Slide 1: Half year results presentation
Half year results presentation Half year ended 30 September 2021 11 NOVEMBER 2021
Slide 2: Disclaimer
Disclaimer The information and opinions provided in this presentation are provided as of the date of this presentation. Certain statements in this presentation constitute forward looking statements (including beliefs or opinions). Any statement in this presentation that is not a statement of histori
Slide 3: Strategic overview
Strategic overview We have achieved our highest ever six-monthly revenue and profits Consumer engagement and retailer numbers are at record levels, our competitive position has strengthened and product uptake by customers has been strong In April 2021, we launched our Retailer Stores product as part
Slide 4: Financial results
Financial results Revenue: up 82% to £215.4 million (H1 2021: £118.2 million) and up 15% on H1 2020 (£186.7 million). Trade revenue £215.4m of £192.3 million up 92% (H1 2021: £100.2 million) and up 19% on H1 2020 (£161.8 million) Operating profit: up 121% to £151.7 million (H1 2021: £68.5 million) a
Slide 5: Operational results
Operational results 69m Cross platform visits: up 20% to 68.7 million per month on average (H1 2021: 57.3 million) Cross platform minutes: up 14% to 633 million per month on average (H1 2021: 557 million). Our share of 633m cross platform minutes remains strong at over 75% (H1 2021: over 75%) and we
Slide 6: Cultural KPIs
Cultural KPIs 92% Employees that are proud to work at Auto Trader remained high at 92% (March 2021: 93%) The percentage of the board who are women remained at 50% (March 2021: 50%). We announced the 50% appointment of Jasvinder Gakhal as an Independent Non-Executive Director to the Board, with effec
Slide 7: Financials
Financials = AutoTrader
Slide 8: Revenue
Average Revenue Per Retailer (ARPR) (£) (1) Revenue Y-on-Y £125 (£745) £933 £pcm -38% 82% Revenue (£m) Six months ended 30 September 2021 is shown as H1 2022 1,951 2,199 1,206 Y-on-Y % 6% (37%) 82% H1 2020 H1 2021 H1 2022 215.4 0% 5.1 186.7 18.0 Number of retailer forecourts (1) 9.0 40% 15.9 Y-on-Y
Slide 9: ARPR, stock and retailers
ARPR, stock and retailers ARPR levers Physical car stock and retailer forecourts Growth in Average Revenue Per Retailer per month (£) Y-on-Y average (0%) 1% 6% retailers (£) £125 (£745) £993 Y-on-Y average 4% 1% (9%) live physical car stock (%) 7% (38%) 82% 15,000 500 640 14,500 450 Live physical ca
Slide 10: Costs
Costs FTEs (including contractors)(2) Y-on-Y % (1%) 12% 5% Costs (£m) Six months ended 30 September 2021 is shown as H1 2022 893 941 Y-on-Y % 2% (11%) 29% 798 H1 2020 H1 2021 H1 2022 65.4 3.6 16% Marketing as a % of revenue 57.1 3.3 50.8 16.2 16% 5.4% 4.9% 3.1 15.6 14.0 10.6 203% 3.0% 10.1 3.5 H1 20
Slide 11: Profit and cash flow
Profit and cash flow Operating profit (£m) Cash generated from operations (£m) Six months ended 30 September 2021 is shown as H1 2022 Six months ended 30 September 2021 Y-on-Y % 9% (48%) 121% 121% 157% 70% 70% 13.0 0.1 58% 3.2 (1.7) 3.6 151.7 169.9 131.4 151.7 68.5 H1 2020 H1 2021 H1 2022 Operating
Slide 12: Income statement
Income statement H1 2022 H1 2021 Year-on-year £ million £ million % Revenue 215.4 118.2 82% Administrative expenses (65.4) (50.8) 29% Share of profit from joint ventures 1.7 1.1 55% Operating profit 151.7 68.5 121% Finance costs – net (1.7) (2.3) (26%) Profit before taxation 150.0 66.2 127% Taxation
Slide 13: Net cash and capital allocation policy
Net cash and capital allocation policy Reconciliation of net cash position (1) (£m) Capital allocation policy The Group’s capital allocation policy remains broadly 169.9 unchanged: continuing to invest in the business enabling (2.2) (1.6) (0.1) (1.0) (27.8) it to grow whilst returning around one thi
Slide 14: UK Car Market
UK Car Market = AutoTrader
Slide 15: Number of new car registrations and used car transactions
There were significant increases in both new and used car sales in Q1 however new car registrations declined in Q2 as supply tightened New car registrations (1) Used car transactions (2) 8.5 330% 3.0 330% 8.0 280% 280% 2.5 7.5 230% 230% Number of used car transactions (m) Number of new car registrat
Slide 16: Exceptional demand and restricted supply led to record used car price growth
Exceptional levels of demand and restricted supply has led to record levels of price growth for used cars Like-for-like 4.4% (0.5%) 6.3% 10.8% price increase 30.0% £16,000 25.0% £15,000 20.0% £14,000 15.0% £13,000 10.0% £12,000 5.0% £11,000 0.0% £10,000 (5.0%) £9,000 (10.0%) Feb Feb Feb Dec Dec May
Slide 17: Continued strength in our audience position
Continued strength in our audience position has been supported by increased overall demand Source of traffic (1) Cross platform visits (1) (Average pcm - million) H1 2021 H1 2022 4% 12% 20% 80.0 4% 5% 70.0 60.0 50.0 40.0 68.7 57.3 30.0 51.2 20.0 96% 95% 10.0 0.0 H1 2020 H1 2021 H1 2022 Non-paid % Pa
Slide 18: Product Update
Product Update = AutoTrader
Slide 19: Annual pricing event in April 2021, introducing Retailer Stores
We executed our annual pricing event in April 2021, introducing Retailer Stores, creating a digital forecourt experience on Auto Trader Retailer Stores offer retailers their own dedicated, customisable location on Auto Trader and we have seen over 28m visits to these pages in H1 2022 Provides a digi
Slide 20: Evolved advertising packages and launched Market Extension
We have evolved our advertising package structure and launched a new product, Market Extension The package structure change gives a consistent cross-platform search experience powered by a relevancy algorithm Market Extension allows retailers to sell outside their Ultra Get ultra visibility with dou
Slide 21: Instant Offer connected with Guaranteed Part-exchange
We have connected our Instant Offer product with Guaranteed Part-exchange (‘GPX’), creating an additional source of stock for retailers via Dealer Auction Customers who subscribe to GPX, have access to our B2B auction platform, Dealer Auction, where the vehicles acquired through Instant Offer are au
Slide 22: Progress on products and platform to buy and sell online
We continue to make progress on our products and platform to enable consumers and retailers to buy and sell online Search Reserve Part-exchange Finance Delivery Market Extension Early trials with Instant offer and Point of sale and B2B and B2C launched and over c.100 successful GPX launched with app
Slide 23: Outlook
Outlook = AutoTrader
Slide 24: Outlook
Outlook The Board is confident for the second half of the year. The majority of revenues are recurring in nature and most of the significant growth events for the year have been successfully delivered in the first half. Notable events were our annual pricing event, the launch and initial uptake of n
Slide 25: Q&A
Q&A — C4) me] 5 P= je) ~~ 2 < L}
Slide 26: Appendix
Appendix = AutoTrader
Slide 27: UK car parc declined through 2020, average holding time rising to 4.2 years
The UK car parc declined through calendar year 2020, with the average time people hold their car increasing to 4.2 years UK Car Parc Frequency of transactions (years) Total number of transactions (millions) 36.0 3.0 NCRs UCTs 35.0 4.2 2.0 34.0 New / (scrapped) - million 3.5 3.5 3.5 3.5 3.4 3.4 3.3 3
Slide 28: Reduced retailer churn, higher share of smaller forecourts
We saw reduced levels of retailer churn in the last 12 months, leading to a higher percentage of smaller sized forecourts in our customer base Distribution of customers by stock bands (1) 12-month rolling average: New & churn retailers (1) 50% 280 45% 260 40% 240 35% 220 Volume of retailers 30% % of
Slide 29: Cashflow statement
Cashflow statement H1 2022 H1 2021 £ million £ million Profit before tax 150.0 66.2 Depreciation & amortisation 3.6 3.1 Share-based payments charge (excl. associated NI) 3.2 1.8 Share of profit from joint ventures (1.7) (1.1) Finance costs - net 1.7 2.3 Other non-cash items 0.1 0.1 Changes in workin
Slide 30: Notes
Notes = Autotrader 30
Slide 31: Notes
Notes = Autotrader 3
Slide 32: a AutoTrader
a AutoTrader = Autotrader