Carvana Co. · NYSE:CVNA
Carvana — Investor Presentation (June 2017)
16 slides from Carvana's investor presentation, June 2017
Slide 1: Introduction to Carvana
Slide 2: Important Notice: Forward-Looking Statements
OCARVANA IMPORTANT NOTICE Forward-Looking Statements, Forward-looking statements include all statements that are not historical facts. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes
Slide 3: Important Notice: Non-GAAP Financial Measures
OCARVANA IMPORTANT NOTICE Non-GAAP Financial Measures This presentation contains the financial measure EBITDA margin, adjusted net loss and adjusted net loss per share which are not recognized under U.S. Generally Accepted Accounting Principles (“GAAP”). They should not be considered substitutes for
Slide 4: 4
4
Slide 5: Massive, Fragmented Market
OCARVANA MASSIVE, FRAGMENTED MARKET INDUSTRY OVERVIEW Auto is... Massive Fragmented & Ripe for Disruption e $1.1Tn $710 Bn 1.6% 81% Ised Car " — Dealerships } in 2015 US. Sales ® in 2015 US. Used Car Sales U.S. Market Share of Consumers Do Not Enjo} Largest Dealer Brand the Car Buying Process © i} 9
Slide 6: Digital Economy Is Transforming Car Buying
MASSIVE, FRAGMENTED MARKET =] ec A R VA NA DIGITAL ECONOMY IS TRANSFORMING CAR BUYING 97. 73. Sd: of customer would test drive purchases consider —= >> only one involve —> purchasing i vehicle research “) a car online 2) (1) Capgemini 2014 Cars Online report (2) Accenture 2015 Automotive Digital Sur
Slide 7: Superior Customer Experience
@CARVANA SUPERIOR CUSTOMER EXPERIENCE CARVANA'S VISION IS FOCUSED ON PROVIDING OUR CUSTOMERS WITH: Best Experience 10 minutes - time in which purchase can be completed after vehicle Best Value $1,430 in average savings per vehicle selection compared to KBB As soon as Next Day Suggested Retail Value
Slide 8: Delivering Superior Customer Experience
DELIVERING SUPERIOR CUSTOMER EXPERI 4.8 4250+) kkk hk Rating Customer, Reviews.on ~~
Slide 9: Proven Go-to-Market Strategy
OCARVANA PROVEN GO-TO-MARKET STRATEGY PROVEN GO-TO-MARKET STRATEGY Repeatable Market Entry Playbook Proven by Success in Existing Markets 14% Activate Team of Connect to A Mis 1.0% Expansion Advocates Logistics Network 09% Nashville Vending Machine Launch osx © Atlanta . . © Nashvill Market Launch C
Slide 10: Vertical Integration & Fulfillment
OCARVANA VERTICAL INTEGRATION & FULFILLMENT LEVERAGING SELF-OPERATED FULFILLMENT NETWORK Premium Fulfillment Capabilities Control over delivery times enables seamléss customer experience Delanco, NJ Speed of delivery drives conversion Carvana Logistics Cehitralized it Network Bre selection + Inspect
Slide 11: Financial Highlights: Retail Units and Total Revenue
OCARVANA FINANCIAL HIGHLIGHTS RETAIL UNITS AND TOTAL REVENUE Quarterly Retail Unit Sales Quarterly Total Revenue ($ Millions) 12,000 $250 10,500 ; $203 10,000 | $200 10,000 fon] 8,334 $193 8,000 $159 $150 6,000 5,600 $107 — $100 S22 4,355 $87 4000 _ 3,783 ga $50 2,000 - $- Q12016 —Q22016 = Q32016. =
Slide 12: Financial Highlights: Total GPU & EBITDA Margin
FINANCIAL HIGHLIGHTS TOTAL GPU & EBITDA MARGIN OCARVANA FY 2014 $(201) Total Gross Profit per Unit $1,023 FY 2016 FY 2015 Q12017 Q22017E 0.0% FY 2014 5.0% -10.0% -15.0% -20.0% -25.0% -30.0% 32.24 '-35.0% EBITDA Margin FY 2015 FY 2016 Q12017, Q22017E * Q2 2017E points represent high and low end of to
Slide 13: Financial Results & Outlook as of June 6, 2017
Q1 2017 Financial Results & Outlook as of June 6, 2017 Summary of Q1 Results Q2 and Fiscal 2017 Outlook* We achieved significant unit and revenue growth in Q1 2017, coupled with increased For Q2 2017, we expect: total gross profit per unit. All financial comparisons are versus Q1 2016, unless otherw
Slide 14: Significant Growth Opportunities
@CARVANA SIGNIFICANT GROWTH OPPORTUNITIES Develop New Products Improve Brand Awareness Innovate and Extend Technology =) Leadership Enter New Key Geographical Drive Revenue Markets Growth in Existing Markets
Slide 15: Appendix
APPENDIX
Slide 16: Net Loss to EBITDA Reconciliation
OCARVANA Q1 2017 NET LOSS TO EBITDA RECONCILIATION Q1 2017 Q4 2016 Q1 2016 FY 2016 FY 2015 FY 2014 Net Loss $ (38,439) $ (35,694) $ (17,325) $ (93,112) $ (36,780) $ (15,238) Depreciation & Amortization Expense 2,061 1,638 866 4,658 2,800 1,706 Interest Expense 2,059 1,356 710 3,587 1,412 108 EBITDA