc
Slide 10: Logistics Efficiencies Broaden Coverage
3 LOGISTICS EFFICIENCIES BROADEN COVERAGE POPULATION COVERAGE (% OF US POPULATION) 94% SHORTER DELIVERY DISTANCES LEAD 78% TO EVEN BETTER CUSTOMER EXPERIENCES 58% 56% • Unlocks opportunity for same day and next day delivery to more customers than ever before 32% 32% • Lower risk of delivery delays •
Slide 11: ...and Improve Unit Economics
3 …AND IMPROVE UNIT ECONOMICS LOGISTICS ENABLED COST SAVINGS SHORTER DISTANCE = SAVINGS • Increased customer conversion • Faster inventory turn times • Lower inbound transport & logistics costs • Lower shipping costs to customers Average delivery distance TOTAL EXPECTED SAVINGS OF ~$750 PER UNIT < 2
Slide 12: Deeper Vertical Integration with Incremental Revenue Streams & Positive EBITDA Contribution
4 DEEPER VERTICAL INTEGRATION WITH INCREMENTAL REVENUE STREAMS & POSITIVE EBITDA CONTRIBUTION National Consumer Retail Marketplace Focused Brand Large-scale Reconditioning ~1M wholesale units Over $800M revenue Over $100M EBITDA* Enables full suite of services to comprehensively service fleets, OEMs
Slide 13: Appendix
APPENDIX © carvana
Slide 14: Non-GAAP Measures
NON-GAAP MEASURES To supplement the financial measures prepared and presented in accordance with U.S. Generally accepted accounting principles (“gaap”),we also include non-gaap measures in this presentation, including EBITDA and EBITDA Margin. EBITDA and EBITDA Margin are supplemental measures of op
Slide 15: Carvana Non-GAAP Financial Reconciliation
CARVANA NON-GAAP FINANCIAL RECONCILIATION 15
Slide 16: Carvana Non-GAAP Financial Reconciliation
CARVANA NON-GAAP FINANCIAL RECONCILIATION 16
Slide 17: ADESA U.S. Non-GAAP Financial Reconciliation
ADESA U.S. NON-GAAP FINANCIAL RECONCILIATION 17