Carmax Inc · NYSE:KMX
Carmax — Investor Day (2021)
20 slides from Carmax's investor day presentation, 2021
Slide 1: Analyst Day
Analyst Day
Slide 2: Enrique Mayor-Mora, SVP, Chief Financial Officer
Enrique Mayor-Mora SVP, Chief Financial Officer
Slide 3: Financial Overview
Slide 4: History of Solid Execution with Meaningful Growth Ahead
History of Solid Execution with Meaningful Growth Ahead Omnni-channel transformation has positioned us for accelerated topline growth Continued penetration of largest addressable market within the used auto industry Continued enhancements of digital offerings and use of data, machine learning and Al
Slide 5: Diligent Focus on Efficiency and Effectiveness
Diligent Focus on Efficiency and Effectiveness Improvements driving cost savings and higher sale conversions Enhanced digital capabilities Cloud based platforms, Al and Lower production costs giving enable self progression, driving machine learning improve CEC flexibility to lower retail higher sale
Slide 6: Business Model Generates Exceptional Cash Flow
Business Model Generates Exceptional Cash Flow Cash generation underpinned by strong balance sheet and low debt leverage Provides financial flexibility to aggressively invest in our associates and our businesses, and pursue strategic partnerships and acquisitions
Slide 7: Strong Results Driven by Disciplined Capital Allocation
cARMAX _ | Analyst Day Strong Results Driven by Disciplined Capital Allocation Strategic plan will enable our continued trajectory as a growth company Revenue Earnings per share Billions $22B $5.75 11% CAGR | | | ull $0.00 ill 16% CAGR FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20FY21 FY10
Slide 8: Our Capital Allocation Strategy
Our Capital Allocation Strategy Invest for growth Pursue growth across our core opportunities that businesses meet our investment hurdles Return excess cash to shareholders
Slide 9: Capital Expenditure Priorities
Capital Expenditure Priorities Investing in growth and technology across retail, wholesale and CAF Technology Spend as a % of CapEx 8% “33% FY17 FY18 FY19 FY20 FY21 FY22E
Slide 10: Expanding Our Industry Leading Footprint
Expanding Our Industry Leading Footprint We are further extending our reach and staying close to our customers through new location growth 10 New Locations Targeted in Fiscal 2022
Slide 11: Creating Value by Returning Capital to Shareholders
Creating Value by Returning Capital to Shareholders $5B+ 38% $1.34B share repurchases since share count authorizations program inception in 2013 reduction remaining As a growth company with significant cash generation, we will continue to have capacity to aggressively invest in growth and create inc
Slide 12: Future Expectations
Slide 13: New KPIs to Track Progress on our Path Forward
New KPIs to Track Progress on our Path Forward These new metrics will be used to track our progress on a quarterly and annual basis 1 2 3 4 Percent of Percent of Online SG&A as a Used Units Revenue from Appraisal Percentage of Sold Online Online Buys Gross Profit + Transactions
Slide 14: SG&A as a Percentage of Gross Profit
SG&A as a Percentage of Gross Profit: As we continue to grow and expand into the broader used auto ecosystem, SG&A is supporting more than just our retail business This new metric captures the broader economics of our business model and areas of growth Expected to improve slightly in FY 2022 as we c
Slide 15: Long-Term Nationwide Market Share Growth
Long-Term Nationwide Market Share Growth 0- to 10-Year-Old Vehicles >5% Expected market share growth 50% increase driven by leading position and fromev opportunity to capture the largest 34% 3.4% total addressable market for 31% buying and selling used autos, due to the breadth of our capabilities,
Slide 16: Long-Term Total Unit Sales Growth
Long-Term Total Unit Sales Growth Combined Retail and Wholesale Units Digital transformation investments expected to result 2M 10%+ CAGR in 2 million combined retail and 1am 12M 2 aM a wholesale units sold in fiscal 2026, representing a 70% increase from fiscal 2021 FY18 FY19 FY20 FY21 FY26E Investm
Slide 17: Long-Term Total Revenue Growth
Long-Term Total Revenue Growth Total Revenue $33B Total revenues expected to be aver approximately $33 billion in $208 aoe wa fiscal 2026, representing a $i7e $888 75% increase over the next five years FY18 FY19 FY20 FY21 FY26E Diverse business model positioned for long-term growth
Slide 18: We expect double-digit revenue and unit increases
We expect double-digit revenue and unit increases over the next 5 years, with industry-leading profitability and shareholder value creation through growth and return of capital
Slide 19: Slide 19
Slide 20: SG&A as a Percentage of Gross Profit
SG&A as a Percentage of Gross Profit Non-GAAP Reconciliation Non-GAAP Reconciliation of SG&A Expenses, Excluding Depreciation and Amortization, as a % of Gross Profit (In thousands) FY21 SG&A expenses, as reported 1,898,775 Less: depreciation and amortization 194,356) SG&A expenses, excluding deprec